B.10/07: Initial monitoring and accountability framework for accredited entities (progress report)

The Board, having reviewed document GCF/B.10/Inf.11 Initial Monitoring and Accountability Framework for Accredited Entities (Progress Report):

1. Notes the need for ongoing monitoring of compliance with the Green Climate Fund’s (the Fund) fiduciary standards, environmental and social safeguards, and gender policy;
2. Decides that the accreditation of an entity to the Fund is valid for a fixed term of five years or less, depending on the terms of accreditation;
3. Also decides that the Board will decide whether an entity is to be re-accredited, based on the assessment conducted by the Secretariat and the Accreditation Panel;
4. Further decides that the initial monitoring and accountability framework will focus on compliance with the Fund’s environmental and social safeguards, fiduciary standards, and gender policy, and will comprise at least four compliance checks of the accredited entities and activities financed by the Fund as follows:
   
   1. Annual self-reporting to the Secretariat by the accredited entity and at any time when an important change in the capacity or any other material aspect of the accredited entity with regard to the Fund’s fiduciary standards, environmental and social safeguards, and gender policy occurs;
   2. Ad hoc checks by the Secretariat at the level of the accredited entity and/or at the level of the project/programme, when any significant concern of potential non-compliance arises;
   3. Annual review on a given proportion by number of projects, of the Fund’s portfolio of projects and programmes, where projects and programmes to be reviewed are selected inter alia with consideration of the risk category of the project/programme; and
   4. A light-touch review of the accredited entity halfway through its five-year accreditation period;
5. Requests the Secretariat to further develop the initial monitoring and accountability framework for consideration by the Board at its eleventh meeting, in particular providing more detail on:
   
   1. Corrective actions and remedies that can be implemented in cases of non-compliance;
   2. The implementation of the compliance checks listed in paragraph (d) above and any additional compliance checks that may be identified;
   3. An early warning system to support ad hoc checks and the annual review of a portion of the Fund’s portfolio;
   4. Local monitoring (including feedback from a range of stakeholders, including women);
   5. How to process the potential reaccreditation of accredited entities at the end of their five-year accreditation period;
   6. How the initial monitoring and accountability framework will relate to and work with the Fund’s accountability units;
   7. Ensuring there are sufficient resources available to the Secretariat to implement the framework;
   8. How the framework will use a risk-based approach, including by leveraging other monitoring processes, to use its resources efficiently;
   9. Reporting on the findings of activities under the monitoring and accountability framework; and
   10. How the national designated authority or focal point can be included in the initial monitoring and accountability framework; and
6. Also requests the Secretariat, when further developing the initial monitoring and accountability framework, to do so in consultation with the Accreditation Committee and entities accredited by the Fund, and by engaging a wide group of stakeholders, including women through a call for public input.