B.11/11: Consideration of funding proposals

The Board, having considered document GCF/B.11/04 titled “Consideration of funding proposals” and its related addenda, as well as matters related to the proposal approval process:

  1. Recognizes that the Green Climate Fund (GCF) has agreed an initial framework of policies and procedures related to the proposal submission and approval processes;
  2. Notes that the GCF is a continuously learning institution and will draw on the lessons from this first round of proposal consideration in order to improve the process in future iterations;
  3. Acknowledges existing policy gaps in the GCF approval process, including project eligibility criteria, calculation of incremental costs, and risk investment criteria;
  4. Notes common areas in which projects could provide a better demonstration of how they meet existing GCF policies taking into account the gaps in paragraph (c) above at the eleventh meeting of the Board, including but not limited to:
    1. The linkage between climate actions and how they enable economic development to proceed in a sustainable manner;
    2. How the project/programme incorporates potential innovation;
    3. How benefits will be sustained once GCF financing ends;
    4. Monitoring and evaluation, including how lessons can be disseminated to inform and possibly promote replication in other regions/countries;
    5. How benefits for women and girls will be delivered;
    6. How fiduciary weaknesses in project countries will be addressed;
    7. Country ownership and effective stakeholder engagement; and
    8. Additionality of the funding;
  5. Also notes convergence on the need within the approval process to enhance transparency, clarity, accessibility, balance, knowledge management and country ownership, including by actively seeking the participation of national designated authorities, focal points and relevant stakeholders in the early stages of the project cycle and beyond the provision of the no-objection letter;
  6. Further notes convergence on the need to ensure that matters related to enhancing transparency and scaling up of the GCF pipeline are captured in the preparation of the strategic plan for the GCF and related decisions on country programming, and readiness and preparatory support, with the objective of ensuring sufficient country ownership and enhancing the participation of direct access entities;
  7. Requests the Secretariat to provide an update of the pipeline portfolio and to submit it for information to the Board as part of the documentation submitted for every Board meeting;
  8. Further requests the Secretariat to include the assessment of the independent Technical Advisory Panel (TAP) of each funding proposal as part of the documentation published on the GCF website for funding proposals;
  9. Agrees to include in the consideration of the 2016 work plan matters related to outstanding decisions regarding the proposal approval process and the project and programme activity cycle. This would include consideration of matters related to the implementation of decision B.07/03 and Annex VII thereto and paragraph 53 of the Governing Instrument for the GCF with regard to the simplified process for the approval of proposals for certain activities, in particular for small-scale activities;
  10. Decides to review the proposal approval process approved by the Board in decision B.07/03 and Annex VII to document GCF/B.07/11 based on the experience gathered from the review of the first batch of proposals submitted for consideration of the Board, with a view to:
    1. Strengthening and scaling up the GCF pipeline, including the country programme pipeline;
    2. Streamlining and improving the transparency of the proposal approval process;
    3. Defining further decision-making options, including deferral of proposal approvals;
    4. Reviewing how concept notes should work within the project cycle, facilitating the feedback of the TAP on concept notes and facilitating contact of the TAP with accredited entities as useful and necessary;
    5. Supporting the Board to make decisions regarding funding proposals;
    6. Strengthening project/programme eligibility criteria, including categories of incremental cost eligible for funding; and
    7. Developing interim procedures for redress pending the recruitment of the head of the independent redress mechanism; The review will include, but is not limited to, the policy gaps listed in paragraph (c) above and other common areas as contained in paragraph (d) above;
  11. Requests the Secretariat to undertake this review overseen by the ad hoc group of Board members as set out in decision B.11/03, to discuss at the informal meeting of the Board and subsequently deliver a progress report at the twelfth meeting of the Board and a final report at the thirteenth meeting;
  12. Also decides to establish a project preparation facility to provide funding of up to 10 per cent of requested GCF funding with a maximum of USD 1.5 million for any single proposal. The process would involve concept notes providing due justification of need from accredited entities. After an appropriate review and an initial assessment against the investment criteria and justification of need, the Secretariat will send its funding request for project preparation to the Board for approval. The project preparation facility would be targeted to small-scale activities and direct access entities. The Secretariat will review the project preparation facility for consideration by the Board at its fourteenth meeting;
  13. Aspires to approve funding proposals in 2016 to a value of USD 2.5 billion;
  14. Requests the Accreditation Committee in the accreditation strategy to include options for streamlining modalities for fast-tracking accreditation of national implementing entities using third-party assessments as appropriate;
  15. Also requests the Secretariat, in consultation with the TAP, national designated authorities, focal points and accredited entities to simplify the funding proposal template and concept note template in an expeditious manner;
  16. Decides that concept notes sent to the GCF should include a clear paragraph indicating how the project fits in with the country’s national priorities and its full ownership of the concept;
  17. Takes note of the following funding proposals:
    1. Funding proposal 001 titled “Building the Resilience of Wetlands in the Province of Datem del Marañón in Peru” (submitted by Profonanpe), as contained in document GCF/B.11/04/Add.01;
    2. Funding proposal 002 titled “Scaling Up the Use of Modernized Climate Information and Early Warning Systems in Malawi” (submitted by the United Nations Development Programme), as contained in document GCF/B.11/04/Add.02;
    3. Funding proposal 003 titled “Increasing the Resilience of Ecosystems and Communities through the Restoration of the Productive Bases of Salinized Lands in Senegal” (submitted by Centre de Suivi Ecologique), as contained in document GCF/B.11/04/Add.03;
    4. Funding proposal 004 titled “Climate Resilient Infrastructure Mainstreaming in Bangladesh” (submitted by KfW Development Bank), as contained in document GCF/B.11/04/Add.04;
    5. Funding proposal 005 titled “KawiSafi Ventures Fund” (submitted by Acumen), as contained in document GCF/B.11/04/Add.05/Rev.05; (vi) Funding proposal 006 titled “Energy Efficiency Green Bond in Latin America and the Caribbean” (submitted by the Inter-American Development Bank), as contained in document GCF/B.11/04/Add.06; (vii) Funding proposal 007 titled “Supporting Vulnerable Communities in Maldives to Manage Climate Change-Induced Water Shortages” (submitted by the United Nations Development Programme), as contained in document GCF/B.11/04/Add.07; and
    6. Funding proposal 008 titled “Urban Water Supply and Wastewater Management Project in Fiji” (submitted by the Asian Development Bank), as contained in document GCF/B.11/04/Add.08;
  18. Approves, contingent on the fulfilment of the conditions and due consideration of the recommendations as contained in Annex I to this decision, the amount of USD 6.24 million in grants for the project titled “Building the Resilience of Wetlands in the Province of Datem del Marañón in Peru”, submitted by Profonanpe;
  19. Approves, contingent on the due consideration of the recommendations as contained in Annex I to this decision, the amount of USD 12.295 million in grants for the project titled “Scaling Up the Use of Modernized Climate Information and Early Warning Systems in Malawi”, submitted by the United Nations Development Programme;
  20. Approves, contingent on the fulfilment of the conditions and due consideration of the recommendations as contained in Annex I to this decision, the amount of USD 7.61 million in grants for the project titled “Increasing the Resilience of Ecosystems and Communities through the Restoration of the Productive Bases of Salinized Lands in Senegal”, submitted by Centre de Suivi Ecologique;
  21. Approves, contingent on the fulfilment of the conditions and due consideration of the recommendations as contained in Annex I to this decision, the amount of USD 40 million in grants for the project titled “Climate Resilient Infrastructure Mainstreaming in Bangladesh”, submitted by KfW Development Bank;
  22. Approves, contingent on the fulfilment of the conditions as contained in Annex I to this decision, the amount of USD 20 million in equity and, subject to Acumen’s upgrade of the accreditation type for the specialized fiduciary standard for grant award and/or funding allocation mechanisms, USD 5 million in grants for the programme titled “KawiSafi Ventures Fund”, submitted by Acumen;
  23. Approves, contingent on the fulfilment of the conditions and due consideration of the recommendations as contained in Annex I to this decision, the amount of USD 20 million of guarantee for the pilot phase in Mexico and USD 2 million as a programme development grant for the programme titled “Energy Efficiency Green Bond in Latin America and the Caribbean” in Colombia, the Dominican Republic and Jamaica, submitted by the Inter-American Development Bank;
  24. Approves, contingent on the fulfilment of the conditions and due consideration of the recommendations as contained in Annex I to this decision, the allocation of USD 195 million for the next phases of the programme titled “Energy Efficiency Green Bond in Latin America and the Caribbean”, to be committed, subject to funding approval by the Board, in several tranches over the course of the next five years;
  25. Approves, contingent on the due consideration of the recommendation as contained in Annex I to this decision, the amount of USD 23.64 million in grants for the project titled “Supporting Vulnerable Communities in Maldives to Manage Climate Change-Induced Water Shortages”, submitted by the United Nations Development Programme;
  26. Approves the amount of USD 31.04 million in grants for the project titled “Urban Water Supply and Wastewater Management Project in Fiji”, submitted by the Asian Development Bank;
  27. Reaffirms that pursuant to decision B.07/03, Annex VII, the Executive Director or her designee is authorized to negotiate and enter into legal agreements on behalf of the GCF with accredited entities in respect of funding proposals approved by the Board, taking into account any condition set by the Board in this decision and in the decision accrediting the relevant accredited entity; and
  28. Authorizes the Secretariat to disburse fees for each funded project/programme approved by the Board as per the disbursement schedule to be agreed in the funded activity agreement in accordance with the interim policy on fees for accredited entities.