B.21/14: Status of GCF resources and portfolio performance: Analysis of options for the financial planning of the commitment authority of GCF for the remainder of the initial resource mobilization period and in 2019
The Board, having reviewed document GCF/B.21/33/Rev.01 titled “Analysis of options for the financial planning of the commitment authority of the Green Climate Fund for the remainder of the initial resource mobilization period, 2019, and 2020”:
- Takes note that the Green Climate Fund cumulative funding approvals as at the twenty- first meeting of the Board amount to USD 5.5 billion, and the remaining commitment authority for the initial resource mobilization period is currently projected at USD 1.7 billion;
- Notes, in view of the above, that the Green Climate Fund will reach the end of the initial resource mobilization period (2015−2018) with the remaining commitment authority carried over into 2019, which necessitates financial planning of the resources of the Green Climate Fund for 2019 pending the conclusion of the first replenishment of the Green Climate Fund;
- Takes note of the analysis on the options for financial management of the commitment authority contained in annex II to document GCF/B.21/33/Rev.01;
- Intends that this decision on managing commitment authority for 2019 is without prejudice to the amounts originally provisionally allocated for the requests for proposal, or to the consideration of pipeline not brought forward in the next year;
- Decides to allocate the remaining commitment authority for the initial resource mobilization period and 2019 for funding proposals as follows over the course of its meetings in 2019:
- Up to USD 600 million to fund projects submitted in response to requests for proposals and pilot programmes, including the requests for proposals on REDD- plus results-based payments, mobilizing funds at scale, micro, small and medium- sized enterprises, enhanced direct access and the simplified approval process; and
- Remaining commitment authority, projected to be in the range of USD 0.7−0.8 billion after accounting for subparagraph (e)(i) above and paragraphs (f)−(g) below, to be allocated for other funding proposals;
- Requests the Budget Committee to present to the Board for its consideration at its twenty- second meeting a draft decision covering a set-aside for the operating costs of the Green Climate Fund (including administration of the Board, Secretariat, Trustee, and independent units) and foreign exchange commitment risk buffer for solvency risks for 2019 and 2020 as required;
- Notes that the Board will consider the forward budget for the Readiness and Preparatory Support Programme at its twenty-second meeting;
- Requests the Secretariat to present funding proposals for the Board’s consideration and ensure resources for the operation of the Green Climate Fund in line with this decision and keep changes in the level of the Green Climate Fund commitment authority under review;
- Also requests the Secretariat, in managing the pipeline for 2019, to bring forward funding proposals that fully align with the Green Climate Fund investment criteria and continue to balance commitments and diversity among accredited entities, across regions and across the initial results areas of the Green Climate Fund in accordance with prior decisions of the Board, particularly decision B.06/06 on resource allocation;
- Further requests the Secretariat to develop for consideration by the Board at its twenty- second meeting an initial analysis of options to minimize the effects of currency fluctuations on the commitment authority of the Green Climate Fund.