Process for Readiness support
The process for accessing funding under the Readiness Programme should begin from an assessment of the needs of the country in a process led by the NDA that includes extensive stakeholder engagement. Countries then must submit a completed proposal template and budget, procurement, and implementation plan to request for readiness support, whether this support is for the country, a Direct Access Entity within the country, or other national stakeholders. In upholding the country ownership principle, only National Designated Authorities (NDAs) and/or Focal Points (FPs) are authorised to submit readiness proposals to GCF.
The implementing entity that will undertake approved readiness activities is known as the delivery partner. Delivery partners can be the NDAs themselves, or any other entity, including GCF Accredited Entities. The nominated delivery partners that are not accredited to GCF must undergo a Financial Management Capacity Assessment (FMCA) in order to be deemed eligible to implement readiness grant support.
Readiness grant cycle
Developing a proposal for readiness support can be an iterative process with GCF regional focal points providing support in the conceptualisation and the GCF Readiness Programme team giving feedback before the proposal is finalised and approved. For further details, please see the Readiness Guidebook.
Readiness proposal conceptualisation and development
NDAs may originate a proposal for readiness support on their own, or with the assistance of a delivery partner by assessing their needs, identifying specific capacity and/or technical gaps and challenges, or other barriers to climate finance access and deployment.
NDAs are encouraged to engage their respective GCF regional focal point in the Secretariat to discuss the proposal idea.
Submission of the Readiness proposal
The readiness proposal template should be completed by the National Designated Authorities (NDAs) and/or Focal Points (FPs) with support from their delivery partner where relevant. The NDA will upload the readiness proposal and supporting documentation which includes the Budget, Procurement and Implementation Plan template, via the online submission system on the Country Portal.
The proposal then goes into a queue on a first-come first-served basis for completeness check. If any part of the proposal is incomplete or incorrect, the NDA will be notified, and the relevant focal point in the Secretariat will engage in a dialogue with the NDA to discuss revising the proposal for resubmission. Upon determination by the Secretariat that a proposal is complete, it will be considered an official submission and move into the review stage.
If a first-time delivery partner is not a GCF Accredited Entity , the Financial Management Capacity Assessment questionnaire must be completed, and the Secretariat will analyse the documentation provided to determine their eligibility as a delivery partner.
Review and appraisal
Once the proposal is considered an official submission, an interdivisional technical committee of the GCF Secretariat will review the request.
While reviewing the request, the GCF Secretariat may request the NDA to provide additional information and revisions, by providing written feedback in the form of a review sheet to the NDA and delivery partner, where relevant, to help guide revision of the proposal. The revised readiness proposal should then be resubmitted by the NDA to the GCF Secretariat for further review and appraisal.
Proposals that have reached sufficient quality will be prepared for endorsement by the interdivisional technical committee within the GCF Secretariat.
The proposal is considered approved and budget is committed upon the signature of the Executive Director or his/her designee for the proposal in question. The GCF Secretariat will dispatch a Notification of Approval letter to the NDA, copying the delivery partner, if any, informing of the approval of their proposal.
Legal arrangements and first disbursement
Following approval, legal arrangements are concluded with the NDA, or the delivery partner if one is nominated by the NDA, in the form of a grant agreement. The NDA or deliver partner entering into the grant agreement is known as the grant recipient.
A legal opinion from the grant recipient may be required to make the grant agreement effective. Once the agreement is declared effective, the grant recipient submits required documents to request the first disbursement. Readiness resources are transferred to the designated bank account of the signing party (grant recipient) of the grant agreement.
Implementation, monitoring and reporting
The grant recipient then implements readiness activities in line with the approved proposal, work plan and budget.
The grant recipient reports to GCF, on an agreed schedule as outlined in the grant agreement, against the work plan, budget, and agreed targets, and these reports are reviewed by the Secretariat.
Any potential revisions to the activities or budget reallocations should be discussed and approved by the Secretariat.
Completion of activities and grant closure
Once all required reports, deliverables and audited financial statements are submitted, the GCF Secretariat will confirm the completion of the Readiness request, and confirm grant closure.