Country readiness

GCF's Readiness Programme provides financial resources to help NDAs and Direct Access Entities efficiently engage with GCF.

Process for Readiness support

There is a single application process for all readiness funding, which requires all requests to be initiated by a developing country National Designated Authority (NDA). This is the case whether the support will directly benefit the developing country NDA, or if it is to support a Direct Access Entity.

The funding itself can be managed by different bodies depending on the type of support requested. These may be the NDA itself, or by a delivery partner. The delivery partner may be a direct access accredited entity, a Direct Access Entity that aims to become accredited to the Fund, or another body.

Step-by-step

Submit a readiness proposal

Applications are made by completing the readiness template and the readiness budget and procurement plan, which should be submitted to GCF Readiness.

The documents should be completed and submitted by the NDA or focal point with support from their delivery partner where relevant. The readiness support template guidance provides detailed information on completing the template.

If the request relates to support for a Direct Access Entity (whether accredited to GCF or not) then indicate this on the template. Direct Access Entities must be nominated by the relevant NDA / focal point to be eligible for readiness funding. The Direct Access Entity should establish with the NDA what kind of support is being sought, and who will be the delivery partner, and this information should be included on the readiness template.

Indicate whether the proposal requests technical assistance under GCF’s service contract with PwC.

Check the eligible expenditure list in the readiness support template guidance to ensure that proposed expenditure can be covered by the Programme.

The Financial Management Capacity Assessment (FMCA) questionnaire should also be completed if project funding will be managed by entities that are not accredited to GCF.

GCF Secretariat review of the readiness proposal

The GCF Secretariat then reviews the request, planned activities, and the proposed budget. It also reviews the Financial Management Capacity Assessment, where applicable. In the process of its review, the GCF Secretariat may request the requesting party to provide additional information. Revisions to the proposal may also be suggested. A readiness proposal may therefore go through several drafts, based on discussions between the NDA, Direct Access Entity, Delivery Partners and GCF Secretariat. After reviews and/or revisions, the final proposal is submitted to the GCF Secretariat.

Legal arrangements and first disbursement

Following approval, legal arrangements are concluded in the form of a grant agreement between GCF and the grant recipient which include and incorporate Standard Conditions.

The grant recipient may be the Delivery Partner, the NDA or the Direct Access Entity, depending upon who will receive and manage the disbursement of funds.

To make the grant agreement effective, a legal opinion on the agreement needs to be communicated to the GCF Secretariat. The grant recipient must also submit a Letter of Authorization to confirm that authorized/designated officers may submit requests for disbursements under the grant agreement. Such a letter must be accompanied with evidence to verify the signatures of the officers (for example, copy of passport personal information page).

The GCF Secretariat will notify the NDA or focal point and the grant recipient (if this is not the NDA or focal point) on the effectiveness of the legal arrangements. This date will generally be at the start of the relevant quarter, i.e. 1 January, 1 April, 1 July, or 1 October.

When the legal arrangements come into force and effect, the GCF Secretariat releases the first tranche of funding. Readiness resources are received to the bank account of the signing party of the grant agreement.

Alternatively, approved proposals may be covered under executed Readiness Framework Agreements with Delivery Partners.

Implementation, monitoring and reporting

The grant recipient then implements readiness activities in line with specifications of the agreed work plan and budget.

A financial management system should be maintained, with separate accounts (i.e. bank account or ledger) and records for readiness support. 

The grant recipient reports to GCF, on an agreed schedule, against the work plan, budget, and agreed targets; and proposes potential revisions or adaptations, as required, to future implementation plans. 

Financial statements should be prepared in accordance with consistently applied accounting standards, audited on an annual basis by reputable independent auditors, and furnished to the GCF Secretariat in accordance with the reporting requirements set in the grant agreement. 

Reports submitted to the GCF Secretariat will be disclosed on the GCF website in accordance with the GCF disclosure policy.

Completion and grant closure

Towards the end of the readiness grant implementation period, the GCF Secretariat and the grant recipient take stock of achievements and progress, and agree on next steps. 

When relevant, GCF proceeds to close the readiness grant.