Strategic PlanGCF has developed an initial strategic plan to guide its ongoing work. The plan was endorsed by the Board at its twelfth meeting, in March 2016.
This guide for action translates GCF’s vision of how to drive a paradigm shift towards low-emission and climate-resilient development pathways into practice.
It is a living document, which guides the Board in addressing policy gaps, programming the Fund’s resources of the Initial Resource Mobilization period between 2015 and 2018, and investing the Fund’s resources in transformational climate actions in a country-driven manner.
The plan sets out the two elements of the Board’s strategic vision for the Fund:
- Promoting the paradigm shift towards low-emission and climate-resilient development pathways;
- Supporting the implementation of the Paris Agreement within the evolving climate finance landscape.
The operational priorities to achieve this vision are to:
- scale up investments in developing countries;
- maximise impact by supporting scalable and replicable projects and programmes;
- investing the full amount pledged for the 2015-2018 programming period, while balancing adaptation and mitigation investments;
- ensuring that the GCF is responsive to developing countries’ needs and priorities, including by enhancing country programming and direct access;
- proactively communicating GCF’s ambition in terms of scale and impact, as well as its operational modalities.
The strategy sets out an Action Plan based on five strategic measures that the Board intends to promote. Most of the measures contribute to more than one of the operational priorities listed above.
Prioritizing pipeline development
The Fund is developing a pipeline of country-driven, high-impact projects and programmes which can be scaled up and support the achievement of the Fund’s strategic objectives. GCF readiness support for developing countries supports this strategic measure, and this will be enhanced to provide more accessible, country-driven support. GCF is also supporting pipeline development through its project preparation facility, which supports the development of proposals by Accredited Entities. The Fund will also develop its pipeline by consulting with developing countries and Accredited Entities to identify national and regional priorities for investment, and by identifying opportunities to work in partnership with the Global Environment Facility (GEF), the Adaptation Fund, and Multilateral Development Banks. GCF will make increased use of Requests for Proposal (RFPs) aimed at both public and private sectors, and will develop replicable approaches to allow rapid roll-out in new locations. Finally, the Fund will introduce results-based payments for REDD+, and evaluate how results-based payments could apply to other sectors of GCF’s activities.
Strengthening the Fund’s proactive and strategic approach to programming
This is key to ensuring that the Fund’s investments meet the objectives and needs of developing countries. To achieve this, GCF will request all Accredited Entities to submit annual or multi-annual work programmes, prepared in consultation with developing countries (via their National Designated Authority or focal point). A consolidated version of all these work programmes will then be submitted to the Board, which will use it for planning purposes. The Fund will also carry out a market survey to establish what is needed to support climate action, and to track successes or innovative ideas that could be built upon.
Enhancing accessibility and predictability
The Fund will continue to engage with a wide range of stakeholders to promote accessibility, and to enhance understanding of GCF’s operations and processes. It will survey stakeholders to gain a better understanding of where the barriers to engagement are, and will more clearly signal the kinds of projects and programmes it is looking to finance by providing guidance on the Fund’s investment criteria, risk appetite, standards and processes. GCF will revise and simplify the proposal approval process, and will streamline and simplify its processes and templates particularly for micro-scale activities in LDCs and SIDS.
Maximizing the engagement of the Private Sector
GCF’s Private Sector Facility is a unique feature of the Fund, enabling engagement with the private sector to support the Fund’s aim of driving a paradigm shift to low-emission and climate-resilient development pathways. Building on existing work, GCF aims to crowd-in and maximise the engagement of the private sector at the national, regional and international levels. The Board will analyse barriers to crowding-in and engagement, and will also re-consider the recommendations of the Private Sector Advisory Group including on enhancing GCF capacity, the accreditation procedures for private sector entities, enhancing private sector involvement with the readiness programme and reducing currency risks.
Building adequate institutional capabilities
The Fund needs to have adequate institutional capabilities in order to achieve its operational priorities. To address this, the Board will continue to build and maintain a well-staffed Secretariat that can deliver all of its functions. The three independent accountability units will be staffed and resourced so that they can be operationalised. The Board will also improve the efficiency of its processes, including decision-making related to funding proposals, and will review the role and structure of the Board’s panels and groups. The role of NDAs will be strengthened by providing support through the readiness programme and the Fund will facilitate dialogue between NDAs and AEs by offering a platform for knowledge-sharing and a market-place for ideas. The Board will also assess whether to enhance the role of the interim trustee, to facilitate the administrative execution of funding decisions.
The strategic plan will be reviewed as part of each replenishment process, taking into account evolving priorities including COP guidance.
The plan is reflected in the GCF work plans; the 2018 work plan is available here.