Accreditation Toolkit 02112017...GCF Accreditation Toolkit - 2017 8 Glossary of key terms Accredited Entities (AE): An entity that is accredited by the Board in accordance with the

GCFAccreditationToolkit-2017

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Green Climate Fund Accreditation Toolkit


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TableofContentsDisclaimer.........................................................................................................................4

Acronyms..........................................................................................................................5

Glossaryofkeyterms........................................................................................................8

1. Summary..................................................................................................................18

2. Introduction.............................................................................................................22

2.1. Purposeofthisdocument..........................................................................................22

2.2. Limitationsofthisdocument.....................................................................................22

3. EssentialstoknowabouttheGCFbeforeseekingaccreditation................................22

3.1. WhatdoestheGCFsupport?�..................................................................................22

3.2. Howmuchandwhattypeoffinanceisavailable?.....................................................23

3.3. WhatistheroleoftheNationalDesignatedAuthority?............................................24

3.4. HowcanUzbekistanaccesstheGCF?........................................................................25

3.5. Whatistheroleoftheprivatesector?�....................................................................26

4. WhocanbecomeaGCFAccreditedEntity?�............................................................28

4.1. Overview....................................................................................................................28

4.2. Fit-for-purposeaccreditation.....................................................................................29

4.3. StatusoftheGCF’saccreditationportfolio................................................................31

5. HowtoapplyforGCFaccreditation?........................................................................37

5.1. Whatarethekeyconsiderationsbeforestartingtheaccreditationprocess?...........37

5.2. Whatarethekeystagesandstepstoapplyforaccreditation?................................38

6. HowtomeetGCFaccreditationrequirements?........................................................42

6.1. BackgroundandcontributiontoGCFobjectives........................................................42

6.2. Basicfiduciarystandards............................................................................................52

6.3. Specialisedfiduciarystandards..................................................................................62

6.4. Environmentalandsocialsafeguards.........................................................................74

6.5. Gender........................................................................................................................88

7. HowtodevelopandsubmitafundingproposaltotheGCF?.....................................91

7.1. GCFapprovalprocess.................................................................................................91

7.2. GCFapprovalcriteria..................................................................................................92


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7.3. GCF’sResultsManagementFramework....................................................................99

8. Whatsupportisavailabletoseekaccreditationandhowtoaccessit?....................102

8.1. Whatisreadinesssupport?......................................................................................102

8.2. Whatsupportisavailabletosupportaccreditation?...............................................103

8.3. Howtosubmitarequestforreadinesssupport?.....................................................103

8.4. Implementation,monitoringandreporting.............................................................105

8.5. Completionandgrantclosure..................................................................................105

9. Onceaccredited,whatarethemonitoring,evaluationandreportingrequirementstofulfilasaGCFAccreditedEntity?...................................................................................106

10. What’snext?..........................................................................................................108

11. FrequentlyAskedQuestionsaboutGCFaccreditation.............................................109

12. References.............................................................................................................118


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DisclaimerThistoolkitisaknowledgeproductpreparedbyAcclimatise,thetradingnameofAcclimatiseGroupLimited.ThecontentwasadaptedtomeettherequirementsoftheUNEnvironment-fundedproject“Support Uzbekistan in identification, assessment and strengthening a national institution to

directlyaccessclimatefinancefromtheGCF”,conductedincollaborationwithCENER21.Theviewsexpressedandinformationcontainedinitarenotnecessarilythoseoforendorsedbytheclient,whichcanacceptnoresponsibilityorliabilityforsuchviews,completenessoraccuracyoftheinformationorforanyrelianceplacedonthem.Anyliabilityarisingoutofusebyathirdpartyofthisdocumentforpurposesnotwholly connectedwith theabove shall be the responsibilityof thatparty,who shallindemnifyagainstallclaims,costs,damagesandlossesarisingoutofsuchuse.Thistoolkitshouldbequotedas:FayolleV.,FouvetC.andVenturiniS.(2017).GreenClimateFundaccreditationtoolkit.November2017.London:Acclimatise.


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AcronymsADA TheAgencyforAgriculturalDevelopmentofMoroccoAE AccreditedEntityAF AdaptationFundAMA AccreditationMasterAgreementCBNRM Community-BasedNaturalResourceManagementCIA CertifiedInternalAuditorCDM CleanDevelopmentMechanismCPO ChiefProcurementOfficerCOSO CommitteeofSponsoringOrganisationsCSE CentredeSuiviÉcologiqueDA DirectAccessDAE DirectAccessEntityDGDEVCO DirectorateGeneralforInternationalCooperationandDevelopmentDP DeliveryPartnerEDA EnhancedDirectAccessECOSOC EconomicandSocialCouncilEE ExecutingEntitiesEIF EnvironmentalInvestmentFundESIA EnvironmentandSocialImpactAssessmentESMS EnvironmentalandSocialManagementSystemESS EnvironmentalandSocialSafeguardsDOE DepartmentofEnvironmentDP DeliveryPartnerFAA FundedActivityAgreementFDB FijiDevelopmentBankFDI ForeignDirectInvestmentFECO ForeignEconomicCooperationOfficeFSF Fast-StartFinanceFP FundingProposalGAAP GenerallyAcceptedAuditingPrinciplesGCF GreenClimateFundGEF GlobalEnvironmentalFacilityIDCOL InfrastructureDevelopmentCompanyLimitedIE ImplementingEntitiesIIA InstituteofInternalAuditorsIFC InternationalFinanceCorporationIFRS InternationalFinancialReportingStandardsIIED InternationalInstituteforEnvironmentandDevelopmentISA InternationalStandardsonAuditingITAP IndependentTechnicalAdvisoryPanelINDC IntendedNationallyDeterminedContribution


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IPCC IntergovernmentalPanelonClimateChangeKDB KoreaDevelopmentBankKYC KnowYourCustomerLDCs LeastDevelopedCountriesLDCF LeastDevelopedCountryFundLLC LimitedLiabilityCompanyM&E MonitoringandEvaluationMDGs MillenniumDevelopmentGoalsMIE MultilateralImplementingEntityMINIRENA MinistryofNationalResourcesofRwandaMOFEC MinistryofFinanceandEconomicCooperationof theFederalDemocraticRepublicof

EthiopiaMRV Measurable,Reportable,Verifiable

MSME Micro,SmallandMediumEnterpriseMW MegawattNABARD NationalBankforAgricultureandRuralDevelopmentNAP NationalAdaptationPlanNAPAs NationalAdaptationProgrammesofActionNBFI Non-BankFinancialInstitutionNDA NationalDesignatedAuthorityNDC NationallyDeterminedContributionNEMA NationalEnvironmentManagementAuthorityofKenyaNIE NationalImplementingEntityOAS OnlineAccreditationSystemODI OverseasDevelopmentInstitutePKSF PalliKarma-SahayakFoundationPMF PerformanceMeasurementFrameworkPPF ProjectPreparationFacilityPROFONAPE PeruvianTrustFundforNationalParksandProtectedAreasPS PerformanceStandardsPSF PrivateSectorFacilityPTSMI PTSaranaMultiInfrastrukturRIE RegionalImplementingEntitiesRFP RequestForProposalRMF ResultsManagementFrameworkSANBI SouthAfricanNationalBiodiversityInstituteSAPRs Semi-AnnualProgressReportsSCCF SpecialClimateChangeFundSIDBI SmallIndustriesDevelopmentBankofIndiaSIDS SmallIslandDevelopingStatesUCAR UnidadParaelCambioRural(UnitforRuralChange)UNDP UnitedNationsDevelopmentProgrammeUNEnvironment UnitedNationsEnvironmentProgramme


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UNFCCC UnitedNationsFrameworkConventiononClimateChangeUzhydromet CentreofHydrometeorologicalServiceoftheRepublicofUzbekistan


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Glossaryofkeyterms

AccreditedEntities(AE):AnentitythatisaccreditedbytheBoardinaccordancewiththegoverninginstrumentandrelevantBoarddecisions.

Adaptation:Adjustment in natural or human systems in response to actual or expected climaticstimuliortheireffects,whichmoderatesharmorexploitsbeneficialopportunities.AdaptationFund(AF):TheAdaptationFundwasestablishedtofinanceconcreteadaptationprojectsandprogrammesindevelopingcountriesthatareparticularlyvulnerableandarePartiestotheKyotoProtocol.TheFundistobefinancedwithashareofproceedsfromCleanDevelopmentMechanism(CDM)projectactivitiesandreceivefundsfromothersources.ItisoperatedbytheAdaptationFundBoard.Basicfiduciarystandards:Thesestandardsassessthecapacityofanentitytoidentify,prepare,submitand implement funding proposals for projects and programmes in line with national needs formitigation and adaptation to climate change. They include: (a) key financial and administrativecapacities;and(b)transparencyandaccountability.Capacitybuilding:Inthecontextofclimatechange,theprocessofdevelopingthetechnicalskillsandinstitutionalcapabilityindevelopingcountriesandeconomiesintransitiontoenablethemtoaddresseffectivelythecausesandresultsofclimatechange.Carbonmarket:Apopular(butmisleading)termforatradingsystemthroughwhichcountriesmaybuyorsellunitsofgreenhouse-gasemissionsinanefforttomeettheirnationallimitsonemissions,eitherundertheKyotoProtocolorunderotheragreements,suchasthatamongmemberstatesoftheEuropeanUnion.Thetermcomesfromthefactthatcarbondioxideisthepredominantgreenhousegas,andothergasesaremeasuredinunitscalled"carbon-dioxideequivalents."CertifiedInternalAuditor(CIA):Isacertificationofferedtoaccountantswhoconductinternalaudits,offeredbytheInstituteofInternalAuditors(IIA).Thiscredentialistheonlysuchacceptedworldwide.Clean Development Mechanism (CDM): A mechanism under the Kyoto Protocol through whichdeveloped countries may finance greenhouse-gas emission reduction or removal projects indeveloping countries, and receive credits for doing so which they may apply towards meetingmandatorylimitsontheirownemissions.Climatechange:Achangeofclimatewhichisattributeddirectlyorindirectlytohumanactivitythataltersthecompositionoftheglobalatmosphereandwhichisinadditiontonaturalclimatevariabilityobservedovercomparabletimeperiods.

Climatefinance:Referstothefinancialresourcesmobilisedtohelpdevelopingcountriesmitigateandadapttotheimpactsofclimatechange(OverseasDevelopmentInstitute-ODI)


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Climatefinancereadiness:Capacitiesofcountriestoplanfor,access,deliver,andmonitorandreportonclimatefinance,both internationalanddomestic, inwaysthatarecatalyticandfully integratedwithnationaldevelopmentprioritiesandachievementoftheMillenniumDevelopmentGoals(MDGs)(UnitedNationsDevelopmentProgramme-UNDP).Codeofethics:Aguideofprinciplesdesignedtohelpemployeesandcontractorsconductbusinessandoperationshonestlyandwithintegrity.Acodeofethicsmayoutline:themissionandvaluesofaninstitution,howemployeesareexpectedtoapproachaproblem.Theseethicalprincipleswillgenerallybe based on an organisation’s core values. Compliance-based codes of ethics usually outline theguidelinesforconductandthepenaltiesforviolationsoftheprinciples.

Ø Complianceofficer:Compliancewiththeseethicalprinciplesisoftenoverseenbyadedicatedcomplianceofficer,taskedwithkeepingregulatorycodesuptodateandmonitoringemployeeconducttoencouragecompliance.

Conceptnote:AprojectorprogrammeconceptdocumentwhichprovidesbasicinformationaboutaprojectorprogrammetoseekfeedbackonwhethertheconceptisbroadlyalignedwiththeobjectivesandpoliciesoftheFund.Conflictofinterest:Asituationwhereapersonororganisationwithvestedinterestsinanotherentity,organisationorassetbecomesunreliablebecauseofaclashbetweentheirpersonalandprofessionalinterests.Self-dealing is themostcommonconflictof interestandoccurswhenmanagement levelemployeesaccepttransactionsfromanotherorganisationbenefitingtheirmanagerbutharmingtheirorganisation.DeliveryPartners(DP):InstitutionsselectedbytheNationalDesignatedAuthority(NDA)orfocalpointtoimplementactivitiesapprovedundertheReadinessandPreparatorySupportProgramme.Deliverypartnersprovideservicessuchas:developmentofreadinessrequestproposals;implementationandsupervision; fiduciary management; progress reporting; and project completion and evaluation.Delivery partners may be AEs or other institutions assessed to meet the financial managementcapacitiesrequirementsoftheFund.

Directaccess:Initiallypresentedin2007aspartofaDecisiontooperationalisetheAdaptationFundattheUnitedNationsFrameworkConventiononClimateChange(UNFCCC)conference inBali, thedirectaccessmodalityisdefinedasthepossibilitytoinviteeligiblePartiesandinstitutions(referredto as "entities") selected by Governments to directly approach the Adaptation Fund and submitprojectproposalsdirectlytotheFund.ThismodalityisalsousedbytheGreenClimateFund(GCF).

Ø EnhancedDirect Access (EDA):Aims to increase the level of country ownership. Selectedaccredited entitieswill submit a proposal in consultationwith theNDAdescribing: (i) Thescopeofactivitiesthatwillbeconsideredforfinancing inconformitywiththeFund’seightresultareas;(ii)Thecountry/entitylevelapprovalprocessofspecificpilotactivitiessetupinconformitywiththeFund’sinvestmentframeworkandresultsmanagementframework;and(iii) The institutional arrangements set up to ensure oversight and multi-stakeholderengagement. Unlike the traditional direct accessmodality, therewill be no submission of


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individualprojectsorprogrammesbecausedecision-makingforthefundingofspecificpilotactivitieswillbedevolvedatthecountrylevel.

Directaccessentity(DAE):Referstosubnational,nationalorregionalentitiesthatareaccreditedbytheGCFunder thedirectaccessmodality to receivedirect financial transfers inorder tocarryoutadaptationprojectsandprogrammesfundedbytheGCF.Theymayincluderegionalagencies,nationalministries or government agencies, development banks, climate funds, commercial banks, otherfinancialinstitutions,etc.

EnvironmentalandSocialManagementSystem(ESMS):Processesthatinstitutionshaveinplacetomakesurethattheyadequately identify,assess,manage,mitigateandmonitorenvironmentalandsocialrisksandrespondtoproblemsthatarise.AllinstitutionsseekingaccreditationtotheGCFmusthaveanESMS.ThestrengthoftheESMScanvarythoughdependingontheaccreditationcategory.

EnvironmentalandSocialSafeguards(ESS):AreferencepointforestablishingcriteriaforaccreditinginstitutionalcapacitiesandentitiesseekingaccreditationtotheFund,andforidentifying,measuringandmanagingenvironmentalandsocialrisks.ThemainpurposeoftheESSistodeterminethekeyenvironmentalandsocialriskstheAE intendstoaddress intheconceptualisation,preparationandimplementationoffundingproposals,andtoprovideguidanceonhowtheserisksaretobemanaged.ESSisbasedontheeightperformancestandards(PS)oftheInternationalFinanceCorporation.Evaluation:Asystematicassessmentoftheworthorutilityofaninterventionataspecificpointintime,forexamplewhetherapolicyhasbeeneffectiveinachievingsetobjectives.ExecutingEntities(EE):WithrespecttotheGreenClimateFund,organisationsthatexecuteeligibleactivitiessupportedbytheGCFundertheoversightofaccreditedImplementingorFundingEntities.Externalauditingstandards:ThestandardsforexternalauditingaretheGenerallyAcceptedAuditingPrinciples (GAAP) set by the American Institute of Certified Public Accountants. A separate set ofstandards called the International standards on Auditing were established by the InternationalAuditingandAssuranceBoard.Fast-StartFinance(FSF):AtCOP15inCopenhagenin2009,developedcountriespledgedtoprovidenewandadditionalresources,includingforestryandinvestments,approachingUSD30billionfortheperiod2010-2012andwithbalancedallocationbetweenmitigationandadaptation.Thiscollectivecommitmenthascometobeknownas"Fast-startFinance".Fiduciary Standards: Refers to the basic and specialised fiduciary requirements of the GCF thataccredited entities and readiness partners need to comply with depending on the nature of theactivitiesfundedbytheGCF.FinancialMechanism:DevelopedcountryParties(AnnexIIParties)arerequiredtoprovidefinancialresources to assist developing country Parties implement the Convention. To facilitate this, theConventionestablisheda financialmechanismtoprovide fundstodevelopingcountryParties.ThePartiestotheConventionassignedoperationofthefinancialmechanismtotheGlobalEnvironment


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Facility (GEF)onanon-goingbasis, subject to reviewevery fouryears.The financialmechanism isaccountabletotheCOP.FundingProposal:AccreditedentitiescanaccessGCFresourcestoundertakeclimatechangeprojectsandprogrammesbysubmittingfundingproposalstotheFund.Gender:Referstohowsocietiesandspecificculturesassignrolesandascribecharacteristicstomenandwomenonthebasisoftheirsex.Forexample,manyculturesshareexpectationsthatwomenaremorenurturingthanmen,andthatmenshouldbesoldiersduringwars.GenderPolicy:TheFund’sgenderpolicyaimstoensuretheGCFwillefficientlycontributetogenderequalityandwill, inturn,achievegreaterandmoresustainableclimatechangeresults.Thegenderpolicy is applied to all of the Fund’s activities, whether implemented by international, regional,nationalorsubnational,publicorprivateentitiesorinstitutionsthataccessGCF’sresources.GlobalEnvironmentFacility (GEF):TheGEF isan independent financialorganisation thatprovidesgrants to developing countries for projects that benefit the global environment and promotesustainablelivelihoodsinlocalcommunities.ThePartiestotheConventionassignedoperationofthefinancialmechanismtotheGEFonanon-goingbasis,subjecttorevieweveryfouryears.ThefinancialmechanismisaccountabletotheCOP.

GreenClimateFund (GCF):AtCOP16 inCancun in2010,Governmentsestablished theGCFasanoperatingentityofthefinancialmechanismoftheConventionunderArticle11.TheGCFwillsupportprojects,programmes,policiesandotheractivities indevelopingcountryParties.TheFundwillbegovernedbytheGCFBoard.IndependentTechnicalAdvisoryPanel (ITAP): Provides independent technical assessmentof, andadviceon,fundingproposalsfortheGCFBoard.ThePanelconductsthetechnicalassessmentsattheanalysisandrecommendationstotheBoardstageoftheFund’sprojectandprogrammeactivitycycle.ThisisdoneinaccordancewiththeFund’sinitialproposalapprovalprocess,andinordertoprovideobjectivetechnicaladviceonfundingproposalsfortheBoard.

Indicator:Ameasurablecharacteristicorvariablewhichhelpstodescribeanexistingsituationandtotrackchangesortrends–i.e.progress–overtime.IntendedNationallyDeterminedContributions(INDCs):Aretheprimarymeansforgovernmentstocommunicateinternationallythestepstheywilltaketoaddressclimatechangeintheirowncountries.INDCsreflecteachcountry’sambitionforreducingemissionsandadapttoclimatechangeimpacts,takingintoaccountitsdomesticcircumstancesandcapabilities.Theypairnationalpolicysetting—inwhichcountriesdeterminetheircontributions—withaglobalframeworkundertheParisAgreementthatdrivescollectiveactiontowardazero-carbon,climate-resilientfuture.

Ø NationallyDeterminedContribution(NDC):ascountriesformally jointheParisAgreementandlookforwardtoimplementationoftheseclimateactions–the“intended”isdroppedandanINDCisconvertedintoaNationallyDeterminedContribution(NDC).UndertheprovisionsoftheParisAgreement,countrieswillbeexpectedtosubmitanupdatedNDCeveryfiveyears,


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whichwillrepresentaprogressionbeyondthecountry’sthencurrentNDCtoreflectitshighestpossibleambition.

IntergovernmentalPanelonClimateChange(IPCC):Establishedin1988bytheWorldMeteorologicalOrganization and the UN Environment Programme, the IPCC surveys world-wide scientific andtechnicalliteratureandpublishesassessmentreportsthatarewidelyrecognisedasthemostcredibleexisting sources of information on climate change. The IPCC also works on methodologies andrespondstospecificrequestsfromtheConvention'ssubsidiarybodies.TheIPCCisindependentfromtheConvention.Intermediation: Activities involving investments through financial intermediation functions orthroughdeliverymechanismsinvolvingfinancialintermediation.Investmentcriteria:SixinvestmentcriteriaadoptedbytheBoard,namelyimpactpotential,paradigmshift potential, sustainable development potential, needs of the recipient, country ownership andefficiency and effectiveness. There are coverage areas, activity-specific sub-criteria, and indicativeassessment factors thatprovide furtherelaboration.Please refer to theBoarddecisionon furtherdevelopmentoftheInitialInvestmentFrameworkwhichprovidesmoredetailedexplanationoftheFund’sinvestmentcriteria.

InvestmentFramework:TheFund’sInvestmentFrameworkdetailspossibleindicators(orindicativeassessment factors) thatmayhelpentities toquantify impactpotential.Forexample,a renewableenergyproject/programmemaywish toprovide theexpectednumberofMegawatt (MW)of low-emissionenergycapacityinstalled,generatedand/orrehabilitated.

Internal audit: Is the examination,monitoring and analysis of activities related to an institution’soperations. Audits are important components of an institution’s risk management by helping toidentify issues before they becomemajor problems. Internal audits may take place over varyingperiodicitiesdependingonthefunctionbeingaudited,withsomedepartmentsbeingauditedmorefrequentlythanothers:adaily,weekly,monthlyorannualinternalauditmayassesstheeffectivenessofaninstitutionsinternalcontrolsystemsandhelptouncovercasesoffraud,wasteorabuse.

Ø Auditing process: An internal audit will generally begin by the auditing officer assessingcurrentinstitutionalprocessesandprocedures,followedbyanalysesandcomparisonoftheseresultversusinternalcontrolobjectives,todeterminewhetherinternalpolicies,nationalandinternationallawsarebeingcompliedwith.Finally,theauditor’sreportwillbepresentedtoseniormanagement.

Ø Financial auditing:When auditing financials, the goal will be to determine whether theinstitutionsfinancialstatementscomplywiththegenerallyacceptedaccountingprinciplesofthat particular jurisdiction. Itwill ensure that the financial records are a fair and accuraterepresentationofthetransactionsthattheyclaimtorepresent.

Ø Auditors:Auditorscanbeinternalemployeesand/orexternaloutsidefirms.

Internalcontrols:asdefinedbytheCommitteeofSponsoringOrganisations(COSO)oftheTreadwayCommission, internalcontrolsaretheprocessessetbyanentity’sboardofdirectors,managementand other personnel, that are designed to provide assurances that an entity’s objectives in the


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effectivenessandefficiencyoftheiroperations,thereliabilityoffinancialreporting,andcompliancewithapplicablelawsandregulations.Notwointernalcontrolsystemswillbethesame,however,theyshouldallbedocumentedtocreateanaudittrail.Internalcontrolswillgenerallybedefinedintwocategories:preventativeanddetective.

Ø Preventative:Preventative internal controlsarepoliciesandprocedures thatdonotallowcertainactivitiestotakeplace,thereforeareaproactivefirstlineofdefenceespeciallywithina financial accounting system. E.g. the segregation of dutieswhereas tasks aredelegatedamongstseveralstaffmemberstoensurenosinglepersonisinapositiontoauthorise,record,andbeincustodyofafinancialtransactionandresultingasset.

Ø Detective:Detective internal controlsare thebackupprocedures thatensurepreventativeinternal controls operate as intended, allowing itemsor eventsmissed by the first line ofdefencetobecaughtwithinasecondsetofcontrols.E.g.performancereviewsofbudgets,forecastsandotherbenchmarks;thefollow-upofunexpectedconditionsorunusualresults;externalauditsfromaccountingfirmsandinternalauditingofassets.

Knowyour customer (KYC) duediligence: The process of identifying and verifying the identity ofclients.Thisprocessmayalsobeusedforthepurposeofensuringagents,consultantsanddistributorsprocuredareanti-moneylaundering,anti-briberyandanti-terroristfinancingcompliant.KYCshouldencompass a customer policy, customer identification process, monitoring of transactions andfinancialriskmanagement,andequivalentprocesses.

KyotoProtocol:Aninternationalagreementstandingonitsown,andrequiringseparateratificationby governments, but linked to theUNFCCC. TheKyotoProtocol, amongother things, setsbindingtargetsforthereductionofgreenhouse-gasemissionsbyindustrialisedcountries.LeastDevelopedCountries(LDCs):Theworld'spoorestcountries.ThecriteriacurrentlyusedbytheEconomicandSocialCouncil(ECOSOC)fordesignationasanLDCincludelowincome,humanresourceweaknessandeconomicvulnerability.LeastDevelopedCountryFund(LDCF):theLDCFisafundestablishedtosupportaworkprogrammetoassistLeastDevelopedCountryPartiestocarryout,interalia,thepreparationandimplementationofnationaladaptationprogrammesofaction(NAPAs).TheGlobalEnvironmentFacility,astheentitythatoperatesthefinancialmechanismoftheConvention,hasbeenentrustedtooperatethisfund.

Logframe:Oneofthemostusedmethodstoarticulateandclarifyhowasetofactivitieswillachievethedesiredoutcomesandobjectiveofaproject(orits‘theoryofchange’).Thelogframerepresentsaresults map or results framework which is part of Result Management Framework (RMF). Thelogframe also captures basic monitoring and evaluation (M&E) requirements. Theproject/programme’slogframeiscriticaltodeterminingthecostsattheactivitylevelrequiredintheproposaltemplate,theoverallbudget,andthetimelineandkeymilestones.Lossanddamage:AtCOP16inCancunin2010,Governmentsestablishedaworkprogrammeinorderto consider approaches to address loss and damage associated with climate change impacts indevelopingcountriesthatareparticularlyvulnerabletotheadverseeffectsofclimatechangeaspartoftheCancunAdaptationFramework.


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Mitigation:Inthecontextofclimatechange,ahumaninterventiontoreducethesourcesorenhancethe sinks of greenhouse gases. Examples include using fossil fuels more efficiently for industrialprocessesorelectricitygeneration,switchingtosolarenergyorwindpower,improvingtheinsulationofbuildings,andexpandingforestsandother"sinks"toremovegreateramountsofcarbondioxidefromtheatmosphere.MRV:Measurable, reportable and verifiable. A process/concept that potentially supports greatertransparencyintheclimatechangeregime.

MultilateralImplementingEntity(MIE):WithrespecttotheGreenClimateFundortheAdaptationFund,MultilateralInstitutionsandRegionalDevelopmentBankschosenbyeligiblePartiestosubmitproposalstotheBoard,willbearthefullresponsibilityfortheoverallmanagementoftheprojectsandprogrammesfinancedbytheFundandwillbearallfinancial,monitoringandreportingresponsibilities.

Monitoring:Systematicandcontinuouscollectionofinformationthatenablesstakeholderstocheckwhetheraninterventionisontrackorachievingsetobjectives.NationalAdaptationPlan(NAP):Accordingtodecision5/CP.17,paragraph1,theobjectivesoftheNAPprocessare:a) to reducevulnerability to the impactsofclimatechange,bybuildingadaptivecapacityandresilience;andb)tofacilitatetheintegrationofclimatechangeadaptation,inacoherentmanner,intorelevantnewandexistingpolicies,programmesandactivities,inparticulardevelopmentplanningprocessesandstrategies,withinallrelevantsectorsandatdifferentlevels,asappropriate.

National Adaptation Programmes of Action (NAPAs): Documents prepared by least developedcountries(LDCs)identifyingurgentandimmediateneedsforadaptingtoclimatechange.

National Designated Authority (NDA): A core interface and the main point of communicationbetweenacountryandtheFund.TheNDAseekstoensurethatactivitiessupportedbytheFundalignwithstrategicnationalobjectivesandpriorities,andhelpadvanceambitiousactiononadaptationandmitigation in linewithnationalneeds.AkeyroleofNDAs istoprovide lettersofno-objectionsforprojectproposals.Paradigm shift: A fundamental shift of all countries towards low-carbon and climate-resilientsustainable development, in accordancewith the GCF agreed results areas and consistentwith acountry-drivenapproach.Itshouldbenotedthatthis isnotanofficialdefinitionfromtheGCFandthat the terms ‘paradigmshift’and ‘transformationalchange’areoftenused interchangeably.Theparadigmshiftofaprojectcorresponds to thedegree towhich theproposedactivitycancatalyseimpactbeyondaone-offproject/programmeinvestment.Thiscanbeemphasisedbyprovidingfurtherdetailsonthefourrelatedfactors:

Ø Potential for scalingupand replication: Theproposal should illustratehow theproposedproject/programme’s expected contributions to global low-carbon and/or climate resilientdevelopmentpathwayscouldbescaledupandreplicated,includingadescriptionofthestepsnecessarytoaccomplishit.


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Ø Potentialforknowledgeandlearning:Anypotentialforthecreationorthestrengtheningofknowledge,collectivelearningprocessesorinstitutionsshouldbehighlighted.

Ø Contributiontothecreationofanenablingenvironment:Thesustainabilityofoutcomesandresultsbeyondthecompletionoftheinterventionshouldbehighlighted.Theproposalshouldexplainhowproposedmeasureswill createconditions thatareconducive toeffectiveandsustained participation of private and public-sector actors in low-carbon and/or resilientdevelopmentthatgobeyondtheprogramme.

Ø Contributiontoregulatoryframeworkandpolicies:Theproposalshouldelaborateonhowtheproposedproject/programmeadvancesnational/localregulatoryorlegalframeworkstosystematically drive investment in low-emission technologies or activities, promotedevelopmentofadditionallow-emissionpolicies,and/orimproveclimate-responsiveplanninganddevelopment.

PerformanceMeasurement Framework (PMF): A performancemeasurement system intended tomonitor theFund’s resultsat theproject,programmeandaggregateportfolio levels.TheGCFhasdistinctPMFsformitigation,adaptationandREDD+activities.ThePMFscompriseasetofindicatorsthatmeasureprogress towards intendedresultsbasedon theparadigm-shiftobjective,Fund-levelimpactsandproject/programmeoutcomesoutlinedintheFund’smitigation,adaptationandREDD+logicmodels.Privateclimatefinance:Thefinancialresourcesmobilisedfromprivatesectortoleveragethepublicclimatefinanceinmitigatingandadaptationontheimpactofclimatechangeindevelopingcountries.Privateclimate finance is represented inmany formssuchasForeignDirect Investment (FDI),andphilanthropictomentionafew.Procurement: The process through which products and services are acquired or purchased.Procurementtakesintoaccountthebudgeting,supplychainandpayment,amongstotherfactors.Theprocurement process will also involve identifying an entity’s needs, identifying and evaluatingpotentialsuppliers,andnegotiatingwiththesesuppliersoverthepriceandquantitytofindthebestresultforanorganisationwithrespecttotheirculture,missionandmandate.

Ø ChiefProcurementOfficer(CPO):Aslargeprocurementscanbeverycomplexandlengthy,manyorganisationswillemployaCPOtohandlemajoracquisitions.

Ø Procurement laws:Most countries have strong government procurement laws to protectagainstfraudandlocalprotectionism.

Project:Asetofactivitieswithacollectiveobjective(s)andconcreteoutcomesandoutputsthatarenarrowlydefinedinscope,space,andtime;andthataremeasurable,monitorable,andverifiable.ProjectPreparationFacility(PPF):SupportsAEsinprojectandprogrammepreparation.Itisespeciallytargeted to support direct access entities, andmicro-to-small size category projects. The PPF cansupportprojectandprogrammepreparationcostsfromallAEs,especiallydirectaccessentitiesandespeciallyforprojectsinthemicro-to-smallsizecategory.FundingavailableisuptoUSD1.5millionforeachPPFrequest,andcanbeprovidedthroughgrantsandrepayablegrantswhileequitymaybeconsideredforprivatesectorprojectsthroughgrantsorequity.FundingproposalsdevelopedwiththePPFshouldbesubmittedtotheGCFBoardwithintwoyearsoftheapprovalofaPPFrequest.


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Programme:Asetofinterlinkedindividualsub-projectsorphases,unifiedbyanoverarchingvision,commonobjectivesandcontributiontostrategicgoals,whichwilldeliversustainedclimateresultsandimpactintheGCFresultareasefficiently,effectivelyandatscale.Publicclimatefinance:Thefinancialresourcesthataremobilisedfromthepublicrevenuessourcessuchastaxestomitigateandadapttotheimpactsofclimatechangeindevelopingcountries.Results Management Framework (RMF): A life-cycle approach to results management throughmeasurementstoimprovedecisionmaking,transparencyandaccountability.Theapproachisinlinewith improving the way that the Fund functions by achieving outcomes through implementingperformancemeasurement,learningandadapting,inadditiontoreportingperformance.

Small Islands Developing States (SIDS): Low-lying coastal countries that tend to share similarsustainable development challenges, including small but growing populations, limited resources,remoteness,susceptibilitytonaturaldisasters,vulnerabilitytoexternalshocks,excessivedependenceoninternationaltrade,andfragileenvironments.TheSIDSwerefirstrecognisedasadistinctgroupofdeveloping countriesat theUnitedNationsConferenceonEnvironmentandDevelopment in June1992.Special Climate Change Fund (SCCF): The SCCF was established to finance projects relating toadaptation, technology transfer and capacity building, energy, transport, industry, agriculture,forestryandwastemanagementandeconomicdiversification.Thisfundshouldcomplementotherfunding mechanisms for the implementation of the Convention. The Global Environment Facility(GEF),astheentitythatoperatesthefinancialmechanismoftheConvention,hasbeenentrustedtooperatethisfund.

SpecialisedFiduciaryStandards:ThesestandardsrefertotheinstitutionalcapacitiesthatwillmakeentitieseligibletoundertakespecialisedactivitieswithintheGCFbasedonthenatureandscopeoftheirmandate.Theseinclude(a)Projectmanagement;(b)Grantawardmechanismsand/orfundingallocationmechanisms;and(c)On-lendingand/orblending.

Strategicplanning:Isanorganisation’sprocessofdefiningitsstrategyordirection.Inaddition,makingdecisionsontheallocationofresources,eitherfinancialorin-kindresources,towardsthepursuitofthis strategy or direction. Strategy itself has many definitions, but generally describes how anorganisation’sends(goals)willbeachievedbythemeans(resources).

Theoryofchange:Amethodologyforplanning,participationandevaluationthatisusedtopromotelong-termchange.Thetheoryofchangedefineslong-termgoalsandthenmapsbackwardtoidentifynecessarypreconditions.Theinnovationoftheoryofchangeliesinmakingthedistinctionbetweendesiredandactualoutcomes,aswellas inrequiringstakeholderstomodeltheirdesiredoutcomesbeforetheydecideonformsofinterventiontoachievethoseoutcomes.Thetheoryofchangeisaninclusiveprocessinvolvingstakeholderswithdiverseperspectivesinachievingsolutions.Theultimatesuccess of any theoryof change lies in its ability to demonstrateprogress on the achievementofoutcomes. Evidence of success confirms the theory and indicates that the initiative is effective.Therefore, the outcomes in a theory of change must be coupled with indicators that guide andfacilitatemeasurement.Theaddedvalueofatheoryofchangeliesinoutliningaconceptualmodel


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thatdemonstratesthecausalconnectionsbetweenconditionsthatneedtochangeinordertomeettheultimategoals.

Trustfunds:FundsearmarkedforspecificprogrammeswithintheUNsystem.

United Nations Framework Convention on Climate Change (UNFCCC): Is an internationalenvironmentaltreatynegotiatedattheEarthSummitinRiodeJaneirofrom3to14June1992,thenenteredintoforceon21March1994.

Vulnerability:Thedegreetowhichasystemissusceptibleto,orunabletocopewith,adverseeffectsof climate change, including climate variability and extremes. Vulnerability is a function of thecharacter,magnitudeandrateofclimatevariationtowhichasystemisexposed,itssensitivityanditsadaptivecapacity.


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1. SummaryRespondingtoclimatechangechallengesrequirescollectiveactionfromallcountries,governments,cities, communities, businesses and private citizens.With USD 10.3 billion currently pledged, theGreenClimateFund(GCF)istheworld’slargestfunddedicatedtothefightagainstclimatechange.DesignedtobethemainfinancialinstrumenttomobiliseUSD100billionperyearby2020frombothpublic and private sources, the GCF is the centrepiece to address the pressing mitigation andadaptationneedsofdevelopingcountries.

Whythistoolkit?

This toolkit is part ofUnitedNations Environment-funded project entitled “SupportUzbekistan inidentification,assessmentandstrengtheninganationalinstitutiontodirectlyaccessclimatefinancefrom theGCF", andaims toprovideguidanceonGCFprocessand requirements toUzbekentitiesinterestedinseekingaccreditation.

WhatdoestheGCFsupport?

The GCF aims to support developing countries in achieving a paradigm shift to low-emission andclimate-resilientpathways.Thisisachievedbyfundinginnovativeandtransformativelow-emission(mitigation)andclimate-resilient(adaptation)projectsandprogrammesdevelopedbythepublicandprivatesectorstocontributetotheimplementationofnationalclimatechangeprioritiesindevelopingcountries.Cross-cuttingprojectsthatdeliverco-benefitsintermsofbothmitigationandadaptationarealsoeligibleforfunding.

HowcanUzbekistanaccesstheGCF?

UzbekistancanaccesstheGCFthroughthreemainaccessmodalities:

• International Access: Through international Accredited Entities (AEs), whereby all three keyfunctions – fund oversight, management, and implementation – are undertaken at theinternationallevel;

• Direct Access (DA): Through national, sub-national and regional AEs. In this case, bothimplementationandexecutionaredelegatedtothenational level,usuallytoanationalentity;and,

• Enhanced Direct Access (EDA): Under this modality, only the fund oversight remains at theinternational,whilethefundmanagement,implementationandexecutionarealldelegatedtothenationallevel,usuallytoanationalentity.

AEsarelegallyaccountabledirectlytotheGCF’sBoardfortheoverallmanagementofprogrammesandprojects,aswellasforthefinancial,monitoringandreportingaspectsoffundedactivities.TheysuperviseormaycarryoutalsothefunctionsofExecutingEntities(EEs)thatareresponsiblefortheoperationalimplementationandexecutionofGCF-fundedprojectsorprogrammes.EEsaregenerallynotaccreditedwiththeGCFandthereforecannotreceiveitsfinancedirectly.


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WhocanbecomeanAEoftheGCF?

To access the GCF’s finance through the direct access modality, Uzbekistan can support theaccreditation of a national or subnational Direct Access Entity (DAE). These can be nationalgovernment ministries and agencies, national development banks, financial intermediaries andclimate funds.Uzbekistancanselectanynumberofentities toaccess,manageanddistributeGCFfunding,anddoesnothavetogothroughanymultilateralagencies.Aprospectivesub-nationalornationalentitymustreceiveformalapprovalfromtheNDAthroughnomination.Inaddition,itmustdemonstratethattheyareabletomanagetheGCF’sresourceseffectivelyandefficiently,inlinewiththestandardsandcriteriasetoutintheGCF’saccreditationrequirements.International,regional,nationalandsubnationalentities-fromboththepublicandprivatesectors-can become AEs of the GCF, provided they successfully receive accreditation. In 2017, newapplicationsforaccreditationfromnationalDAEs,entities intheAsia-PacificandEasternEuropeanregions,privatesectorentities,inparticularthoseindevelopingcountrieswillbeprioritisedbytheGCFtoensureabalanceofdiversityofAEs.Inaddition,entitiesrespondingtoRequestsforProposals(RFPs) issued by the GCF will be favoured, for example including a pilot phase for EDA; a pilotprogramme to supportMicro Small andMediumEnterprises (MSMEs); and a pilot programme tomobiliseresourcesatscaleinordertoaddressadaptationandmitigation.Anentitycanapplyforaccreditationifitcandemonstrate:

• Asolidtrackrecordofimplementingthetypeofprojectsorprogrammesthattheinstitutionwilloverseeasanimplementingentity;

• Experienceinmanaginginternationalaidanddevelopmentorclimatefinance;• Effective and documented processes and policies to reduce fiduciary, environmental, and

socialrisks;and,• Itsscopeofworkshouldberelatedtoclimatechangeadaptationandmitigation.

HowtoapplyforGCFaccreditation?

Theaccreditationprocessincludesthreemainphases:

1. Pre-accreditationandcompletenesscheck;2. AccreditationreviewandGCFBoarddecision;and,3. Post-accreditationreviewandlegalarrangements.

Oncethelegalarrangementsareconcludedandtheentityisaccredited,theAEcansubmitaproposaltotheGCF.

HowtomeetGCFaccreditationrequirements?The GCF uses a ‘fit-for-purpose’ accreditation approach to enables a wide range of entities withdifferentlevelsofexistingcapacitiestogainaccreditation.Entitiescanqualifyfordifferentlevelsofaccreditation,dependingon their ability todemonstratea track recordof fiduciary standardsand


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EnvironmentandSocialSafeguards(ESS).Inaddition,entitiesareexpectedtodemonstratetheyhavethecompetencies,policiesandprocedurestoperformactivitiesinlinewiththeGCF’sgenderpolicy.Becomingaccredited to theGCF is a rigorousprocess. It can takeas longas1-2 years tobecomeaccredited,whilstonaverage,ittakes6-9monthstocompletedependingonscope,sizeandrisklevelofaccreditation.HowtodevelopandsubmitafundingproposaltotheGCF?AnAEcansubmitfundingproposalstotheGCFspontaneouslyonan-ongoingbasisorbyrespondingtoanRFPpublishedontheGCFwebsite.FundingproposalssubmittedtotheGCFshouldincludeano-objection letter signedby theNationalDesignatedAuthority (NDA),Uzhydromet.Through theno-objection procedure, theNDA is responsible for ensuring that funding proposals are alignedwithnationalpriorities.TheGCFprojectcycleincludessevenmainsteps:

• TheAEortheNDA,Uzhydromet,submitsaconceptnote(voluntary);• TheAEsubmits the fundingproposal to theGCF, inconjunctionwithano-objection letter

signedbytheNDA,Uzhydromet;• TheGCFreviewsselectedsectionsoftheproposalandtheIndependentTechnicalAdvisory

Panel(ITAP)oftheGCFundertakesatechnicalassessmentandprovidesrecommendations.• Basedonthereviewandthetechnicalassessment,theGCFdecideswhetherornottoapprove

thefunding;• Ifthefundingproposalisapproved,aFundedActivityAgreement(FAA)betweentheAEand

theGCFisnegotiatedandsigned;• TheprojectorprogrammeenterstheGCFportfolio,movingintotheimplementationphase.

FundsaretransferredtotheAEaccordingtoagreedtranches;and,• Theprojectorprogrammebecomeseffective,andtheprocessofmonitoring,evaluationand

reportingcommencesandcontinuesuntiltheprojectorprogrammeclosesandexitstheGCF’sportfolio.

AEsshoulddevelopfundingproposalsincloseconsultationwiththeNDA,Uzhydromet,andwithdueconsiderationoftheGCF’sResultManagementFramework(RMF)andInvestmentFramework.TheGCF’sRMFdefinestheelementsofaparadigmshifttowardslow-carbonandclimateresilientcountry-drivendevelopmentpathwayswithinindividualcountriesandacrosstheFund’sactivities.TheRMFincludestwokeyelements:thelogicmodelandthePerformanceMeasurementFramework(PMF).The funding proposal should also include a brief description of the expected performance of theproposedproject/programmeagainst theGCF investment criteria. These are defined in theGCF’sInvestment Framework and include: climate impact potential, paradigm shift, sustainabledevelopment, responsiveness to the needs of the recipient, country ownership, efficiency andeffectiveness.


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Whatsupportisavailabletoseekaccreditation?TheReadinessandPreparatorySupportProgrammewasestablishedbytheGCFtoenhancecountryownershipandbuildthecapacity(or ‘readiness’)ofnationalentitiesofaccessingtotheFund.Thisprogramme can provide funding to entities looking for accreditation to the GCF. Under thisprogramme,readinesssupportisavailabletoprospectivenationalentitiesseekingaccreditationandtoexistingdirectaccessentitiestodevelopprojectandprogrammepipelines.Thesupportisprovidedfor awareness raising of accreditation processes and standards, institutional gap analyses; anddevelopingpersonalisedcapacitybuildingplanstoaddress identifiedgaps.Arequest forreadinesssupportcanbesubmittedthroughtheNDA,Uzhydromet.

Onceaccredited,whatarethemonitoring,evaluationandreportingrequirementstofulfilasaGCFAccreditedEntity?TheAEsareprimarilyresponsiblefortheM&EofGCF-fundedprojectsorprogrammes,andwillreportaccordinglytotheGCF.M&Erequirementsincludethelogframeandidentificationofindicatorsinthefundingproposal,annualperformancereportsfromtheprojectorprogrammeandinterimandfinalevaluationsattheprojectorprogrammelevel.What’snext?Entities interested in applying for accreditationare invited to review theaccreditationapplicationdocumenttogetfamiliarisedwiththerequiredsupportingdocuments.Theycanalsocompletetheonlineaccreditationself-assessmenttoolontheGCFwebsitetodoanearlyassessmenttodetermineiftheirorganisationisreadytostarttheaccreditationprocessoftheGCFandhelpidentifyanyobviousgaps.ProspectiveentitiesarealsoencouragedtoexpresstheirinteresttotheNDA,Uzhydromet,inseekingaccreditationtotheGCF.


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2. Introduction

2.1. PurposeofthisdocumentThis toolkit was commissioned through UN Environment’s project “Support Uzbekistan inidentification,assessmentandstrengtheninganationalinstitutiontodirectlyaccessclimatefinancefromtheGCF".Themainobjectiveof theproject is to identifya suitableDAE inUzbekistan tobeaccreditedtotheGCF.Assuch,thistoolkitaimstoprovideguidancetopotentialcandidatenationalUzbekentitiesthatseekaccreditationtotheGCFtoactasaGCFAE,regardingitsaccreditationprocessandrequirements.

2.2. LimitationsofthisdocumentThisdocumentshouldbeconsideredasa“living”documentandbesubjecttoreviewandmodificationinresponsetointeralia:changesintheGCFoperationalmodalitiesandpolicies.UsersofthistoolkitshouldalsobearinmindthattheGCF’sResultsBasedFramework,GenderPolicyandinterimESSarealso likely toevolve following thecompletionof the initial resourcemobilisationperiod,basedonexperience gained and lessons learned. In addition, it should be noted that while this documentintendstoinformpotentialapplicantsontheGCFaccreditationprocessandrequirements,itisaguideonlyanddoesnotguaranteelaterGCFaccreditation.

Wearealwaysseekingtoproducetoolkitsthatareappropriateforourtargetaudience.Ifyouhaveanysuggestionsonhowwecouldimprovethistoolkitpleasegetintouchwiththeauthors.

3. EssentialstoknowabouttheGCFbeforeseekingaccreditation

3.1. WhatdoestheGCFsupport?�The GCF finances low-emission (mitigation) and climate-resilient (adaptation) projects andprogrammes developed by the public and the private sector to contribute to the climate changeprioritiesofcountries.Cross-cuttingprojectsthatdeliverco-benefitsintermsofbothmitigationandadaptationareeligibleforfundingbytheGCF.Tohelpachieveaparadigmshifttowardslow-emissionandclimate-resilientdevelopment,theGCFhas identified eight strategic impact areas (see Figure 1), noting that for an individual project orprogramme,severalcanapply.


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Figure1:GCFStrategicimpactareas(source:reproducedbyauthorsfromGCFInfographics)

3.2. Howmuchandwhattypeoffinanceisavailable?�

As of September 2017, the GCF has raised USD 10.3 billion equivalent in pledges from 43 stategovernments.Sofar,themajorcontributorshavebeentheUnitedStates,Japan,theUnitedKingdom,France and Germany. However, eight developing countries also pledged finance, including Chile,Colombia,Indonesia,Mexico,Mongolia,Panama,PeruandVietnam.TheGCFprovidesfourfinancialinstruments:grants,concessional loans,equityandguarantees(seeTable1below).Grants includereimbursable grants (providing funding after expenses have been incurred) and non-reimbursablegrants.Concessionalloansincludeseniorloansandsubordinateloans.Itisimportanttonotethattwoormoreinstrumentsmaybeblended,withmorethanoneinstrumentbeingusedbytheFunditselfon a particular project or programme, or a GCF instrument or instruments being combined withinstrumentsfromothersourcesoffinanciers.Grantsincludereimbursablegrants(providingfundingafterexpenseshavebeenincurred)andnon-reimbursablegrants.Concessionalloansincludeseniorloansandsubordinateloans.Itisimportanttonotethattwoormoreinstrumentsmaybeblended,withmorethanoneinstrumentbeingusedbytheGCFitselfonaparticularprojectorprogramme,oraGCFinstrumentorinstrumentsbeingcombinedwithinstrumentsfromothersourcesoffinanciers.Table1:GCFFinancialInstruments(source:Acclimatise,GCFproposaltoolkit2017)

Instrument Definitions

GrantsResourcesgenerallychannelledtofundinvestmentswithouttheexpectationthat the money be repaid. Grants can be provided up-front or disbursedthroughanincentive-basedscheduleafterachievingspecificgoals.

Grants can financeactivities thatwouldhave leftunfundedby themarketsuch as information generation, data analysis, development anddissemination of knowledge products; capacity building of nationalinstitutionsforarobustpolicyreformandprioritysetting.

ReimbursablegrantAssimilatedtoloans,reimbursablegrantsconsistincontributionprovidedtoarecipientinstitutionforinvestmentpurposes,withtheexpectationoflong-


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termreflowsatconditionsspecifiedinthefinancingagreement.Theproviderassumestheriskoftotalorpartialfailureoftheinvestment;itcanalsodecideifandwhentoreclaimitsinvestment.

Non-reimbursablegrant

Unlikereimbursablegrants,non-reimbursablegrantsarestandardtransfersmade in cash, goods or services forwhich no repayment is required. Thisamountstodirectaidasopposedtorepayableassistance.

Concessionalloans

The up-front transfer of resources from one party to another with theagreementthatthemoneywillberepaidonconditionsmorefavourablethanmarkettermsisknownasconcessionalorsoftlending.Concessional lending includes a grant component that can be quantifiedbasedonhowfavourablethelendingtermsare(the‘grantelement’oftheloan).

Guarantees Commitmentsinwhichaguarantorundertakestofulfiltheobligationsofaborrower to a lender in the event of non-performance or default of itsobligationsbytheborrower,inexchangeforafee.Theycancovertheentireinvestmentorjustaportionofit(partialguarantee).

Equity Consistsofaninvestmentintoaprojectorassettoleveragedebtandachievebetterreturns.

3.3. WhatistheroleoftheNationalDesignatedAuthority?

CountriesappointaNDAtoactasaninterfaceandthemainpointofcommunicationbetweenthecountryandtheGCF.InUzbekistan,thisistheCentreofHydrometeorologicalService(Uzhydromet).TheNDAalsoplaysacrucialroleinfacilitating,supportingandcreatinganenablingenvironmentforGCFprocesseswithinaneligiblecountry.ActingasUzbekistan’sNDA,Uzhydrometisresponsiblefor:•ActingasthefocalpointforcommunicationwiththeGCF,AEsandnationalstakeholders(includingprivatesectoractors);•IdentifyingnationalfundingprioritiesforengagementwiththeGCF,throughthedevelopmentofastrategiccountryworkprogramme;•Nominating foraccreditationapplication sub-national andnationalentities applyingunder thedirectaccesstrack;and,•Recommend funding proposals and concept notes received fromAEs that are consistentwithnationallaws,regulations,developmentandclimatepriorities,throughtheimplementationoftheno-objectionprocedure.

�


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Figure2:KeyfunctionsoftheNDA(source:AcclimatiseNDAtoolkit2017)

3.4. HowcanUzbekistanaccesstheGCF?

�UzbekistancansubmitfundingproposalstotheGCFthroughthreemainaccessmodalities(seeFigure3).Thesemodalitiescanbeusedsimultaneously.

Figure3:GCFaccessmodalities(source:AcclimatiseNDAtoolkit2017)

Internationalaccess:Underthismodality,UzbekistancanaccesstheGCFthroughinternationalAEs.The key functions – fund oversight, management, and implementation – are undertaken at theinternationallevelwithinamultilateralorinternationalinstitution,e.g.UnitedNationsDevelopment


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Programme(UNDP)orUNEnvironment.Executionmaytakeplaceat thenational levelormaybemanagedwithinthemultilateralinstitution.

DA:Underthismodality,UzbekistancanaccesstheGCFthroughnational,sub-nationalandregionalAEs. These entities are referred as DAEs. In this case, only the fund oversight and managementfunctionremainattheinternationallevelandbothimplementationandexecutionaredelegatedtothenational level,usuallytoanationalentity.Also,theadministrationof funds iscarriedoutbyanationalentity.

EDA: Under this modality, only the fund oversight remains at the international, while the fundmanagement, implementation and execution are all delegated to the national level, usually to anationalentity.Unlike the traditionaldirectaccess track, therewillbenosubmissionof individualprojectsorprogrammesbecausedecision-making for the fundingof specificpilotactivitieswillbedevolvedatthecountrylevel.ThroughtheEDAmodality,theGCFaimstomovefromthefinancingofstand-aloneprojectstowardsamorecomprehensiveandstakeholder-drivenprogrammaticapproach.Theobjective is toenhancecountryownershipofprojectsandprogrammesbydevolvingdecisionmakingatcountrylevel,therebyallowinggreaterinvolvementandinputfromnationalstakeholders.ItshouldbenotedthattheEDAmodalityisstillbeingpilotedandassuch,mayevolveinthenearterm.UndertheEDApilotprogramme,USD200millionhasbeeninitiallyallocatedtosupportatleast10pilots,includingatleastfourpilotstobeimplementedinSmallIslandDevelopingStates(SIDS),LeastDevelopedCountries(LDCs)andAfricannations.Todate(asof12October2017),onlyonefundingproposalhasbeenapprovedatthe14thBoard(October2016)fromtheEnvironmentInvestmentFund(EIF) in Namibia “Empower to Adapt: Creating Climate-Change Resilient Livelihoods throughCommunity-BasedNaturalResourceManagement(CBNRM)inNamibia”.ThereiswiderangeofentitiesthatcanactasAEsfortheGCF.AEsarelegallyaccountabledirectlytotheGCF’sBoardfortheoverallmanagementofprogrammesandprojects,aswellasforthefinancial,monitoring and reporting aspects of funded activities. In addition to project managementresponsibilities,AEscanbe intermediarieswhichadministergrantsand loanswhileblendingfundswiththeirownandothers.AEsarealsocommonlyreferredtoasImplementingEntities(IEs),whilenational and regional DAEs are referred as National Implementing Entities (NIEs) and regionalImplementingEntities(RIEs)respectively,andinternationalaccessentitiesarereferredasMultilateralImplementing Entities (MIEs). Working under the oversight of AEs, EEs are responsible for theoperationalimplementationandexecutionofGCF-fundedprojectsorprogrammes.EEsaregenerallynot accreditedwith theGCF and therefore cannot receive its finance directly. However, they areexpectedtooperateinaccordancewiththeGCF’srelevantstandardsandguidelines.AnAEmayalsocarryoutthefunctionsofanEE.ThelistofexistingAEsisavailableat:

{www.greenclimate.fund/partners/accredited-entities/ae-directory}.

3.5. Whatistheroleoftheprivatesector?�

The GCF aims at maximising private sector engagement in climate change activities to providetransformational solutions and catalyse private finance. To achieve this, the GCF has set up a


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dedicated Private Sector Facility (PSF) throughwhich it is engagingwith pension funds, insurancecompanies,corporations,localandregionalfinancialintermediaries,andthecapitalmarkets.ThePSFis managing two alternative mechanisms: the mobilisation of funding at scale and MSME pilotprogrammes.The formeraims tomobilise fundsat scale from institutional investors suchas commercialbanks,investmentfunds,insurancecompanies,pensionfundsandsovereignwealthfunds.Toengagewiththese institutional investors, the Fund intends to develop a rangeof investible financial products,someofwhich include: green bonds, commercial paper, syndications and club deals. Institutionalinvestorscanbenefitfromtheseproducts,whichcanhelpthemtoraiseadditionalthird-partycapitalforclimaterelatedinvestments.Initially,USD500millionhavebeenallocatedtothisprogrammeandan RFPwas launched to identify aminimum of three high-impact projects and programmes thatmobiliseprivatesectorinvestmentinclimatechangeactivityatscale.Intotal,350conceptnoteswerereceivedandapproximately150wereshortlistedforapreliminaryreview,conductedinOctober2017.The20-30bestconceptnoteswillbeannouncedinearlyDecember20171.ThelatterusespublicfinancetoworkwithlocalMSMEs–tounlockinnovativesolutionsfortacklingclimatechange,inparticularonadaptationusingRFPstowhichallAEsthatareabletodemonstrateatrackrecordofsuccessfullyworkingwithandfinancingMSMEs,canrespondto.AfirstMSMERFPwaslaunchedin2016.Twooftheselectedproposals,bothfromDAEs,wereapprovedatits15thBoardbyXacbank,acommercialbank fromMongolia for the ‘BusinessLoanProgrammeforGHGEmissionsReduction’proposalandthe‘SCFCapitalSolutions’proposaloftheDevelopmentBankofSouthernAfrica.AsecondMSMERFPisexpectedtobepublishedsoon,basedonthelessonslearnedfromthefirstround.

1Furtherinformationisavailableat:http://www.greenclimate.fund/documents/20182/730867/RFP_Results_Snapshot.pdf/cecb671f-ef12-48a4-bc97-57b3d2ae419b

Figure4:SupportprovidedbytheGCF’sPrivateSectorFacility(PSF)(source:Acclimatise,GreenClimateFundProposalToolkit2017)


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4. WhocanbecomeaGCFAccreditedEntity?��

�4.1. Overview

International,regional,nationalandsubnationalentities-fromboththepublicandprivatesectors-can become AEs of the GCF, provided they successfully receive accreditation. In 2017, newapplicationsforaccreditationfromnationalDAEs,entities intheAsia-PacificandEasternEuropeanregions,privatesectorentities,inparticularthoseindevelopingcountrieswillbeprioritisedbytheGCFtoensureabalanceofdiversityofAEs.Inaddition,entitiesrespondingtoRFPsissuedbytheGCFwillbefavoured,forexampleincludingapilotphaseforEDA;apilotprogrammetosupportMSMEs;andapilotprogrammetomobiliseresourcesatscaleinordertoaddressadaptationandmitigation.Anentitycanapplyforaccreditationifitcandemonstrate:

• Asolidtrackrecordofimplementingthetypeofprojectsorprogrammesthattheinstitutionwilloverseeasanimplementingentity;

• Experiencemanaginginternationalaidanddevelopmentorclimatefinance;• Effective and documented processes and policies to reduce fiduciary, environmental, and

socialrisks;and,• Itsscopeofworkshouldberelatedtoclimatechangeadaptationandmitigation.

To access the GCF’s finance through the direct access modality, Uzbekistan can support theaccreditation of a national or subnational DAE. These can be national governmentministries andagencies,nationaldevelopmentbanks,financial intermediariesandclimatefunds.Thecountrycanselectanynumberofentitiestoaccess,manageanddistributeGCFfunding,anddoesnothavetogothroughanymultilateralagencies.Aprospectivesub-nationalornationalDAEmustreceive formalapprovalfromtheNDAthroughnomination.Inaddition,itmustdemonstratethattheyareabletomanagetheGCF’sresourceseffectivelyandefficiently,inlinewiththestandardsandcriteriasetoutintheGCF’saccreditationrequirements.InordertobecomeaccreditedtotheGCF,asubnationalornationalentitymustmeetthefollowingrequirements2:

• Basicfiduciarystandards;• Specialisedfiduciarystandards;• Environmentalandsocialsafeguards;and,• Genderpolicy.

2 The full application form is available at: https://www.greenclimate.fund/documents/20182/574712/Form_05_-_Accreditation_Application.pdf/7cef5ed0-e42e-475a-9bd7-e099d64d6231


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Figure5:TheGCF’sbasicandspecialisedfiduciarystandards,ESSandgenderpolicy(source:AcclimatiseNDAtoolkit2017)

FurtherinformationonthesespecificaccreditationrequirementsisprovidedinSection6.

4.2. Fit-for-purposeaccreditationThe GCF uses a ‘fit-for-purpose’ accreditation approach to enable a wide range of entities withdifferentlevelsofexistingcapacitiestogainaccreditation.Entitiescanqualifyfordifferentlevelsofaccreditation,dependingontheirabilitytodemonstrateatrackrecordoffiduciary,environmentandsocialstandards.Basedon this simplifiedand tieredapproach, fiduciary standardsandESSareadjusted to suit thenature, scope and risks of the proposed activities (by activity and institution type). This tieredapproach classifies applicant entities according to the intended scale, nature and risks of theirproposedactivities.


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Throughthefit-for-purposeapproach,entitiescangetaccreditedbasedon:• Theirintendedfiduciaryfunctions;• Thesizeoftheirproposedprojectsandactivitieswithinprogrammes;and,• The environmental and social risk level of their proposed projects and activities within

programmes.

Figure6.TheGCF’sfit-for-purposeapproachtoaccreditation,relatedtotheintendedscope(fiduciaryfunctions),intendedsize(projectsize)andintendedenvironmentalandsocialriskofintendedactivitiesusingGCFfunding(source:AcclimatiseNDAtoolkit2017)


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4.3. StatusoftheGCF’saccreditationportfolioAsofOctober2017,59entitieshavebeenaccreditedtotheGCF,andthereare186entities intheaccreditationpipeline.MostoftheAEsaremultilateral(46%)–asshownbelow:

�

�

�

�

�

�

�

�

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Figure7:RepartitionofAEsperaccessmodality(source:preparedbytheauthors)

ThosemultilateralAEsinclude:

• Multilateraldevelopmentinstitutions,suchastheUnitedNationsDevelopmentProgramme(UNDP);

• Multilateraldevelopmentbanks,suchastheWorldBankandtheAsianDevelopmentBank(ADB);

• Commercialfinancialinstitutions,suchasHSBC;and,• Internationalnon-governmentorganisations,suchasConservationInternationalFoundation;• Privatedevelopmentbanks,suchasGroupeAgenceFrançaisedeDéveloppement(theFrench

DevelopmentBank).Therearealso21nationalDAEs,aspresentedinthetablebelow.


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Table2:NationalDAEstotheGreenClimateFund(source:GCFdirectoryofAccreditedEntities)

Organisation Country DescriptionAgency for AgriculturalDevelopment(ADA)

Morocco Nationalpublicentitywhichprovidesactionplansandvalue-addedsolutionstoaddressagriculturalneedsatthe

localandnationallevels.Itsmandate,underthenationalgreenplaninplacesince2008,istocontributetosocial

and economic development through more resilient and productive agriculture. ADA has developed a

comprehensive portfolio of climate change-related projects and programmes worth approximately USD 33

million,whichhasbeenfinancedbybilateralandmultilateralorganisations.

CDGCapital Morocco Financialinstitutionwhichfocusesonassetmanagementservices,corporateandinvestmentbankingandcapital

investment.

China Clean DevelopmentMechanism FundManagementCentre(China CDM FundManagementCentre)

China NationalclimatefundthatsupportslowcarbongrowthandclimateresilienceinChina.Itisarevolvingfundthat

receivesregularcapital injectionsfromleviescollectedbythegovernmentoncleandevelopmentmechanism

projectsinChina(UNFCCC).

Centre de Suivi Écologique(CSE)

Senegal National entitywhose core activities include environmentalmonitoring, natural resourcesmanagement and

conductingenvironmentalimpactassessments.Ithasbuiltpartnershipsatthelocal(subnational)andnational

levels, as well as with international donors, in order to develop climate change projects and programmes,

particularlyintheareasofenvironment,agricultureandlivestock.

DepartmentofEnvironment(DOE)

Antiguaand

Barbuda

TheDOEbelongstothecountry’sMinistryofHealthandEnvironment.Itsmissionistoprovidetechnicaladvice

andimplementprojectsandprogrammesonbehalfoftheGovernment.Theseprojectsaredesignedtoprotect

and enhance the country's environment, aswell as seek common solutions to national, regional and global

environmentalproblems(DOE’swebsite).

Environmental InvestmentFund(EIF)

Namibia This isanationalentityandenvironmental fund thatwasestablishedwithamandateofbeinga sustainable

source of funding for the development and implementation of environmentally sustainable development

projectsandprogrammesinpartnershipwithbothpublicandprivatesectororganisations.


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Organisation Country Description FijiDevelopmentBank(FDB) Fidji ProvidesfinanceforprojectsthatcontributetothedevelopmentofFiji’seconomy.Loanfundsareprovidedfor

agricultural,smallandmedium,aswellascorporateenterpriseprojects.FDBfocusesonthefollowingsectors:

agriculture, miningandquarrying,manufacturing, transport, communicationsand storage,wholesale, retail,

hotelsandrestaurants,professionalandbusinessservices,buildingandconstructionandrealestate.

TheFijigovernmentalsousesFDBasafinancialvehicleinitsdevelopmentprojects/plansandspecialassistance

programmes thatmay be necessary from time to time. Over the years FDB has introduced a range of loan

packagesandservicesaligningitwithitsstrategicobjectivesandcustomerdemands(FDB’swebsite).

Foreign EconomicCooperationOffice(FECO)

China FECO is part of theMinistry of Environmental Protection of China, with amandate of improving economic

cooperation in the area of environmental protection through management of financial assistance from

internationalfinancialorganisations.FECOmobilisesfinancialresourcesfrominternationalandbilateralsources.

Sinceitsestablishment,FECOhasimplementedprojectsthatprotecttheenvironmentandcontributetoclimate

changemitigationandadaptationintheagriculture,forestry,transport,energyandwaterresourcessectors.

Infrastructure DevelopmentCompanyLimited(IDCOL)

Bangladesh IDCOL is a non-bank financial institution (NBFI) that finances the development of medium to large-scale

infrastructureandrenewableenergyprojectsinBangladesh.Thecompanyisthemarketleaderinprivatesector

energyandinfrastructurefinancinginthecountry.

Korea Development Bank(KDB)

Korea Nationalentitythatwasfoundedwiththepurposeofsupplyingandmanagingmajorindustrialcapitaltohelp

developtheeconomyoftheRepublicofKorea.Sinceitsestablishment,KDBhasbeenprovidingfinancingforthe

development and promotion of industries, the expansion of social infrastructure development of countries,

includingthatoftheRepublicofKorea,thestabilizationoffinancialmarketsandthefacilitationofsustainable

growth.KDBhasplacedclimatechangeandsociallyresponsibleinvestmentaspolicyissuesthatareaddressed

initsannualplanning.

Ministry of Finance andEconomic Cooperation(MOFEC)

Federal

Democratic

Republicof

Ethiopia

MOFEC’smandateistooverseetheplanningandimplementationofdevelopmentprogrammes,includingthose

thataddressclimatechange. Itsactivities inclimate-resilientdevelopmentpathways,valuedatoverUSD400

million, include mitigation and adaptation projects and programmes in a variety of sectors, particularly

agriculture,water,energy,forestry,buildings,industriesandtransport.Someofitskeyactivitiesinthesesectors

includenaturalresourcesmanagementthroughwatershedmanagement,afforestationandreforestation,energy

generationandaccess,andlow-carbontransportsystems.


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Organisation Country Description Ministry of NationalResources of Rwanda(MINIRENA)

Rwanda Nationalentity,specificallyapublicsectorministry,whichisresponsibleforenvironment,climatechangeand

natural resources management at the local and national levels. MINIRENA in partnership with national

stakeholders,hasastrategyinplacetosupportnationaldevelopmentgoals,particularlyingreengrowth,climate

resilience,andthesustainablemanagementandconsumptionofnaturalresources.ThegoalofMINIRENAisto

provide solutions to the environmental and resource challenges faced, including the imbalance between

populationandnaturalresourcesthathasseriousimpactsonsectorssuchasagriculture,energy,infrastructure,

land,waterresourcesandforestry,inachievingnationallong-termsustainabledevelopment.

National Bank forAgriculture and RuralDevelopment(NABARD)

India National financial institution in IndiawithatotalbalancesheetofoverUSD40billion. Ithasthemandateof

promoting sustainable agriculture and rural development through innovative, sustainable and equitable

agricultureandruralprosperitybyprovidingfinancialandtechnicalsupport.Ithasbuiltpartnershipswithother

nationalentities, financial institutionsandnon-governmentalorganisations inorder to implement innovative

ideas through loans, guarantees, blended finance and other structures in the areas of agriculture, natural

resourcesmanagement, fisheries, rural livelihood improvement, renewableenergyandmicro financeamong

others.

National EnvironmentManagement Authority(NEMA)

Kenya Nationalentitywhichwasestablishedin2002withtheobjectivesofsupervisingandcoordinatingenvironmental

activitiesandservingasthemainnationalbodytoimplementenvironmentalpolicies inallsectorswithinthe

country. In addition to its role as an environmental regulatorybody,NEMAadditionally implements its own

projects.NEMAhasvastexperienceinthefieldofclimatechangeadaptationandmitigation,co-implementing

projectsrangingfromUSD10milliontoUSD255millionwithlocalandinternationalorganisations.Someofits

past and current activities include building resilience to climate change and adaptive capacity of vulnerable

communities, environmental management, coastal development, technical assistance and natural resource

management.

Palli Karma-SahayakFoundation(PKSF)

Bangladesh Wasestablishedtofightagainstpovertythroughemploymentgeneration.Itisanon-for-profitcompanywhose

objectivesaretoprovidefinancialassistanceandinstitutionaldevelopmentsupporttoappropriateorganisations

for implementing sustainable inclusive financial programmes for reduction of poverty through creating

productiveemploymentopportunitiesforthemoderateandultra-poor,smallandmarginalfarmersandmicro-

entrepreneurs(PKSFwebsite).


35

Organisation Country Description Peruvian Trust Fund forNational Parks andProtected Areas(Profonanpe)

Peru Nationalentityandenvironmentalfundwhosemandateistoprovidestableandlong-termfundingaswellasto

develop and implement innovative strategies for conservation and management of protected areas. Its

partnershipsatlocal,national,andinternationallevelswithdonorshaveallowedittoaddressclimatechange

issues such as deforestation and forest degradation as well as to develop climate change projects and

programmes,particularlyintheareasofenvironment,agricultureandlivestock.

PT Sarana MultiInfrastruktur(PTSMI)

Indonesia National entitywith the goal of serving as a catalyst for accelerating national infrastructure development in

Indonesia. PT SMI supports the fulfilment of its government’s infrastructure development objectives by

implementing projects through public–private partnerships. In addition, the entitymobilises resources from

multilateralandbilateralfinancialinstitutionsinordertofinanceinfrastructureprojects.PTSMIiscontributing

to the sustainable development and climate resilience of communities in Indonesia by financing water,

renewableenergygeneration,transportandagriculture-relatedinfrastructureprojects.

Small IndustriesDevelopment Bank of India(SIDBI)

India SpecificallyaddressesthefinancialanddevelopmentalneedsoftheMSMEsector.FinancialsupporttoMSMEs

isprovidedbywayofindirectrefinancetobanksandfinancialinstitutionsforonwardlendingtoMSMEsandvia

directfinanceinareaslikeriskcapital,sustainablefinance,receivablefinancingandservicesectorfinancing.

South African NationalBiodiversity Institute(SANBI)

SouthAfrica National entity and a research institute that coordinates research, monitors and reports on the state of

biodiversityinSouthAfrica.SANBIalsoprovidesplanningandpolicyadviceandpilotsmanagementmodels.It

has developed and implemented climate-resilient projects that deliver multiple and sustainable benefits to

communitiesinanefforttorespondtolocaladaptationneedsandnationalclimatechangepriorities.SANBIhas

achievedthisbymobilisingfinancialresourcesfromvarioussources,includingmultilateralfinancialinstitutions.

UnidadParaelCambioRural(Unit for Rural Change,UCAR)

Argentina Government agency located within the Ministry of Agroindustry, which is responsible for implementing

environmentalandsocialsustainableprojectsfinancedtotallyorpartiallybyexternalresourcesatthenational

andprovinciallevels.UCARoffersawidevarietyofpublicinvestmentsinruralservicesandinfrastructurethrough

grants,concessional loansandguarantees.UCAR, inpartnershipwithnationalstakeholders,hasastrategy in

placetosupportnationalsustainabledevelopmentandgrowth,particularly intheforestry,agriculture,sugar

industry,fisheries,aquaculture,trainingandinnovationsectors.


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Organisation Country Description XacBank Limited LiabilityCompany(LLC)

Mongolia PrivatecommercialbankthatservesclientsfromindividualsandMSMEstoMongolia’slargestcorporationswith

afullspectrumofinclusivebanking,fairinvestmentandotherfinancialproductsandservices.Theentitystrives

tobeadynamicleaderintheMongolianfinancialsector,settingthehigheststandardsincorporategovernance

andsocialandenvironmentalresponsibility,whilereturningfairvaluetoitsshareholders.


37

5. HowtoapplyforGCFaccreditation?

5.1. Whatarethekeyconsiderationsbeforestartingtheaccreditationprocess?

• Accreditation is a time-intensive process and a minimum of six months (if no readinesssupport is required) should be planned to be dedicated to the process. The prospectiveaccreditedentitywillberequiredtofrequentlyinteractwithkeyGCFstakeholdersalongtheaccreditationprocess,suchasthecountry’sNDA,theGCFRegionalAdvisor,SecretariatandAccreditationPanel.Threequartersofallaccreditationapplicantshaveexperienceddelayssofar,withdirectaccessentitiestakingonaverageninemonthstogainaccreditation(seeBox1);

• It is necessary to be able towrite, read and speak fluent English for the process, as allaccreditationdocumentsmustbesubmittedinthislanguage,inadditiontocommunicationssuchasemailandteleconferencing.TheGCFishoweverexploringthepossibilityofenablingsubmissioninalltheUNofficiallanguages;

• TheNDA’sapprovalisnecessarytoapplyforanationalorsubnationalentity.TheNDAwillprovidealetterofnomination,thatmustbeincludedintheapplication,toensurethattheentityiscontributingtothecountry’sclimatechangeanddevelopmentpriorities.

• Accreditationfeesmayberequiredpriortogainingaccreditationandwillvarydependingontheaccreditationscaleandscope.EntitiesinLDCsorSIDSarenotrequiredtopayanyfeesforbasicaccreditationcoveringmicroandsmall-sized.SeethefullfeesanddescriptioninTable3.IftheSecretariatorAccreditationPanelarerequiredtoreviewtheapplicationmorethantwice,additionalfeesmayapply;

• The GCF’s policies and guidelines change frequently following decisions made at Boardmeetingsand sometimes inbetween.That iswhy,entitiesmust continuouslymonitor theGCF’swebsite fornewdocuments tokeepup todate. Inaddition topolicies, requests forproposalsmaybepublishedandentitiesthatrespondtoRFPswillbeprioritised.AllnewGCFdocuments are available at: {https://www.greenclimate.fund/boardroom/board-meetings/documents};and,

• All application materials must be submitted electronically via the Online AccreditationSystem (OAS), since no hard-copy is accepted. The OAS allows applicants to check theirapplicationstatusonlineandreceiveregularnotifications.

TheOASrequestformisavailableontheGCFwebsiteat:{www.greenclimate.fund/documents/20182/319135/20160602_-_OAS_Account_Request_Form.docx/13906136-1e76-47d4-b2a7-ff291350baa8}TheOASplatformisavailableontheGCFwebsiteat:{https://accreditation.gcfund.org/_layouts/15/GCFLOGIN/Default.aspx?ReturnUrl=%2f_layouts%2f15%2fAuthenticate.aspx%3fSource%3d%252F&Source=%2F}


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Box1.HowlongdoesittaketogetaccreditedtoGCF?Becomingaccredited to theGCF is a rigorousprocess. It can takeas longas1-2 years tobecomeaccredited,whilstonaverage,ittakes6-9monthstocompletedependingonscope,sizeandrisklevelofaccreditation.IfaprospectiveAEmeetsthefast-trackrequirements,theaccreditationpanelaimstomakeadecisionwithin3months.Thefast-trackisfororganisationsthathavealreadybeenaccreditedbytheGlobalEnvironmental Facility (GEF), Adaptation Fund (AF) and theDirectorate-GeneralDevelopment andCooperation–EuropeAidoftheEuropeanCommission(DGDEVCO).IforganisationsalsoapplyforsupportthroughtheGCFReadinessProgramme,thisprocessmaytakelonger.

5.2. Whatarethekeystagesandstepstoapplyforaccreditation?TheaccreditationprocessisstructuredaroundthreemainstagesasshowninFigure8.

Figure8:ThreestagesoftheGCFaccreditationprocess(source:AcclimatiseNDAtoolkit2017)

Stage1 OpeningofanOASaccount

NoobjectionletterbyNDA

Submissionofapplicationforaccreditation

Paymentaccreditationfee

Institutionalassessmentandcompleteness

checkbytheGCF

Stage2 ApplicationPanelreview

Boarddecisiononaccreditationapplication

Stage3 ValidationAEfeepayment

LegalarrangementsandAMA


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Athree-stepprocessStage1.Pre-accreditationandcompletenesscheck:TheprospectiveAEtocollecttherelevantinformationanddocumentstoapplyforaccreditation.Thiswillbecompletedin5steps:

• TheprospectiveentitywillopenanaccountontheOASviatheGCFSecretariat.TheOASwillenabletheentitytocommunicatedirectlywiththeGCFSecretariat, includingonreadinesssupport(iftheentitymakesarequesttoseekreadinesssupport);

• The entity will request and/or receive a letter of nomination for accreditation from thecountry’sNDA;

• After having obtained a letter of nomination from the NDA, the entity can submit thecompleted application for accreditation through the OAS, including the requiredaccompanyinginstitutionalpolicydocumentandevidenceofimplementation;

• Theentitywillexecutepaymentoftherelevantaccreditationfees;and,• TheGCFSecretariatwillundertakeaninstitutionalassessmentandcompletenesscheckofthe

documentedmaterialprovidedby theentity regarding theentity’spolicies, standardsandguidelinesrelevanttotheGCF’saccreditationrequirements.

Theinstitutionalassessmentandcompletenesscheckisfinalisedoncetheentityhasprovidedallthenecessary documented material, and the accreditation application will move onto Stage 2 –accreditationreviewandBoarddecision.Iftheinformationisunclear,incompleteormissing,theGCFwillrequestadditionalevidence.Accreditation feeswillvarydependingontheaccreditationscaleandscopeapplied for.Entities inLDCsorSIDSarenotrequiredtopayanyfeesforbasicaccreditationcoveringmicroandsmall-sizedprojects;entitiesfromanyotherdevelopingcountryarerequiredtopayaminimumofUSD1,000.Feesforbasicaccreditationvary,fromUSD1,000foraccreditingmicrosizedfundingtoUSD25,000tolarge scale funding. Additional fees, which also rise with the scale of funding accredited for, arerequiredforeachspecialisedfiduciarystandardtheentitywishestogainaccreditationfor.ThefullfeesareoutlinedinTable3.ThesefeesarerequiredbeforetheaccreditationapplicationisapprovedbytheBoard,andotherfeesmayapply,forinstanceiftheGCFSecretariatorAccreditationPanelarerequiredtoreviewtheapplicationmorethantwice.


40

Table3:Overviewofaccreditationapplication'sfees(source:AcclimatiseNDAtoolkit2017)Financialcapacitycategory

Totalprojectedcostsat the time of theapplication

Fee level for accreditationapplication for basic fiduciarystandards,ESSandgender

Fee for accreditationapplication for specialisedfiduciarystandards

Micro Less thanorequal toUSD10million

DAE from developing countries: nofeeInternational access entities: USD1,000

USD 500 per specialisedfiduciarystandard

Small AboveUSD10millionuptoUSD50million

DAEfromSIDSandLDCs:nofeeDAE not from SIDS and LDCs: USD3,000Regional and international accessentities:USD5,000

USD 1,000 per specialisedfiduciarystandard

Medium AboveUSD50millionuptoUSD250million

Allentities:USD10,000 USD 3,000 per specialisedfiduciarystandard

Large Above USD 250million

Allentities:USD25,000 USD 7,000 per specialisedfiduciarystandard

Stage2.AccreditationreviewandGCFBoarddecision:TheGCF’sindependentAccreditationPanelwillreviewthesubmittedaccreditationapplicationandthesupportingdocuments.Basedontherecommendationofthe IndependentAccreditationPaneland of each Boardmember’s own evaluation, the Boardwillmake a final decision. This processincludestwomainsteps:

• AccreditationPanelapplicationreview:TheapplicationwillbereviewedbytheAccreditationPanel to assesswhether itmeets theGCF’s basic fiduciary standards, specialised fiduciarystandards, environmental and social safeguards, and gender policy. Through the fit forpurpose approach, the Accreditation Plan will compare the applicant’s demonstratedcapacitiesversustheintendedactivitywiththeGCF,aswellastheentity’spasttrackrecord.Finally,thePanelwillprovidearecommendationtotheBoardspecifyingwhethertheentityshouldbeaccreditedornotandforwhichtypeandscaleofaccreditation.ThePanelmayalsodecidetorecommendtotheBoardtheapplicant isaccreditedforsmallerand/orlessriskyfinancial,environmentalandsocialactivitiesthanoriginallyappliedfor.

• Board decision on accreditation application: Following the recommendation from theAccreditationPanel,theGCFBoardwillmakeafinaldecisionontheaccreditationapplication.Therearefourpotentialoutcomes:

o Unconditionalapprovalforaccreditation;o Conditionalapproval,witharangeofconditionstobemetbytheentitytobeeligible

foraccreditation;o Referral back to Stage 1 of the accreditation process, providing further readiness

supporttobuildtheapplicant’scapacitiesbasedonthegapsidentified.Insuchcases,theapplicationwillbereconsideredatalaterdate,followingfurtherreviewbytheAccreditationPanel;or,

o Completerejection.TheGCFBoardwillconsiderapplicationsforaccreditationrecommendedbytheSecretariatandtheAccreditationPanelattheBoardmeetings.Assuch,applicationsshouldbesubmittedattheearliest


41

pointpossibleandatminimumofonemonthinadvanceoftherelevantBoardmeeting.OncetheGCFBoardapprovedtheaccreditation,theapplicantwillmoveontoStage3–post-accreditationreviewandlegalarrangements.Stage3.Post-accreditationreviewandlegalarrangements:Following accreditation approval by the Board, the prospective entity will complete the legalarrangementswiththeFund.Thisincludes:

• TheAE’sfeepaymentwillbevalidatedandregistered;and,• TheAEwillfinalisethelegalarrangementsandsigntheAccreditationMasterAgreement

(AMA)3 with the GCF. The legal arrangements and the contract for accreditation areoutlined in the AMA which describes the role, terms and conditions of the AE. Thisagreement reflects the fit-for-purpose accreditation approach, bymaking a distinctionbetweenvarioustypesofentitiesandtheirtypeofaccreditation,ratherthanfollowingaone-size-fits-alllegalformat.

TheAMAincludes:• TheconditionsthattheAEmustmeetpriortothedisbursementoffundsfromtheGCF;• ClausesrelatedtotheAE’sperformanceagainsttheGCF’spoliciesandstandardswhich

mayleadtoterminationoftheAMA;and,• Specification of the environmental and social risk category and financial size of

projects/programmesthattheAEmayundertakeusingtheGCFfunding.AEscanupgradetheiraccreditationstatusatanytime,oncetheyhavegeneratedsufficientpoliciesandexperiencetodemonstratetheircompliance.UpgradingentitieswillgostraighttoStage2oftheaccreditationprocess,wheretheadditionalcapacitieswillbeanalysedbytheGCFAccreditationPanel,unlesstheentitywishestocommenceatStage1,inordertoundergoareadinesssupportassessmentforthenewlyproposedaccreditationstandards.AEswillneedtore-applytoretaintheirstatuseveryfiveyears.

3 The GCF Board decisions and template of the Accreditation Master Agreement can be found at:https://www.greenclimate.fund/documents/20182/319135/Accreditation_Master_Agreement_Template.pdf/8c4f6cbf-ae17-4856-81c1-64ac8fbfa506


42

6. HowtomeetGCFaccreditationrequirements?Thissectionpresentstheapplicationformandcorrespondingareasofcompetencerequired,includingexamplesofevidence/documentationtobeprovidedbyanapplicant.Beforecompletingtherelevantquestionswithintheaccreditationapplicationform,anapplicantshouldhavesufficientcollectedallrelevantinformation.

Thefullapplicationformisavailableat:{https://www.greenclimate.fund/documents/20182/574712/Form_05_-_Accreditation_Application.pdf/7cef5ed0-e42e-475a-9bd7-e099d64d6231}

6.1. BackgroundandcontributiontoGCFobjectives

Thefirstthreesectionsoftheapplicationforminclude:• Section I: Description of the entity and contact information, track record of past climate

changeprojectsandprogrammes,accreditationbyotherfunds;• Section II: Informationon theways inwhich the institutionand its intendedactivitieswill

contributetofurtheringtheobjectivesoftheGCF;and,• Section III: Information on intended scope of projects/programmes and estimated

contributionrequested.Beforestartingtheapplicationprocess,itisimportantthattheapplicantidentifiespotentialactivitiestoundertakeusingtheresourcesoftheGCF.


43

Table4:SectionIoftheaccreditationapplication“Backgroundandcontactinformation”(source:GCFaccreditationform)Item Informationrequired Applicability Inputdata Examplesofsupportingdocumentation

1.1 Backgroundandcontactinformation

1.1.1 Legalnameoftheapplicantentity

Allapplicants Foralltypesofentities:• Foundinglegaldocument;• Documentationoflegalstatus.

1.1.2 Typeofinstitution Allapplicants Selectallthatapply:⎕International⎕Regional⎕National⎕Subnational⎕Publicsector⎕Privatesector⎕Other(pleasespecify):

Foralltypesofentities:Evidencedemonstratingyourtypeofinstitutionandoperations;Evidencemayalsohavebeenprovidedinotheritemsoftheapplication,inwhichcasethetextresponseshouldrefertotheitemnumber,documentname,sectionorpagenumber,etc.,ifitislocatedinanotheritem.

1.1.3 Sizeofinstitution Allapplicants Selectone:⎕1-10employees⎕11-50employees⎕51-200employees⎕201-500employees⎕501-1,000employees⎕1,001-5,000employees⎕5,001-10,000employees⎕Over10,000employees

Foralltypesofentities:• Listofheadcount/staffcount;• Locationofheadquarters;• Location(s)oflocaland/orregionaloffices.

1.1.4 Corebusiness Allapplicants Forgovernmentministries,departments,divisions,etc.:• Scannedcopyorextractof therelevantAct,Decree,orothersimilardocument

(highlightrelevantsections)• Document outlining powers of the Head of the entity and other key/relevant

authorities(highlightrelevantsectionsofthedocumentbyreferringtothesectionorpagenumber)

Forincorporated/registeredentities,suchasprivateandpublicsectorentitiesandcivilsocietyorganizations,etc.:

• CertificateofIncorporation/Registration• Memorandum and Articles of Association, if applicable (highlight relevant

sections)• Visionand/ormissionstatement• Businesspermitandlicensetooperate

Forinternationalandregionalentities:• Governinginstrument;Agreementtoestablishtheentity.


44

Item Informationrequired Applicability Inputdata Examplesofsupportingdocumentation1.1.5 Sector(s) that the entity

operatesinAllapplicants Foralltypesofentities:

• Sectorsmayinclude,forexample,energy,agriculture,transportation,etc.• Project/programmeexamplesdemonstratingoperationsinthesectorsindicated• Evidencemayalsohavebeenprovidedinotheritemsoftheapplication,suchasinitem

1.1.4, inwhich case the text response should refer to the itemnumber, documentname,sectionorpagenumber,etc.ifitislocatedinanotheritem.

1.1.6 Registered address,including Country PostalCode

Allapplicants Notrequired

1.1.7 Website Allapplicants Notrequired1.1.8 Primary

FocalPointFirstName Allapplicants Foralltypesofentities:

• Officialletterfromtheapplicantentitydesignatingtheselectedpersonastheprimaryfocalpoint.

• If theperson is thesameastheone(s)nominatedforgainingOASaccess, theofficialletterofOASrequestmaybeprovidedasevidence.

1.1.9 Lastname 1.1.10 Position/Title 1.1.11 Email 1.1.12 Telephone 1.1.13 Fax 1.1.14 Secondary

FocalPointFirstName Allapplicants Foralltypesofentities:

• Officialletterfromtheapplicantentitydesignatingtheselectedpersonastheprimaryfocalpoint.

• If theperson is thesameastheone(s)nominatedforgainingOASaccess, theofficialletterofOASrequestmaybeprovidedasevidence.

1.1.15 Lastname 1.1.16 Position/Title

1.1.17 Email 1.1.18 Telephone 1.1.19 Fax


45

Item Informationrequired Applicability Inputdata Examplesofsupportingdocumentation1.2 BackgroundInformationonTrackRecord1.2.1 Type(s)of

projects/programmesundertaken

Allapplicants Selectallthatapply:Mitigation:⎕ ⎕Energygenerationandaccess⎕ ⎕Energyefficiency⎕ ⎕Transport⎕ ⎕Buildings,cities,industriesandappliances⎕ ⎕Landuse/forestry(REDD+)⎕ ⎕Institutionalandregulatorysystems⎕ ⎕Other(pleasespecify):Adaptation:

⎕ ⎕Enhancinglivelihoods⎕ ⎕Healthandwell-beingandfoodandwater

security⎕ ⎕Infrastructureandbuiltenvironment⎕ ⎕Ecosystemandecosystemservices⎕ ⎕Institutionalandregulatorysystems⎕ ⎕Climateinformation/earlywarningsystems⎕ ⎕ Awareness strengthening and climate risk

reduction⎕ ⎕Other(pleasespecify):Public/private:

⎕ ⎕Public⎕ ⎕Private⎕Cross-cutting

Foralltypesofentities:• Informationorevidenceonprojectsundertakeninthetypesselected• Evidence may also have been provided in other items of the

application, such as in sections 4, 5, 6 or 7, in which case the textresponseshouldrefertotheitemnumber,documentname,etc.ifitislocatedinanotheritem.

1.2.2 Size(s)ofprojects/programmesundertaken,includingtotalprojectcostsinUSDandduration

Allapplicants Foralltypesofentities:• Listofprojects/programmesundertakeninthepast3yearsincluding

project/programmename,sector,totalproject/programmecost,roleand responsibilities of the applicant, contribution to project fundingandduration.

• Evidence may also have been provided in other items of theapplication, such as in sections 4, 5, 6 or 7, in which case the textresponseshouldrefertotheitemnumber,documentname,sectionorpagenumber,etc.ifitislocatedinanotheritem.


46

Item Informationrequired Applicability Inputdata Examplesofsupportingdocumentation1.2.3 Type(s)offinancial

instrument(s)deployedinprojects/programmesundertaken

Allapplicants Selectallthatapply:⎕ ⎕Grants⎕ ⎕Concessionalloans(senior)⎕ ⎕Concessionalloans(subordinated)⎕ ⎕Equity⎕ ⎕GuaranteesPlease specify what other types of financialinstrumentsyouhavedeployed,ifany:

Foralltypesofentities:• List,withscopeofeachtypeoffinancialinstrumentsthattheapplicant

hasexperienceindeployinginprojects/programmesundertakenbyit;• At least one copy of an agreement for each of the financial

instrument(s) deployed in projects/programmes undertaken. Forexample, if the applicant selects “Grants” indicating that it hasexperienceindeployinggrants,acopyofagrantagreementshouldbeprovidedasevidenceoftheapplicant’sexperiencewithdeployingthisfinancialinstrument.

• Evidence may also have been provided in other items of theapplication, such as in sections 4, 5, 6 or 7, in which case the textresponseshouldrefertotheitemnumber,documentname,sectionorpagenumber,etc.ifitislocatedinanotheritem.

1.2.4 Environmentalandsocialrisklevel(s)ofprojects/programmesundertaken

Allapplicants Selectallthatapply:

⎕ ⎕CategoryA/Intermediation1(high)directly⎕ ⎕ Category A / Intermediation 1 (high)

indirectlythroughexecutingentities⎕ ⎕ Category B / Intermediation 2 (medium)

directly⎕ ⎕ Category B / Intermediation 2 (medium)

indirectlythroughexecutingentities⎕CategoryC/Intermediation3(minimaltonone)directly

Foralltypesofentities:• At least 3 project/programme examples of each environmental and

socialriskcategorythathasbeenselectedbytheapplicant;• Evidence should indicate how the risk category was identified and

assigned to each project/programme provided as supportingdocument.

• Evidence may also have been provided in other items of theapplication,suchasinsection6,inwhichcasethetextresponseshouldrefertotheitemnumber,documentname,sectionorpage

1.2.5 ExperienceandtrackrecordwithPerformanceStandards2-8

Allentities Select those which you have previouslyimplemented:⎕PerformanceStandard2Labourandworkingconditions⎕PerformanceStandard3Resourceefficiencyandpollutionprevention⎕PerformanceStandard4Communityhealth,safetyandsecurity⎕ Performance Standard 5 Land acquisitionandinvoluntaryresettlement⎕ Performance Standard 6 Biodiversityconservation and sustainable management oflivingnaturalresources⎕PerformanceStandard7Indigenouspeoples⎕PerformanceStandard8Culturalheritage

Foralltypesofentities:• Evidence (e.g. project/programme appraisal report, completion

reports,etc.)showinghowselectedPerformanceStandardshavebeenmanagedinprojects/programmesundertakenbytheapplicant.

• Evidence may also have been provided in other items of theapplication,suchasinitem1.2.4andsection6,inwhichcasethetextresponseshouldrefertotheitemnumber,documentname,sectionorpagenumber,etc.ifitislocatedinanotheritem.


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Item Informationrequired Applicability Inputdata Examplesofsupportingdocumentation1.3 BackgroundInformationonAccreditationbyOtherFundsorInstitutions1.3.1 Conditionsandlimitations,

ifany,regardingaccreditationwiththeGlobalEnvironmentFacility(GEF),AdaptationFund(AF),andDirectorate-GeneralDevelopmentandCooperation–EuropeAidoftheEuropeanCommission(EUDEVCO)

EntitiesaccreditedunderGEF,AFandEUDEVCOasof17October2014

Foralltypesofentities:• Decisionsonaccreditation,whichcan includepubliclyavailable

informationordocuments;• Letter or other documented form of confirmation of

accreditation;• List of conditions and/or limitations, if any, at the time of

accreditation.

1.3.2 StatusofcompliancewithaccreditationrequirementsoftheGlobalEnvironmentFacility(GEF),AdaptationFund(AF),andDirectorate-GeneralDevelopmentandCooperation–EuropeAidoftheEuropeanCommission(EUDEVCO)

Entitiesaccreditedunder GEF,AF and EUDEVCO as of17October2014

Foralltypesofentities:• Letter, report or other form of documentation indicating status of

compliancewiththeaccreditationrequirementsofGEF,AF,and/orEUDEVCO, as applicable, regarding conditions stipulated, if any, at thetimeofaccreditation.


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Table5:SectionIIoftheaccreditationapplication“InformationonthewaysinwhichtheinstitutionanditsintendedactivitieswillcontributetofurtheringtheobjectivesoftheGreenClimateFund”(source:GCFaccreditationform)

Item Informationrequired Applicability Inputdata Examplesofsupportingdocumentation

2 Giventheurgencyandseriousnessofclimatechange,thepurposeoftheFundistomakeasignificantandambitiouscontributiontotheglobaleffortstowardsattainingthegoalssetbytheinternationalcommunitytocombatclimatechange.TheFundwillcontributetotheachievementoftheultimateobjectiveoftheUnitedNationsFrameworkConventiononClimateChange(UNFCCC).Inthecontextofsustainabledevelopment,theFundwillpromotetheparadigmshifttowardslowemissionandclimate-resilientdevelopmentpathwaysbyprovidingsupporttodeveloping countries to limit or reduce their greenhouse gas emissions and to adapt to the impacts of climate change, taking into account theneedsof thedevelopingcountriesparticularlyvulnerabletotheadverseeffectsofclimatechange.

2.1 Astatementdetailingthewaysinwhichthe entitywill contribute to furtheringtheobjectivesoftheGreenClimateFund.


2.2 Astatementonhowtheentityintendstostrengthen capacities of or otherwisesupport potential subnational, nationaland regional implementing entities andintermediaries in order to meet, at theearliest opportunity, the accreditationrequirementsoftheGreenClimateFundinordertoenhancecountryownership

Requiredforentitiesunderinternationalaccesstrack

Optionalforallotherentities

Notrequired


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Table6:SectionIIIoftheaccreditationapplication:“Intendedscopeofprojects/programmesandestimatedcontributionrequested”(source:GCFaccreditationform)


3.1 Theme(s)ofintendedprojects/programmes

Allapplicants Selectallthatapply:⎕Mitigation⎕Adaptation⎕Cross-cutting(bothmitigationandadaptationinanindividualproject/programme)

Notrequired

3.2 Type(s)ofintendedprojects/programmes

Allapplicants Selectallthatapply:Mitigation:

⎕Energygenerationandaccess⎕Energyefficiency⎕Transport⎕Buildings,cities,industriesandappliances⎕Landuse/forestry(REDD+)⎕Institutionalandregulatorysystems⎕Other(pleasespecify): Adaptation:

⎕Enhancinglivelihoods⎕Healthandwell-beingandfoodandwatersecurity⎕Infrastructureandbuiltenvironment⎕Ecosystemandecosystemservices⎕Institutionalandregulatorysystems⎕Climateinformation/earlywarningsystems⎕Awarenessstrengtheningandclimateriskreduction⎕Other(pleasespecify): _______________________Public/private:⎕Public⎕Private⎕Cross-cutting

Notrequired


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3.3 Size(s)ofintendedprojects/programmes,includingduration

Allapplicants Selectallthatapplies:

Notrequired

3.3 Size(s)ofintendedprojects/programmes,includingduration

Allapplicants Selectallthatapply:⎕Micro (maximum total projected costs at the timeofapplication, irrespective of the portion that if funded bythe Green Climate Fund, of up to and including USD10million for an individual project or an activity within aprogramme)andduration:⎕ Small (maximum total projected costs at the time ofapplication, irrespectiveof theportion that is fundedbytheGreenClimateFund,ofaboveUSD10millionanduptoandincludingUSD50millionforanindividualprojectoranactivitywithinaprogramme)andduration:⎕Medium(maximumtotalprojectedcostsatthetimeofapplication, irrespectiveof theportion that is fundedbytheGreenClimateFund,ofaboveUSD50millionanduptoandincludingUSD250millionforanindividualprojectoranactivitywithinaprogramme)andduration;and⎕Large(totalprojectedcostsatthetimeofapplication,irrespective of the portion that is funded by the GreenClimateFund,ofaboveUSD250millionforan individualprojectoranactivitywithinaprogramme)andduration:

Notrequired

3.4 Estimated maximumcontributionamountatthetimeof application for an individualproject or an activity within aprogramme to be requestedfrom the Green Climate Fund(USDorasapercentageoftotalprojectedcosts)

Allapplicants

Notrequired


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3.5 Type(s)offinancialinstrument(s)forintendedprojects/programmestoberequestedfromtheGreenClimateFund

Allapplicants Selectallthatapply:The following requires accreditation against thespecialized fiduciary criteria for grant awardand/orfundingallocationmechanisms:⎕Grants(insomecasesthismaybereimbursable)The following require accreditation against Specializedfiduciarycriteriaforon-lendingand/orblending:⎕Concessionalloans(senior)⎕Concessionalloans(subordinated)⎕Equity⎕GuaranteesPlease specifywhat other types of financial instrumentsyouareinterestedin,ifany:

Notrequired

3.6 Sources and types of additionalfinance for intended activities (ifapplicable), and how the sourcesandtypesofotherfinancewillbeapplied


3.7 Indication of the Green ClimateFund’sstandardsagainstwhichtheapplicationwillbeassessed

Allapplicants Selectallthatapply:⎕Basicfiduciarycriteria25,ESS26andgender⎕Specializedfiduciarycriteriaforprojectmanagement⎕Specializedfiduciarycriteriaforgrantawardand/orfundingallocationmechanisms28⎕Specializedfiduciarycriteriaforon-lendingand/orblending

Notapplicable

3.8 Environmental and social risklevel(s)ofintendedactivities

Allapplicants Selectallthatapply:⎕CategoryA/Intermediation1(high)directly⎕CategoryA/Intermediation1(high)indirectlythroughexecutingentities⎕CategoryB/Intermediation2(medium)directly⎕CategoryB/Intermediation2(medium)indirectlythroughexecutingentities⎕CategoryC/Intermediation3(minimaltonone)directly⎕CategoryC/Intermediation3(minimaltonone)indirectlythroughexecutingentities

Notrequired


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6.2. BasicfiduciarystandardsThefullGCFpolicyforbasicandspecialisedfiduciarystandardscanbefoundat:{https://www.greenclimate.fund/documents/20182/319135/1.6_-_Fiduciary_Standards.pdf/083cfe10-46f4-4a73-b603-8d7bfd2a35bd}Intermsofbasicfiduciarystandards,allAEsarerequiredtodemonstrate:

• Keyadministrativeandfinancialcapacities:Covertheunderlyingprinciplesofensuringthatentitiesmanagefinancialresourcestransparentlyandaccountablyinlinewiththerelevantregulations and laws. They also ensure that entities’ administration and managementoperationsconformtotherequiredfiduciarystandardsandthattheyhaveatrackrecordofperformingtheseactivitieseffectivelyandefficiently;and,

• Transparency and accountability: Cover the underlying principles of protection againstfinancial mismanagement and other unlawful practices, to ensure that entities operateethically,transparentlyandwithfullaccountability.

Keyadministrativeandfinancialcapacities:Thisbasicfiduciarystandardisbrokendownintofivespecificrequirements:

• General management and administrative capacities: The organisation’s governance and

oversight structuresmustensure that theentityoperates in linewith its setmission,withclearlydefined,budgeted,andmonitoredobjectivesandgoalstoachieveit.Theseoversightstructuresshouldincludecommitteesforfinancial,auditandprocurementfunctions;

• Financial management and accounting: The entity must demonstrate that finances andaccountsarereportedperiodically,usinginternationallyrecognisedfinancialandaccountingstandards(seeBox2).Allpayments,disbursementsystems,businessplans,financialproductsandbudgetsshouldbepreparedtransparentlyfollowingdocumentedprocedures;

• Internal and external audit: Those audit functions must ensure adequate organisationaloperations by performing planned activities periodically, independently and in line withinternational auditing standards and be overseen by an independent audit committee.Processestoimplementandmonitorresponsestoauditors’recommendationsarerequired;

• Controlframeworks:Regularlyreviewedpoliciesandproceduresarenecessarytoensurethatall organisational operations, (for all roles including senior management), are deliveredeffectivelyandefficiently,thatfinancialrisksareidentifiedandmanagedappropriately,thatprocurement is undertaken sufficiently and that all applicable laws and regulations arefollowed;and,

• Procurement:Internalguidelinesandpoliciesarerequiredtoensurethatprocurementsareperformed economically, efficiently, fairly and transparently – with procurement awardspubliclyaccessible.Proceduresareprovidedaccordingtothetypeofprocurement.Executingentities’procurementproceduresmustbeoverseenandcapacities toreviewprocurementcomplaintsarerequired.


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Box2.InternationalfinancialandaccountingstandardsthatmeettheGCFfiduciarystandardsThere are two main internationally used standards on financial reporting and accounting, theInternationalFinancialReportingStandards(IFRS)andtheGenerallyAcceptedAccountingPrinciples(GAAP).IFRSaregenerallyconsideredmoreofa‘principal-based’accountingstandard,whereasGAAPisconsideredtobemore‘rules-based’.Internationalauditingstandards:Professionalstandards fortheperformanceof financialauditing,and include the International Standards on Auditing (ISA) set by the International Federation ofAccountants.Globalassociationsforauditing,suchastheInstituteofInternalAuditorssubscribetothesestandards.Creditratingagencies:Domesticcreditratingagenciesgenerallygradetheabilityofentitiestorepaydomesticdebt,whileinternationalcreditratingagencieswillassigncreditratingsonbothdomesticandinternationaldebt.ThethreemaininternationalcreditratingsagenciesareMoody’s,StandardandPoor’s,andFitchRatings.

Transparencyandaccountabilitypolicies:Thisbasicfiduciarystandardisbrokendownintofivespecificrequirements:

• Code of ethics: There should be a documented policy setting out the ethical standardscommunicated toandupheldbyall individuals contractedbyor related to theentity.Thepolicymustbeoverseenbyanethicscommittee;

• Disclosure of conflicts of interest: There should be a policy defining the possible, actual,perceived,andapparentconflictsof interest,andprohibitedpersonal financial interestsofemployees and relevant parties. The principles used to address and sanction potentialbreachesofthispolicymustbeclearlylaidout;

• Preventing financial mismanagement: Experience in accessing finance from national andinternational sources must be demonstrated and a zero tolerance policy towards fraud,financial mismanagement and other forms of malpractice for all contracted individuals isrequired;

• Investigations:Thereshouldbeaninternal(orexternal),independentandobjectivefunctionfor investigating allegations of fraud, corruption and ethics breaches, that reports to theorganisation’s highest level. This investigation function must follow publicly availableguidelinesandreportcasetrendsperiodically;and,

• Anti-moneylaunderingandanti-terroristfinancingpolicies:Thesepoliciescovertheabilitytotraceandmonitortheelectronictransferoffunds,andprocedurestoadequatelyperformKnowYourCustomerduediligence.Thisamountstoidentifyingandverifyingclient’sidentitytoensuretheyarenotengagedinmoney-launderingorterroristfinancing.


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Table7:SectionIVoftheaccreditationapplication:Basicfiduciarystandards(source:GCFaccreditationform)

Item Areaofcompetence

Specificcapacityrequired

Applicability Inputdata Examplesofsupportingdocumentation

4.1 KeyadministrativeandfinancialcapacitiesUnderlyingprinciplesforkeyadministrativeandfinancialcapacitiesare(thislistisnotexhaustive):financialinputsandoutputsareproperlyaccountedfor,reported,andadministered transparently in accordance with pertinent regulations and laws, and with due accountability; information relating to the overall administration andmanagementoftheentityisavailable,consistent,reliable,completeandrelevanttotherequiredfiduciarystandards;andoperationsoftheentityshowatrackrecordineffectivenessandefficiency.

4.1.1 Generalmanagementandadministrativecapacities

Aclearlydefinedgovernanceand oversight structure thatformally defines the roles,responsibilities and assignedauthority of each functionalarea and individual in theorganization; track record inthe preparation of businessplansandbudgets

Allapplicants Foralltypesofentities:• Organizationalchartwhichincludes:i) Clear reporting structure for Finance, Internal Audit,

Procurementandotherkeyfunctions;ii) Reporting structure of the Audit Committee and other

seniormanagementcommittees/governancebodies;• List of internal oversight bodies/committees

alongwith:iii) TermsofReference(TOR)andcompositionofeach

committee;iv) A copy of the rules regarding the appointment,

terminationandremunerationofmembersofsuchcommittees;

• Documentdescribingtheentity’sprocessesforsettinglongtermand short term objectives including the alignment of theobjectives/planswithitsmission

• Copyofcurrentstrategic/mediumtermplan:theplanshouldalsodefineindicators/metricsforallkeyorganisationalobjectives.Iforganisational objectives are further set in terms ofdepartmental/division level objectives, details of suchdeployment should also be provided. If current plan period iscomingtoanendwithinthenext6months,pleaseprovideacopyofnextplan;


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i) Forprivatesectorentities:Evidence of ability to develop annual/strategic/medium term plan,includingdemonstratedevidenceofimplementationofthisplanfromthepast3years

• Copyoftheprevious1yearandcurrentyear’sannualplansandbudgets;

• Document describing how the entity’s long and short termplans,objectivesandbudgetsenable theentity toachieve itsmission;

• Briefwriteuponprocesses/proceduresandresponsibilitiesformonitoringandreportingonprogressmadeinattainmentofsetobjectivesincludingadherencetobudgets.

• 2annualorhalf-yearlyreportscontainingperiodicevaluationofachievement of organisational objectives and analysisexpenditurestobeprovidedasevidencethatsuchevaluationisundertakenandtheresultsthereof,arepublished.

ii) Forsmallprivatesectorentities• Asummaryoftheachievementofannualobjectivesandgoals

forthelasttwoyears.4.1.2 Financial

managementandaccounting

Periodicpreparationandreportingoffinancialstatementsinaccordancewithrecognizedaccountingstandards.

Allapplicants Foralltypesofentities:• FinancialStatementsforthepast3years.TheStatements

shouldinclude:i) Notes and disclosures explaining the accounting

framework/standard used, the basis of preparation of thefinancialstatements,andthespecificaccountingpolicies,ifany;

ii) AstatementofchangesinfinancialpositioncoveringCapital,Reserves,Debt,Assets,Project/EndowmentFundBalances,etc.;

iii) Astatementofcashflows;• BriefdetailsoftheFinancialInformationSystemsincludinga

list of major reports prepared and the periodicity of thereports;

• Copies of recent reports prepared as a part of the entity’sFinancialInformationSystem.


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4.1.3 Internalandexternalaudit

Fully functionalindependent auditcommittee; the internalauditfunctioniscarriedoutin accordance withinternationally recognizedstandards; appointment ofan independent externalaudit firm to carry out itswork in accordance withinternationally recognizedstandards

Allapplicants Foralltypesofentities:• TermsofReferencefortheexternalauditfortheyearsforwhich

the audit reports have been provided. The entity in its textresponse or the ToRs to be provided as supporting documentsshouldclearlyindicatethattheworkoftheexternalauditfirmororganizationshouldbeconsistentwith recognized internationalauditing standards such as International Standards on Auditing(ISA),orotherequivalentstandards;

• Schedule/datesofmeetingsoftheAuditCommitteeheldoverthepast2years;

• Agendaandminutesofthepast2AuditCommitteemeetings;• InternalAuditpolicy/charter/ToRswhichare formally approved

bymanagement;• Evidence that the internal audit function is carried out in

accordance with internationally recognized standards such asthose prescribed by the Institute of Internal Auditors or otherequivalentstandards;

• Brief details of the structure of the internal audit functionincluding qualifications and experience of the auditors. Entityshould also provide information on how it ensures that theauditors adhere to recognised internal auditing standardsincludingprinciplesofintegrity,objectivityandconfidentiality;

• Copyofinternalauditprocedures/manual;• InternalAuditplansforeachofthepast3years;• Statusofexecutionofthepast3years’internalauditplans;• Sample of internal audit reports in the past 3 years, including

those relating to procurement, internal control systems andpaymentsanddisbursements,ifavailablealongwithinformationonhowthesereportsaredisseminatedtorelevantpeoplewithintheentity;

• Brief details of the process to monitor and assess the overalleffectiveness of the internal audit functions, including periodicinternalandexternalqualityassessments,includingacopyofsuchassessmentreports;


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• Completeexternalauditreports,includingmanagementletters,for thepast3years, ifnot included in the financial statementsprovidedatSection4.1.2;

• Status of action taken in respect of all the observations/recommendations contained in the external and internal auditreports of the past 3 years including acceptance/sign- off ofclosuresbytheexternal/internalauditors.

Forprivatesectorentities/financialinstitutions• ArecentRegulator’sExaminationReport,includinganactionplan

inresponsetotheRegulator’srecommendations4.1.4 Control

frameworksDocumented processes inplace to ensure thatobjectives are achieved,including verification thatoperations are carried outeffectively, financial risksareassessedandmanaged,and proper financialmanagementiscarriedout

Allapplicants Foralltypesofentities:• Financialcontrolpolicy;• Financialcontrolprocedures;• Theabovepoliciesandproceduresshouldprovideevidence

of/demonstratethefollowing:- A control framework that includes clearly defined roles for

management, internal auditors, the board of directors orcomparablebody,andotherpersonnel(includingfiscalagentsandfiduciarytrustees,ifanyinvolved)withrespecttoInternalControl;

- Attheinstitutionallevel,risk-assessmentprocessesareinplacetoidentify, assess, analyze and provide a basis for proactive riskresponses/mitigatingactionsinidentifiedareas;

- Existence of a documented payment and disbursement system(policies,proceduresandDelegationofAuthority)preferablywithaflow chart. The system should provide for a clear segregation ofapproval and disbursement responsibility/authority including theorganization’scapabilitytoensurethatallpayments/disbursements(bothforprojectsandotherexpenditures)areproperlycheckedandmadeonlyforbona-fide/approvedpurposes.

- Evidence of system/procedures for identifying and assessing thedetails and adequacy of the internal controls annually. Thisassessmentshouldalsocoveraregular reviewbymanagementtocheck if duties are appropriately segregated to ensure adequateinternalcontrolinallkey/riskareas.

- The applicant should provide recentreports/documents/information as evidence of its effectiveimplementationoftheinternalcontrolframeworkasdefinedabove.


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4.1.5 Procurement Formal procurementstandards, guidelines andsystems inplace to ensurefair and transparentprocurementprocesses

Allapplicants Foralltypesofentities:• Copy of the entity’s Procurement

Policy/Rules/Regulations/Guidelines (approvedbymanagement)which are transparent and fair and promote economy andefficiency in procurement, specify procurement requirements,accountability, and authority to take procurementdecisions/actions;

• Detailed procurement procedures, which include details ofcomposition and role of various committees, such as theProcurement Committee Tender Evaluation Committee, etc. andguidelines for different types of procurement managed by theentity, such as consultants/service providers, goods/supplies andworks;

• System/procedures for oversight/review/audit of the entity’sprocurementfunction;

• ProceduresforcontrollingprocurementbythirdpartiesorExecutingAgenciesundertakingprojectsfinancedbytheentity;

• CopyoftheProcurementdisputeresolutionprocess,ifnotalreadyincluded inor separate fromthePolicyorProcedures referred toabove;

• As evidence of compliance with the established policies andguidelines, the following documents/information should beprovided:

• 2setsofdocumentspertainingtolargeprocurementsundertakeninthepast3years;

• A sample of procurement oversight/ audit reports, both for theentityandExecutingAgencies

• Dataonprocurementcomplaintshandledinthepast3yearsalongwithbriefdetailsofsamplecasesandtheirclosure.


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4.2 TransparencyandaccountabilityTransparencyandaccountabilityaretobedemonstratedthroughaneffectivecombinationoffullyfunctionalpolicies,procedures,systemsandapproaches.Theunderlyingprinciplesare:protectionandcommitmentagainstmismanagementandfraudulent,corruptandwastefulpractices;disclosureofanyformofconflictofinterest(actual,potentialorperceived);andcodeofethics,policiesandculturethatdriveandpromotefulltransparencyandaccountability.

4.2.1 Codeofethics A documented code ofethics or a set of clearand formalmanagementpoliciesinplacetodefineethical standards to beupheld by all individualscontracted orfunctionally related totheorganization

Allapplicants Foralltypesofentities:• Code of Ethics, which is documented and applicable to the

staff and associates like consultants, contractors, suppliers,etc.;

• Documented evidence of a contractual nature thatcommunicates this policy to all staff and other partiesfunctionallyrelatedtotheorganisation,withevidenceofsuchcommunication;

• Brief description of the system for oversight of the EthicsFunction,includingtheroleoftheEthicsCommitteeorotherrelevantbodies/committeeswithintheorganizationtowhomsuchfunctionshavebeenallocated.Thisshouldbesupportedbyevidencethattheoversightsystemisfunctioning.

4.2.2 Disclosureofconflictsofinterest

A disclosure policy orequivalent in place toestablish the necessarymandatory financialdisclosures of possible,actual, perceived orapparent conflicts ofinterest

Allapplicants Foralltypesofentities:• Financial disclosure policy or other documented policy

statement which defines possible, actual, perceived orapparent conflicts of interest including what constitutesconflict of interestorprohibitedpersonal financial interestsandalsodefinesthesanctionmeasuresforpartieswhichdonot disclose such conflicts on a proactive basis; Conflict ofinterestreviewandresolutionprocedures;

• Demonstration of practice, through sample statements ofannual disclosure of interest statements by employees ordisclosureinrespectofspecificcases/instances;

• 2 actual examples of conflict of interest cases that wereidentified/reportedandhowtheseweredealtwith


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4.2.3 Preventingfinancialmismanagement

Demonstratedexperienceandtrackrecordinaccessingfinancialresourcesfromnationalandinternationalsources;Evidenceofapolicyofzerotoleranceforfraud,financialmismanagementandotherformsofmalpracticebystaffmembers,consultants,contractors,etc.

Allapplicants Foralltypesofentities:• Policyon financialmanagementor someotherdocumentwhich

describes the various malpractices which may occur and alsoplannedpreventionstrategies;

• Evidenceofastatementfromtopmanagementcommunicatingapolicyof zero tolerance for fraud, financialmismanagementandother forms of malpractice by staff members, consultants,contractors,orfromanyotherrelevantpartyassociateddirectlyorindirectlywiththeoperationsoftheentity;

• Process/avenues for reporting fraud, financial mismanagementandotherformsofmisconduct(theseshouldincludeplacementofaprovisionforreportingviolationsontheentity’swebsite);

• Policiesandproceduresforwhistleblowerprotection.4.2.4 Investigations Evidenceofan

independentandobjectiveinvestigationfunctionforallegationsoffraudandcorruption,withpubliclyavailabletermsofreference

Allapplicants For all types of entities: (Note: all entities should always be able todemonstrate that the investigations function is executed within theorganizationandthatitisindependentandhasaccesstoreportfindingstothehighestlevelsoftheorganization,ifneeded)• Evidencethattheorganisation’sinvestigationfunctionhaspublicly

available terms of reference that outline the purpose, authorityandaccountabilityofthefunction;

• Details of the investigations structure within the organisation.Also, how does the organisation ensure theindependence/authority of the investigation structure andprocess;Proceduresforinvestigatingfraudandcorruptionwithintheentity.Thisshouldincludeinformationonperiodicreportingtomanagement/Board on case trends/status of investigations. Asevidencesamplestatusreportsshouldbeprovided;

• In case the organisation’s investigation function is linked to anoutside investigation system (for example thenational/government investigation function), please provide thefollowinginformation:

- Details of the outside system including key procedures andauthoritylevels;

- Procedurefollowedwithintheentity,onreceiptofanyallegation,before the allegation is reported to or lodged with the outsidesystemforcarryingouttheinvestigation;

- Information on cases of violation of code of ethics, fraud orcorruption in the past 3 years, and on how such cases weredisposedof.


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Specificcapacityrequired Applicability Inputdata Examplesofsupportingdocumentation

4.2.5 Anti-moneylaunderingandanti-terrorist financingpolicies

Evidence of adequatecontrol and procedures inplace to enable theapplicantentitytocarryoutadequate “Know yourcustomer”duediligence

Allapplicants Foralltypesofentities:• Anti-money laundering (AML) and anti- terrorist (AT)

financingpolicy;

• “Knowyourcustomer(KYC)”duediligenceprocedurestocombatmoneylaunderingandfinancingofterrorism;

• 2copiesofreportsonKYCduediligenceexercisescarriedoutinthepast3years;

• Mechanisms to trace/monitor electronic transfer/wiring offunds;

• 2 copies of monitoring reports on electronic funds transferpreparedinthepast3years.

For private sector entities: Reports from regulators or periodicexaminationsbyregulatorsevaluatingtherobustnessoftheKYC/AML-ATfunction


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6.3. Specialisedfiduciarystandards

Inadditiontoitsbasicfiduciarystandards,theGCFhasthreespecialisedfiduciarystandards:

• Project management: This set of standards covers an entity’s ability to manage climate

changeprojectsfromtheiridentificationrightthroughtotheirevaluationandtoensureall

potential project risks aremanaged. Projectmanagement is required if entities intend to

implement projects directly and/or oversee the implementation of projects by executing

entities. It is requiredforthemajorityofactivitiesandallAEssofarhaverequiredproject

managementaccreditation;

• Grant award mechanisms and/or funding allocation mechanisms: This set of standardscovers an entity’s ability to provide grants to third parties in a credible, transparent and

effectivewaythatensurestheimpactofgrantsonfinalbeneficiariesfurtherstheobjectives

of theGCF.Grantawardmechanismsand/or fundingallocationmechanismsare therefore

onlyrequirediftheentityintendstoawardgrantstothirdpartieswithGCFfunding;and,• On-lendingandblendingpolicies:Thissetofstandardscoversanentity’sabilityto‘on-lend’,

or lend theGCF’s resources to a third party and/or blend theGCF’s resourceswith other

sourcesoffunding,inacredibleandduediligentmanner.Thisstandardisrequiredifanentity

intendstoprovideloansandrisksharingproductstothirdparties.

Thesearerequireddependingonthescopeofanentity’sintendedactivitieswiththeGCF’sresources,

thatistosay,whetheranAEintendstoactasanimplementingentityand/orafinancialintermediary4.

Projectmanagement:

Thisspecialisedfiduciarystandardisbrokendownintofourspecificrequirements:

• Projectpreparationandappraisal:Thisincludesatrackrecord,guidelinesandframeworks

for climate changeproject identification, preparation, appraisal,monitoring and follow-up

must be demonstrated. The capacity to develop climate change objectives, baselines and

targets, while evaluating, incorporating and mitigating the technical, financial, economic,

legal,environmental,andsocialimpacts/risksduringpreparationandappraisalstagesisalso

required.

• Projectoversightandcontrol:Thisincludesoperationalsystems,proceduresandtemplates

for implementation, budgetary and reporting oversight of executing entities and project

sponsors, to monitor project performance and expenditure against agreed budgets, and

identifyopportunitiestoimproveperformance.

• Monitoringandevaluation:This includesdocumentedpolicies,proceduresandtools fora

monitoringandanindependentevaluationfunction(unit)ofprojectimplementationuntilits

closure, with an evaluation disclosure policy to ensure evaluation reports are broadly

disseminated.

4Inadditiontoprojectmanagementresponsibilities,anAEmaybeanintermediarywhichadministersgrantsandloanswhile

blendingfundswithitsownandothers.


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• Project-at-risk systems and related project risk management capabilities: This includessystems,includinganindependentriskmanagementfunction,toensurefinancial,economic,

political and regulatory risks are identified during project implementation along with

problems interfering with set objectives and that these risks are addressed through

managementstrategies.

Grantawardmechanismsand/orfundingallocationmechanisms:

Thisspecialisedfiduciarystandardisbrokendownintofourspecificrequirements:

• Grantawardprocedures:Thisincludesatransparentanddocumentedmechanismtoaward

andevaluategrants,(grantapproval/evaluationcommittees),withclearlydefinedeligibility

criteriasuchaspublicisedgrantnoticesand/orcallsforproposals;

• Publicaccesstoinformationonbeneficiariesandresults:Thiscanbedemonstratedthrough

apolicyandguidelinesthatpublicisegrantawardresultswithinareasonabletimeframe;

• Transparentallocationoffinancialresources:Theorganisationneedspoliciesandproceduresfor performing due diligence that are externally audited and documented to assess the

eligibilityandcapabilitiesofgrantawardees.Theyarealsousedtoperformmonitoringand

evaluationofgrants.Theprogressofgrant implementationmustbeperiodicallypublicised

and in the event of financial irregularities or fraud, these should be suspended, reduced,

terminatedandawardedgrantsmustberecovered;and,

• Goodrecordinmeetingfinancialrequirementsformultilateralfunding:Goodscoringfrom

the public expenditure reviews, and evaluations, assessments/due diligence reports in

responsetomultilateralfundingreceivedmusthavebeengiventotheprospectiveentity.

On-lendingandblendingpolicies:Thisspecialisedfiduciarystandardisbrokendownintotenspecificrequirements:

• Appropriate registration and/or licensing by a financial oversight body or regulator incountryorinternationally:Alicenseclearingtheentitytoon-lendfinancialresourcesfroma

nationaland/orinternationalregulator;

• Track record, institutional experience and existing arrangements and capacities for on-lending and blending with resources from other international or multilateral sources:Previousexperienceon-lendingand/orblendinginternationalandmultilateralfinancefrom

multiplesources(fromfinancialassets’managementtospecialpurposevehicles);

• Creditworthiness: Proven capacity to lendmoney safely to others, recognised through an

internationalcreditratingfromareputableinternationalcreditratingsagency,aregulator’s

examinationreportorthemarketvalueoftheentity’sinvestments;

• Duediligencepolicies,processesandprocedures:Mechanismstoundertakeduediligence

reportinginordertoidentifythecreditqualityofloanrecipientsduringon-lendingoperations;

• Financial resource management, including analysis of the lending portfolio of anintermediary:Controlframeworksandprocedures–withintheentity’sfinancialmanagement

andcontrolpolicies–toevaluatetheloanportfoliooffinancialintermediaries;


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• Public access to information on beneficiaries and results: Policies and guidelines forproviding information to the public on the entity’s on-lending and/or blending operations

(decisions,beneficiariesandresultsoffinancingoperations)arerequired;

• Investment management, policies and systems, including in relation to portfoliomanagement: Systems to ensure sound investment management, (policies, guidelines,

reportingandevaluationsonthemanagementofinvestmentportfolios);

• Capacitytochannelfundstransparentlyandeffectively,andtotransfertheGCF’sfundingadvantagesto finalbeneficiaries:Policies,periodicand independentreviews(internalandexternal audit) are in place to ensure funds channelled through intermediaries are

transparentlyandeffectivelyreachingfinalbeneficiaries;

• Financialriskmanagement,includingassetliabilitymanagement:Financialriskmanagement

policy,proceduresandstrategiesmustbeinplacewithassetsandliabilitiesoverseenbyan

assetliabilitycommittee;and,

• Governanceandorganisationalarrangements,includingrelationshipsbetweenthetreasuryfunctionandtheoperationalside:Therelationshipbetweentheentity’streasuryfunctionsandtheoperationalsidemustbesufficientlydescribedandsegregated.


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Table8:SectionVoftheaccreditationapplication:Specialisedfiduciarystandards(source:GCFaccreditationform)

Item Area ofcompetence

Specific capacityrequired


5.1 ProjectmanagementProjectmanagementunderlyingprinciplesare:abilitytoidentify,formulateandappraiseprojectsorprogrammes;competencytomanageoroverseetheexecutionofapprovedfundingproposals,includingtheabilitytomanageexecutingentitiesorprojectsponsorsandtosupportprojectdeliveryandimplementation;andcapacitytoconsistentlyandtransparentlyreportontheprogress,deliveryandimplementationoftheapprovedfundingproposal.

5.1.1 Projectidentification,preparation andappraisal

Track record ofcapability andexperience in theidentification anddesign of projects orprogrammeswithintherespective jurisdiction;Documented processforproject appraisal toensure quality andmonitoringoffollow-upactions duringimplementation

Required forapplicants seekingprojectmanagementaccreditation

Foralltypesofentities:• Project preparation guidelines/framework, including

templates/formatsandrolesresponsibilitiesthereof;• Project appraisal guidelines /framework, including

templates/formats and roles responsibilities in projectappraisal;

• Policy or other document that outlines the entity’s riskassessment procedures/framework, including preparation ofrisk mitigation strategies/plans at the project design andappraisalstages;

• Framework/guidelines/procedures for undertaking QualityReviewduringproject preparation and appraisal process. Thisreview should also identify areas which requiremonitoring/follow-upactionsduringimplementation;

• 3examplesofprojectappraisalsundertakeninthepast3years(preferably climate changemitigation or adaptation projects)demonstratingthecapacityto:

- -Effectivelyusetheorganization’sguidelinesforprojectpreparationandappraisal;

- -Mainstreamenvironmental,socialandclimatechangeaspectsintoprojectpreparationandappraisal;

- -DemonstrateuseoftheRiskassessmentprocedures/frameworkforprojectrisksandintegratecorrespondingmitigationstrategies;

- - Demonstrate entity’s capacity to asses and incorporate technical,financial,economicandlegalimpactsoftheprojectatthepreparationandappraisalstageitself;

- -Incorporateoutcomesofthequalityreviewsundertakenduringthedesignandappraisalstagesintheprojectdocument5.

5Alternatively,separatequalityreviewreportsshouldbeprovidedforeachproject.


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5.1.2 Project oversightandcontrol

Operational capacityandprocedurestooversee theimplementation of theapproved fundingproposal, monitorperformance andassess projectexpenditure againstproject budget;appropriate reportingcapabilities

Required forapplicantsseeking projectmanagementaccreditation

Foralltypesofentities:• Copy of the entity’s Operational manual/procedures covering

preparationof project implementationplans, includingprojectbudgets, reporting guidelines and templates to be used byexecutingentitiesorprojectsponsors;

• Implementation plans (which include project implementationplans, monthly/quarterly/annual project budgets, reportingguidelinesandtemplates)for2projectsundertakeninthepast2years;

• 3detailedprojectimplementationprogressreportsforprojectsimplementedinthepast3yearswhichdemonstratetheentity’soperational capacity and organizational arrangements tocontinuously oversee the implementation of the approvedfundingproposalinordertoregularlyassessprojectprogressvis-à- vis plans, expenditure against project budget as well as tomonitor and identify opportunities for improving projectperformanceagainstitsbudgetandtimelines.

5.1.3 Monitoring andevaluation

Capacities formonitoring andevaluation including aclearly defined andresourced monitoringfunction and anindependent evaluationbody or function thatfollows documentedand recognizedstandards; anevaluation disclosurepolicyisinplace


Foralltypesofentities:• Policyand/orotherdocumentsoutliningtheentity’sMonitoring

and Evaluation function (including structure of themonitoringandevaluationunit,rolesandresponsibilities,procedures/tools/formats/templates);

• 3 sample monitoring and evaluation reports relating tomonitoringduring project implementation which demonstrateentity’scapacityto:

• undertake effective monitoring and evaluation in accordancewithitspoliciesandprocedures;

• undertakeanalysisofprojectexpenditurecomparedtotheprojectbudgetandabriefexplanationofmajorvariances;


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• Monitor implementation of actions, if any, identified for theimplementationphaseduringtheQualityreview;

• ProjectEvaluationdisclosurepolicy;• Policiesandprocedureswhichoutlinetheentity’sactivitiesrelating

toprojectclosureandindependentevaluation,includingreportingon results achieved, lessons learned and recommendations forimprovement, dissemination of results and making key findingspubliclyavailable;

• Sample Terms of Reference of independent evaluationbody/consultant;

• 3 independent evaluation/project closure reports in respect ofprojectscompletedinthepast3yearsalongwithevidencethattheevaluation results were published as per the Project EvaluationDisclosurePolicy.

5.1.4 Project-at-risksystems andrelatedprojectriskmanagementcapabilities

A process or system inplace to flag early onwhen a project hasdeveloped problemsthatmay interferewiththe achievement of itsobjectives, and torespondaccordinglytoredresstheproblems


Foralltypesofentities:• Proceduresforproject-at-risksystemtoensurespeedysolutions

toproblemswhichmay interferewith theachievementof theprojectobjectivesorleadtounintendednegativeconsequences;

• Examples of project problems addressed to demonstrateeffectivenessofthesystem.


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5.2 Grantawardand/orfundingallocationmechanismsSpecificcapacitiesforgrantawardandfundingallocationmechanismsofgrantsinthecontextofprogrammesrequiretransparenteligibilitycriteriaandanevaluationprocess,agrantawarddecisionandprocedures,publicaccessto informationonbeneficiariesandresults,transparentallocationandimplementationoffinancialresources,andagoodstandingwithregardtomultilateralfunding.

5.2.1 Grant awardprocedures

A transparent grantawardmechanismwithformally documentedprocedures forevaluating proposalsand awarding grants,and clearly definedeligibilitycriteria;Grant award decisionstaken by authorisedbody in accordancewithgoodpractice

Required forapplicants seekinggrant awardand/or fundingallocationmechanismaccreditation

Sample grantnotices/call forproposals providedare comprehensiveand the criteria forexclusion, eligibility,selectionandawardsisincludedinthecallforproposals

Foralltypesofentities:• Composition and Terms of Reference of the Grant award

EvaluationCommittee;• Grantawardevaluationsystem/process/procedureswithclearly

defined rolesand responsibilities including thoseof theGrantEvaluationCommitteeandtheGrantApprovalAuthority;

• Samples of recent grant notices/calls for proposals withinformationonhowthesewerepublicised;

• Sample documents which provide evidence that the GrantAwardevaluationsystemiscompliedwithinrespectofallgrantsawarded. The sample documents should relate to the samegrantforwhichabovenoticeshavebeenprovided.ThesampledocumentsshouldalsocontaintheagendaandminutesoftherespectiveGrantEvaluationCommitteemeetingsinwhichthesegrants were discussed and approved/declined, evidence ofapproval by the Approving Authority and copies ofcommunicationsenttoallapplicants (successfulorotherwise)regardingtheirapplicationforgrant.

5.2.2 Public access toinformation onbeneficiaries andresults

Grant-awarding entityto make the grantaward results publicwithin a reasonabletimeframe

Required forapplicants seekinggrant awardand/or fundingallocationmechanismaccreditation

Foralltypesofentities:• Copy of policies/guidelines for providing information to the

publicregardingtheentity’sgrantdecisions;• Evidence of publication of grant award results for the last 3

grants/programmes/projects.


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5.2.3 Transparentallocation offinancialresources

Systems in place toprovide assurance ontherealityandeligibilityofactivitiestobecarried out with thegrant award; torecover funds undulypaid and preventirregularities andfraud; to monitorprojectimplementation; andto suspend, reduce orterminate the grant inthe event of non-compliance

Required forapplicants seekinggrantawardand/orfunding allocationmechanismaccreditation

Foralltypesofentities:• Copy of documented framework/ system for undertaking due

diligence,includingprocurementprocedures,withclearlydefinedresponsibilities and applicable formats/templates, for assessingtheeligibilityandcapabilitiesofpotentialgrantawardees;

• Copy of entity’s policies and procedures (including formats) forundertakingMonitoring&Evaluationofgrants,alongwithreportsasevidenceofmonitoringofimplementationof3projectsinthepast 3 years;Copy of policies and procedures relating toSuspension,Reduction,TerminationandRecoveryofgrants;

• Does the entity have any policies/systems relating to providingaccess to the public to information on the periodic progress ofindividualprojects includingbudgetutilisationtoensuregreatertransparency in the use of funds by grantees? If yes, pleaseprovidebriefdescriptionofthepolicies/systemandevidenceofitsimplementation;

• Policies relating to external audit of the entity’s grant awardactivities and relevant. If this is done as a part of the entity’sexternalauditexerciseplease indicateaccordingly.Alternativelyprovidecopiesoflast3reportsonthegrantawardactivities.

Forprivatesectorentities:• Special/separate grant award audit reports as demonstrated

evidence of transparent and consistent application of grantawardingcriteria.

5.2.4 Good standing forfinancialrequirements withregard to multilateralfunding (e.g. throughrecognized publicexpenditurereviews)

Grant awarding entitywith a proven trackrecord of handlingmultilateralfunds

Required forapplicants seekinggrantawardand/orfunding allocationmechanismaccreditation

Foralltypesofentities:• Evidenceofgoodstandingwithregardtomultilateralfunding

in the form of evaluation/assessment/due diligence reportscommissionedbythemultilateralfundingsourcesorlettersofreferencefrommultilateralsponsors;

• Publicexpenditurereviews,ifanyundertaken.


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Item Areaofcompetence Specificcapacityrequired


5.3 On-lendingand/orblendingAdditionalspecializedcriteriaforon-lendingandblendingwillapplyforintermediariesandimplementingentitiesthatwishtousefinancialinstrumentsotherthangrantswiththeGreenClimateFund’sresources.

5.3.1 Appropriateregistration and/orlicensing by afinancial oversightbody or regulator inthe country and/orinternationally, asapplicable

Anofficialrecordfromaregulator or licensingbodyclearingtheentityforon-lending

Required forapplicants seekingon- lending and/orblendingaccreditation

Foralltypesofentities:• On-lending registration or license from a national or

internationalregulator.• Ifsuchalicensedoesnotexistorapply,pleaseindicatethis

andexplain.

5.3.2 Track record,institutionalexperience andexistingarrangements andcapacities for on-lendingandblendingwith resources fromotherinternationalormultilateralsources

Previous experiencewith on-lending orblending usinginternationalormultilateralresources


Foralltypesofentities:• Dataforthelast3yearsinrespectoffundsforOn-lendingand

Blendingreceivedfromdifferent internationalandmultilateralfunding sources, including the management of assets underTrustArrangementsandotherarrangementssuchasSPVs;

• Projectdocumentsfor3on-lendingorblendingprojects,clearlystating the intermediaries and sources of international andmultilateralfunding;

• At least 3 examples of agreements for each of the financialinstruments that the applicant has indicated it is applying foraccreditation for (e.g., loans, equity and/or guarantees),undertakenbytheapplication.Forexample, if theapplicant isapplyingforthisspecializedfiduciarycriteriainordertoreceiveresourcesfromtheGreenClimateFundtodeployasequity,theapplicantshouldprovideatleast3relevantexamplesforwhichtheapplicantmadeanequityinvestment.

5.3.3 Creditworthiness Capacity to safely lendmoneytootherentities


Foralltypesofentities:• Ratings from recognised international credit rating

companies;• Iftheapplicantisnotrated,provideotherrelevantinformation

to evidence the applicant’s creditworthiness such as theRegulator’sexaminationreportorinformationregardingstatusofpaymentsinarrearsoftheentity’scurrentloanportfolioandmarketvalueofitsinvestments.


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5.3.4 Due diligencepolicies, processesandprocedures

Mechanismsinplacetoensurethaton-lendingand/orblendingisdoneinacrediblemanner


Foralltypesofentities:• Copy of policies/guidelines/procedures for the entity’s On-

lending and/or Blending operations;Copy of theframework/system for undertaking due diligence with clearlydefined roles and responsibilities and applicableformats/templatesforassessingthecapabilitiesoftherecipientorganisations;

• 2on-lendingand/orblendingduediligencereports,includingthesoftwareemployedbytheentityinanalysingthecreditqualityofloanrecipients,forexampleMoody’sCreditAnalysisSoftwareorotherspecialisedsystems.

5.3.5 Financial resourcemanagement,including analysisof the lendingportfolio of theintermediary

Control procedures inplace to analyse thelendingportfoliooftheintermediary


Foralltypesofentities:• Financialmanagementpolicyoranyotherdocumentoutlining

the entity’s policy with respect to management of financialresources;

• Framework/procedures for evaluating an intermediary’slending portfolio; 2 lending portfolio assessment/analysisreports.

5.3.6 Public access toinformation onbeneficiaries andresults

Systemsandprovisionsinplaceforthegeneralpublic to accessinformation aboutbeneficiaries andresults of projectsfundedbytheentity

Required forapplicants seekingon-lendingand/orblendingaccreditation

Foralltypesofentities:• Copyof entity’s policies/guidelines for providing information to

thepublicregardingitsdecisionsonon-lendingand/orblendingoperations;

• Evidenceofpublicationofthelistofbeneficiariesofitson-lendingand/orblendingoperationsforthelast2years;

• Evidenceofpublicationofinformationonbeneficiariesandresultsof 3 projects completed in the past 3 years (preferably climatechangemitigationand/oradaptationprojects).


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5.3.7 Investmentmanagement,policies andsystems, includingin relation toportfoliomanagement

Systems in place toensure soundinvestmentmanagement


Foralltypesofentities:• Investmentmanagementpolicy;• Procedures/guidelines for managing the entity’s investment

portfolio;• Copiesof2investmentportfoliomanagementreportsprepared

inthe past 3 years, including the current investment portfoliovaluation.

5.3.8 Capacity tochannel fundstransparently andeffectively, and totransfer theGreenClimate Fund’sfundingadvantagestofinalbeneficiaries

Systems in place toensure that funds aretransparentlychannelled


Foralltypesofentities:• Brief description of systems/ procedures/practices which

providerequisiteassurancethatthefundsprovidedbytheentityarechannelledtransparentlyandusedeffectively;

• Examplesof reports fromthepast threeyearsusedtocontroltheappropriateuseoffunds

• Entity’s policy and practices for annual/periodic independentreview/check/internalorexternalauditontheuseofitsfundsalongwithevidenceofsuchreviewsbeingundertaken;

• Data relating to 3 projects showing the advantages to finalbeneficiariesofprojectsimplementedbytheentity.

5.3.9 Financial riskmanagement,including assetliabilitymanagement

Capacity to managefinancialrisk


Foralltypesofentities:• Financial risk management Policy and Procedures (if already

provided as a part of Internal Control Framework, then theapplicant can refer to the item and document where it iscontained);

• Briefdescriptionofmajorfinancialriskmanagementstrategiesplannedand implementedduringeachof the last2 yearsandanalysis/reports covering the impact/effectiveness of thestrategies;

• 2samplesoftheminutesofrecentmeetingsoftheentity’sAssetand Liability Committee (ALCO) or other committee thatmanagestheentity’sassetsandliabilities


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5.3.10 Governance andorganizationalarrangements,includingrelationshipsbetween thetreasury functionand the operationalside(frontdesk

A link between thetreasury function andthe operationalfunction


Foralltypesofentities:Details of the relationship between the treasury function and theoperationalfunctionswithevidencethattheappropriatesegregationofduties between the organizational unit responsible for businessdecisions and the unit responsible for disbursement covers possiblerisks.


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6.4. Environmentalandsocialsafeguards

Environmentalandsocial safeguards (ESS)arenecessary to identify,preventandmitigateharmtopeople and their environment throughout the implementation of a project or programme.Mostmultilateralandbilateraldevelopmentagencieshaveadoptedpolicies,proceduresandguidelinesthatcoverthoseEnvironmentalandSocial(E&S)aspects.ESS systems have become gradually harmonised, and most align with the International FinanceCorporation’s(IFC)PerformanceStandards(PS)(seeFigure9below).TheGCF’sESSarebasedontheIFCPS,onaninterimbasisupsinceitisplannedthattheGCFwilldevelopitsownESSsystemwhenithasthenecessaryprojectandprogrammeexpertise.

Figure9:IFCESSperformancestandards(source:Acclimatise,GreenClimateFundProposalToolkit2017)

Thepolicy

ThereareeightIFCPSwhicharepartofanoverarchingsystemforthe“AssessmentandManagementofEnvironmentalandSocialRisksandImpacts”(PS1),andsevenrisk-specificstandards:

• PS1 – Assessment andmanagement of environmental and social risks and impacts: Theoverarchingsystemorproceduresforidentifying,assessingandmanagingtheactivityspecificrisks;

• PS2 – Labour andworking conditions: Ensuringworkers are informed of their rights andprovidedwithsafeworkingconditions;

• PS3–Resourceefficiencyandpollutionprevention:Avoidingpollutionandthegenerationofwaste,andusingresourcesefficiently;

• PS4–Communityhealth,safetyandsecurity:Avoidingadverseimpactsonhealthandsafety,andontheecosystemservicesusedbycommunities;


75

• PS5 – Land acquisition and involuntary resettlement: Avoiding forced evictions andminimisingdisplacement,orprovidingfaircompensationforresettlement;

• PS6–Biodiversityconservationandsustainablemanagementof livingnatural resources:Avoidingimpactsonbiodiversitythroughprotection;

• PS7–Indigenouspeoples:Identifyingandavoidingnegativeimpactsonindigenouspeoples;and,

• PS8–Cultural heritage: Avoiding impacts on andprotecting archaeological, historical andculturalsites.

InordertomeetPS1–Assessmentandmanagementofenvironmentalandsocialrisksandimpacts,theapplicantentitiesmusthaveaneffectiveEnvironmentalandSocialManagementSystem(ESMS).An ESMS is amethodology tomanage environmental and social risks on a permanent basis. Thisincludestheinstitutionalprocessesthatdemonstratethecapacityto identify,categorise,evaluate,mitigate, manage and monitor environmental and social risks that could arise from GCF-fundedprojectsandprogrammes.AcomprehensiveESMSshouldinclude:

• An E&S policy: A statement of commitment with values, principles, objectives and goalsgoverningtheE&Sperformanceofeachactivity;

• Aprocess to identify E&S risks and impacts:Aplanningprocess to identify E&S risks andimpactsacrossperformancestandards2-8;

• E&Sriskmanagementprogramme:OrganisationalstructurestomanageE&Srisks,includingtheimplementationofmitigationmeasurestoaddressE&Simpacts;

• OrganisationcapacityandcompetencytomanageE&Srisks:GuidelinesandstructurestoensurethatrelevantstaffhavethenecessaryskillstoundertakeE&Sriskmanagement;

• MonitoringandreviewprocessforE&Srisks:ProcesstomonitorandevaluatetheE&Sriskscovering PS2-8 of funded projects and programmes, to ensure that E&S management isimplemented;and,

• Structures for external communication on E&S risks: Public disclosure of relevant E&Sinformation is required via channels that also allow the receipt of public inquiries andconcernsonE&Srisks.

§ Risklevels

At theproject andprogramme level, E&S risks are categorised in three levels. The levels are splitbetweenenvironmentalandsocialriskfromfundingproposals(Categories)oranentity’sexposuretoenvironmental and social financial risk based on their grant award or on-lending portfolios(Intermediations).Theserisklevelsare:

• High risk: Covers funding proposals (Category A) and/or proposed investment portfolios(Intermediation1)whereactivitiesmayhavesignificantadverseenvironmentaland/orsocialrisksand/orimpactsthatarediverse,irreversibleorunprecedented;

• Mediumrisk:Coversfundingproposals(CategoryB)and/orproposedinvestmentportfolios(Intermediation2)whereactivitiesmayhavemildadverseenvironmentaland/orsocialrisksand/orimpactsthatarefewinnumber,generallysite-specific,largelyreversible,andreadilyaddressedthroughmitigationmeasures;and,


76

• Low risk: Covers funding proposals (Category C) and/or proposed investment portfolios(Intermediation3)whereactivitieshaveminimalornoadverseenvironmentaland/orsocialrisksand/orimpacts.

TheGCF’sfullenvironmentalandsocialpolicycanbefoundat:{www.greenclimate.fund/documents/20182/319135/1.7_-_Environmental_and_Social_Safeguards.pdf/e4419923-4c2d-450c-a714-0d4ad3cc77e6}DemonstratingcomplianceThe required ESMSwill vary depending on the environmental and social risk associatedwith theintendedactivitiesoftheapplicant:

• Highrisk:Theentity’sESMSneedstodemonstrateafullydevelopedanddocumentedtrackrecordassociatedwithallsixpolicyrequirementsofPS1aspartofaneffectiveESMS,whichisfullyconsistentwithallsevenriskcategoriesasoutlinedinPS2-8;

• Medium risk: The entity’s ESMS needs to demonstrate that itsmanagement programme,organisational capacity and competency, monitoring and review procedures and externalcommunications all align with high risk requirements, although less evidence ofimplementation is required.TheE&Spolicyand identificationof risksand impactsarenotrequiredtobeasformalised,butmustpresentandbeconsistentwithallsevenriskcategoriesasoutlinedbyPS2-8;and,

• Lowrisk:TheESMSwillnothavetobeadvanced.ItwillneedbasictomoderateprocedurescoveringfiveofthesixESMSpolicyareas,consistentwithallsevenriskcategoriesasoutlinedbythePS2-8.NoE&Spolicyisrequired.

If the applicant does not have an ESMS, a quality-based management system can be used as afoundationonwhichtobuildtherequiredESMS.Iftheapplicanthasdevelopedandimplementedaformalinternalenvironmental,labourorhealthandsafetysystemthatalignswithIFC’sPS,thismaybesufficient.ItisrecommendedthatagapassessmentbeconductedtoensurealignmentwiththeIFC’sPS.


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Table9:Risklevelsandcorrespondingexamples(source:AcclimatiseNDAtoolkit2017)Risklevel

Fundingproposals Intermediation6 Examples

High CategoryAActivities withpotential significantadverse environ-mental and/or socialrisks and/or impactsthat are diverse,irreversible, orunprecedented.

Intermediation1(I1)When an intermediary’s existing orproposed portfolio includes, or isexpected to include, substantialfinancial exposure to activities withpotential significant adverseenvironmental and/or social risksand/or impacts that are diverse,irreversible,orunprecedented.

Large scale activities includingconversion or degradation,extraction, consumption,dischargeanddisposal relatedtonaturalhabitats:• Large-scaleforestry• Large-scaleagriculture• Large-scaleinfrastructure• Large resettlement

components• Impactsonindigenouspeoples• Serioushealthrisks

Medium CategoryBActivities withpotential mildadverseenvironmentaland/or social risksand/or impacts thatare few in number,generally site-specific, largelyreversible, andreadily addressedthrough mitigationmeasures.

Intermediation2(I2)When an intermediary’s existing orproposed portfolio includes, or isexpected to include, substantialfinancial exposure to activities withpotential limited adverseenvironmental or social risks and/orimpacts that are few in number,generally-site specific, largelyreversible, and readily addressedthrough mitigation measures; orincludes a very limited number ofactivities with potential significantadverse environmental and/or socialrisksand/or impactsthatarediverse,irreversible,orunprecedented.

Similartothosewithhighrisksbutoftensmallerinscale:• Small scale infrastructure,

includingmini-grids and smallscalerenewables

• Ecosystembasedadaptation• Energyefficiencyprogrammes• Small rehabilitation,

maintenanceandupgrades• Small scale agricultural and

ruraldevelopment

Low/No CategoryCActivities withminimal or noadverseenvironmentaland/or social risksand/orimpacts

Intermediation3(I3)When an intermediary’s existing orproposed portfolio includes financialexposure to activities thatpredominantly have minimal ornegligible adverse environmentaland/orsocialimpacts.

Includesoftapproachesandverysmallhardapproaches:• Advisoryservices• Education, training, capacity

building, and institutionaldevelopment

• Panningsupport• Awarenessraising• Smallscalereforestation• Monitoringprogrammes• Household energy supply and

efficiencyprogrammes

6 Activities involving investments through financial intermediation functions or through delivery mechanisms involvingfinancialintermediation.


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Table10:SectionVIoftheaccreditationapplication:“Environmentalandsocialsafeguards”(source:GCFaccreditationform)


Specificcapacityrequired Applicability Inputdata Examplesofsupportingdocuments

6 Environmental

andSocial

Management

System(ESMS)

The accreditation review against the Green Climate Fund’s environmental and social safeguards (ESS) will focus on the applicant’s

institutionalESMS.

• EntitiesthatdesiretoundertakeCategoryA/I-145orlowerrisk(CategoryB/I-2andCategoryC/I-3)typeprojects/programmeswillbe

requiredtohaveanESMSthatismatureanddocumented,withaproventrackrecordofmanagingthesetypesofprojects/programmes,

andthefullsupportofSeniorManagement.RequiredelementsoftheinstitutionalESMSaresetoutbelowinitems6.1-6.6

• EntitiesthatdesiretoundertakeCategoryB/I-246orlowerrisk(CategoryC/I-3)typeprojects/programmeswillberequiredtohavean

ESMSandaproventrackrecordofmanagingthesetypesofprojects/programmes,andthesupportofManagement.ThisESMSwilllikely

haveemergingelementsandwillnotbeasmatureinscopeordocumentation,oraswell-integratedintobusinessprocesses,astheESMS

requiredforCategoryA/I-1typeprojects/programmes,thoughitwillstillhavealloftheESMSelementslistedinitems6.1-6.6;

• Entities that desire to undertake Category C/I-347 type projects/programmes will only have an ESMS. Category C/I-3 projects, by

definition,containlittletonoenvironmentalorsocialrisksorimpacts.TheESMSrequiredwillbemoderateandverysimple,andwillnot

needalloftheESMSelementsrequiredbyhigherriskcategories.RequiredelementsoftheinstitutionalESMSareshowninitems6.1-6.6.

6.1 Policy CategoryA/I-1An environmental and social (E&S) policy

that:

• Includes an overarching statement of the

E&S objectives and principles guiding the

institution;

• States the E&S standards the institution

adherestoincludinglawsimplementinghost

countryobligationsunderinternationallaw;

• Indicateswhomwithin the institutionswill

ensureconformancewiththepolicyandbe

responsibleforitsexecution;

• Is consistent with the Performance

Standards(PS)1-8;• IsendorsedbySeniorManagement;• Is communicated to all levels of its

organization and may be communicated

publicly.

Requiredfor

applicantsseeking

CategoryA/I-1

accreditation

Foralltypesofentities:• A formal E&S Policy, or

equivalent, that includesthe

required specific capacities

which is fullydevelopedand

maintained;

• In the absence of a formal

policy, a description of the

specific institutional

capacities related to the

elements that would

otherwise be included in an

E&Spolicy;

• Year when E&S policy or

equivalent was

approved/endorsed.

CategoryB/I-2AnE&Spolicythat:

• IncludesanoverarchingstatementoftheE&S

objectives and principles which guide the

Requiredfor

applicants seeking

CategoryB/I-2

accreditation

Foralltypesofentities:• AnE&SPolicy,orequivalent,

that includes the required

specificcapacities


79

institution;• States the E&S standards the institution

adheres to including laws implementing host

countryobligationsunderinternationallaw;

• Indicates whom within the institutions will

ensure conformance with the policy and be

responsibleforitsexecution;

• IsconsistentwithPS1-8;

• IsendorsedbyManagement;

• Iscommunicatedwithintheorganization

• Year when E&S policy or

equivalent was approved

/endorsed.

CategoryC/I-3Notrequired.

Requiredfor

applicantsseeking

CategoryC/I-3

accreditation

Notrequired,butifavailablepleaseindicatethisandprovidesupportinginformation.



6.2 Identificationof

Risksand

Impacts

CategoryA/I-1Afullydevelopedanddocumentedinstitutional

processandtrackrecordthat:

• IdentifiestheE&Srisksandimpactsof

projects/programmesastheyevolveover

theprojectlife;• Isconsistentwithgoodinternational

industrypractice;

• IsconsistentwithPS1-8;

• Isintegratedintooperations.

Requiredfor

applicantsseeking

CategoryA/I-1

accreditation

Foralltypesofentities:Allelementsof

thisitemtaking

intoaccountthe

categoryof

environmental and social risk the

applicant is applying for must be

addressed.

For GEF entities eligible for andapplyingundertheGreenClimateFund fast-track accreditationprocess:Complete this section for a risk

and impacts identification

procedure or process and track

record that includes: PS2; PS3

except Pest Management; PS4

infrastructure and equipment

design and safety beyond dam

safety, hazardous materials and

management

safety, protection of priority

Foralltypesofentities:• A formal E&S risks and impacts

identification and assessment

procedure describing the due

diligence approach which isintegrated into business

processes, isroutinelyupdated,

andmay have been audited by

aninternalorexternaloversight

mechanism;• Ifariskcategorizationsystemis

alreadyused,alistofillustrative

projects from the past 3 years

andtheircategory,includingan

indication of who within the

organization determines the

categorization.


80

provisioningandregulating

ecosystemservices,

communityexposureto

disease,emergency

responseand

preparedness,

collaborationwith

communities, security force

management;and

PS6supplychainrequirements.

This section does not need to be

completedfor

otherPSrequirements.CategoryB/I-2Aninstitutionalprocessandtrackrecordthat:

• IdentifiestheE&Srisksandimpactsof

projects/programmes;

• Isconsistentwithgoodinternational

industrypractice;50Isconsistentwith

PS1-8.

Requiredfor

applicantsseeking

CategoryB/I-2

accreditation

Foralltypesofentities:Allelementsofthisitemtaking

intoaccountthecategoryof

environmentalandsocialriskthe

applicantisapplyingformustbe

addressed.

For GEF entities eligible for andapplying under the Green ClimateFund fast-track accreditationprocess:Completethissectionforariskand

impactsidentificationprocedureor

process and track record that

includes: PS2; PS3 except Pest

Management; PS4 infrastructure

and equipment design and safety

beyond dam safety, hazardous

materials andmanagement safety,

protection of priority provisioning

and regulating ecosystem services,

community exposure to disease,

emergency response and

preparedness, collaboration with

communities, security force

management;andPS6supplychain

Foralltypesofentities:• An E&S risks and impacts

identification and

assessment procedure

describing the due

diligence approach, which

may be implemented by

the relevant part of the

organization;

• Ifacategorizationsystemis

already used, a list of

illustrative projects from

the past 3 years and their

category, including an

indication of who within

the organization

determines the

categorization.


81

requirements.

This section does not need to be

completed for other PS

requirements.

CategoryC/I-3Aprocessthatscreensprojects/programmes

againstPS1-8andisabletoconsistentlyconfirm

the

riskcategory.

Requiredfor

applicantsseeking

CategoryC/I-3

accreditation

Foralltypesofentities:All elements of this item taking

intoaccountthe

category of environmental and

social risk the applicant is

applying formust be addressed

ForGEF entities eligible for and

applying under the Green

Climate Fund fast-track

accreditationprocess:Complete

thissectionforariskandimpacts

identification procedure or

process and track record that

includes:PS2;PS3exceptPest

Management;PS4infrastructure

andequipmentdesignandsafety

beyond dam safety, hazardous

materials and management

safety,protectionofpriority

provisioning and regulatingecosystem services, community

exposuretodisease,emergency

response and preparedness,

collaborationwithcommunities,

securityforcemanagement;and

PS6supplychainrequirements.

Thissectiondoesnotneedtobe


requirements.

Foralltypesofentities:• A basic E&S procedure,

which may be

implemented by the

relevant part of the

organization;

• Ifacategorizationsystem

is already used, a list of

illustrative projects from

thepast3yearsandtheir

category, including an

indication of who

determines

categorization.


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6.3 Management

Programme

CategoryA/I-1A fully developed and documented institutional

process and track record for managingmitigation

measuresandactionsstemmingfromtheE&Srisk

identificationprocess.

Depending upon the nature and scale of the

project/programme, themanagement programme

may consist of a documented combination of

operationalprocedures,practices,plansandrelated

supporting documents that are managed in a

systematicway.

Requiredfor

applicantsseeking

CategoryA/I-1

accreditation

Foralltypesofentities:Allelementsofthisitemtakinginto

account the category of


applicantisapplyingformust

beaddressed.

For GEF entities eligible for andapplying under the Green ClimateFund fast-track accreditationprocess: Complete this section by

demonstrating management

processes and track record for the

issueslistedinitem6.2.Thissection

doesnotneedtobecompletedfor

otherPSrequirements.

Foralltypesofentities:• Evidence of management

programme, including

formal operational

processes or procedures

documenting practices

describing how individual

projects/programmes

mitigation actions will be

documented, tracked, and

applied;

• Auditreports(conducted

byexternalfirmor

organization)on

institutionalmanagement

programmeeffectiveness.

CategoryB/I-2A documented institutional process and track

record for managing mitigation measures and

actions stemming from the E&S risk identification

process.

Depending upon the nature and scale of the

project/programme, themanagement programme

may consist of a documented combination of

operationalprocedures,practices,plansandrelated

supporting documents that are managed in a

systematicway.

Requiredfor

applicantsseeking

CategoryB/I-2

accreditation


accountthecategoryof



addressed.

ForGEFentitieseligibleforandapplyingundertheGreenClimateFundfast-trackaccreditationprocess:Completethissectionby

demonstratingmanagement

processesandtrackrecordforthe

issueslistedinitem6.2.This

sectiondoesnotneedtobe

completedforotherPS

requirements.

Foralltypesofentities:• Operating processes or

procedures documenting

how individual

projects/programmes

mitigation actions will be

documentedandtracked;

• Audit reports on

institutional management

programmeeffectiveness

CategoryC/I-3A management programme consistent with the

level of E&S risk. The management programme

should indicatean institutionalprocess to identify

andmanagerisks(includingunanticipatedrisksand

Requiredfor

applicantsseeking

CategoryC/I-3

accreditation





Foralltypesofentities:Ifneededduetounanticipatedrisks

orimpactsarisingafterscreening,a

descriptionoftheprocessand

organizationalcapacitytomanage


83

impacts), and designate roles responsible for

implementingtheprogramme.

addressed


demonstrating management

processes and track record for the

issueslistedinitem6.2.Thissection

doesnotneedtobecompletedfor

otherPSrequirements.

E&Srisk



6.4 Organizational

Capacityand

Competency

CategoryA/I-1An organizational structure that defines roles,

responsibilities,reportinglinesandauthorityto

implement the ESMS, which includes Senior

Management. Key E&S responsibilities should be

defined and communicated, and supported with

humanandfinancialresources.

Technical staff with direct responsibility for the

project/programme performance have the

knowledge, skills and experience necessary to

understandandensureimplementationofPS1-8.

TechnicalstaffwithknowledgeofPS1-8areableto

properlycategorizepotentialfundingproposals.

Requiredfor

applicantsseeking

CategoryA/I-1

accreditation


accountthe

category of environmental and

social risk theapplicant isapplying

formustbeaddressed.


demonstrating capacity and

competency for the issues listed in

item6.2.Thissectiondoesnotneed

tobecompletedforotherPS

requirements.

Foralltypesofentities:• Organizational charts that

identify units or

departments, line

management and the

individuals having E&S

performance and

complianceresponsibilities;• Job descriptions and

responsibilities of key E&S

personnel, including

expertiseandexperiencein

PS1-8;

• Proceduresforinformation

sharing(awareness)among

the investment, legal and

credit offices in the

organization’s E&S

requirementsandESMS;

• Descriptionof trainingand

developmentprograms for

E&S and other relevant

staff.


84

CategoryB/I-2An organizational structure that defines roles,

responsibilities and authority to implement the

ESMS,whichincludesSeniorManagement.KeyE&S

responsibilities should be defined and supported

withhumanandfinancialresources.

Technical staff with direct responsibility for the

project/programme performance have the

knowledge, skills and experience necessary to

understandandensureimplementationofPS1-8.

TechnicalstaffwithknowledgeofPS1-8,areableto

properlycategorizepotentialfundingproposals.

Requiredfor

applicantsseeking

CategoryB/I-2

accreditation



Environmentalandsocialriskthe


addressed.

ForGEFentitieseligibleforandapplyingundertheGreenClimateFundfast-trackaccreditationprocess:Completethissectionby

demonstratingcapacityand

competencyfortheissueslisted

initem6.2.Thissectiondoesnot

needtobecompletedforother

PS

requirements.

Foralltypesofentities:• Organizational

charts that

identify units or

departments,

line

management

and the

individuals

having E&S

performance

and compliance

responsibilities;

• Job descriptions and

responsibilities of key E&S

personnel, including

expertiseandexperiencein

PS1-8. CategoryC/I-3

Designated staff or staff members appropriately

locatedwithintheorganizationareknowledgeable

about PS1-8 and able to properly categorize

potentialfundingproposalsthrougha

screeningprocess.

Requiredfor

applicantsseeking

CategoryC/I-3

accreditation



Environmental and social risk the


addressed.


demonstrating capacity and

competency for the issues listed in

item6.2.Thissectiondoesnotneed

tobecompletedforotherPS

requirements.

Foralltypesofentities:Organizational chart of where

designatedstaffmemberswhomake

categorization decisions sit in theorganizationandreportinglines.


85



6.5 Monitoringand

Review

CategoryA/I-1Track record and internal processes to support a

monitoring/supervisionprogrammethattracksand

ensurescompletionofmitigationandperformance

improvementmeasures.Periodic performance reviews reported to Senior

Management on the effectiveness of the ESMS.

SeniorManagementhasatrackrecordoftakingthe

necessary steps to ensure that the intent of the

institutions policy is met and that procedures,

practicesandplansareimplemented

Requiredfor

applicantsseeking

CategoryA/I-1

accreditation



environmental and social risk theapplicant is applying for must be

addressed.

For GEF entities for and applyingundertheGreenClimateFundfast-track accreditation process:Complete this section by

demonstratingmonitoring

competencyanda track record for

the issues listed in item 6.2. This

section does not need to be


requirements.

Foralltypesofentities:Descriptionofmonitoringandreviewprogram,

includingprocessesandprocedures

• Examplesofhowlessonslearned

frommonitoringandevaluation

have influenced the

design/decisions concerning

specificprojects/programmes;

• Overall indicators that resultedfrom theprogram in thepast 3

years, which indicate a track

recordofthelevelofsuccessof

ESMSimplementationwithinthe

projects/programmes;

• Description of the review oraudit processes that verify this

data (institutional independent

review arm, outside audit firm,

oversight mechanism, etc.);

sampleofprojectauditreports;

• Description of the types andfrequency of reports, which

include E&S monitoring

information, that are submitted

to SeniorManagement; sample

of project monitoring and

evaluation reports prepared in

thelast3years;

• Examples of how E&S

supervision and auditing

activities have informed the

managementreviewandupdate

oftheESMS;

• Examples of how E&S

supervision and auditing

activities have resulted in

knowledgedissemination either

internallyorpublicly.


86



CategoryB/I-2Trackrecordandinternalprocessestosupporta

monitoring/supervision programme that tracks

and ensures completion of mitigation and

performanceimprovementmeasures.

Periodic performance reviews reported to Senior

Management, on the effectiveness of the ESMS.

Senior Management takes the necessary steps to

ensure that the intent of the institutions policy is

met and that procedures, practices and plans are

implemented.

Requiredfor

applicantsseeking

CategoryB/I-2

accreditation


account the category of



addressed.


demonstratingmonitoring

competencyanda track record for

the issues listed in item 6.2. This

section does not need to be

completedforotherPS

requirements.

Foralltypesofentities:• Description of monitoring

and review program and

previous years’ indicators

that resulted from the

program;

• Sample of project

monitoring and

evaluationreports.

CategoryC/I-3Moderate monitoring of projects/programmes to

ensure that therehavebeenno scope changesor

unanticipated impactsor risks requiringmitigation

andmanagement.

Requiredfor

applicantsseeking

CategoryC/I-3

accreditation

Foralltypesofentities:Allelementsofthisitemtaking

intoaccountthecategoryof

environmentalandsocialrisk

theapplicantisapplyingfor

mustbeaddressed.

ForGEFentitieseligible forandapplying under the GreenClimate Fund fast-trackaccreditationprocess:Complete

this section by demonstrating

monitoring competency and a

trackrecordfortheissueslisted

initem6.2.Thissectiondoesnot

needtobecompletedforother

PSrequirements.

Foralltypesofentities:• Descriptionofproject

monitoringprocess.


87



6.6 External

Communications

CategoryA/I-1Externalcommunicationchannelsthatallowthe

entityto:

• Receive and register external

communicationsfromthepublic;

• Screen and assess issues raised and

determinehowtoaddressthem;

• Provide,track,anddocumentresponses.

Requiredfor

applicantsseeking

CategoryA/I-1

accreditation

Foralltypesofentities:• Writtenprocessor

proceduresdescribing

externalcommunications

system• Location of system

(website,etc.);

• Register of

inquiries/complaints

• and responses from the

past1year. CategoryB/I-2

Externalcommunicationchannelsthatallowthe

entityto:

• Receiveandregisterexternal





Requiredfor

applicantsseeking

CategoryB/I-2

accreditation

Foralltypesofentities:• Written process or

procedures describing

external

communications

system;

• Location of system

(website,etc.)

• Register of

inquiries/complaintsand

responsesfromthepast

1year.

CategoryC/I-3Externalcommunicationchannelsthatallowthe

entityto:

• Receive and register external





Requiredfor

applicantsseeking

CategoryC/I-3

accreditation

Foralltypesofentities:• Written process or

procedures describing

external

communications

system;

• Location of system

(website,etc.);

• Register of inquiries/

complaints and

responses from the

past1year.


88

6.5. GenderGenderisofcriticalimportanceinbothclimatechangemitigationandadaptationaswomenandgirlsareparticularlyaffectedbytheimpactsofclimatechangeandassociatedsevereweatherevents.Forinstance,women’smortalityfromclimate-relateddisastersishigherthanthatofmen,andclimate-

inducedeventssuchasdroughtsexacerbatewomen’spovertyandunpaiddomesticandcareworkburdens.Thisisduetofactorssuchasentrencheddiscriminatorysocialandculturalnorms,alackofentitlements, and unequal access to land, water and productive assets, compounded by limited

mobilityanddecision-makingpowerinmanycontexts.Assuch,thereisanincreasingrecognitionofmainstreaminggenderinclimatefinance.

TheGCFisthefirstmultilateralclimatefundthatincludesagenderpolicyandagenderactionplan.AspertheGCF’sGenderPolicy,AEsarerequiredtodevelopandimplementtheirowngenderpolicy.

TheGCFgendermanual“MainstreamingGenderinGreenClimateFundProjects”isavailablehere:{http://www.greenclimate.fund/documents/20182/77885/gcf-toolkit-mainstreaming-gender/bb8aa893-db27-4d29-aba1-ff852e599504}

ThepolicyTheGCF’sgenderpolicycontainssixprinciplestoensuretheGCFcontributestogendersensitivity,

equalityandequity,asfollows:

• Commitment: the GCF commits to contributing to gender equality, as enshrined in

internationalagreementsandnationalconstitutions;

• Comprehensiveness:theGCFappliesitsgenderpolicytoallitsclimatechangemitigationandadaptationactivities,withoutregardtothenatureoftheimplementingentity(public/private,

international/national);

• Accountability: gender monitoring, impact and outcomes indicators are included in the

resultsmanagementandperformanceframeworksoftheGCF;

• Countryownership:NDAsmustalignwiththeGCF’sgenderpolicy;

• Competencies:TheGCFaimstoreachgenderbalancewithinitsownkeyadvisoryanddecision

makingbodies;and,

• Resource allocation: Climate change adaptation andmitigation projects and programmes

mustcontributetogenderequalityandwomen’sempowerment. TheGCF’sfullgenderpolicycanbefoundat:

{http://www.greenclimate.fund/documents/20182/319135/1.8_-_Gender_Policy_and_Action_Plan.pdf/f47842bd-b044-4500-b7ef-099bcf9a6bbe}


89

DemonstratingcomplianceApplicant entities are expected to demonstrate their competencies, policies and procedures toperforminlinewiththeGCF’sgenderpolicythrough:

• Previousexperienceinimplementingagenderpolicythroughprojectexamples

• Experiencesingenderandclimatechange

However, it is accepted that gender will commonly be a new element to many applicants’

organisationalpolicies.ThisiswhyiftheapplicantentitiesareunabletodemonstrateallGCF’sgenderpolicy elements, they have to demonstrate a willingness to acquire and develop all of thesecompetenciesasaminimumrequirement.

Box3:Understandinggender(source:SoanesM.,2017)Gender:Howsocietiesandspecificculturesassignrolesandascribecharacteristicstomenandwomenbasedontheirsex.Genderequality:Equalrights,power,responsibilitiesandopportunitiesforwomenandmen,aswellasequalconsiderationoftheinterests,needsandprioritiesofmenandwomen.Therefore,entailing

thatsocietyequallyvalueswomenandmen,andtherolestheyplay.Genderequity:Theprocessofbeingfairtomenandwomen.Toensuregenderequity,measuresmay

needtobetakentocompensatefor(orreduce)thedisparitycreatedbyhistoricalandsocialeffects,thatpreventwomenandmenfromoperatingonanequitablebasis.

Gendersensitivity:Understanding theways inwhichpeople thinkaboutgender, thesocioculturalfactorsunderlyinggenderinequality,andhowtoaddresstheseinequalities.Gendersensitivityimpliesconsiderationofthecontributionofwomenandmentosocietalchange,aswellasthemethodsand

toolsusedtopromotegenderequity,reducegenderdisparities,andmeasuretheimpactofclimatechangeandotherdevelopmentactivitiesonmenandwomen.


90

Table11:SectionVIIoftheaccreditationapplication:“Gender”(source:GCFaccreditationform)


Specificcapacityrequired Applicability Inputdata

Examplesofsupportingdocumentation

7.1 Gender Demonstrate competencies,policies and procedures toimplement theGreenClimateFund’sGenderPolicy

Allapplicants Foralltypesofentities:• Extract from entity’s operational

policiesandproceduresrelatingtogender.

7.2 Demonstrate experience withgender and climate change,includingatrackrecordoflendingtobothmenandwomen

Allapplicants Foralltypesofentities:• Examples of 2 activities (e.g.,

projects/programmes undertaken, on-granting,on-lending,etc.)thatspecificallytargetwomenamongbeneficiaries;

• Evidence to show that the entity’sactivities (e.g., projects/programmesundertaken, on-granting, on- lending,etc.)havenon-discriminatorypracticesinterms of benefits and remuneration forbothmenandwomenemployees.


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7. HowtodevelopandsubmitafundingproposaltotheGCF?Submitting a funding proposal to the GCF required to follow a step-wise approach. FurtherinformationabouttherequirementsfordevelopingandsubmittingafundingproposaltotheGCF,isavailableintheGreenClimateFundProposalToolkit2017,availableat:

{ http://acclimatise.uk.com/login/uploaded/resources/CDKN_Acclimatise_GCFproject-development-toolkit_062017.pdf}

7.1. GCFapprovalprocess

AnAEcansubmitfundingproposalstotheGCFthroughanAE.Theycansubmitspontaneouslyonanon-goingbasis,orbyrespondingtoarequest forproposalspublishedbytheGCF,NDAorAE.TheNDA/FocalPointandAEcanalsoconductmulti-stakeholderworkshopstogenerateproposal ideas

alignedwith the national climate change strategy, Nationally Determined Contribution and othernationalplans.Table12:OverviewofthekeyphasesoftheGCFprojectcycle(source:AcclimatiseGCFproposaltoolkit

2017)

1.Conceptnote(voluntary)

Aprojectproponentmaysubmit–throughanAE–aconceptnoteforfeedbackandrecommendations from the GCF, in consultation with the NDA. Alternatively, theconceptnotemaybesubmittedbytheNDAifanassociatedAEhasnotbeenidentifiedby a project proponent. The recommendationwill clarifywhether the concept is (1)endorsed;(2)notendorsedwithapossibilityofresubmission;or(3)rejected.IfaprojectproponentsubmitsaconceptnotethroughanAE,theNDAwillneedtobecopiedonthesubmission.TheGCFSecretariatwillreviewthealignmentoftheconceptwiththeinvestmentframework,RMFandotherGCFcriteria,respondtothesubmitter(withcopytotheNDA),andprovidefeedbackonalignmentwiththeGCF’sobjectives.

2.Proposalsubmission

AprojectproponentmaysubmitaproposaltotheGCF–throughanAE–inconjunctionwiththeno-objectionlettersignedbytheNDA.Atthisstage,theGCFacknowledgesthesubmissionandreviewsitforcompleteness.TheNDAshouldbeincludedinthedifferentstagesofcommunication.

3.Analysisandrecommendation

The GCF will carry out a desktop review that includes i) review of the expectedperformanceoftheprojectagainsteachofitssixinvestmentcriteriaandtheactivity-specific sub-criteria of the GCF; and ii) a review of consistency with its interimenvironmentalandsocialsafeguards,genderpolicyandotherpolicyguidelines.Once the proposal has passed this initial review stage, the Secretariat provides theproposal,supportingdocumentationandthepreliminaryoutcomeofthereviewtotheGCF’s ITAP. The ITAP provides an independent assessment regarding the expectedperformanceoftheprojectorprogrammeagainsttheactivity-specificcriteria.AfundingproposalmayrequireadditionalclarificationsfromtheAEbasedonassessmentbytheITAPandtheSecretariat,whichtheAEisexpectedtoclarify.After the ITAP assessment, the Secretariat compiles the funding proposal packageincludingi)thefundingproposal;ii)theno-objectionletterissuedbytheNDA;iii)theoutcome of the Secretariat’s review; and iv) the outcome of the independentassessment.ThefundingpackageisthensubmittedtotheGCFBoardforconsiderationnolaterthanthreemonthsbeforetheBoardMeetingwherethefundingproposalwillbeconsidered.


92

Figure 10: Overview of the GCF project cycle, including key steps and indicative timeline. The timeline should beconsideredasindicative,asitisdependentonanumberoffactorssuchas:theGCFworkloadandexistingpipeline,thelevelofcomplexityandduediligencerequirementsfortheproject,andthelevelofbaselineinformationavailableontheproject,suchastechnicalstudies(e.g.feasibilitystudies).(Acclimatise,GreenClimateFundProposalToolkit2017)

7.2. GCFapprovalcriteria

AfundingproposalmustdemonstrateitsalignmentwithsixinvestmentcriteriawhicharedefinedintheGCF’sInvestmentFramework.ThelistofcriteriaisprovidedinFigure11.TheGCF’sInvestment

Framework details possible indicators (or indicative assessment factors) thatmay help entities toquantifyimpactpotential.Forexample,arenewableenergyproject/programmemaywishtoprovide

4.Boarddecision BasedonthefundingpackageprovidedbytheSecretariat,theGCFBoardwillthenmakeoneofthefollowingdecisionsbyconsensus:• approvefunding• approvefundingwiththeconditionsandrecommendationsthatmodificationsare

madetothefundingproposal• rejectthefundingproposal.

GCFsendsanotificationtotheAE,interimtrusteeandNDAaboutthefundingdecision.5.Legalarrangements

Following theapprovalof funding for theproposal, anFAA isnegotiatedand signedbetweentheAEandtheGCF.

6.DisbursementandImplementation

TheprojectthenentersintotheGCF’sportfolio,movingintotheimplementationperiodwherebyfundsaretransferredtotheAEaccordingtoagreedtranchesasperthetermsheet’sdisbursementscheduleandotherkeytermsandconditions.TheGCF’sfiduciarystandardsandESSareapplied,andanexternalauditreportissubmitted.

7.Monitoringandevaluation(M&E)andreporting

Following these steps, the project becomes effective and the process of M&E andreportingcommencesandcontinuesuntil theprojectorprogrammeclosesandexitstheGCF’sportfolio.


93

theexpectednumberofmegawatt(MW)oflow-emissionenergycapacityinstalled,generatedand/orrehabilitated.

Foreachoftheseinvestmentcriteria,thefundingproposalshouldselectonlytheapplicableandrelevantsub-criteriaandindicators,asfollows:

• Theactivity-specificsub-criteriainformtheapprovalprocessforprojectandprogramme

allocationdecisions,andapplytobothadaptationandmitigationactions;and,

• Theindicators(indicativeassessmentfactors)seektoprovideclarityonhowthesub-criteria

canbeassessed.

Themethodology used for calculating the indicators and values should be provided. The fundingproposalcancomplementquantitativeindicatorswithqualitativeones.However,notall indicators

are applicable to all activities, and funding proposals are to focus only on those relevant to theproposal,countrycontextandGCFprioritiesonwhichtheproject/programmefocuses.

Figure11:GCFInvestmentCriteriaandtheirdefinitions(source:GCF,2014)Investmentcriterion1:ImpactpotentialThefundingproposalshouldspecifytheclimatemitigationand/oradaptationimpactoftheproposedproject or programme. TheGCF’s Investment Framework has four core indicators towhich every

fundingproposalshouldrespond.Thesecoreindicatorsshouldbebasedonsupportingevidencefortheproject/programme,ifpossiblefromevidencegatheredfrompre-feasibilityorfeasibilitystudies.


94

Thetwocoreindicatorsforimpactpotentialare:

• Mitigationcoreindicator:totaltCO2eqtobeavoidedorreducedperannum;and,

• Adaptation core indicator: expected total number of direct and indirect beneficiaries and

numberofbeneficiariesrelativetototalpopulation(e.g.totallivestobesavedfromdisruptionduetoclimate-relateddisasters).

Inadditiontothecoreindicatorsabove,specificvaluesforotherindicatorsmaybeprovidedbythefundingproposal asnecessary. Examplesofqualitative indicators include thedegree towhich the

proposedactivityavoidslock-inoflong-lived,high-emissioninfrastructure(mitigation)orlong-lived,climate-vulnerableinfrastructure(adaptation).Figure12:Elementsofthemitigationcoreindicators(source:Acclimatise,GreenClimateFundProposalToolkit2017)Figure13:Elementsoftheadaptationcoreindicators(Acclimatise,GreenClimateFundProposalToolkit2017)


95

Investmentcriterion2:ParadigmshiftpotentialTo demonstrate the paradigm shift potential of the project or programme, the funding proposalshoulddemonstratetheextenttowhichtheproposedactivitycancatalyseimpactbeyondaone-offproject/programmeinvestment,byemphasisingandprovidingevidenceforasmanyaspossibleof

thefollowingparadigmshiftfactors:

• Potential for scaling-up and replication (e.g. multiples of initial impact size) for bothmitigationandadaptation:Presentspecificvaluesforscaling-upandreplication(e.g.alocalprivatesectorbankabletopromotemitigationmeasuresbyofferingsoftloanstowomen-ledSMEstomaketheirbusinessesenergyefficientortogeneratecleanenergyfromrenewablesources).Afundingproposalwithahighpotentialforscaling-up,forexampleanearlywarning

system for an individual province that can be scaled up to several surrounding provinces,shouldpresentaconcreteplantodoso.Afundingproposalwithhighreplicationpotential,forexampleahydroelectricpowerstationinaregionwithseveralpotentialsitesidentifiedin

asupportingtechnicalstudy,shouldalsopresentspecificreplicationopportunitiesthatcanbeexplored;

• Potential for knowledge and learning: Highlight any potential for knowledge sharing orlearningatprojectorinstitutionlevel.Forexample,iftheprojectorprogrammewillgenerateusefullessonslearned,aplanshouldbeelaboratedthatspecifieshowthoselessonscanthen

becapturedandsharedwithotherindividuals,projectsorinstitutions,includingthroughthemonitoringandevaluationoftheproject/programme;

• Contribution to the creationof anenablingenvironment: Provide the arrangements that

ensurelong-termandfinanciallysustainablecontinuationofkeyoutcomesandactivities.In

caseswheretheplannedactivitiesdonotgeneratefinancialreflows,athoroughexplanationof long-term financial sustainability is needed. A funding proposal can also highlight theaspectsofmarketdevelopmentandtransformationinwhichtheproject/programmecreates

newmarketsandbusinessactivitiesatthelocal,nationalorinternationallevels.Iftheprojectorprogrammeaddressesoreliminatessystematicbarrierstolow-carbonandclimate-resilientsolutions,orchangesincentivesbyreducingcostsandrisks,theseaspectsmaybehighlighted;

• Contribution to the regulatory framework and policies: If the project or programmeadvancesnational/local regulatoryor legal frameworksand isexpectedtobringsignificant

benefitsinthisregard,pleaseelaborate.Ofparticularinterestistheshiftingoralignmentofincentivestopromoteinvestmentinlow-emissionorclimate-resilientdevelopment,and/orthemainstreamingofclimatechangeconsiderationsintopoliciesandregulatoryframeworks

atalldecision-makinglevels;and,

• Innovation: Describe any innovative ideas or elements, such as fostering new market

segments, creation of business models and/or the development or adoption of newtechnologies. As innovation is context-specific, the funding proposal should specify the

circumstancesinwhichtheinnovationtakesplace.


96

Figure14:Elementsoftheparadigmshiftpotential(Acclimatise,GreenClimateFundProposalToolkit2017)Investmentcriterion3:SustainabledevelopmentpotentialTodemonstratethesustainabledevelopmentpotentialoftheproposedprojectorprogramme,thefundingproposalshoulddescribetheexpectedenvironmental,socialandhealth,andeconomicco-

benefits, as well as the gender-sensitive development impact, which will aim to reduce genderinequalitiesinclimatechangeimpacts.Theseco-benefitsandwiderpositiveimpactsmaybedrawnfromaneconomicanalysisoftheproposedactivitiesandcanbestrengthenedwithmorequalitative

factors.

Figure15:Elementsofthesustainabledevelopmentpotential(Acclimatise,GreenClimateFundProposalToolkit2017)


97

Investmentcriterion4:NeedsoftherecipientTo demonstrate the needs of the recipient, the funding proposal should describe the scale andintensityofvulnerabilitytoclimatechangewithinthecountryandbeneficiarygroups,andelaborateonhowtheproject/programmeaddressestheneedsidentified.Examplesincludethefollowing:

• Vulnerabilityofthecountryandbeneficiarygroups(adaptationonly):Describethescaleandintensity of exposure to climate risks for the beneficiary country and groups,which couldinclude theexposureofpeople, socialoreconomicassets,or capital to risksderived from

climate change. Exposure could be expressed in terms of population size and/or social oreconomicassetsorcapital,includingrelevantgender-disaggregationindicators;

• Economicandsocialdevelopmentlevelofthecountryandaffectedpopulation:Describethelevelofsocialandeconomicdevelopment(includingincomelevel)ofthecountryandtargetpopulation. Examples of the target population may include minorities, disabled, elderly,

children,femaleheadsofhouseholds,indigenouspeoplesorothers;

• Absenceofalternativesourcesoffinancing:Describethebarriersthathavecreatedthelackofalternativefundingsourcesfortheproject/programme;and,

• Need for strengthening institutions and implementation capacity: Describe the

opportunitiestostrengtheninstitutionalandimplementationcapacityinrelevantinstitutions.Figure16:Elementscomprisingtheneedsofrecipient(Acclimatise,GreenClimateFundProposalToolkit2017)Investmentcriterion5:CountryownershipTo demonstrate country ownership of the proposed project or programme, the funding proposalshouldensurethatactivitiestobefinancedbytheGCFalignwithstrategicnationalobjectivesand

priorities, and help advance ambitious action on adaptation and mitigation in line with nationalpriorities. Inparticular,thefundingproposalshoulddemonstratethattheprojectorprogrammeis


98

coherentandalignedwiththenationalclimatestrategyandactionplan,andhowitsobjectivesarealignedwiththeprioritiesidentifiedinnationalclimatepoliciesandactionplans.

Underthisinvestmentcriterion,thefundingproposalshouldalsoprovidethefollowing:

• AbriefdescriptionofthecapacityoftheAEsorEEstodelivertheproject:ThisshouldincludeadetailedoverviewoftheAEorEEandtherespectiverolestheseentitieswillplay.Thetrackrecord and relevant experience of the entities in similar or relevant project/programme

circumstancesshouldbeprovided;and,

• A description of a stakeholder engagement process including feedback received from all

relevantstakeholders.

Figure17:Elementscomprisingcountryownership(Acclimatise,GreenClimateFundProposalToolkit2017)Investmentcriterion6:EfficiencyandeffectivenessTo demonstrate efficiency and effectiveness of the proposed project/programme, the fundingproposal should conduct an economic and financial analysis making the case for strong costeffectiveness and financial soundness (i.e. value for money). The funding proposal should

demonstratethefollowingasrelevant:

• Cost-effectiveness and efficiency: How the proposed financial structure (funding amount,

financial instrument, tenor and term) is adequate and reasonable in order to achieve theproject/programme’s objectives, including addressing existing bottlenecks and/or barriers.

How the structure provides the appropriate concessionality tomake the proposal viable,withoutcrowdingoutprivateandotherpublicinvestment;

• Co-financing, leveraging and mobilised long-term investments (mitigation only): For

mitigationprojects/programmes,theco-financingratio(totalamountoftheGCF’sinvestmentaspercentageoftotalprojectcosts)shouldbeprovided.Forprojects/programmesthatmay

not leverage a significant level of up-front co-financing, the fundingproposalmay instead


99

demonstrateasignificantlevelofindirectorlong-termlow-emissioninvestmentmobilisedasaresultoftheproposedactivities;

• Financial viability: The economic and financial rate of return (with andwithout theGCF’ssupport). Other financial indicators, including the debt service coverage ratio, may be

providedasapplicable.AdescriptionofthefinancialsoundnessinthelongtermbeyondtheGCF’s intervention, as well as the GCF’s financial exit strategy in case of private sectoroperations,shouldalsobeincluded;and,

• Applicationofbestpractices:Howthebestavailabletechnologiesand/orbestpracticesareconsideredandapplied,includingifapplicableanyinnovations,modificationsoradjustmentsthataremadebasedonindustrybestpractices.

Keyefficiencyandeffectivenessindicators(mitigationonly).

• Estimated cost per t CO2eq to total investment cost divided by the expected lifetime of

emissionreductions;and,

• Expectedvolumeof financetobe leveragedbytheproposedproject/programmeandasa

resultoftheGCF’sfinancing,disaggregatedbypublicandprivatesources.

Figure18:Elementscomprisingefficiencyandeffectiveness(Acclimatise,GreenClimateFundProposalToolkit2017)

7.3. GCF’sResultsManagementFramework

TheGCF’sResultsManagementFramework(RMF)definestheelementsofaparadigmshifttowardslow-carbon,climate-resilient,country-drivendevelopmentpathwayswithinindividualcountriesand

across the GCF’s activities. It includes two key elements: the logic model and the PerformanceMeasurementFramework(PMF).


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Logicmodel:Thelogicmodeldemonstrateshowinputsandactivitiesareconvertedtochangesintheformofresultsachievedattheproject/programme,country,strategicimpactandparadigmshiftlevels.Figure19showsthelevelsofthelogicmodelandindicatestheestimatedtimerequiredtoachievetherelevantresultsfromthetimeofprojectinception.Generallyspeaking,theattributionoffundedactivitiestoresultsachievedbecomesincreasinglydifficultasonemovesfrominputstoresultsachievedattheparadigmshiftlevel.Inotherwords,thelogicmodelsforadaptationandmitigationrepresenttheresultschainandthetheoryofchange.Inthefundingproposal,thelogicmodelisreflectedinthelogframe(SectionHofthefundingproposaltemplate)whichwillenablethefundingproposaltodemonstratealong-termvisioninthechangesandimpactstobeachievedthroughtheproject.

Figure19:Sixlevelsoflogicmodels(Acclimatise,GreenClimateFundProposalToolkit2017)


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PerformanceMeasurementFramework:The PFM is the performance measurement system intended to monitor the GCF’s results at theproject, programme and aggregate portfolio levels. It includes a set of indicators that measureprogress towards intended results based on the paradigm-shift objective, GCF-level impacts, andproject/programmeoutcomesoutlinedintheGCF’smitigationandadaptationlogicmodels.


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8. Whatsupportisavailabletoseekaccreditationandhowtoaccessit?

8.1. Whatisreadinesssupport?TheReadinessandPreparatorySupportProgramme(referredtoastheReadinessProgramme)wasestablished by the GCF to enhance country ownership and build the capacity (or ‘readiness’) ofnationalentitiesofaccessingtotheGCF.ThemainobjectivesoftheReadinessProgrammeareto:

• Strengthencountrycapacity;• Engagestakeholdersinconsultativeprocesses;• Realisedirectaccess;• Provideaccesstofinance;and• Mobilisetheprivatesector.

Assuch,financialresourcescanbeaccessedthroughtheNDAtosupportinthefollowingareas:

• EstablishmentandstrengtheningoftheNDA;• Developmentof a country’s strategic framework, including thepreparationof country

programmesandconceptnotes;• Supporttoprospectivesub-nationalornationalentitiesseekingaccreditationandtoDAEs

toupgradetheiraccreditationcategoryanddevelopprojectandprogrammepipelines;and,

• Formulation of national adaptation plans and/or other adaptation planning process,includingnationaladaptationplans.

Theimplementationofactivitiescanbeundertakenby:• Thecountry’sNDA;or• Deliverypartner/s(DPs)(undertheoversightoftheNDA).

WhilethefundingcanbemanagedbytheNDAoradeliverypartner,allreadinessfundingrequestsmustbeinitiatedbytheNDA.DPsareselectedbytheNDAtoimplementactivitiesapprovedundertheReadinessProgramme.Theseare in charge of: development of readiness request proposals; implementation and supervision;fiduciarymanagement;progressreporting;andprojectcompletionandevaluation.DeliverypartnersmaybeAEsorotherinstitutionsassessedtomeetthefinancialmanagementcapacitiesrequirementsoftheGCF.Deliverypartnerscanbeinternational,regional,nationalandsub-national,public,privateornon-governmental institutions,well-versed in readinessactivitiesas theirdeliverypartners.TheNDAhastheflexibilitytoworkwithmultipleDPsforitsreadinessprojects.Resourcesmaybeprovidedintheformofgrantsortechnicalassistance.Anydevelopingcountrycanaccess these resources, although theGCF aims at allocating 50 per cent of the readiness supportresourcestoparticularlyvulnerablecountries,includingLDCs,SIDSandAfricanStates.


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TheReadinessProgrammeprovides:

• UptoUSD1millionpercountryperyear.Ofthisamount,theNDAmayrequestuptoUSD300,000 per year to help establish or strengthen the NDA to deliver on the GCF’srequirements.Within this amount, amaximum of USD 100,000 can be used for NDA-ledstakeholdermeetings;and,

• UptoUSD3millionpercountryfortheformulationofnationaladaptationplansand/orotheradaptationplanningprocesses.

Withinthesecaps,countriesmaysubmitmultiplerequestsbasedontheneedsofthecountry.

8.2. Whatsupportisavailabletosupportaccreditation?Under the Readiness Programme, readiness support is available to prospective national entitiesseeking accreditation and to existing direct access entities to develop project and programmepipelinesasfollows:

• Fast-trackaccreditationsupportforeligibleentities;Eligibilityforthefasttrackdependsonthefollowingcriteria:

- Theentitywasaccreditedbyoneormoreofthefollowing:GEF,AF,orDGDEVCO;and,- Theentityisinfullcompliancewiththerelevantaccreditationrequirementsofthefund(s)they

are accredited to: GEF’s Minimum Fiduciary Standards and Minimum Standards onEnvironmentalandSocialSafeguards,AF’sfiduciarystandards,EUDEVCO’sfiduciarystandards7.

• Awarenessraisingofaccreditationprocessesandstandards(e.g.fiduciary,environmentandsocialsafeguards,andgender);

• Institutionalgapanalyses;and,• Developingpersonalisedcapacitybuildingplanstoaddressidentifiedgaps.

8.3. Howtosubmitarequestforreadinesssupport?

Therearefivemainstagestoreceivereadinesssupport.

Figure20:Stepstosubmitareadinesssupport.Thetimelineshouldbeconsideredasindicative,asitisdependentonanumberoffactorssuchas:theGCFworkloadandexistingpipeline.(source:AcclimatiseNDAtoolkit2017)

7underthepillarassessmentfor(i)internalcontrolsystem,(ii)accountingsystem,(iii)independentexternalaudit,(iv)rulesandproceduresforgrants,(v)procurementand(vi)subdelegation.

5.Completionandgrantclosure

4.Implementationmonitoringandreporting

3.Legalarrangements

andfirstdisbursement

2.Reviewofthereadinessproposalbythe

GCF

1.Submitareadinessproposal

TimeFrame:1-2Months


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It shouldbenotedthat readinessproposalsarereviewed,approvedanddisbursed onaquarterlybasis.Thisaimstostreamlinesubsequentmonitoringanddisbursements.

1. Submitareadinessproposal

Acountrycansubmitareadinessproposalforoneoftheareasmentionedabove,bycompletingthereadiness proposal template{http://www.greenclimate.fund/documents/20182/104167/Readiness_Proposal_Template.docx/887fea5e-283a-468e-a624-edb15bd8f8f0}.TheproposalshouldbecompletedbytheNDAorfocalpoint(withsupportfromtheirDPwhererelevant)[email protected]

If the DP is not accredited to the GCF, a Financial Management Capacity Assessment (FMCA)questionnaire{http://www.greenclimate.fund/documents/20182/104167/Financial_Management_Capacity_Assessment_Template.docx/5328f652-cf6e-44ab-b115-ae081be805fb} should be completed andsubmittedwiththeproposal.

2. Reviewofthereadinessproposal

The GCF Secretariat reviews the submitted proposal and the FMCAwhere applicable. During thereviewGCFSecretariatmayrequesttheNDAorfocalpointtoprovideadditionalinformation,andmayalsoproposerevisions.TheNDAorfocalpointwillsubmitarevisedfinalproposal.

3. Legalarrangementsandfirstdisbursement

Followingtheapproval,legalarrangementsareconcludedintheformofagrantagreementbetweenthe GCF and the grant recipient, including the Standard Conditions{http://www.greenclimate.fund/documents/20182/104167/Standard_Conditions_for_Readiness_and_Preparatory_Support_Grants.pdf/5cb7fcfe-372e-42d9-9a22-b006fe1b7228}.

Tomakethegrantagreementeffective,alegalopinion{http://www.greenclimate.fund/documents/20182/104167/GCF_Opinion_Requirement_Readiness.docx/007eccaa-afc4-4e1f-939a-510e5bed41a8}ontheagreementneedstobecommunicatedtotheGCFSecretariat.

Thegrantrecipientmustalsosubmitaletterofauthorisation:{http://www.greenclimate.fund/documents/20182/104167/GCF_Authorized_Signatories_Template.docx/eaf5e9ed-414b-43e5-86ac-32af908f98ed}toconfirmthatauthorized/designatedofficersmaysubmitrequestsfordisbursements{http://www.greenclimate.fund/documents/20182/466886/Disbursement_Request_Template.docx/68f2edaa-9c39-4fd1-a20f-feb7f0e894a8}underthegrantagreement{http://www.greenclimate.fund/documents/20182/104167/Grant_Agreement_Template.pdf/29ad6122-b687-4682-8fc3-eaed303f7476}.

Alternatively,approvedproposalsmayalsobecoveredunderexecutedReadinessFrameworkAgreementswithdeliverypartners.


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TheGCFSecretariatwillnotifytheNDAorfocalpoint(andthegrantrecipient,ifthisisnottheNDAorfocalpoint)ontheeffectivenessofthelegalarrangements.Whenthelegalarrangementscomeintoforceandeffect,theGCFSecretariatdisbursethefirsttrancheoffunding.

8.4. Implementation,monitoringandreporting

Theactivitiesincludedinthereadinessproposalwillbeimplementedinlinewiththeagreedworkplanandbudget.Afinancialmanagementsystemshouldbemaintained,withseparateaccounts(i.e.bankaccountorledger)andrecordsforreadinesssupport.

Followingtheagreedschedule,thegrantrecipientwillreporttoGCFagainsttheworkplan,budget,andagreed targets. Itwillalso reportonpotential revisionsoradaptations to the implementationplans.

Financial statements should be prepared in accordance with consistently applied accountingstandards,auditedonanannualbasisbyreputableindependentauditors,andfurnishedtotheGCFSecretariat inaccordancewiththereportingrequirementsset inthegrantagreement.ThereportssubmittedtotheGCFSecretariatwillbedisclosedontheGCFwebsite inaccordancewiththeGCFinterimdisclosurepolicy.

8.5. Completionandgrantclosure

Towards theendof thereadinessgrant implementationperiod, theGCFSecretariatandthegrantrecipientevaluateachievementsandprogress,andeventuallyagreeonthenextsteps.Whenrelevant,theGCFwillproceedtoclosethereadinessgrant.


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9. Onceaccredited,whatarethemonitoring,evaluationandreportingrequirementstofulfilasaGCFAccreditedEntity?

TheAEisprimarilyresponsiblefortheM&Eoftheirfundedprojectsorprogrammes,andwillreportaccordinglytotheGCF.Monitoringandevaluationrequirementsfortheprojectorprogrammeinclude:

• logframeandidentificationofindicatorsinthefundingproposal• annualperformancereportsfromtheprojectorprogramme• interimandfinalevaluationsattheprojectorprogrammelevel.

Attheprojectfundingproposalstage,theAEshouldindicatetheactivities,outputs,outcomesandresultstobeachievedinrelationtotheresultsareasoftheRMFandthemitigationandadaptationPMFs.TheAEshouldprovideindicatorsatactivityandoutputlevelsandreportonthePMFindicatorsat outcome and impact levels. The GCF Secretariat will undertake second-level monitoring byrequestingtheAEstoreportregularlyontheindicatorsmentionedaboveandotherrelevantprojectperformanceindicators. Inaddition,duringthemid-termreviewsitwillbeverifiedthattheAEhasperformedtherequiredoversightonactivitiesunderthemonitoringplansofprojectsfinancedbytheGCF. These include, among other things, periodic supervision missions, audit reviews and multi-stakeholderengagement.Reportingrequirementsfortheprojectimplementationandpost-implementationperiodarepresentedinTable13.Table13:Reportingrequirements(source:AcclimatiseGCFproposaltoolkit2017)Report Description Timing/FrequencyQuarterly financialmanagementreports

These shouldprovidedates and amounts disbursedforeachfundedactivityandcompliancewithfinancialcovenants.

During theimplementationperiodQuarterly

Semi-annual

progressreportsThese should include a narrative report (withsupporting data as needed) on implementationprogress based on the log frame submitted in thefundingproposalandconsiderationsontheongoingperformance of the project/programme against theGCF Investment Framework criteria, includingupdatesontheindicatorsandareportonESSaswellasgender.Thereportshouldalignwiththemodalitiessetout intheGCFRMFanditsPMFsforadaptationandmitigation,asamendedandupdatedfromtimetotime.

DuringimplementationandpostimplementationperiodsSemi-annual

Interimevaluationreportandfinalevaluation reportfor each fundedactivity

Theseassesstheperformanceofthefundedactivityagainst the GCF investment framework criteria,includingfinancial/economicperformance,aspartofthe project/programmeefficiency and effectivenesscriteria.

Mid-point evaluationduringimplementationand final report atprojectcompletion


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Beyond the standard reporting requirements for a stand-alone project, a programme should alsoincludeadditionalprogramme-levelreporting.Forexample,theAEmayreportonexperiencegainedand lessons learned from the design and implementation of the programme and how well theprogramme is achievingaddedvaluebeyondwhata collectionof standaloneprojectswouldhaveachieved.


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10. What’snext?Once prospective accredited entities obtain a better understanding of the GCF accreditationrequirements, they can move forward with their application. The full application form includesexamples of supporting documents, and provides an overview of the information that mustaccompanyanapplicationforaccreditation:{http://www.greenclimate.fund/documents/20182/574712/Form_05_-_Accreditation_Application.pdf/7cef5ed0-e42e-475a-9bd7-e099d64d6231}They can also complete the online accreditation self-assessment tool on the GCF website thatoutlinestheminimumrequirementsthatanentitymustmeetbeforeitcanbeaccreditedtoreceivefundingfromtheGCF.ThistoolcanhelpprospectiveentitiesdoanearlyassessmenttodetermineiftheirorganisationisreadytostarttheaccreditationprocessoftheGCFandhelpidentifyanyobviousgaps,withadditionalguidanceprovidedontheGCFrequirementsandstandardsiftheywishtoinitiatetheaccreditationprocess:{http://www.greenclimate.fund/how-we-work/getting-accredited/self-assessment-tool}ProspectivecandidatesarefinallyencouragedtoexpresstheirinterestinseekingaccreditationtotheGCF,totheNDA,Uzhydromet.


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11. FrequentlyAskedQuestionsaboutGCFaccreditationQuestion1:WhoiseligibletosubmitafundingproposaltotheGCF?Answer1:OnlyAEsareeligibletosubmitfundingproposalstotheGCF.AEscanbeprivate,public,non-governmental,sub-national,national,regionalandinternational.Question2:Whatis“enhancingdirectaccess”?Answer2:EnhancingDirectAccess(EDA)furtherextendstheprinciplesofdirectaccess.DirectaccessallowsnationalentitiestogetaccreditedundertheGCFandaccessfundingwithoutgoingthroughmultilateralagencies.EDAaimstofurtherenhancecountryownershipofprojectsandprogrammesbydevolvingdecisionmakingonfundingatcountrylevel,therebyallowinggreaterinvolvementandinputfromimpactedstakeholders.EDAisdesignedtoprovideanopportunityforAEsandcountriestomovebeyondthefinancing of individual, bankable projects towards a more comprehensive, stakeholder drivenprogrammatic approach, which is based on transparent criteria that are aligned with the GCF’sinvestmentcriteriaandresultsmanagementframework.In 2016, the GCF issued a first request for proposals, for a pilot phase to enhance direct access.CountriesparticipatingintheEnhancingDirectAccesspilotarerequiredtoexerciseoversightontheactivities to ensure transparency. Unlike the traditional direct access modality, there will be nosubmissionofindividualprojectsorprogrammestotheGCFbecausedecision-makingforthefundingofspecificpilotactivitieswillbedevolvedtothecountrylevel.FormoreinformationonEDA,pleaseseethe“EnhancingDirectAccess(EDA)–FrequentlyAskedQuestions”publishedbytheGCF.Question3:CanlocalNGOsaccesstheGCF?Answer3:Yes.LocalorganisationscanaccesstheGCFintwoways:

• Applyforaccreditation,afternominationbytheNDA.• WorkwithanexistingAE,forexampleservingasEEofjointprojectsorprogrammes.

Furtherinformationhowtobecomeaccreditedisprovidedinanonlineguide(GCF101)includingasetoffrequentlyaskedquestions,andontheGCFwebsite.Question4:Howlongdoestheaccreditationprocesstake?Answer4:Becomingaccreditedfordirectaccessisalonganddifficultprocess,takingninemonthsonaverage,whileinmanycasesittakeslonger,dependingonthesize,scopeandlevelofrisk.


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Question5:WhatdoesFTstandfor?Answer5:Fasttrack-forentitiesalreadyaccreditedunderotherfinancialmechanismsoftheUNFCCC(AdaptationFund,GEF,andEUDEVCO).Question6:ShouldIgofortheaccreditation?Answer6:Beforeundertakinganylengthy,resource-demandingprocessitisimportanttoknowifitisfeasibletocompletetheprocesssuccessfully.Itisadvisabletotaketherapidself-assessmentbutalso to review the application formwith the required supporting documentation and the Stage Ichecklistindetailbeforecommittingsubstantialresources.Question7:Canwechangethelevelsofaccreditationunderthe“fitforpurpose”approach?Answer7:Changingbetweenlevelsofaccreditationunderthe“fit-for-purpose”modelwillbetimeconsuming and can cause confusion. Depending onwhether an upgrade or downgrade in level isrequested itmay require starting a new application online, and beginning the upload and onlineapplicationprocessagain.Question8:Whatkindofinputandcapacitiesdoestheaccreditationprocessrequire?Answer8:

• Theapplicationrequiressignificantinputfromvariousunitsacrosstheentity.Inordertoworkin a cohesive and efficientmanner it is important to ensure the team ismade up of theappropriate members and that all members understand and commit to providing theinformationrequiredtocompletetheapplication.Theimportanceofhavingatleast1seniormanagementofficialon-boardcannotbeunderstated.Thisisbecausetheapplicationrequiresinputfrommanydifferentunitsoftheentitywhomaybemoreorlesswillingtoworkwiththeinternaltaskteam.

• Thecapacityneededtoundertaketheaccreditationprocessshouldnotbeunderestimated.Capacityneedsareintermsof:1)Numberofstaffworkingonaccreditationand2)Institutionalcapacityoftheentitytopasstheaccreditationprocess.AseachroundoffeedbackwiththeGCFistimeconsumingandthetimingofthefeedbackisnotknown,itisusefultohavemorethanonepersonworkingontheaccreditationprocessaswellasonstand-bytoquicklyanswerquestionsastheGCFprovidesfeedback.Institutionalcapacitycanbeamajorchallengeduringaccreditation.Applicantsmayneedtobepreparedtoupdateexistingpolicies/proceduresorcreatenewones.Thismayrequiresignificanttimeandcosts.

Question9:Whatkindofevidenceshouldweprovide?Answer9:

• TheGCFaccreditationformprovidesexamplesofsupportingdocumentationthatacandidateentitycouldsubmit.See:

{https://www.greenclimate.fund/documents/20182/574712/Form_05_-_Accreditation_Application.pdf/7cef5ed0-e42e-475a-9bd7-e099d64d6231}


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• Gather the required supporting documentation exactly as described by the GCF in theapplication form. If thesupportingdocumentationdoesnotexist, stateso. If itdoesexist,ensure that thenarrative textpoints to theexactpageorparagraph referencewithin thedocumentwhichaddressesthecriteriarequiredbytheGC

• ItisveryimportanttoensurethattheindividualclausesorprocessesrequiredbytheGCFarecontainedwithinpoliciesprovidedintheapplication.TheGCFwillseektodeterminenotonlythatthepolicy is inplace,butthatthepolicyaddressesthespecificpointsrequiredbytheGCF.ItisimportantthattheapplicantfullyunderstandthecriteriarequiredbytheGCFsothattheapplicantcanprovidethecorrectdocumentorsetofdocumentsthataddressthecriteria.

Question10:Doyourecommendaparticipativeapproach?Answer 10: Early engagement of stakeholders in the accreditation process may be beneficial,particularly in the long term.Earlydiscussionswith theNDAwill facilitate theprocessof theNDAgrantingtheletterofnominationaswellasfamiliarizeanentitywiththeuniquenominationprocessrequired by the NDA. Early conversations with a variety of stakeholders may facilitateproject/programmeimplementationandprovideinsightonthelevelofaccreditationtheentityshouldseek.Question11:Whenshouldacandidateentityprepareandsubmitaproject/programmetotheGCF?Answer11:Designingtheinitialproject/programmetobesubmittedatthesametimeastheentityundertakestheaccreditationprocessallowsfortheproposalreviewprocesstobeginquicklyfollowingaccreditation. Entities are permitted to submit concept notes once they have reached Stage II ofaccreditation.However,GCFwillonlyreviewfundingproposalsonceanentityreceivesaccreditation.EntitiesshouldnotethatGCFfundingproposalsarehighlydetailedandrequiresubstantialupfrontinvestment.Question12:Beingaccreditedisaguaranteeofacceptanceofallsubmittedprojects/programmes?Answer12:Entitiesshouldbeawarethateveniftheentityisaccredited,project/programmefundingproposalsarenotautomaticallyapproved.FundingproposalsmustbehighqualityandwellalignedwithnationalprioritiesandtheobjectivesoftheGCF.

Questions13:WhydoesGCFuseAEs?Answer13:GCFrecognisesthatindividualorganisationspossessthetypeofspecialistknowledgeandexperiencethatcanbebestutilisedtomobiliseclimatefinanceontheground.ThatiswhyGCFworksthrough a wide range of AEs to channel its financial resources to climate change projects andprogrammes. AEs can be private, public, non-governmental, sub-national, national, regional andinternational.TheuseofAEsissetoutintheGCFGoverningInstrument,thecentralinstitutionalguideforalloftheGCF’sactivities.


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Question14:CananAEalsobetheNDA/focalpoint?Answer14:ANDAhasaverydifferentrolefromthatofanAE.ANDAactsastheinterfacebetweeneachdevelopingcountryandtheGCF.TheyensurecountryownershipbyprovidingbroadstrategicoversightofGCF'sactivitiesintheircountry,serveasthepointofcommunicationwiththeGCF,andensurethatinvestmentsarealignedwithlocalneedsandplanning.AEs are responsible for channelling GCF resources to particular programmes and projects. GCFaccreditsDAEs thatworkat the sub-nationalornational level, aswell asorganizationsworkingatregionalandinternationallevels.AEscanalsobegovernmentalornon-governmental,andpublicorprivateinnature.NormallytherolesofNDAandAEsaredistinctandseparate.However,insomecasesNDAsmayseektoalsobecomeAEstotheGCF.TheGCFSecretariatcanadviseonbestpracticesinthisarea.Question15:Doorganisationsneed tohave climate fundingproposals tobe consideredbyGCFbeforeseekingaccreditation?Answer15:No.Whilenotarequirement,however,GCFadvisesapplicantstohavewell-thoughtoutfunding proposals as their accreditation applicationswill be assessed on the type of projects andprogrammestheyintendtobringforwardforGCFfundingconsideration.Question16:HowareapplicantsforGCFaccreditationassessed?Answer 16:The accreditation process assesseswhether applicants are capable of strong financialmanagement and of safeguarding funded projects and programmes against any unforeseenenvironmentalorsocialharm.AwiderangeoforganizationscanbecomeAEs.ThatiswhyGCFhasintroduceda“fit-for-purpose”system to scale them differently according to their capacities and how they address the climatefinanceneedsofdifferentcountries.Whilethescopeofaccreditationvary,allentitiesneedtomeetanumberofbasicstandards.Thesearebasedon:

• Basicfiduciarystandards;• ESS;and,• Gender.

Basicfiduciarystandardssetthebaselineforappropriatefinancialmanagement.Thisincludesbeingable to demonstrate that financial inputs and outputs are properly accounted for, reported, andadministered transparently in accordance with relevant regulations and laws, and with dueaccountability.Informationaboutanorganization’soveralladministrationandmanagementmustbeavailable,consistent,reliable,completeandrelevant.Accreditationapplicantsmustalsobeabletodisplayatrackrecordineffectivenessandefficiency.


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GCF’sinterimESSaredrawnfromtheperformancestandardssetbytheIFC,aninternationalbodywhichworkswiththeprivatesectorindevelopingcountries.TheeightPSare:

• Assessmentandmanagementofenvironmentalandsocialrisksandimpacts;• Labourandworkingconditions;• Resourceefficiencyandpollutionprevention;• Communityhealth,safetyandsecurity;• Landacquisitionandinvoluntaryresettlement;• Biodiversityconservationandsustainablemanagementoflivingnaturalresources;• Indigenouspeoples;and,• Culturalheritage.

Theaccreditationprocessassessestheapplicant’scapacityandcommitmenttomaintainanESMSatan institutional level (PS 1). Later, while reviewing accredited entity funding proposals, the GCFSecretariatwillcheckhowtheentityfollowsitsenvironmentalandsocialmanagementsystemtotakeactionthatmatchesspecificissuesrelatingtoPS2to8.GCF’s Gender Policy and Action Plan is based on guidance by the United Nations FrameworkConventiononClimateChange (UNFCCC) supporting genderequality, equity and sensitivity.MoredetailedinformationaboutGCF’sapproachtogenderandclimatechangeisavailablehere.The accreditation process assesses the capacity of applicants in terms of addressing gender –responsivesystemsatboththeinstitutionalandproject/programmelevel.WhilereviewingfundingproposalssubmittedbyAccreditedEntities,theGCFSecretariatcheckshowgenderconsiderationsaretranslatedintospecificactionstomeetgender–relatedstandardssetoutintheaccreditationprocessand assesses whether projects/programmes submitted by AEs are consistent with approachesoutlinedinGCF’sGenderPolicyandActionPlan.Question17:WhatisGCF’sfitforpurposeaccreditation?Answer 17:GCF’s innovative fit-for-purpose approach to approving organizations to become AEsrecognizestheirbroadrangeofactivitiesandcapacities.Entitiesvaryfromsmallgovernmentandnon-government groups managing activities of a few million dollars or less to large multilateraldevelopmentbanksfundingactivitiesrangingfromhundredsofmillionsofdollars.Fit-for-purposeisatieredaccreditationsystemwhichclassifiesapplicantentitiesbasedonthenatureof their organizations and the intended scale, nature and risks of their proposed climate financeactivities.Therefore,accreditationapplicants implementingor intermediatingprojectsandprogrammeswithlittleenvironmentalandsocialrisksandimpactsarenotrequiredtohavethesameenvironmentalandsocialmanagementsystemsinplaceascomparedtothosehandlinghigherlevelsofsuchrisks.


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Thefit-for-purposeaccreditationreviewisbasedon:• Proposedprojectandprogrammeactivitysize;• Fiduciarystandards;and,• E&Sriskcategory.

Proposedprojectandprogrammeactivitysizeisdividedintofourcategories.

• Micro:maximumGCFcontributionofuptoandincludingUSD10million;• Small:maximumGCFcontributionofaboveUSD10millionanduptoandincludingUSD50

million;• Medium:maximumGCFcontributionofaboveUSD10millionanduptoandincludingUSD

250million;and,• Large:GCFcontributionofaboveUSD250million.

An entity accredited for a particular size category could submit a funding proposal for GCFconsideration where the total costs for the project are within the maximum size category. (Forexample,anentityaccreditedformediumcouldsubmitafundingproposalthatfallswithinthemicro,smallormediumsizecategory,butnotlarge).Therearethreetypesofspecializedfiduciarystandards.ThesestandardsallowanAEtoundertakeanactivitybyperformingthespecificfiduciaryfunctionrelatedtothestandard.

• Projectmanagement:Thisassessesthecapacityoftheapplicanttomanage,superviseandoversee the overall project or programme, either directly or indirectly through executingentities;

• Grant award and/or funding allocation mechanisms: This assesses the capacity of theapplicanttodisburseGCFfundsasan intermediarythroughacompetitiveandtransparentgrantawardprocess;and,

• On-lending/blending: This assesses the capacityof theapplicant to carryout intermediatefundingbyprovidingloans,blendingdifferentinstrumentsandresources,undertakingequityand/orprovidingguarantees.

Applicantsarealsoassessedhowwelltheycanmanageenvironmentalandsocialrisksandimpacts,basedontheirtrackrecord.Categoriesaredividedintonoorminimalrisk,mediumriskandhighrisk.ThesecategoriesalsotakeintoaccountwhethertheapplicantwillmanageprojectsorintermediateGCF resources through the awarding of grants, on-lending, blending, undertaking of equityinvestmentsorprovidingguarantees.ForprojectsandprogrammesmanagedbyanAE,theE&Srisklevelcanbe:

• Category A: Activitieswith potential significant adverse E&S risks and/or impacts that arediverse,irreversible,orunprecedented;

• CategoryB:ActivitieswithpotentialmildadverseE&Srisksand/or impactsthatarefew innumber,generallysite-specific,largelyreversible,andreadilyaddressedthroughmitigationmeasures;and,

• CategoryC:ActivitieswithminimalornoadverseE&Srisksand/orimpacts.


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Projects and programmes involving investments through financial intermediation functions (grantaward or on-lending/blending) or throughdeliverymechanisms involving financial intermediation,shouldrefertothefollowingE&Srisklevels:

• High level of intermediation (Intermediation 1, I-1): When an intermediary’s existing orproposed portfolio includes, or is expected to include, substantial financial exposure toactivities with potential significant adverse E&S risks and/or impacts that are diverse,irreversible,orunprecedented;

• Mediumlevelofintermediation(I-2):Whenanintermediary’sexistingorproposedportfolioincludes,orisexpectedtoinclude,substantialfinancialexposuretoactivitieswithpotentiallimited adverse E&S risks and/or impacts that are few in number, generally-site specific,largely reversible, and readily addressed throughmitigationmeasures; or includes a verylimitednumberof activitieswithpotential significantadverseenvironmental and/or socialrisksand/orimpactsthatarediverse,irreversible,orunprecedented;and,

• Low level of intermediation (I-3): When an intermediary’s existing or proposed portfolioincludes financial exposure to activities that predominantly have minimal or negligibleadverseE&Simpacts.

Question18:IsitpossibleforAEstoupgradetheiraccreditationtype?Answer18:Yes.AnAEcanapplytoincludeanyadditionalcapacitiesithasdevelopedovertime.Thiswillthenincreaseitsfit-for-purposeaccreditationtype.ThisallowsittoseekGCFfundingforprojectsandprogrammesatahigherfinanciallevelthanitscurrentclassification.TheAEmayapplythroughtheOASbycreatinganewapplicationseekingforanupgradeofitsrelevantfunctions.Question19:Howlongistheentityaccreditedfor?Answer19:Fiveyears.GCFiscurrentlyworkingonwaystoassessAEsforre-accreditation.Question20:Howlongdoesaccreditationtake?Answer20:TheGCFSecretariatandtheAccreditationPanelaimtodecidewithinsixmonthsafterreceivingnecessaryandcompletedocumentationwhethertorecommendanapplicationtotheGCFBoard.Iforganizationsalsoapplyforreadinesssupport,thisprocessmaytakelonger.TheGCFSecretariatand theAccreditationPanelaims tomakeadecisionwithin threemonths fororganisations meeting fast-track requirements. These are organizations that have already beenaccreditedbytheGEF,AdaptationFundandDGDEVCO.Question21:Howmuchdoesaccreditationcost?Answer21:NationalandsubnationalapplicantsinSIDSandLDCsareabletoreceivewaiversofsomeaccreditationfeeswhenseekingaccreditationformicroandsmallsizecategoriesofprojects.


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Accreditationfeesarebasedonthetotalprojectedcostsoftheproposedclimatefinanceprojectoractivitywithinaprogrammeatthetimeoftheapplication.Therearefourcategorieswhichrefertothetotalprojectedcostsoftheactivity,irrespectiveoftheportionthatisfundedbyGCF:

• Micro:UptoandincludingathresholdofUSD10millionforanindividualprojectoractivity.ThefeelevelforthisthresholdwillbeUSD1,000forthebasicfiduciarystandardsandUSD500foreachspecializedfiduciarystandard;

• Small:AboveUSD10millionanduptoandincludingUSD50millionforanindividualproject.ThefeelevelforthisthresholdwillbeUSD5,000forthebasicfiduciarystandardsandUSD1,000foreachspecializedfiduciarystandard;

• Medium:AboveUSD50million andup to and includingUSD250million for an individualproject or activity. The fee level for this threshold will be USD 10,000 for basic fiduciarystandardsandUSD3,000foreachspecializedfiduciarystandard;and,

• Large: Above USD 250 million for an individual project or activity. The fee level for thisthresholdwillbeUSD25,000forbasicfiduciarystandardsandUSD7,000foreachspecialisedfiduciarystandard.

Question22:Aresomeorganizationsprioritisedforaccreditation?Answer 22: Yes. In 2017, applications during Stage I will be checked by the GCF Secretariat inaccordancewiththeGCFBoard’sdecisiontoprioritiseapplicationsfrom:

• NationalDirectAccessEntities;• EntitiesintheAsia-PacificandEasternEuropeanregions;• Private sector entities, in particular those in developing countries, seeking a balance of

diversity of entities in line with decisions B.09/07, paragraph (g) and decision B.10/06,paragraph(h);

• EntitiesrespondingtorequestsforproposalsissuedbytheGCF,forexampleincludingapilotphaseforenhancingdirectaccess;apilotprogrammetosupportmicro-,small-,andmedium-sizedenterprises;andapilotprogrammetomobilizeresourcesatscaleinordertoaddressadaptationandmitigation;

• Entitiesseekingfulfilmentofconditionsforaccreditation;and• Entitiesrequestingupgrades.

Question23:WhatistheAccreditationPanel?Answer23:TheAccreditationPanelprovidesindependentadvicetotheGCFBoardaboutindividualapplicationsforaccreditation.Itismadeupofsixseniorexperts,evenlybalancedbyrepresentationfromdevelopedanddevelopingcountries.MembersoftheAccreditationPanelserveforthreeyears.Accreditation Panel members provide specialised knowledge on a range of issues feeding intoaccreditation decisions, including good practice in fiduciary principles and standards, ESS, andrecognized good practice in accreditation procedures. They can also consult with other relevantexpertswhennecessary.


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Question24:HowcanIcontactGCFtofindoutmoreaboutaccreditation?Answer24:Pleasedirectenquiriesto:[email protected]:Whatifyourentitylacksatrackrecord?Answer25:Entitiesmaymeetmostoftheaccreditationcriteria,butlackthetrackrecordthatshowstheysuccessfullyandconsistentlyimplementthemsuccessfully.ThisincludestrackrecordsinprojectmanagementandmanagingE&Srisks.Thismayalsooccurwhereanentityhasrecentlydevelopedapolicyandhashadinsufficienttimetogenerateevidenceof itssuccessful implementation. Insuchcases,theAccreditationPanelmayrecommendtotheBoardthattheentitybeaccreditedbutwithadditionalconditionsattached,suchas:

• Morefrequentreportingrequirements;and,• Evidence of policy implementation before being able to receive GCF

project/programmefunds.TheAccreditationPanelwilldetermineonacase-by-casebasistheappropriaterecommendationsorconditionsforeachentitywheretheyhavealimitedtrackrecord.TheAccreditationPanelmayalsorecommendthatanentitybeaccreditedforlessrisky,lesscomplexand/orsmallerscaleprojectandfiduciaryactivities.Entitiescanalwaysupgradetheiraccreditationstatusatalaterdate.Question26:Canyourentityupgradeitsaccreditationstatus?Answer26:Intheeventthatanentityhasbeenaccreditedforcertainfiduciarystandards,projectandprogramme size, and E&S risks, which inhibit them from undertaking intended climate changeactivities,theymaywishtore-applyforaccreditationofupgradedcapacities.Entities can upgrade their accreditation status at any time, once they have generated sufficientpoliciesandexperiencetodemonstratetheircompliance.UpgradingentitieswillgostraighttoStage2oftheaccreditationprocess,wheretheadditionalcapacitieswillbeanalysedbytheAccreditationPanel, unless the entitywishes to commence at Stage 1 in order to undergo a readiness supportassessmentforthenewlyproposedaccreditationstandards.Question27:Whatifyourentityisaccreditedwithanotherfund?Answer 27: Entities who meet the fiduciary, environmental and social principles and standardscomparabletothoseoftheGCF’sstandardsareeligiblefor‘fast-track’accreditation,withashortenedStage2.ThisisavailableforallentitiesaccreditedundertheGEF,AdaptationFundandEU-DEVCO.Importantly,notalloftheGCF’srequiredstandardsarecoveredbythesethreefunds.Suchentitieswillalsobesubjecttoagapanalysis,toidentifywhichaccreditationstandardsmaystillneedtobedeveloped.


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12. ReferencesDeutscheGesellschaft für Internationale Zusammenarbeit (GIZ) (2017), Climate Finance ReadinessProgramme (CF Ready), Frequently Asked Questions about Green Climate Fund ProposalDevelopmentDepartment of Environment of Antigua and Barbuda. About us. [Online]. Available at:http://www.environmentdivision.info/about_us_en_281cms.htmGreen Climate Fund (2015). Accreditation Application Form. [Online]. Available at:https://www.greenclimate.fund/documents/20182/574712/Form_05_-_Accreditation_Application.pdf/7cef5ed0-e42e-475a-9bd7-e099d64d6231Fayolle V. and Odianose S. (2017). Guyana Toolkit for the GCF’s National Designated AuthoritySecretariatandSteeringCommitteetoperformtheirGCFrolesandresponsibilities.July2017.London:Acclimatise.Fayolle,V.andOdianose,S. (2017)GreenClimateFundProposaltoolkit2017.London:AcclimatiseandClimateandDevelopmentKnowledgeNetwork.FijiDevelopmentBank(FDB).Aboutus.[Online].Availableat:http://www.fdb.com.fj/about-us/Palli Karma-Sahayak Foundation (PKSF). What is PKSF. [Online]. Available at: http://pksf-bd.org/portal/web/?page_id=85SoanesM.(2017).GreenClimateFundaccreditationtoolkit.January2017.InternationalInstituteforEnvironmentandDevelopment(IIED)UnitedNationsFrameworkConventiononClimateChange(UNFCCC),ChinaCDMFund–AnInnovativeClimate Financing Mechanism. [Online]. Available at:http://unfccc.int/files/secretariat/momentum_for_change/application/pdf/china_cdm_fund.pdf


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Green Climate Fund Accreditation Toolkit 2017