Green Climate Fund (GCF)

Co-financing is not required for GCF projects – the GCF can pay the entire cost of a project if it deems that to be justified. However, the GCF does consider the amount of co-financing available when assessing the potential efficiency and effectiveness of a proposed project. Private sector actors in particular can expect to be required to show that they will utilize GCF finance to mobilize additional resources.

Accredited Entities are responsible for monitoring and evaluating the projects they implement, as well as reporting their activities to GCF. On an entity level, the AEs are required to provide an annual self-assessment report, and go through light-touch mid-term review of the compliance performance in 2,5 years after accreditation. Accreditation of a given institution is reviewed every 5 years, if they wish to continue being accredited. On project level, GCF will continue to assess how Accredited Entities do this through the life of the project, and after its completion. This is done through regular reporting, which will measure the performance of project implementation against GCF’s investment criteria.

GCF project-related reports and assessment documents include:

• Inception Report: helps to review and sequence activities and, if necessary, to reorganise the project work plan and implementation schedule.
• Annual Performance Report (yearly and final): records the status of implementation of each project activity, updates achievement indicators against targets and identifies implementation-related problems and mitigation measures.
• Mid-term Evaluation Report: presents preliminary or initial evaluation findings, measures and reports on performance to date and recommends adjustments (activities and outputs) that may need to be made to ensure the successful implementation of the project.

All GCF assessments follow the Fund’s Monitoring and Accountability Framework (MAF, available here), and its Performance and Management Framework (PMF, available here) for adaptation and mitigation. The Annual Performance Report will also indicate challenges or problems (if any) encountered during implementation, as well as identifying lessons learned.

The Green Climate Fund is an operating entity of the Financial Mechanism of the UNFCCC Convention and the Paris Agreement. It is accountable to and functions under the guidance of the COP. In order to ensure accountability to the COP, pursuant to Article 11, paragraph 3, the Board will: (a) Receive guidance from the COP, including on matters related to policies, programme priorities and eligibility criteria, and matters related thereto;(b) Take appropriate action in response to the guidance received; (c) Submit annual reports to the COP for its consideration and receive further guidance.

The Green Climate Fund is governed by a Board of 24 members representing developed and developing countries equally. Each Board member has an alternate member.

Representation from developing countries includes:

• three members and three alternate members from the Asia-Pacific States;
• three members and three alternate members from the African States;
• three members and three alternate members from the Latin American and the Caribbean States;
• one member and one alternate member from the small island developing States (SIDS);
• one member and one alternate member from the least developed country Parties (LDCs);
• one member from the developing country Parties not included in the regional groups and constituencies above; and
• one alternate member to rotate between developing country Parties included in the groups and constituencies listed above.

The members and alternate members of the Board are selected by their respective constituency, or regional group within a constituency, to serve a three-year term. The Board usually meets three times a year, and decisions are made by consensus. The GCF has a gender and social inclusion policy within their operational framework.

Accreditation Panel: it provides independent advice to the GCF Board about individual applications for accreditation, as well as on development and operationalization of the guiding framework of the Fund’s accreditation process. It is made up of six senior experts, evenly balanced by representation from developed and developing countries, and is supported by a pool of external technical experts. Members of the Accreditation Panel serve for three years. Accreditation Panel members provide specialized knowledge on a range of issues feeding into accreditation decisions, including good practice in fiduciary principles and standards, environmental and social safeguards, gender-related issues, and recognized good practice in accreditation procedures.

Independent Technical Advisory Panel (ITAP): it assesses the funding proposals against the six GCF investment criteria. ITAP is an independent technical advisory body made up of six international experts: three from developing countries and three from developed countries.

The Secretariat: is responsible for executing the day-to-day operations of the Fund. It services and is accountable to the Board. The GCF Secretariat is headquartered in Songdo, Republic of Korea.

National Designated Authorities (NDAs) or Focal Points (FP): are the core interface between a country and the Fund. It seeks to ensure that activities supported by the Fund align with strategic national objectives and priorities, and help advance ambitious action on adaptation and mitigation in line with national needs. Find the list here.

Accredited Entities: The Fund will channel its resources through a network of public, private and non-governmental institutions operating at sub-national, national, regional and international levels that meet the Fund’s standards. These institutions need to be aligned with the Fund’s objectives and meet its fiduciary standards and environmental and social safeguards through a process of accreditation. A key role of NDAs/FPs is to identify suitable entities to be accredited to the Fund in order to support the country climate-related projects portfolio. NDAs/FPs provide letters of nomination to direct access entities. (more information in the section “Steps to access”).

Trustee: The Conference of the Parties (COP) to the UN Framework Convention on Climate Change (UNFCCC) invited the World Bank to serve as interim trustee of the Green Climate Fund for a multi-year, renewable period of time. Its functions in this capacity include the receipt, holding and investment of financial contributions from contributors, transfer of financial resources pursuant to instruction by GCF, and preparation of summary financial reports. The GCF’s permanent trustee will be chosen through an open bidding process.

To receive money directly from the Green Climate Fund, entities need to be accredited as an “Accredited Entity” or AE. AEs can be international (like the World Bank), regional (like the Secretariat of the Pacific Regional Environment Program or SPREP) or national (like a country’s environment ministry). A list of currently accredited institutions can be found on the GCF’s website. Note that entities that prefer to not apply for accreditation have the option of partnering with an institution that is already accredited.

There are two tracks for accreditation: direct access and international access. Direct access requires nomination from the relevant developing country government and is available only to national and regional entities. International access does not require nomination and is available to international and regional entities. See “Steps to access” section for more information.

Developing country Parties to the UNFCCC.