Green Climate Fund (GCF) - Project Preparation Facility

Climate Objective
Adaptation
Mitigation
Cross-cutting
Sectors and Themes
Agriculture
Disaster Risk Reduction
Education
Energy
Gender
Health
Industry and Infrastructure
Jobs
Nature-based Solutions and Ecosystem Services
Oceans and Coasts
Poverty
Transport
Water
Type of Support Provider
Multilateral
Type of Recipient
Public entity at the national level
Public entity at the sub-national level
Public entity at the regional level
International organization
Private sector
Fund Size

USD 44.7m approved. 

Funding available is up to USD 1.5 million for each application to the PPF, commensurate to the funding proposal being developed and to the activities included in the PPF application.

Co-financing
No
Application Timeframe

On a rolling basis.

Trustee or Administrator
World Bank
Contact Information
Countries
Afghanistan
Albania
Algeria
Angola
Antigua and Barbuda
Argentina
Armenia
Azerbaijan
Bahamas
Bahrain
Bangladesh
Barbados
Belize
Benin
Bhutan
Bolivia
Bosnia and Herzegovina
Botswana
Brazil
Brunei
Burkina Faso
Burundi
Cambodia
Cameroon
Central African Republic
Chad
Chile
China
Colombia
Comoros
Cook Islands
Costa Rica
Côte d'Ivoire
Cuba
Djibouti
Dominica
Dominican Republic
Ecuador
Egypt
El Salvador
Equatorial Guinea
Eritrea
Ethiopia
Fiji
Gabon
Gambia
Georgia
Ghana
Grenada
Guatemala
Guinea
Guinea-Bissau
Guyana
Haiti
Honduras
India
Indonesia
Iran
Iraq
Israel
Jamaica
Jordan
Kazakhstan
Kenya
Kiribati
Kuwait
Kyrgyz Republic
Laos
Lebanon
Lesotho
Liberia
Libya
Macedonia
Madagascar
Malawi
Malaysia
Maldives
Mali
Mauritania
Mauritius
Mexico
Micronesia
Moldova
Mongolia
Montenegro
Morocco
Mozambique
Myanmar
Namibia
Nauru
Nepal
Nicaragua
Niger
Nigeria
Niue
Oman
Pakistan
Palau
Panama
Papua New Guinea
Paraguay
Peru
Philippines
Qatar
Rwanda
Saint Kitts and Nevis
Saint Lucia
Samoa
San Marino
Sao Tome and Principe
Saudi Arabia
Senegal
Serbia
Seychelles
Sierra Leone
Singapore
Solomon Islands
Somalia
South Africa
South Korea
Sri Lanka
Sudan
Suriname
Syria
Tajikistan
Tanzania
Thailand
Timor-Leste
Togo
Tonga
Trinidad and Tobago
Tunisia
Turkmenistan
Tuvalu
Uganda
United Arab Emirates
Uruguay
Uzbekistan
Vanuatu
Venezuela
Yemen
Zambia
Zimbabwe
Region
East Asia and Pacific
Europe and Central Asia
Latin America and the Caribbean
Middle East and North Africa
South Asia
Sub-Saharan Africa

The Green Climate Fund (GCF) was set up in 2010 and aims to promote the paradigm shift towards low-emission and climate-resilient development pathways by providing support to developing countries to limit or reduce their greenhouse gas emissions and to adapt to the impacts of climate change, taking into account the needs of those developing countries particularly vulnerable to the adverse effects of climate change. The GCF is an operating entity of the Financial Mechanism of the UNFCCC and the Paris Agreement.

Both the Readiness Programme and the Project Preparation Facility (PPF) support National Designated Authorities (NDAs) and Accredited Entities (AEs) in ensuring a strong pipeline of Funding Proposals with the GCF. However, the PPF differs in its objective to prepare funding proposals for submission and its support in the design of funding proposals only to access GCF resources. Additionally, the PPF is only accessible to AEs for targeted technical support and requires that proposals be presented and implemented by the AE alone, with a Letter of No-Objection from the NDA. Support of USD 1.5 million per request can be granted.

Support Provider

GCF

Purpose of Support
Prepare Proposals, Projects and Pipelines
Co-Financing Requirements

No co-financing is required for public sector AEs. Private sector AEs can expect to be required to show that they will utilize GCF finance to mobilize additional resources.

Financial Instruments Offered
Grants
Contingent grants
Equity
Monitoring and Reporting Procedures

AEs report to the GCF Secretariat, or the designated fund agent, utilizing the PPF progress report template on an agreed schedule against deliverables and budget outlined in the approved PPF application.
Please note the following points regarding the reporting:

  • PPF activities are implemented according to the specifications of the agreed work plan (including deliverables and timeline) and budget;
  • A financial management system should be maintained, with separate accounts (i.e. bank account or ledger) and records for the project; 
  • Financial statements should be prepared in accordance with consistently applied accounting standards, audited on an annual basis by reputable independent auditors, and furnished to the GCF Secretariat in accordance with the reporting requirements set in the proposal and/or grant agreement;
  • Reports submitted to the GCF Secretariat will be disclosed on the GCF website in accordance with the GCF Information Disclosure Policy;
  • GCF is able to request, audit and verify documents/reports and data related to the project execution upon request to the extent defined in the Grant Agreement or Framework Readiness and Preparatory Support Grant Agreement; and
  • Towards the end of the project preparation implementation period, the AE will prepare the PPF Completion Report and submit it to the GCF Secretariat.
    In addition to reporting to GCF, it is the role of AEs to report regularly to the NDA(s). AEs should maintain consistent and clear lines of communication and reporting to the NDAs.
Organizational and Decision Making Structure

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.

Accreditation Panel: 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): 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: 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): 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 “Process to secure funding/financial support”). 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. 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.

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 “Process to secure funding/financial support”).

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. 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.

Eligibility Criteria

Accredited Entities are eligible to request support from the Project Preparation Facility. The GCF prioritizes requests by direct access entities (national AEs and regional AEs) as well as micro and -small size projects. The Project Preparation Facility can cover the following activities:

  1. Pre-feasibility and feasibility studies, as well as project design
  2. Environmental, social and gender studies
  3. Risk assessments
  4. Identification of programme/project-level indicators
  5. Pre-contract services, including the revision of tender documents
  6. Advisory services and/or other services to financially structure a proposed activity
  7. Other project preparation activities, where necessary, provided that sufficient justification is available

Funding proposals developed with the support of the Project Preparation Facility should be submitted to the GCF Board within two years of the approval of a PPF request.

Eligible countries

Developing country Parties to the UNFCCC.

Eligible Countries and Geographic Regions
Cook Islands
Niue
Cambodia
China
Fiji
Indonesia
Kiribati
South Korea
Laos
Malaysia
Marshall Islands
Micronesia
Mongolia
Myanmar
Nauru
Palau
Papua New Guinea
Philippines
Samoa
Singapore
Thailand
Timor-Leste
Tonga
Tuvalu
Vanuatu
Vietnam
Albania
Armenia
Azerbaijan
Bosnia and Herzegovina
Georgia
Kazakhstan
Kyrgyz Republic
Macedonia
Moldova
Montenegro
San Marino
Serbia
Tajikistan
Turkmenistan
Uzbekistan
Antigua and Barbuda
Argentina
Bahamas
Barbados
Belize
Bolivia
Brazil
Chile
Colombia
Costa Rica
Cuba
Dominica
Dominican Republic
Ecuador
El Salvador
Grenada
Guatemala
Guyana
Haiti
Honduras
Jamaica
Mexico
Nicaragua
Panama
Paraguay
Peru
Saint Kitts and Nevis
Saint Lucia
Saint Vincent and the Grenadines
Suriname
Trinidad and Tobago
Uruguay
Venezuela
Iran
Algeria
Bahrain
Djibouti
Egypt
Iraq
Israel
Jordan
Kuwait
Lebanon
Libya
Morocco
Oman
Qatar
Saudi Arabia
Syria
Tunisia
United Arab Emirates
Yemen
Brunei
Afghanistan
Bangladesh
Bhutan
India
Maldives
Nepal
Pakistan
Sri Lanka
Uganda
Angola
Benin
Botswana
Burkina Faso
Burundi
Cameroon
Central African Republic
Chad
Comoros
Republic of Congo
Côte d'Ivoire
Equatorial Guinea
Eritrea
Ethiopia
Gabon
Gambia
Ghana
Guinea
Guinea-Bissau
Kenya
Lesotho
Liberia
Madagascar
Malawi
Mali
Mauritania
Mauritius
Mozambique
Namibia
Niger
Nigeria
Rwanda
Sao Tome and Principe
Senegal
Seychelles
Sierra Leone
Somalia
South Africa
Sudan
Tanzania
Togo
Solomon Islands
Zambia
Zimbabwe
Information on how to
Understand the steps to access

STEP 1: SUBMISSION OF PPF APPLICATION PACKAGE
AEs should submit a complete PPF application at ppf@gcfund.org, with the respective country NDA(s) or focal point(s) in copy. 
 

STEP 2: SECRETARIAT REVIEW AND AE REVISIONS
PPF applications are reviewed and approved by the GCF Secretariat; PPF funding approvals do not require a decision from the GCF Board.
 

STEP 3: PPF APPLICATION APPROVAL
PPF funding:
Once GCF feedback has been fully addressed, the PPF application package (including concept note and associated PPF application) will be sent to the GCF approving authority for approval. Each approved PPF funding application package will be disclosed on the PPF page of the GCF website.
PPF service:
A partnered firm from the GCF project preparation roster will be selected to undertake the activities. This will be decided through an open, transparent and competitive process in line with the GCF procurement policy and inclusive of the recipient AE.
Upon selection of the firm, the detailed support package will be approved by the relevant GCF approval authority. Each approved PPF service application package will be disclosed on the PPF page of the GCF website.
 

STEP 4: LEGAL AGREEMENT
For PPF funding applications:
Subsequent to PPF funding approval, a Notification of Approval for the PPF application package will be sent to the NDA of the project country with the AE in copy.
• For AEs who have a Readiness and Preparatory Support Framework Agreement (“Framework Agreement”) with the GCF, a disbursement request could be submitted to GCF upon the Notification of Approval.
• For AEs that do not have a Readiness and Preparatory Support Framework Agreement, a legal agreement for the approved PPF application will need to be signed before disbursement.
– The GCF has engaged the United Nations Office for Project Services (UNOPS) for grant management support to the Readiness Programme and PPF, including the establishment of a grant agreement, performance monitoring and disbursements under the agreement. In these cases, UNOPS will directly engage with the AE concerning execution of the agreement as well as monitoring and payment activities.
– A bilateral agreement between the AE and GCF could also be arranged. If requested by the AE, GCF will discuss on a case by case basis.
For PPF service applications:
Following the PPF approval, a Notification of Approval for the PPF application package will be sent to the NDA of the project country with the AE in copy. Subsequent contractual arrangements will capture roles, responsibilities and operational details related to a specific PPF service application.