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.
On a rolling basis.
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.
GCF
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.
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.
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.
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:
- Pre-feasibility and feasibility studies, as well as project design
- Environmental, social and gender studies
- Risk assessments
- Identification of programme/project-level indicators
- Pre-contract services, including the revision of tender documents
- Advisory services and/or other services to financially structure a proposed activity
- 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.
Developing country Parties to the UNFCCC.
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.