Introduction to the Green

Climate Fund

Florence RICHARD, Regional Advisor Africa

Tunis, October 17, 2016

FEATURES AND TIMELINE
 About GCF
World’s largest climate fund

Agreed by 194 Parties to the UNFCCC

Provide support to developing countries

Mitigation: reduce greenhouse gas emissions

Adaptation: adapt to unavoidable impacts

Investment mix: public and private sector

 GCF timeline

2009 GCF concept proposed at COP 15

2010 Established at COP 16

2011 Governing Instrument adopted at COP 17

2012 First meeting of GCF Board

2013 EXD appointed, Korea headquarters established

2014 Unprecedented USD 10 billion mobilized

2015 First investment decisions ahead of COP 21

GCF: A key financial mechanism
under the Paris Agreement
 GCF: A unique institution

Country ownership through NDAs and focal points

Balance between adaptation and mitigation

Equal voice for developed and developing countries

Diversity of accredited entities

Diversity of financial instruments

Dedicated Private Sector Facility (PSF)

GCF business model
 GOVERNANCE AND
ROLES OF KEY ACTORS
 Governance Structure

Private Sector Advisory

Group (PSAG)
Board
24 members from developing and Trustee
Civil Society Observers developed countries World Bank
(CSO) Network

Accreditation Panel

Secretariat Technical Advisory

Executive Director with 3 Panel
directors and operational teams

Independent Accountability Units

Roles of NDAs and focal points
 Accredited Entities

Namibia Argentina
Morocco Senegal Rwanda Ethiopia Kenya Peru
India

40 entities accredited to date

 Fit-for-Purpose Accreditation
Fiduciary
Mandate & functions
track record
• Basic
• Alignment with Fund • Specialized
objectives

• At least 3 year of operations

Project size Environment

& Social risk
• Micro (>10mn) category
• Small (10-50mn)
• Medium (50-250mn) • A (high)

• Large (>250mn) • B (medium

• C (low)
 Home

Access to Green Climate Fund resources

• Through a country-driven approach, the National Designated
Authority (NDA) of a country can facilitate the strategy by which it
will address climate change, and provide broad strategic oversight
of the Fund’s activities in the country
• Access to Fund resources to undertake climate change
projects/programmes will be through accredited national,
regional and international entities
• Therefore, it is important to match likely countries
priorities/activities with entities who are able to provide this
avenue/modality of access and support.
GETTING PROJECTS APPROVED
 Iterative process
Country
programme

Results &
learning Entity
programme

Project Pipeline
implementation development

Funding
proposals
 Proposal Approval Process Overview

NDA

No-objection 6
2 Concept
3 Submission of

Legal arrangements
IE or
development funding
Intermediary
(voluntary) proposal
1

Trustee
Generation
of funding
proposals 4
Analysis and
Secretariat recommendation

Technical
Advisory Panel

5
Board
Board
Decision
Balanced resource allocation
 8 Strategic Results Areas

With a focus on…

• Impacts
• Programmes
• Paradigm-shift potential
• Adaptation-mitigation co-benefits
19
 Investment Criteria

• Potential to the achieve the Fund's objectives and

Impact Potential result areas

• Potential to catalyze impact beyond a one-off

Paradigm Shift Potential project or programme investment

Sustainable
• Potential to provide wider benefits and priorities
Development Potential
• Vulnerability and financing needs of the
Needs of Recipient beneficiary country and target groups

• Beneficiary country ownership of and capacity to

Country Ownership implement funded activities

Efficiency & • Economic and financial soundness of programme/

Effectiveness project; appropriateness of concessionality
 Project preparation facility
What is on offer?
• Support for project/
programme development
• Especially micro-to-small
size projects
• Up to $1.5M per project
preparation request
How to apply? What is assessed?
• Accredited entities, • Secretariat assesses
especially direct access, concept against investment
submit requests criteria
• Request submitted with • Also assesses request for
project/ programme justification of needs & GCF
concept policies
• In conjunction with no- • Executive director approves
objection letter from requests
NDA/focal point
MOBILIZING THE PRIVATE SECTOR
 Private sector facility

• To mainstream climate change mitigation and adaptation

Why the PSF?
actions in the private sector

Possible • Fund climate risk assessment models and tools

Interventions • Long-term debt, credit lines
• Equity to develop a project to full bankability
• Guarantees to bear specific risks

Access to the • Accredited entities with private sector operations

• Present funding proposals spontaneously or in response to
private sector
calls for proposals
 Types of Instruments

Full Range of Products

 Grants
Grant
s
 Debt (Senior & Subordinated)
Loans
 Equity

 Guarantees

page 24
ACHIEVEMENTS SO FAR
 Mobilizing climate action and
resources at scale

$10 billion
Pledged (2016) $9.9 billion
Signed (2016)
46 countries, regions &
cities 40 countries & regions
Incl. 9 developing countries

Contribution agreement
Since first pledging or arrangements signed
conference and COP20
 2.Projects
The GCF approved
Portfolio
10,579,036 beneficiaries

$1,169B for 27 projects

Armenia
Tajikistan
Tunisia Uzbekistan
Morocco Pakistan
Gambia Bangladesh
MexicoCarribean Uganda
Senegal Mali
Kenya Viet Nam Tuvalu
El Salvador Maldives
Rwanda Fiji
Peru Sri Lanka
Chile Malawi
Namibia
Madagascar
 GCF Project Portfolio (1)

FP001 Building resilience of wetlands Profonanpe, Peru A

FP002 Climate information and EWS UNDP, Malawi A

A
FP003 Restoration of salinized lands CSE, Senegal

A
FP004 Climate resilient infrastructure KfW, Bangladesh

Acumen, Eastern
FP005 KawiSafi Ventures Fund M
Africa
M
FP006 Energy efficiency Green Bond IDB, Latin America

FP007 Managing CC induced water shortages UNDP, Maldives A

FP008 Water supply and waste water mgmt ADB, Fiji A

 GCF Project Portfolio (2)
Energy Savings Insurance for Private Energy Efficiency
FP009 IDB, El Salvador M
Investments by SMEs
De-risking and Scaling Up Investment in Energy Efficient Building
FP010 UNDP, Armenia M
Retrofits
Large Scale Ecosystem-based Adaptation – Developing a Climate
FP011 UNEP, Gambia A
Resilient, Natural Resource-based Economy
Africa Hydromet Program – Strengthening Climate Resilience in
FP012 WB, Mali A
Sub-Saharan Africa: Mali Country Project
Improving the Resilience of Vulnerable Coastal Communities to
FP013 UNDP, Vietnam M/A
Climate Change-related Impacts
Project to Support Climate Adaptation and Mitigation Program WB, Tajikistan and
FP014 A
for the Aral Sea Basin Uzbekistan

FP015 Tuvalu Coastal Adaptation Program UNDP, Tuvalu A

Strengthening the Resilience of Smallholder Farmers through an

FP016 UNDP, Sri Lanka A
Integrated Approach to Water Management
Climate Action and Solar Energy Development Programme in the
FP017 CAF, Chile M/A
Tarapacá Region in Chile
 Portfolio composition
17 proposals totaling USD 424 million in GCF funding
Portfolio composition
 frichard@gcfund.org

web: greenclimate.fund