CF Ready Climate Finance Webinar: “Guidebook: Writing a Green Climate Fund Funding Proposal – Lessons Learned so far and guidance for project development” CF Ready, G320 Bonn, 20.09.2017 09.11.2018 CF Ready Climate Finance Webinar: GCF Guidebook

GIZ Climate Finance Readiness Programme (CF Ready) Established in 2013 Support +15 countries on climate finance readiness Joint Programme with Financed by: Readiness and preparatory support delivery partner for: 09.11.2018 CF Ready Climate Finance Webinar: GCF Guidebook

CF Ready – Publications GIZ (2017) Guidebook: Writing a Green Climate Fund Funding Proposal, Bonn, Germany. Available (just GIZ-internally) 09.11.2018 CF Ready Climate Finance Webinar: GCF Guidebook

The Global Challenge Holding the increase in the global average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels Increasing the ability to adapt to the adverse impacts of climate change and foster climate resilience and low greenhouse gas emission development; and Making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development. Article 2, Paris Agreement 09/11/2018

Green Climate Fund – Financial Mechanism Objectives: Make a significant and ambitious contribution to the global efforts towards attaining the goals set by the international community to combat climate change Contribute to the achievement of the objective of the UNFCCC Promote the paradigm shift towards low-emission and climate resilient development pathways Guiding Principles: Maximize impact Pursue a country-driven approach and promote and strengthen engagement at the country level through effective involvement of relevant institutions and stakeholders. Be scalable and a continuously learning institution Catalyse public and private investment at the national and international level GCF 2011 09/11/2018

GCF Comparative Advantages Programme and manage financing at scale; Engage in partnerships with both public and private actors at various levels; Take on risks that other funds/institutions are not able or willing to take, including risks associated with deploying innovative climate technologies; Pilot and potentially scale-up and replicate innovative approaches; Deploy the full range of financial instruments at its disposal; Leverage additional financial inputs from innovative and alternative sources; Leverage its status as an operating entity of the financial mechanism of the UNFCCC to set new standards with regard to country ownership, direct access and level of ambition impacting the global practice of climate finance beyond its immediate engagement. Source: GCF Strategic Plan (2016)

Guidebook GCF proposal writing Webinar Marion Vieweg 20| September| 2017

Outline 1 GCF basics The GCF proposal template Key messages 2 3

1 GCF basics Introduction to GCF processes, policies and tools

2.1 What is funded Determined by Investment area & priorities Activities need to fit Portfolio targets No direct influence by applicants Need to engage with GCF secretariat to avoid disappointments and to ensure ideas with a high likelihood to fit the portfolio are pursued

2.1 Elements: How funds should be spent Impact potential Paradigm shift potential Sustainable development potential Responsive to recipients needs Promote country ownership Efficiency & effectiveness Source: GCF Determined by Investment criteria Policies Relevance of policies for processes and linkage of policies to proposal template Country Ownership guidelines

2.1 Understanding paradigm shift No agreed GCF definition Useful working definition for understanding: A structural change that alters the interplay of institutional, cultural, technological, economic and ecological dimensions of a given system. It will unlock new development paths, including social practices and worldviews” (Mersmann, Arens, & Ujj, 2014) Elements considered by the GCF: Overall contribution to low-carbon development pathways, consistent with a temperature increase of less than 2 degrees; or degree to which the Fund is achieving a climate-resilient sustainable development impact The degree to which knowledge and learning are achieved; Extent to which the enabling environment is created or enhanced; and Extent to which the regulatory framework and policies are strengthened.

2.2 Actors Entities National Designated Authorities (NDA) Accredited Entities (AE) Executing Entities (EE) Implementing Entities (IE) Intermediaries Role Develop country programmes Ensure alignment with country’s priorities Convene national stakeholders Nomination for the accreditation of DAEs Issue no-objection letters for projects and programmes Coordinate and approve readiness support Recommend funding proposals to the GCF board Submit funding proposals for projects and programmes Oversee project and programme management and implementation Monitoring and reporting Same as IE + Administer grants, loans and also blend funds with their own Execute funding proposals Work under the supervision and overall management of the AE National Multilateral Regional

2.3 Steps and timeline Updated

2.3 Link to project development Main challenges for successful project proposals: Designing the project or programme in the right way to meet investment criteria; and Providing the required information concisely and in sufficient detail and quality.

2.3 Linkages and further guidance Project cycle stage Important elements Further guidance Link to proposal template Understand climate impacts / emissions Understanding current situation and recent trends of emissions profile and climate impacts and consequences of non-action Information sources: NCs, BURs, NAPAs, NAPs https://sites.google.com/site/maptpartnerresearch/national-ghg-inventory-case- study-series   Analyse policy context Existing strategies, policies, investment plans, laws and regulations, the institutional framework as well as documents submitted at the international level, like the NDC and GCF country programs Section E.5: demonstrating country ownership Proposals need to be aligned with national policies, priorities and development plans, so a sound understanding of this context is important. Identify potential actions Providing a long-list of activities that are suitable to national circumstances, based on the analysis of the starting situation Information on potential activities can often be found in already existing assessments for the country or region. Where this is not available, studies for other, ideally similar, countries can provide ideas. Technical literature can also serve as input, as well as stakeholder consultations. Assess and select actions Evaluation of actions based on multiple criteria related to expected impacts (mitigation/resilience), sustainable development effects and other considerations, e.g. feasibility, political acceptability. Depending on the type of analysis a wide range of tools and guidance exists, e.g.: http://en.openei.org/wiki/LEDSGP/DIA-Toolkit http://www.gcfreadinessprogramme.org/readiness-tools-and-guidebooks http://www.ndcpartnership.org/knowledge-portal https://mitigationpartnership.net/resources (Activity: NAMA) http://ghgprotocol.org/policy-and-action-standard http://www.esmap.org/MACTool Section E.1: Impact potential Section E.2: Paradigm shift potential Section E.3: SD potential Section E.6: Efficiency and effectiveness The impact criteria represent important criteria in the selection of appropriate actions and mostly correspond to those generally used in multi-criteria assessment.

2.4 The results management framework The results management framework (RMF) is intended to measure the achievement against the defined goals. The framework contains: The definition of impact areas & priorities Logic models for the mitigation and adaptation funding windows A performance management framework (PMF) for each area, defining indicators for each level of the logic models for mitigation and adaptation and for each of the impact areas with a specific PMF for REDD+ measures Reporting responsibilities for each of the levels of the logic model

2.4 RMF: interaction of components

2 The GCF proposal template

3.1 Structure

3.1 Structure: checklist supporting documents   Document Relates to section(s) Required? Applicability conditions Recommendations Documents required in section I if applicable  Confirmation letter or letter of commitment for co-financing commitment B.2. i.a. In case co-financing is provided Environmental and Social Impact Assessment (ESIA) or Environmental and Social Management Plan F.3. For category B/I.2 and A/I.1 (see section 3.6 for definitions) Appraisal Report or Due Diligence Report with recommendations C, F, G Applicants have the choice to either provide only a summary in the template and the documents as annex or fill in the respective sections of the template If detailed supporting documents are available, it is useful to attach them and make reference to relevant sections in the template. If individual sections/elements are not addressed in supporting documents make sure to fill in the template. Evaluation Report of the baseline project In case the project/programme builds on a previous project/programme Other useful supporting documents Economic analysis F.1. No Recommended. Gender Action Plan Demonstrates compliance with the Gender Policy. Recommended. Procurement Plan F.4. In case project/programme involves substantial procurement of goods and services

3 Key messages Lessons learned that project developers should take into account

Lessons learned Demonstrate that proposed activities are in line with national priorities and existing strategies and policy frameworks Specify the logic framework Specify stakeholder engagement during project development and implementation Plan for the time and cost involved in proposal preparation Provide evidence 1 2 3 4 5

Lessons learned 6 Focus on climate change Provide a narrative and proof of feasibility Pay attention to the detail Share your knowledge Think about the end at the beginning 7 8 9 10

CF Ready – Publications GIZ (2017) Guidebook: Writing a Green Climate Fund Funding Proposal, Bonn, Germany. Available (just GIZ-internally) at: https://dms.giz.de/dms/llisapi.dll/app/nodes/1319 47634 09.11.2018 CF Ready Climate Finance Webinar: GCF Guidebook

CF Ready Climate Finance Webinar: GCF Guidebook Thank you! To find out more about the GIZ Climate Finance Readiness Programme (CF Ready) visit: https://www.giz.de/expertise/html/19694.html 09.11.2018 CF Ready Climate Finance Webinar: GCF Guidebook

Upcoming CF Ready Climate Finance Webinars Date Topic Moderator Wednesday, 04.10.2017, 1pm CEST Anti-Corruption in national climate finance processes – Perspectives of the Green Climate Fund Susann Mende Wednesday, 25.10.2017, The Potential of Green Bonds – A Climate Finance Instrument for the Implementation of Nationally Determined Contributions? David Goodman/ Andrea Staudhammer 09.11.2018 CF Ready Climate Finance Webinar: GCF Guidebook