Ousseynou Nakoulima, Chantal Naidoo & Louise Brown 7 October 2014 Update and opportunities for National Development Banks Ousseynou Nakoulima, Chantal Naidoo & Louise Brown 7 October 2014

Origins of the Fund & purpose Established by UN Climate Change Framework Convention (2011) Global Purpose make significant & ambitious contribution to combating climate change promote paradigm shift towards low carbon climate resilient development pathways Offering provide support to developing countries, taking into account especially needs of countries particularly vulnerable

Governance & Management Legal persona with immunities and privileges as required Board from developed/developing countries with 4 observers (2 each from civil society and private sector) Secretariat: Executive Director and 3 Directors and full-time staff Trustee: World Bank manages financial assets Host country: Korea HQ in Songdo

Key features of the Fund

Current Progress & Status: 2014 Investment Framework: Includes paradigm shift and sustainable development, Allocation Framework: 50/50 Mitigation and Adaptation (with 50% being LDCs, SIDS and Africa)

Country Interface with the Fund: National Designated Authority Can develop strategic country work program on a periodic basis to identify priorities for the Fund and preferred implementing entities Endorses implementing entities through which the country will access the Fund Participates in the development of proposals for funding by the Fund Participates in pre-screening of project concepts alongside the secretariat - concept submission is optional Can “object” to proposals that do not align with national priorities and needs Is informed of the outcome of board decisions Should keep abreast of program implementation and progress

Opportunity for National Development Banks: National Implementing Entities This enables a country to access through its national institutions financial support directly from the Fund Indicative roles and responsibilities Origination and preparation of a funding proposal Management and oversight of the implementation process Monitoring and reporting on progress Work directly/through other intermediaries to channel financial instruments to beneficiaries Blending Fund, own and other resources to maximise impact Accreditation required - compliance with standards and safeguards

Accreditation: Current status Guiding framework on accreditation (7th Board meeting approved) Provides for national and international implementing entities (direct/indirect access) – For direct access - NDA and NIE partnership and support critical Three stage assessment process through an Accreditation Panel Key information to be assessed throughout accreditation process Programme/project capabilities (e.g. size & types of risks managed) Fiduciary standards Environmental and social safeguards Intended use of Fund resources Existing accreditations with the GEF and/or Adaptation Fund may facilitate a faster accreditation process

Readiness & Preparatory Support Purpose: Enabling countries to prepare to directly access the Fund and available on request – areas defined through interactive engagement

Immediate opportunities for NDBs Early and continuous engagement with national NDA as potential National Implementing Entities – secure partnership Determine the current profile of climate projects being funded - financial value and types of risk being assumed e.g. large/small scale Consider intention and potential use of the Fund resources e.g. programme development, product innovation, intermediary Assess capabilities of institution against Fund requirements & define areas of support needed Governance: environmental & social safeguards (IFC) and fiduciary standards (refer Board decisions www.gcfund.org) Pipelines: Investment & Allocation frameworks

Key contact details Readiness & Preparatory Support Yun Yang readiness@gcfund.org Accreditation enquiries Stephanie Kwan accreditation@gcfund.org