1. The Green Climate Fund August 2017
Opportunity for building awareness of the GCF and explore the opportunities potentially available to all stakeholders.

2. Overview Part I: The GCF Part II: NDAs and focal points
Part III: Getting ready
Part IV: Projects and programmes
Part V: GCF portfolio
Part VI: Accreditation
Introduction

3. Part I: The GCF

5. GCF business model

6. GCF resources ~USD 80 million for Readiness support
USD 10.3 billion in pledges
USD 10.1 billion in signed contributions
50/50 split between adaptation & mitigation
Geographical balance
50% of adaptation resources for SIDS, LDCs and African States
~USD 80 million for Readiness support
USD 40 million for Project Preparation
The Fund aims for a 50:50 balance between mitigation and adaptation investments over time. It also aims for a floor of 50% of the adaptation allocation for particularly vulnerable countries, including Least Developed Countries (LDCs), Small Island Developing States (SIDS), and African States.
There is funding allocated to Readiness and Project Preparation activities:
Initial USD 30 million from , with up to an additional USD 50 million approved by the GCF Board in Dec 2016 to scale up efforts (~USD 80 million in total).
Project preparation funding with USD 40 million allocated for project development. Important to note that Readiness and Project Preparation Funding initiatives are approved by the Secretariat. Note that all full project funding proposals must be approved by the GCF Board.
As of 31 July 2017

7. Characteristics of GCF
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)
Largest dedicated climate fund globally
Many of the features of the Fund are unique
Be it its scale, or its diversity of partners & financial tools
Balanced governance
Focus on adaptation particularly for vulnerable countries like SIDS
Ability to work with the private sector, and
Strong ethos of empowering countries
These features set the Fund apart from other funds and financing institutions in the climate finance space

8. NDAs & focal points – Country Ownership
Part II:
NDAs & focal points – Country Ownership

9. Roles of NDAs & focal points
NDA play an important role in the Fund’s operations to ensure country ownership:
Strategic alignment with country priorities for “low emission and high resilient sustainable development”
Identify entities to work with, and even nominate direct access entities
Approve projects before the Fund considers it through no-objection procedure
Also approve deployment of readiness support available

10. Country ownership guidelines
Adopted by the Board at its seventeenth meeting in July 2017, the guidelines:
Emphasize the importance of the country programming process in defining long-term engagement with GCF.
Underscore the centrality of country ownership as a core principle of GCF.
Reaffirm countries’ role in driving forward its relationship with the Fund, together with relevant stakeholders.
Include suggestions for countries to consider when engaging with the Fund across all GCF operational modalities, e.g. accreditation, Readiness.
At its 17th Meeting (June 2017) the Board adopted guidelines for enhanced country ownership and country drivenness and requested NDAs, focal points, accredited entities, delivery partners, and the Secretariat to follow the guidelines in carrying out its activities
with the Fund.
The guidelines emphasize the importance of the country programming process and the opportunities it can bring about to strengthen country ownership and multi-stakeholder consultation in defining long-term engagement with the Fund.
Underscore the centrality of country ownership as a core principle of GCF and reaffirms countries’ role in driving forward its relationship with the Fund, together with relevant stakeholders.
Include suggestions for countries to consider when engaging with the Fund across all GCF operational modalities such as accreditation, Readiness and preparatory support, and funding proposal development, including the no-objection procedure.
The Board requested the Secretariat to assess annually how the guidelines are being applied and to improve them based on lessons learned and observed best practices. The Board will review the guidelines as needed, or at least every two years.

11. GCF programming
Efforts kick started with the Strategic Plan which outlined an ambition to gather knowledge on demand from the ground in terms of country priorities and potential for GCF involvement.

12. Country and Entity Programmes
GCF programming
Overview
INDCs
NAPs
TNAs
Country and Entity Programmes
GCF pipelines
PPF
READINESS FP
Starting with national context and policies (INDCs, NAPs, TNAs) that articulate adaptation and mitigation needs
GCF funding to enable development of these needs, articulated in GCF pipelines, programming priorities, and some may need readiness, PPF, or go straight to FPs
GCF programming equals a series of steps and modalities to help channel this process further

13. Programming continuum
Country programmes
Country’s GCF priorities
Led by NDA/focal point
Stakeholder engagement
Entity work programmes
Responds to country priorities
Identifies regional or multi-country initiatives
Pipelines
Projects/programmes developed for funding
Aligned with country/ entity programmes

14. Project implementation
Iterative process
Country programme
Entity programme
Pipeline development
Funding proposals
Project implementation
Results & learning

15. Key elements Country’s development & climate change context
Priority areas for GCF programming
Project preparation & readiness needs
Alignment with GCF policies
Roles of stakeholders, particularly entities
Complementary support
Monitoring & updates

16. Part III: Getting ready…
Readiness Programme

17. Four areas of support NDA strengthening Strategic frameworks
Support for direct access entities
Adaptation planning processes
The GCF Readiness programme is a funding programme to enhance country ownership and access to the Fund. It provides resources for strengthening the institutional capacities of National Designated Authorities (NDAs) or focal points and direct access entities to effectively engage with the Fund. It also assists countries in undertaking adaptation planning and developing strategic frameworks to build their programming with the GCF
Resources may be provided in the form of grants or technical assistance.
All developing countries can access the Readiness programme, and the Fund aims to ensure that at least 50 per cent of the readiness support available goes to particularly vulnerable countries, including least developed countries (LDCs), small island developing States (SIDS), and African States.
Four main areas of support under the GCF Readiness Programme:
1. NDA strengthening: Supports ability of the NDA to perform its function. Consultations, establish No-Objection procedure, outreach and awareness raising, etc.
2. Strategic Frameworks: Supports consultative mechanism to underpin solid Country Programme and pipeline development, relevant policy review to support strategic engagement and harmonization with National development plans and resources.
3. Support for direct access: Accreditation, gap assessments, building capacity of direct access entities to support Country Programmes.
4. Adaptation Processes: NAP development, adaption planning processes – template for application still be refined but you can access already under current generic Readiness template.

18. Readiness funding NDA strengthening Support for direct access entities
cap per country per year
USD 1 million
NDA strengthening
Support for direct access entities
Strategic frameworks, including country programmes, concept notes, pre-feasibility studies
cap per country (not per year)
USD 3 million
National adaptation plans (NAP) and / or other adaptation planning processes
As stated earlier GCF has made an initial sum of up to USD 80 million available to support readiness activities in countries.
Each area has a funding cap as outlined. There are no restrictions on the number of proposals that can be submitted, just caps on total or total access in one year.
Of the USD 1 million annual country cap, there is a USD 300,000 limit to help establish or strengthen a NDA or focal point to deliver on the Fund’s requirements, and within that amount a maximum of USD 100,000 can be used for NDA-led stakeholder meetings.

19. Access modalities Direct Delivery partner NDAs or focal points
To support core GCF functions
USD 300K per year
Delivery partner
International, regional, national, sub-national
All areas
Subject to caps above

20. 118 approved for USD 38.5 million
Programme overview
Portfolio
118 approved for USD 38.5 million
EASTERN EUROPE
5 approved
(USD 1.5m, 5 countries)
3 disbursed
(USD 375K, 3 counties)
ASIA-PACIFIC
38 approved
(USD 15m, 24 countries)
23 disbursed
(USD 3.4m, 16 countries)
LATIN AMERICA &
the CARIBBEAN
32 approved
(USD 8.7m, 24 countries)
13 disbursed
(USD 1.3m, 9 countries)
AFRICA
43 approved
(USD 13.3m, 34 countries)
27 disbursed
(USD 4.2m, 25 countries)
118 proposals approved: 87 countries (60 countries - SIDS, Africa and LDCs) – USD 38.5 million in commitments
89 have completed legal arrangements either in the form of a bilateral grant agreement or are under the framework agreement with the multilateral agencies
66 proposals disbursed – 53 countries (9.3 million)
As of 31 July 2017

21. Project preparation facility (PPF)
Support for project / programme development
What is on offer?
Especially micro-to-small size projects
Up to USD 1.5M per project preparation request
Accredited entities, especially direct access, submit requests
How to apply?
Request submitted with project / programme concept
In conjunction with no-objection letter from NDA / focal point
To assist countries develop projects, in addition to Readiness funding (which we will explain further shortly) they can get project preparation funding for up to 10% of the total project cost or USD 1.5 million, which ever is the lesser.
The Executive Director of the Fund has the decision making power on PPF proposals so these do not need to go to the Board for approval normally.
Secretariat assesses concept against investment criteria
What is assessed?
Also assesses request for justification of needs & GCF policies
GCF Executive Director approves request

22. PPF State of Play 24 PPF requests officially submitted
Covering 39 countries
11 requests are from direct access entities
3 requests approved or endorsed
EASTERN EUROPE
LATIN AMERICA &
the CARIBBEAN
ASIA-PACIFIC
AFRICA

23. Part IV:
Projects & programmes

24. Terms determined on a case-by-case basis
Financial Instruments 1
Terms determined on a case-by-case basis 2
Equity 3
Grants
Guarantees 4
Fund has the ability to deploy 4 types of financial instruments – grants, equity, guarantees and loans
Grants with/without repayment contingency
Loans with high concessionality – 40 years maturity, 10 years grace, 0% interest
Loans with low concessionality – 20 years maturity, 5 years grace, 0.75% interest
Other non-grant instruments terms determined on a case-by-case basis
On what basis are terms decided?
- Private sector as a key stakeholder for climate action in different sectors and developing financial instruments to link this sector is one of the priorities for the fund
Concessional loans

25. Size of project/activity within a programme
Total Projected Costs*
* At the time of application, irrespective of the portion that is funded by the Fund and, if applicable, other sources, for an individual project or activity within a programme. 16

26. 8 Strategic Results Areas
With a focus on…
Impacts
Paradigm-shift potential
Crosscutting adaptation-mitigation benefits
Sustainable development co-benefits
What areas of mitigation and adaptation will we fund?
Adaptation – Activities that make resilient :
the livelihoods of people and communities
Infrastructure & built environment
Ecosystems & ecosystem services
Health, food & water systems
Mitigation – activities that reduce or avoid emissions:
Energy generation & access
Transport
Appliances, buildings, cities & industries
Forests & land use
For each activity in any of these areas, we will also be looking for impacts, paradigm shift potential, crosscutting benefits & sustainable development co-benefits
Will cover this in more detail in the next presentation

27. Six Investment Criteria Against which proposals are assessed
Impact potential
Paradigm shift potential
Sustainable development potential
Country ownership
Efficiency & effectiveness
Responsive to needs of recipients
Potential to contribute to achievement of Fund's objectives and result areas
Long-term impact beyond a one-off investment
Wider economic, environmental, social (gender) co-benefits
Country ownership and capacity to implement (policies, climate strategies and institutions)
Six high-level investment criteria of the Fund…
These form the high-level filter for assessing funding proposals
Economic and, if appropriate, financial soundness, as well as cost-effectiveness and co-financing for mitigation
Vulnerability and financing needs of beneficiary in targeted group

28. 54 entities accredited to date
A Diverse Network of Partners
Morocco
Indonesia
Korea
Rwanda
India
Peru
Namibia
South Africa
Kenya
Ethiopia
Mongolia
China
Argentina
Morocco
India
Senegal
Bangladesh
At its last meeting (July 2017), the Board accredited six new organizations, bringing the total number of GCF Accredited Entities to 54, of which 27
are direct access. The new entities are:
- CDG Capital S.A. (CDG Capital ), Morocco (direct access)
- Infrastructure Development Company Limited (IDCOL) , Bangladesh (direct access)
- Small Industries Development Bank of India (SIDBI) , India (direct access)
- Micronesia Conservation Trust (MCT) , Federated States of Micronesia (direct access)
- Japan International Cooperation Agency (JICA) , headquartered in Japan (int’l access)
- Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) , headquartered in Japan (int’l access)
54 entities accredited to date
As of 31 July 2017

29. Project approval process
GCF Proposal Approval Process

30. Technical Advisory Panel
Project approval process
Legal arrangements
Accredited Entity
Secretariat
GCF Board
Concept note (optional)
Generation of Project idea
Submission of funding proposal
No-objection
Analysis and recommendation
Board Decision
NDA
Technical Advisory Panel
Trustee 1 6 2 3
Possible request for Readiness support by NDA
Possible support from Project Preparation Facility to AE 4 5
Based on Board decision B.07/03

31. Private Sector Facility
To mainstream climate change mitigation and adaptation actions in the private sector
Why the PSF?
Fund climate risk assessment models and tools
Long-term debt, credit lines
Equity to develop a project to full bankability
Guarantees to bear specific risks
Possible
interventions
Accredited entities with private sector operations
Present funding proposals spontaneously or in response to calls for proposals
Access to the private sector
Say a word about the private sector facility
Why was it created?
Recognition that addressing the climate change challenge at scale will require mainstreaming climate action into the day-to-day business of the private sector
Variety of ways to do it
Develop the tools to help them integrate climate risk into their business models
Provide debt of varying forms to incentivize private sector actors – long-term, liquidity, or refinancing
Equity to take early stage risks, and guarantees to cover specific risks
How can private sector access?
Integrated into the Fund using the same operational modalities
Bring forward proposals through any of the accredited entities with the ability to undertake private sector operations

32. Part V: GCF portfolio

33. A growing portfolio $2.2b for 43 projects in 64 countries Serbia
Georgia
Mongolia
Armenia
Uzbekistan
Moldova
Tajikistan
Tunisia
Jordan
Morocco
Egypt
Pakistan
Mexico
Eastern Caribbean
Bangladesh
Senegal
Mali
India
Viet Nam
El Salvador
Gambia
Nigeria
Sri Lanka
The total portfolio of approved projects to date is USD 2.2 billion of GCF financing through 43 projects in 64 countries, globally
[NOTE: NOT ALL COUNTRIES FEATURED ON MAP… Several regional programmes:
GEEREF NeXT (Approved April 2017): Africa & MENA (Comoros, Democratic Republic of Congo, Equatorial Guinea, Ivory Coast, Kenya, Madagascar, Mauritius, South Africa, Togo, Uganda and Jordan); LAC (Bahamas, Barbados, Belize, Brazil, Chile, Costa Rica, Dominica, Dominican Republic, Grenada, Guatemala, Guyana, Haiti, Mexico, Saint Kitts and Nevis, Saint Vincent and the Grenadines, Suriname and Uruguay); Eastern Europe (Georgia); and Asia-Pacific (PNG)
Pacific Islands Renewable Energy Investment Programme (Approved December 2016): Cook Islands, Tonga, Republic of Marshall Islands, Federated States of Micronesia, Papua New Guinea, Nauru and Samoa (note only Cook Islands included in funding decision – 17M)
Africa Universal Green Energy Access Programme (Approved October 2016): Benin, Kenya, Namibia, Nigeria and Tanzania
GCF-EBRD Sustainable Energy Financing Facilities (Approved October 2016): Armenia, Egypt, Georgia, Jordan, Moldova, Mongolia, Morocco, Serbia, Tajikistan, Tunisia
Caribbean Sustainable Energy Facility (Approved October 2016): Dominica, Grenada, Saint Kitts & Nevis, Saint Lucia, and Saint Vincent & Grenadines
East Africa KawiSafi Ventures Fund (Approved November 2015): Kenya, Rwanda and Uganda
Energy Efficiency Green Bond (Approved November 2015): Mexico, Colombia, Dominican Republic and Jamaica
Benin
Uganda
Maldives
Tuvalu
Ecuador
Kenya
PNG
Samoa
Peru
Rwanda
Solomon
Islands
Fiji
Tanzania
Cook Islands
Malawi
Mauritius
Vanuatu
Namibia
Madagascar
South Africa
Chile
Argentina
Status as of B17 (July 2017)

34. Portfolio composition
As of B.16
Status as of B17 (July 2017)

35. Portfolio composition
Status as of B17 (July 2017)

36. Estimated climate impact
Portfolio
Mitigation impacts 981 MtCO2eq
Adaptation impacts 218 M beneficiaries
Status as of B17 (JUly 2017)

37. Investments by results areas Portfolio
Status as of B17 (July 2017)

38. Part VI: Accreditation

39. Fit-for-Purpose Accreditation
Fiduciary functions
Mandate & track record
Basic
Specialized
Alignment with Fund objectives
At least 3 year of operations
Project size
Environment & social risk category
Micro ( <10M)
Small (10-50M)
Medium (50-250M)
Large ( >250M)
A (high)
B (medium)
C (minimal or no)

40. For more info, visit www.greenclimate.fund Quick links GCF 101
GCF portfolio
Accredited Entity composition
Resources mobilized
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