1. The International Solar Alliance (ISA)
Meeting of the Steering Committee
Taj Mahal Hotel, New Delhi
February 20, 2018
Kilaparti Ramakrishna, PhD
Head of Strategic Planning and
Director of External Affairs ai

2. The GCF story so far
United Nations Conference on the Human Environment, 1972
Intergovernmental Panel on Climate Change, 1988
UN Framework Convention in Climate Change, 1992
Kyoto Protocol, 1997
Least Developed Countries Fund (LDCF), 2001
Special Climate Change Fund (SCCF), 2001
Adaptation Fund (COP7), est. 2001, launched 2007
Climate Investment Funds, 2008
Green Climate Fund, est. 2010, launched in 2012 & operational 2013
Paris Agreement, 2015
Some key milestones of climate finance in the global response to climate change.
GEF started in 1991 as a $1 billion pilot programme in the World Bank to assist in the protection of the global environment and to promote environmental sustainable development. Serves the UNFCCC and a number of other EIAs.
The Least Developed Countries Fund (LDCF) finances the preparation and implementation of NAPAs in response to urgent and immediate adaptation needs in least developed countries.
The Adaptation Fund (AF) was established in 2001 to finance concrete adaptation projects and programmes in developing country Parties to the Kyoto Protocol. Finance by proceeds from carbon credits.
G8 Leaders recognized increased costs of climate change and set up CIF in 2008 with sunset clause to transfer to a Green Climate Fund once established.
2009 Copenhagen commitment to establish the GCF and raise USD 100 billion per annum by 2020 from a range of sources.
2010 GCF established by COP decision
2011 GCF Governing Instrument approved by COP
2012 GCF Board meets for the first time, with equally balance country representation (developed, developing)
2013 Permanent headquarters established in Songdo, Republic of Korea
2014 Initial resource mobilization raises over USD 10 billion equivalent
2015 First GCF funding decisions taken before historic Paris Agreement …

3. GCF resources 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 130 million for Readiness support, incl. adaptation planning
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 an additional USD 50 million approved by the GCF Board in Dec 2016, and an additional USD 50 million by the Board in October 2017 to address immediate requests for NAPs and/or other adaptation planning processes (USD 130 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.

4. A quick progress report
USD $2.65 billion committed to 54 projects
USD $150 million disbursed (up from $11 million in 2016)
59 Accredited Entities, including 32 (over half) Direct Access entities
130 readiness applications approved for 92 countries at a value of over $40m, over $10m disbursed
Up to $3 million per country to support NAPs/adaptation planning
$500 million Request for Proposals on Mobilizing Funds at Scale
$500 million REDD+ results-based payments pilot
Over 100 countries engaged on country programming
Challenges
Building Secretariat capacity – recent Board approval to increase staff from 140 to 250
Improving guidance and responsiveness – simplified concept note, SAP, further work to do
Getting the building blocks in place to speed up approvals and disbursements – policy frameworks, legal arrangements with AEs, committed to serious implementation of ESS, gender, responsibilities
Lifting quality – stronger secretariat engagement, educating GCF partners, critical role of NDAs/countries

5. 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

6. Strategic engagement through country programmes
Engaging with GCF
Establish and maintain a National Designated Authority (NDA) or focal point
Strategic engagement through country programmes
Identify and seek accreditation of entities to access resources from the Fund
Develop projects and programmes to bring forward funding proposals through accredited entities
Establish and maintain a National Designated Authority (NDA) or focal point.
Strategic engagement through development of country programmes -- not obligatory but a recommended approach to develop country programmes and determine which priorities identified by country strategies (INDCs, LEDs, NAPAs, NAMAs, etc.) are the best match for GCF support. GCF Secretariat supporting countries in developing draft country programmes. Over 100 countries engaged on country programming.
Identify and seek accreditation of entities to access resources from the Fund.
Develop projects and programmes to bring forward funding proposals through accredited entities.
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

7. 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

8. 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

9. 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

10. Private Sector Facility
What is the PSF?
To mainstream climate change mitigation and adaptation actions in the private sector
Fund climate risk assessment models and tools
Long-term debt, credit lines
What’s possible?
Equity to develop a project to full bankability
Guarantees to bear specific risks
How to access the private sector?
GCF accredited entities with private sector operations
Present funding proposals spontaneously or in response to calls for proposals

11. GCF Private Sector Facility: Mobilizing funds at scale
Mobilization of private sector capital
USD 500 million
350 initial responses seeking $18bn
Highest impact projects

12. Portfolio composition
Of the USD 2.65 billion approved, 31% is allocated through the adaptation window, 40% is through the mitigation window and 29% is cross-cutting (of which, 7% is adaptation and 22% is mitigation)
As articulated in decision B.06/06 and in line with paragraph three of the Governing Instrument, the Board will continue to aim to maintain a balance between mitigation and adaptation as it approves further projects and programmes.
The portfolio comprises 40 public sector projects and programmes, totalling USD 1.3 billion, and 14 projects and programmes with a total GCF contribution of USD 1.3 billion submitted through the Private Sector Facility.
Status as of B18 (Oct 2017)

13. Portfolio composition
Of the USD 2.65 billion approved, 31% is allocated through the adaptation window, 40% is through the mitigation window and 29% is cross-cutting (of which, 7% is adaptation and 22% is mitigation)
As articulated in decision B.06/06 and in line with paragraph three of the Governing Instrument, the Board will continue to aim to maintain a balance between mitigation and adaptation as it approves further projects and programmes.
The portfolio comprises 40 public sector projects and programmes, totalling USD 1.3 billion, and 14 projects and programmes with a total GCF contribution of USD 1.3 billion submitted through the Private Sector Facility.
Status as of B18 (Oct 2017)

14. Estimated climate impact
Portfolio
Mitigation impacts 1.04 Bt CO2 equivalent avoided
Adaptation impacts 159 million beneficiaries with increased resilience
The projects and programmes are expected to abate a total of 1 billion Mt CO2 eq of greenhouse gases and reach 159 million beneficiaries with increased resilience.
Status as of B18 (Oct 2017)

15. Investments by results areas Pipeline and approved projects
Status as of B18 (Oct 2017)

16. 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)

17. GCF financing instruments 1
Understanding the hurdles faced by low-emission investments in energy sector that include (i) higher upfront costs (ii) need for longer-term finance (iii)lower returns and (iv) unwillingness to invest in new technologies, GCF provides financing in the form of grants, concessional loans and guarantee, in supporting energy sector transformation and energy access in public sector. The Fund’s ability to supply additional and new long-term public-sector loans (even at 40 years and interest free) is extremely valuable in enabling the transition to green energy utilization.

18. GCF financing instruments 2
Financing will be tailored to cover the identifiable additional costs of the investment necessary to make the project viable and seeks to catalyze additional public and private finance. The deployment of the Fund’s concessionally will consider nature of interventions, current barriers to financing, and the context of the targeted countries.  

19. GCF financing instruments 3
Grant elements would be tailored to identified and agreed incremental cost or the risk premium required to make the investment viable, or to cover specific activities such as technical assistance, capacity building and to provide the appropriate incentive to facilitate the intake of untested and new technology to the targeted country. Concessional loans are directed towards revenue-generating activities.

20. Track Record So Far…
As of Feb 2018, the GCF Board has approved 17 funding proposals in Energy Access and Generation for a value of USD 1.5 billion from GCF. The projects and programmes have a total value of USD 6 billion and will help more than 20 countries across the globe provide energy access through cleaner energy sources.
These projects and programs aim at reducing emissions totaling 972 Million tCO2 in their lifetime with 19.2 million direct beneficiaries

21. Current GCF Pipeline
As of Feb 2018, there are 38 projects and programmes in the public sector being considered that seek GCF’s financing towards promoting energy access and power generation from cleaner resources.

22. A Diverse Network of Partners
59 entities accredited to date
Antigua & Barbuda
China
Fiji
Morocco
Namibia
Morocco
Bangladesh
Senegal
China
Korea
Argentina
Mongolia
Rwanda
Kenya
Indonesia
India
India
Bangladesh
Ethiopia
Peru
South Africa
At its last meeting (Oct 2017), the Board accredited five new organizations (all direct access), bringing the total number of GCF Accredited Entities to 59, of which 32
are direct access (54%).

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