1. The Green Climate Fund and environmental and social safeguards
Leonardo Paat, Jr.
Washington DC, 05 October 2016

2. About GCF World’s largest climate fund
Agreed by 194 Parties to the UNFCCC
Provide support to developing countries
Mitigation: reduce greenhouse gas emissions
World’s largest climate fund.
Agreed by 194 Parties to the UNFCCC (Cancun Agreement 2010). Operating Entity of the financial mechanism, accountable and under the guidance of the COP.
Created to support low-emission (mitigation) and climate-resilient (adaptation) investments in developing countries; and
Investment mix: public and private sector, and here GCF is determined to partner with the private sector and harness its implementation capacity, to catalyze investments and maximize impact.
Adaptation: adapt to unavoidable impacts
Investment mix: public and private sector

4. Background
Commitment and mandate to adopt best practice environmental and social safeguards (Governing Instrument for the Green Climate Fund)
Adoption of the IFC’s Performance Standards on Environmental and Social Sustainability as interim environmental and social safeguards (ESS) standards (Decision B.07/02 paragraph (c))
Initial proposal approval process describing interim ESS compliance assessment by the Secretariat (Decision B.07/03 paragraph (a), Annex VII)
Further description of assessing conformance to the Fund’s ESS (Decision B.08/02, Annex 1) 
Development of an environmental and social management system (ESMS) for the Fund (Decision B.07/02 paragraph (n))
Key decisions pertaining to environmental and social risk management

5. Environmental and social management system (ESMS)
Set of management processes and procedures for avoiding, reducing and managing adverse environmental and social impacts, maximizing any potential benefits, and improving the environmental and social performance over time and in consistent ways.
It brings together the various existing policies and practices
Accreditation Framework
Results Management Framework
Monitoring and Accountability Framework
Information Disclosure Policy
Risk Guidelines and Register
Independent Redress Mechanism
Gender Policy

6. Key considerations and elements of ESMS
Environmental and social policy
Links to existing policies and practices
Environmental and social standards
Management processes and procedures
Stakeholder engagement
Guidance, tools, best practices
Driven by overarching environmental and social policy
Links to existing policies and practices
Requirements set by the environmental and social standards
Implemented through set of management processes and procedures
Involves stakeholders
Guided with tools and best practices

7. Institutional assessment Programmes and projects assessment
Secretariat’s assessments
Capacity and commitment to manage and implement the ESS requirements
ESMS (PS 1: Assessment and Management of Environmental and Social Risks and Impacts)
Institutional assessment
Risk screening based the ESS standards and the accreditation of the entity.
Assessment instruments and management plans
Safeguards implementation and supervision including roles and responsibilities, capacities, monitoring, and reporting
Stakeholder participation and consultation
Programmes and projects assessment

8. ESS of approved projects
Eastern Europe 1
Approved projects: 17
Of which
9 are Category B
5 are Category C
3 Intermediary (I2 and I3)
Most cited applicable PS:1,3, and 4
Management instruments: ESMP and ESMF
ESA done for Category B
Risk screening of all projects
Asia-Pacific 7
Africa 5
Latin America 4
With these resources the Fund’s current GCF portfolio looks like this:
17 projects and programmes (8 at B.11 and 9 at B.13) for a total GCF funding amount of USD 424 million, and USD 1.2 billion in total project costs.
The geographic distribution of the 17 projects or programmes consists of:
5 in Africa w/ GCF funding of USD 88 million (21%) [East Africa (Kenya, Rwanda, Uganda), Gambia, Malawi, Mali, Senegal]
7 in Asia-Pacific w/ GCF funding of USD 217 million (51%) [Bangladesh, Fiji, Maldives, Sri Lanka, Tajikistan and Uzbekistan, Tuvalu, Vietnam]
4 in Latin America and Caribbean w/ GCF funding of USD 99 million (23%) [Chile, El Salvador, Mexico, Peru,]
1 in Eastern Europe w/ GCF funding of USD 20 million (5%) [Armenia]
In terms of funding theme mix:
15% mitigation
52% adaptation
33% cross cutting (that is mix of M&A)
In terms of financial instrument mix:
74% grants
16% loans
5% equity
5% guarantee

9. Stakeholder engagement
Stakeholder analysis and planning
Country ownership
Information disclosure
Grievance and redress mechanism

10. Summary
The ESMS is currently being developed that builds upon the existing policies and practices of the Fund and supported by the interim environmental and social safeguards standards
The ESMS and the ESS are expected to continue to evolve and improve over time
Practices continuously fine-tuned to meet ESS requirements
Relevant best practices, tools, and guidance are sought to improve ESS application and outcomes