Download Introduction to the Green Climate Fund

Introduction to the Green
Climate Fund
Florence RICHARD, Regional Advisor Africa
Tunis, October 17, 2016
FEATURES AND TIMELINE
About GCF
World’s largest climate fund
Agreed by 194 Parties to the UNFCCC
Provide support to developing countries
Mitigation: reduce greenhouse gas emissions
Adaptation: adapt to unavoidable impacts
Investment mix: public and private sector
GCF timeline
2009 GCF concept proposed at COP 15
2010 Established at COP 16
2011 Governing Instrument adopted at COP 17
2012 First meeting of GCF Board
2013 EXD appointed, Korea headquarters established
2014 Unprecedented USD 10 billion mobilized
2015 First investment decisions ahead of COP 21
GCF: A key financial mechanism
under the Paris Agreement
GCF: A unique institution
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)
GCF business model
GOVERNANCE AND
ROLES OF KEY ACTORS
Governance Structure
Private Sector Advisory
Group (PSAG)
Civil Society Observers
(CSO) Network
Board
Trustee
24 members from developing and
developed countries
World Bank
Accreditation Panel
Secretariat
Executive Director with 3
directors and operational teams
Technical Advisory
Panel
Independent Accountability Units
Roles of NDAs and focal points
Accredited Entities
Morocco
Senegal
Namibia
Rwanda
Ethiopia
India
Kenya
40 entities accredited to date
Peru
Argentina
Fit-for-Purpose Accreditation
Mandate &
track record
• Alignment with Fund
objectives
Fiduciary
functions
• Basic
• Specialized
• At least 3 year of operations
Project size
• Micro (>10mn)
• Small (10-50mn)
Environment
& Social risk
category
• Medium (50-250mn)
• A (high)
• Large (>250mn)
• B (medium
• C (low)
Home
Access to Green Climate Fund resources
• Through a country-driven approach, the National Designated
Authority (NDA) of a country can facilitate the strategy by which it
will address climate change, and provide broad strategic oversight
of the Fund’s activities in the country
• Access to Fund resources to undertake climate change
projects/programmes will be through accredited national,
regional and international entities
• Therefore, it is important to match likely countries
priorities/activities with entities who are able to provide this
avenue/modality of access and support.
GETTING PROJECTS APPROVED
Iterative process
Country
programme
Results &
learning
Entity
programme
Project
implementation
Pipeline
development
Funding
proposals
Proposal Approval Process Overview
NDA
No-objection
1
Generation
of funding
proposals
Secretariat
3
Submission of
funding
proposal
4
Analysis and
recommendation
Technical
Advisory Panel
5
Board
Board
Decision
Legal arrangements
IE or
Intermediary
Concept
development
(voluntary)
Trustee
2
6
Balanced resource allocation
8 Strategic Results Areas
With a focus on…
• Impacts
• Programmes
• Paradigm-shift potential
• Adaptation-mitigation co-benefits
19
Investment Criteria
Impact Potential
Paradigm Shift Potential
Sustainable
Development Potential
• Potential to the achieve the Fund's objectives and
result areas
• Potential to catalyze impact beyond a one-off
project or programme investment
• Potential to provide wider benefits and priorities
Needs of Recipient
• Vulnerability and financing needs of the
beneficiary country and target groups
Country Ownership
• Beneficiary country ownership of and capacity to
implement funded activities
Efficiency &
Effectiveness
• Economic and financial soundness of programme/
project; appropriateness of concessionality
Project preparation facility
What is on offer?
How to apply?
What is assessed?
• Support for project/
programme development
• Accredited entities,
especially direct access,
submit requests
• Secretariat assesses
concept against investment
criteria
• Request submitted with
project/ programme
concept
• Also assesses request for
justification of needs & GCF
policies
• In conjunction with noobjection letter from
NDA/focal point
• Executive director approves
requests
• Especially micro-to-small
size projects
• Up to $1.5M per project
preparation request
MOBILIZING THE PRIVATE SECTOR
Private sector facility
Why the PSF?
• To mainstream climate change mitigation and adaptation
actions in the private sector
Interventions
•
•
•
•
Access to the
private sector
• Accredited entities with private sector operations
• Present funding proposals spontaneously or in response to
calls for proposals
Possible
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
Types of Instruments
Full Range of Products
 Grants
Grant
s
 Debt (Senior & Subordinated)
Loans
 Equity
 Guarantees
page 24
ACHIEVEMENTS SO FAR
Mobilizing climate action and
resources at scale
$10 billion
Pledged (2016)
$9.9 billion
Signed (2016)
46 countries, regions &
cities
40 countries & regions
Incl. 9 developing countries
Since first pledging
conference and COP20
Contribution agreement
or arrangements signed
approved
2.Projects
The GCF
Portfolio
10,579,036 beneficiaries
$1,169B for 27 projects
Armenia
Tajikistan
Tunisia Uzbekistan
Morocco
Pakistan
Bangladesh
Gambia
Carribean
Mexico
Uganda
Senegal Mali
Viet Nam
Kenya
Maldives
El Salvador
Rwanda
Sri Lanka
Peru
Malawi
Chile
Namibia
Madagascar
Tuvalu
Fiji
GCF Project Portfolio (1)
FP001 Building resilience of wetlands
Profonanpe, Peru
A
FP002 Climate information and EWS
UNDP, Malawi
A
FP003 Restoration of salinized lands
CSE, Senegal
FP004 Climate resilient infrastructure
KfW, Bangladesh
FP005 KawiSafi Ventures Fund
Acumen, Eastern
Africa
FP006 Energy efficiency Green Bond
IDB, Latin America
FP007 Managing CC induced water shortages
UNDP, Maldives
A
FP008 Water supply and waste water mgmt
ADB, Fiji
A
A
A
M
M
GCF Project Portfolio (2)
FP009
Energy Savings Insurance for Private Energy Efficiency
Investments by SMEs
IDB, El Salvador
M
FP010
De-risking and Scaling Up Investment in Energy Efficient Building
Retrofits
UNDP, Armenia
M
FP011
Large Scale Ecosystem-based Adaptation – Developing a Climate
Resilient, Natural Resource-based Economy
UNEP, Gambia
A
FP012
Africa Hydromet Program – Strengthening Climate Resilience in
Sub-Saharan Africa: Mali Country Project
WB, Mali
A
FP013
Improving the Resilience of Vulnerable Coastal Communities to
Climate Change-related Impacts
UNDP, Vietnam
M/A
FP014
Project to Support Climate Adaptation and Mitigation Program
for the Aral Sea Basin
WB, Tajikistan and
Uzbekistan
A
UNDP, Tuvalu
A
FP015 Tuvalu Coastal Adaptation Program
FP016
Strengthening the Resilience of Smallholder Farmers through an
Integrated Approach to Water Management
UNDP, Sri Lanka
A
FP017
Climate Action and Solar Energy Development Programme in the
Tarapacá Region in Chile
CAF, Chile
M/A
Portfolio composition
17 proposals totaling USD 424 million in GCF funding
Portfolio composition
[email protected]
web: greenclimate.fund