GCFAccreditationToolkit-2017
2
TableofContentsDisclaimer.........................................................................................................................4
Acronyms..........................................................................................................................5
Glossaryofkeyterms........................................................................................................8
1. Summary..................................................................................................................18
2. Introduction.............................................................................................................22
2.1. Purposeofthisdocument..........................................................................................22
2.2. Limitationsofthisdocument.....................................................................................22
3. EssentialstoknowabouttheGCFbeforeseekingaccreditation................................22
3.1. WhatdoestheGCFsupport?�..................................................................................22
3.2. Howmuchandwhattypeoffinanceisavailable?.....................................................23
3.3. WhatistheroleoftheNationalDesignatedAuthority?............................................24
3.4. HowcanUzbekistanaccesstheGCF?........................................................................25
3.5. Whatistheroleoftheprivatesector?�....................................................................26
4. WhocanbecomeaGCFAccreditedEntity?�............................................................28
4.1. Overview....................................................................................................................28
4.2. Fit-for-purposeaccreditation.....................................................................................29
4.3. StatusoftheGCF’saccreditationportfolio................................................................31
5. HowtoapplyforGCFaccreditation?........................................................................37
5.1. Whatarethekeyconsiderationsbeforestartingtheaccreditationprocess?...........37
5.2. Whatarethekeystagesandstepstoapplyforaccreditation?................................38
6. HowtomeetGCFaccreditationrequirements?........................................................42
6.1. BackgroundandcontributiontoGCFobjectives........................................................42
6.2. Basicfiduciarystandards............................................................................................52
6.3. Specialisedfiduciarystandards..................................................................................62
6.4. Environmentalandsocialsafeguards.........................................................................74
6.5. Gender........................................................................................................................88
7. HowtodevelopandsubmitafundingproposaltotheGCF?.....................................91
7.1. GCFapprovalprocess.................................................................................................91
7.2. GCFapprovalcriteria..................................................................................................92
GCFAccreditationToolkit-2017
3
7.3. GCF’sResultsManagementFramework....................................................................99
8. Whatsupportisavailabletoseekaccreditationandhowtoaccessit?....................102
8.1. Whatisreadinesssupport?......................................................................................102
8.2. Whatsupportisavailabletosupportaccreditation?...............................................103
8.3. Howtosubmitarequestforreadinesssupport?.....................................................103
8.4. Implementation,monitoringandreporting.............................................................105
8.5. Completionandgrantclosure..................................................................................105
9. Onceaccredited,whatarethemonitoring,evaluationandreportingrequirementstofulfilasaGCFAccreditedEntity?...................................................................................106
10. What’snext?..........................................................................................................108
11. FrequentlyAskedQuestionsaboutGCFaccreditation.............................................109
12. References.............................................................................................................118
GCFAccreditationToolkit-2017
4
DisclaimerThistoolkitisaknowledgeproductpreparedbyAcclimatise,thetradingnameofAcclimatiseGroupLimited.ThecontentwasadaptedtomeettherequirementsoftheUNEnvironment-fundedproject“Support Uzbekistan in identification, assessment and strengthening a national institution to
directlyaccessclimatefinancefromtheGCF”,conductedincollaborationwithCENER21.Theviewsexpressedandinformationcontainedinitarenotnecessarilythoseoforendorsedbytheclient,whichcanacceptnoresponsibilityorliabilityforsuchviews,completenessoraccuracyoftheinformationorforanyrelianceplacedonthem.Anyliabilityarisingoutofusebyathirdpartyofthisdocumentforpurposesnotwholly connectedwith theabove shall be the responsibilityof thatparty,who shallindemnifyagainstallclaims,costs,damagesandlossesarisingoutofsuchuse.Thistoolkitshouldbequotedas:FayolleV.,FouvetC.andVenturiniS.(2017).GreenClimateFundaccreditationtoolkit.November2017.London:Acclimatise.
GCFAccreditationToolkit-2017
5
AcronymsADA TheAgencyforAgriculturalDevelopmentofMoroccoAE AccreditedEntityAF AdaptationFundAMA AccreditationMasterAgreementCBNRM Community-BasedNaturalResourceManagementCIA CertifiedInternalAuditorCDM CleanDevelopmentMechanismCPO ChiefProcurementOfficerCOSO CommitteeofSponsoringOrganisationsCSE CentredeSuiviÉcologiqueDA DirectAccessDAE DirectAccessEntityDGDEVCO DirectorateGeneralforInternationalCooperationandDevelopmentDP DeliveryPartnerEDA EnhancedDirectAccessECOSOC EconomicandSocialCouncilEE ExecutingEntitiesEIF EnvironmentalInvestmentFundESIA EnvironmentandSocialImpactAssessmentESMS EnvironmentalandSocialManagementSystemESS EnvironmentalandSocialSafeguardsDOE DepartmentofEnvironmentDP DeliveryPartnerFAA FundedActivityAgreementFDB FijiDevelopmentBankFDI ForeignDirectInvestmentFECO ForeignEconomicCooperationOfficeFSF Fast-StartFinanceFP FundingProposalGAAP GenerallyAcceptedAuditingPrinciplesGCF GreenClimateFundGEF GlobalEnvironmentalFacilityIDCOL InfrastructureDevelopmentCompanyLimitedIE ImplementingEntitiesIIA InstituteofInternalAuditorsIFC InternationalFinanceCorporationIFRS InternationalFinancialReportingStandardsIIED InternationalInstituteforEnvironmentandDevelopmentISA InternationalStandardsonAuditingITAP IndependentTechnicalAdvisoryPanelINDC IntendedNationallyDeterminedContribution
GCFAccreditationToolkit-2017
6
IPCC IntergovernmentalPanelonClimateChangeKDB KoreaDevelopmentBankKYC KnowYourCustomerLDCs LeastDevelopedCountriesLDCF LeastDevelopedCountryFundLLC LimitedLiabilityCompanyM&E MonitoringandEvaluationMDGs MillenniumDevelopmentGoalsMIE MultilateralImplementingEntityMINIRENA MinistryofNationalResourcesofRwandaMOFEC MinistryofFinanceandEconomicCooperationof theFederalDemocraticRepublicof
EthiopiaMRV Measurable,Reportable,Verifiable
MSME Micro,SmallandMediumEnterpriseMW MegawattNABARD NationalBankforAgricultureandRuralDevelopmentNAP NationalAdaptationPlanNAPAs NationalAdaptationProgrammesofActionNBFI Non-BankFinancialInstitutionNDA NationalDesignatedAuthorityNDC NationallyDeterminedContributionNEMA NationalEnvironmentManagementAuthorityofKenyaNIE NationalImplementingEntityOAS OnlineAccreditationSystemODI OverseasDevelopmentInstitutePKSF PalliKarma-SahayakFoundationPMF PerformanceMeasurementFrameworkPPF ProjectPreparationFacilityPROFONAPE PeruvianTrustFundforNationalParksandProtectedAreasPS PerformanceStandardsPSF PrivateSectorFacilityPTSMI PTSaranaMultiInfrastrukturRIE RegionalImplementingEntitiesRFP RequestForProposalRMF ResultsManagementFrameworkSANBI SouthAfricanNationalBiodiversityInstituteSAPRs Semi-AnnualProgressReportsSCCF SpecialClimateChangeFundSIDBI SmallIndustriesDevelopmentBankofIndiaSIDS SmallIslandDevelopingStatesUCAR UnidadParaelCambioRural(UnitforRuralChange)UNDP UnitedNationsDevelopmentProgrammeUNEnvironment UnitedNationsEnvironmentProgramme
GCFAccreditationToolkit-2017
7
UNFCCC UnitedNationsFrameworkConventiononClimateChangeUzhydromet CentreofHydrometeorologicalServiceoftheRepublicofUzbekistan
GCFAccreditationToolkit-2017
8
Glossaryofkeyterms
AccreditedEntities(AE):AnentitythatisaccreditedbytheBoardinaccordancewiththegoverninginstrumentandrelevantBoarddecisions.
Adaptation:Adjustment in natural or human systems in response to actual or expected climaticstimuliortheireffects,whichmoderatesharmorexploitsbeneficialopportunities.AdaptationFund(AF):TheAdaptationFundwasestablishedtofinanceconcreteadaptationprojectsandprogrammesindevelopingcountriesthatareparticularlyvulnerableandarePartiestotheKyotoProtocol.TheFundistobefinancedwithashareofproceedsfromCleanDevelopmentMechanism(CDM)projectactivitiesandreceivefundsfromothersources.ItisoperatedbytheAdaptationFundBoard.Basicfiduciarystandards:Thesestandardsassessthecapacityofanentitytoidentify,prepare,submitand implement funding proposals for projects and programmes in line with national needs formitigation and adaptation to climate change. They include: (a) key financial and administrativecapacities;and(b)transparencyandaccountability.Capacitybuilding:Inthecontextofclimatechange,theprocessofdevelopingthetechnicalskillsandinstitutionalcapabilityindevelopingcountriesandeconomiesintransitiontoenablethemtoaddresseffectivelythecausesandresultsofclimatechange.Carbonmarket:Apopular(butmisleading)termforatradingsystemthroughwhichcountriesmaybuyorsellunitsofgreenhouse-gasemissionsinanefforttomeettheirnationallimitsonemissions,eitherundertheKyotoProtocolorunderotheragreements,suchasthatamongmemberstatesoftheEuropeanUnion.Thetermcomesfromthefactthatcarbondioxideisthepredominantgreenhousegas,andothergasesaremeasuredinunitscalled"carbon-dioxideequivalents."CertifiedInternalAuditor(CIA):Isacertificationofferedtoaccountantswhoconductinternalaudits,offeredbytheInstituteofInternalAuditors(IIA).Thiscredentialistheonlysuchacceptedworldwide.Clean Development Mechanism (CDM): A mechanism under the Kyoto Protocol through whichdeveloped countries may finance greenhouse-gas emission reduction or removal projects indeveloping countries, and receive credits for doing so which they may apply towards meetingmandatorylimitsontheirownemissions.Climatechange:Achangeofclimatewhichisattributeddirectlyorindirectlytohumanactivitythataltersthecompositionoftheglobalatmosphereandwhichisinadditiontonaturalclimatevariabilityobservedovercomparabletimeperiods.
Climatefinance:Referstothefinancialresourcesmobilisedtohelpdevelopingcountriesmitigateandadapttotheimpactsofclimatechange(OverseasDevelopmentInstitute-ODI)
GCFAccreditationToolkit-2017
9
Climatefinancereadiness:Capacitiesofcountriestoplanfor,access,deliver,andmonitorandreportonclimatefinance,both internationalanddomestic, inwaysthatarecatalyticandfully integratedwithnationaldevelopmentprioritiesandachievementoftheMillenniumDevelopmentGoals(MDGs)(UnitedNationsDevelopmentProgramme-UNDP).Codeofethics:Aguideofprinciplesdesignedtohelpemployeesandcontractorsconductbusinessandoperationshonestlyandwithintegrity.Acodeofethicsmayoutline:themissionandvaluesofaninstitution,howemployeesareexpectedtoapproachaproblem.Theseethicalprincipleswillgenerallybe based on an organisation’s core values. Compliance-based codes of ethics usually outline theguidelinesforconductandthepenaltiesforviolationsoftheprinciples.
Ø Complianceofficer:Compliancewiththeseethicalprinciplesisoftenoverseenbyadedicatedcomplianceofficer,taskedwithkeepingregulatorycodesuptodateandmonitoringemployeeconducttoencouragecompliance.
Conceptnote:AprojectorprogrammeconceptdocumentwhichprovidesbasicinformationaboutaprojectorprogrammetoseekfeedbackonwhethertheconceptisbroadlyalignedwiththeobjectivesandpoliciesoftheFund.Conflictofinterest:Asituationwhereapersonororganisationwithvestedinterestsinanotherentity,organisationorassetbecomesunreliablebecauseofaclashbetweentheirpersonalandprofessionalinterests.Self-dealing is themostcommonconflictof interestandoccurswhenmanagement levelemployeesaccepttransactionsfromanotherorganisationbenefitingtheirmanagerbutharmingtheirorganisation.DeliveryPartners(DP):InstitutionsselectedbytheNationalDesignatedAuthority(NDA)orfocalpointtoimplementactivitiesapprovedundertheReadinessandPreparatorySupportProgramme.Deliverypartnersprovideservicessuchas:developmentofreadinessrequestproposals;implementationandsupervision; fiduciary management; progress reporting; and project completion and evaluation.Delivery partners may be AEs or other institutions assessed to meet the financial managementcapacitiesrequirementsoftheFund.
Directaccess:Initiallypresentedin2007aspartofaDecisiontooperationalisetheAdaptationFundattheUnitedNationsFrameworkConventiononClimateChange(UNFCCC)conference inBali, thedirectaccessmodalityisdefinedasthepossibilitytoinviteeligiblePartiesandinstitutions(referredto as "entities") selected by Governments to directly approach the Adaptation Fund and submitprojectproposalsdirectlytotheFund.ThismodalityisalsousedbytheGreenClimateFund(GCF).
Ø EnhancedDirect Access (EDA):Aims to increase the level of country ownership. Selectedaccredited entitieswill submit a proposal in consultationwith theNDAdescribing: (i) Thescopeofactivitiesthatwillbeconsideredforfinancing inconformitywiththeFund’seightresultareas;(ii)Thecountry/entitylevelapprovalprocessofspecificpilotactivitiessetupinconformitywiththeFund’sinvestmentframeworkandresultsmanagementframework;and(iii) The institutional arrangements set up to ensure oversight and multi-stakeholderengagement. Unlike the traditional direct accessmodality, therewill be no submission of
GCFAccreditationToolkit-2017
10
individualprojectsorprogrammesbecausedecision-makingforthefundingofspecificpilotactivitieswillbedevolvedatthecountrylevel.
Directaccessentity(DAE):Referstosubnational,nationalorregionalentitiesthatareaccreditedbytheGCFunder thedirectaccessmodality to receivedirect financial transfers inorder tocarryoutadaptationprojectsandprogrammesfundedbytheGCF.Theymayincluderegionalagencies,nationalministries or government agencies, development banks, climate funds, commercial banks, otherfinancialinstitutions,etc.
EnvironmentalandSocialManagementSystem(ESMS):Processesthatinstitutionshaveinplacetomakesurethattheyadequately identify,assess,manage,mitigateandmonitorenvironmentalandsocialrisksandrespondtoproblemsthatarise.AllinstitutionsseekingaccreditationtotheGCFmusthaveanESMS.ThestrengthoftheESMScanvarythoughdependingontheaccreditationcategory.
EnvironmentalandSocialSafeguards(ESS):AreferencepointforestablishingcriteriaforaccreditinginstitutionalcapacitiesandentitiesseekingaccreditationtotheFund,andforidentifying,measuringandmanagingenvironmentalandsocialrisks.ThemainpurposeoftheESSistodeterminethekeyenvironmentalandsocialriskstheAE intendstoaddress intheconceptualisation,preparationandimplementationoffundingproposals,andtoprovideguidanceonhowtheserisksaretobemanaged.ESSisbasedontheeightperformancestandards(PS)oftheInternationalFinanceCorporation.Evaluation:Asystematicassessmentoftheworthorutilityofaninterventionataspecificpointintime,forexamplewhetherapolicyhasbeeneffectiveinachievingsetobjectives.ExecutingEntities(EE):WithrespecttotheGreenClimateFund,organisationsthatexecuteeligibleactivitiessupportedbytheGCFundertheoversightofaccreditedImplementingorFundingEntities.Externalauditingstandards:ThestandardsforexternalauditingaretheGenerallyAcceptedAuditingPrinciples (GAAP) set by the American Institute of Certified Public Accountants. A separate set ofstandards called the International standards on Auditing were established by the InternationalAuditingandAssuranceBoard.Fast-StartFinance(FSF):AtCOP15inCopenhagenin2009,developedcountriespledgedtoprovidenewandadditionalresources,includingforestryandinvestments,approachingUSD30billionfortheperiod2010-2012andwithbalancedallocationbetweenmitigationandadaptation.Thiscollectivecommitmenthascometobeknownas"Fast-startFinance".Fiduciary Standards: Refers to the basic and specialised fiduciary requirements of the GCF thataccredited entities and readiness partners need to comply with depending on the nature of theactivitiesfundedbytheGCF.FinancialMechanism:DevelopedcountryParties(AnnexIIParties)arerequiredtoprovidefinancialresources to assist developing country Parties implement the Convention. To facilitate this, theConventionestablisheda financialmechanismtoprovide fundstodevelopingcountryParties.ThePartiestotheConventionassignedoperationofthefinancialmechanismtotheGlobalEnvironment
GCFAccreditationToolkit-2017
11
Facility (GEF)onanon-goingbasis, subject to reviewevery fouryears.The financialmechanism isaccountabletotheCOP.FundingProposal:AccreditedentitiescanaccessGCFresourcestoundertakeclimatechangeprojectsandprogrammesbysubmittingfundingproposalstotheFund.Gender:Referstohowsocietiesandspecificculturesassignrolesandascribecharacteristicstomenandwomenonthebasisoftheirsex.Forexample,manyculturesshareexpectationsthatwomenaremorenurturingthanmen,andthatmenshouldbesoldiersduringwars.GenderPolicy:TheFund’sgenderpolicyaimstoensuretheGCFwillefficientlycontributetogenderequalityandwill, inturn,achievegreaterandmoresustainableclimatechangeresults.Thegenderpolicy is applied to all of the Fund’s activities, whether implemented by international, regional,nationalorsubnational,publicorprivateentitiesorinstitutionsthataccessGCF’sresources.GlobalEnvironmentFacility (GEF):TheGEF isan independent financialorganisation thatprovidesgrants to developing countries for projects that benefit the global environment and promotesustainablelivelihoodsinlocalcommunities.ThePartiestotheConventionassignedoperationofthefinancialmechanismtotheGEFonanon-goingbasis,subjecttorevieweveryfouryears.ThefinancialmechanismisaccountabletotheCOP.
GreenClimateFund (GCF):AtCOP16 inCancun in2010,Governmentsestablished theGCFasanoperatingentityofthefinancialmechanismoftheConventionunderArticle11.TheGCFwillsupportprojects,programmes,policiesandotheractivities indevelopingcountryParties.TheFundwillbegovernedbytheGCFBoard.IndependentTechnicalAdvisoryPanel (ITAP): Provides independent technical assessmentof, andadviceon,fundingproposalsfortheGCFBoard.ThePanelconductsthetechnicalassessmentsattheanalysisandrecommendationstotheBoardstageoftheFund’sprojectandprogrammeactivitycycle.ThisisdoneinaccordancewiththeFund’sinitialproposalapprovalprocess,andinordertoprovideobjectivetechnicaladviceonfundingproposalsfortheBoard.
Indicator:Ameasurablecharacteristicorvariablewhichhelpstodescribeanexistingsituationandtotrackchangesortrends–i.e.progress–overtime.IntendedNationallyDeterminedContributions(INDCs):Aretheprimarymeansforgovernmentstocommunicateinternationallythestepstheywilltaketoaddressclimatechangeintheirowncountries.INDCsreflecteachcountry’sambitionforreducingemissionsandadapttoclimatechangeimpacts,takingintoaccountitsdomesticcircumstancesandcapabilities.Theypairnationalpolicysetting—inwhichcountriesdeterminetheircontributions—withaglobalframeworkundertheParisAgreementthatdrivescollectiveactiontowardazero-carbon,climate-resilientfuture.
Ø NationallyDeterminedContribution(NDC):ascountriesformally jointheParisAgreementandlookforwardtoimplementationoftheseclimateactions–the“intended”isdroppedandanINDCisconvertedintoaNationallyDeterminedContribution(NDC).UndertheprovisionsoftheParisAgreement,countrieswillbeexpectedtosubmitanupdatedNDCeveryfiveyears,
GCFAccreditationToolkit-2017
12
whichwillrepresentaprogressionbeyondthecountry’sthencurrentNDCtoreflectitshighestpossibleambition.
IntergovernmentalPanelonClimateChange(IPCC):Establishedin1988bytheWorldMeteorologicalOrganization and the UN Environment Programme, the IPCC surveys world-wide scientific andtechnicalliteratureandpublishesassessmentreportsthatarewidelyrecognisedasthemostcredibleexisting sources of information on climate change. The IPCC also works on methodologies andrespondstospecificrequestsfromtheConvention'ssubsidiarybodies.TheIPCCisindependentfromtheConvention.Intermediation: Activities involving investments through financial intermediation functions orthroughdeliverymechanismsinvolvingfinancialintermediation.Investmentcriteria:SixinvestmentcriteriaadoptedbytheBoard,namelyimpactpotential,paradigmshift potential, sustainable development potential, needs of the recipient, country ownership andefficiency and effectiveness. There are coverage areas, activity-specific sub-criteria, and indicativeassessment factors thatprovide furtherelaboration.Please refer to theBoarddecisionon furtherdevelopmentoftheInitialInvestmentFrameworkwhichprovidesmoredetailedexplanationoftheFund’sinvestmentcriteria.
InvestmentFramework:TheFund’sInvestmentFrameworkdetailspossibleindicators(orindicativeassessment factors) thatmayhelpentities toquantify impactpotential.Forexample,a renewableenergyproject/programmemaywish toprovide theexpectednumberofMegawatt (MW)of low-emissionenergycapacityinstalled,generatedand/orrehabilitated.
Internal audit: Is the examination,monitoring and analysis of activities related to an institution’soperations. Audits are important components of an institution’s risk management by helping toidentify issues before they becomemajor problems. Internal audits may take place over varyingperiodicitiesdependingonthefunctionbeingaudited,withsomedepartmentsbeingauditedmorefrequentlythanothers:adaily,weekly,monthlyorannualinternalauditmayassesstheeffectivenessofaninstitutionsinternalcontrolsystemsandhelptouncovercasesoffraud,wasteorabuse.
Ø Auditing process: An internal audit will generally begin by the auditing officer assessingcurrentinstitutionalprocessesandprocedures,followedbyanalysesandcomparisonoftheseresultversusinternalcontrolobjectives,todeterminewhetherinternalpolicies,nationalandinternationallawsarebeingcompliedwith.Finally,theauditor’sreportwillbepresentedtoseniormanagement.
Ø Financial auditing:When auditing financials, the goal will be to determine whether theinstitutionsfinancialstatementscomplywiththegenerallyacceptedaccountingprinciplesofthat particular jurisdiction. Itwill ensure that the financial records are a fair and accuraterepresentationofthetransactionsthattheyclaimtorepresent.
Ø Auditors:Auditorscanbeinternalemployeesand/orexternaloutsidefirms.
Internalcontrols:asdefinedbytheCommitteeofSponsoringOrganisations(COSO)oftheTreadwayCommission, internalcontrolsaretheprocessessetbyanentity’sboardofdirectors,managementand other personnel, that are designed to provide assurances that an entity’s objectives in the
GCFAccreditationToolkit-2017
13
effectivenessandefficiencyoftheiroperations,thereliabilityoffinancialreporting,andcompliancewithapplicablelawsandregulations.Notwointernalcontrolsystemswillbethesame,however,theyshouldallbedocumentedtocreateanaudittrail.Internalcontrolswillgenerallybedefinedintwocategories:preventativeanddetective.
Ø Preventative:Preventative internal controlsarepoliciesandprocedures thatdonotallowcertainactivitiestotakeplace,thereforeareaproactivefirstlineofdefenceespeciallywithina financial accounting system. E.g. the segregation of dutieswhereas tasks aredelegatedamongstseveralstaffmemberstoensurenosinglepersonisinapositiontoauthorise,record,andbeincustodyofafinancialtransactionandresultingasset.
Ø Detective:Detective internal controlsare thebackupprocedures thatensurepreventativeinternal controls operate as intended, allowing itemsor eventsmissed by the first line ofdefencetobecaughtwithinasecondsetofcontrols.E.g.performancereviewsofbudgets,forecastsandotherbenchmarks;thefollow-upofunexpectedconditionsorunusualresults;externalauditsfromaccountingfirmsandinternalauditingofassets.
Knowyour customer (KYC) duediligence: The process of identifying and verifying the identity ofclients.Thisprocessmayalsobeusedforthepurposeofensuringagents,consultantsanddistributorsprocuredareanti-moneylaundering,anti-briberyandanti-terroristfinancingcompliant.KYCshouldencompass a customer policy, customer identification process, monitoring of transactions andfinancialriskmanagement,andequivalentprocesses.
KyotoProtocol:Aninternationalagreementstandingonitsown,andrequiringseparateratificationby governments, but linked to theUNFCCC. TheKyotoProtocol, amongother things, setsbindingtargetsforthereductionofgreenhouse-gasemissionsbyindustrialisedcountries.LeastDevelopedCountries(LDCs):Theworld'spoorestcountries.ThecriteriacurrentlyusedbytheEconomicandSocialCouncil(ECOSOC)fordesignationasanLDCincludelowincome,humanresourceweaknessandeconomicvulnerability.LeastDevelopedCountryFund(LDCF):theLDCFisafundestablishedtosupportaworkprogrammetoassistLeastDevelopedCountryPartiestocarryout,interalia,thepreparationandimplementationofnationaladaptationprogrammesofaction(NAPAs).TheGlobalEnvironmentFacility,astheentitythatoperatesthefinancialmechanismoftheConvention,hasbeenentrustedtooperatethisfund.
Logframe:Oneofthemostusedmethodstoarticulateandclarifyhowasetofactivitieswillachievethedesiredoutcomesandobjectiveofaproject(orits‘theoryofchange’).Thelogframerepresentsaresults map or results framework which is part of Result Management Framework (RMF). Thelogframe also captures basic monitoring and evaluation (M&E) requirements. Theproject/programme’slogframeiscriticaltodeterminingthecostsattheactivitylevelrequiredintheproposaltemplate,theoverallbudget,andthetimelineandkeymilestones.Lossanddamage:AtCOP16inCancunin2010,Governmentsestablishedaworkprogrammeinorderto consider approaches to address loss and damage associated with climate change impacts indevelopingcountriesthatareparticularlyvulnerabletotheadverseeffectsofclimatechangeaspartoftheCancunAdaptationFramework.
GCFAccreditationToolkit-2017
14
Mitigation:Inthecontextofclimatechange,ahumaninterventiontoreducethesourcesorenhancethe sinks of greenhouse gases. Examples include using fossil fuels more efficiently for industrialprocessesorelectricitygeneration,switchingtosolarenergyorwindpower,improvingtheinsulationofbuildings,andexpandingforestsandother"sinks"toremovegreateramountsofcarbondioxidefromtheatmosphere.MRV:Measurable, reportable and verifiable. A process/concept that potentially supports greatertransparencyintheclimatechangeregime.
MultilateralImplementingEntity(MIE):WithrespecttotheGreenClimateFundortheAdaptationFund,MultilateralInstitutionsandRegionalDevelopmentBankschosenbyeligiblePartiestosubmitproposalstotheBoard,willbearthefullresponsibilityfortheoverallmanagementoftheprojectsandprogrammesfinancedbytheFundandwillbearallfinancial,monitoringandreportingresponsibilities.
Monitoring:Systematicandcontinuouscollectionofinformationthatenablesstakeholderstocheckwhetheraninterventionisontrackorachievingsetobjectives.NationalAdaptationPlan(NAP):Accordingtodecision5/CP.17,paragraph1,theobjectivesoftheNAPprocessare:a) to reducevulnerability to the impactsofclimatechange,bybuildingadaptivecapacityandresilience;andb)tofacilitatetheintegrationofclimatechangeadaptation,inacoherentmanner,intorelevantnewandexistingpolicies,programmesandactivities,inparticulardevelopmentplanningprocessesandstrategies,withinallrelevantsectorsandatdifferentlevels,asappropriate.
National Adaptation Programmes of Action (NAPAs): Documents prepared by least developedcountries(LDCs)identifyingurgentandimmediateneedsforadaptingtoclimatechange.
National Designated Authority (NDA): A core interface and the main point of communicationbetweenacountryandtheFund.TheNDAseekstoensurethatactivitiessupportedbytheFundalignwithstrategicnationalobjectivesandpriorities,andhelpadvanceambitiousactiononadaptationandmitigation in linewithnationalneeds.AkeyroleofNDAs istoprovide lettersofno-objectionsforprojectproposals.Paradigm shift: A fundamental shift of all countries towards low-carbon and climate-resilientsustainable development, in accordancewith the GCF agreed results areas and consistentwith acountry-drivenapproach.Itshouldbenotedthatthis isnotanofficialdefinitionfromtheGCFandthat the terms ‘paradigmshift’and ‘transformationalchange’areoftenused interchangeably.Theparadigmshiftofaprojectcorresponds to thedegree towhich theproposedactivitycancatalyseimpactbeyondaone-offproject/programmeinvestment.Thiscanbeemphasisedbyprovidingfurtherdetailsonthefourrelatedfactors:
Ø Potential for scalingupand replication: Theproposal should illustratehow theproposedproject/programme’s expected contributions to global low-carbon and/or climate resilientdevelopmentpathwayscouldbescaledupandreplicated,includingadescriptionofthestepsnecessarytoaccomplishit.
GCFAccreditationToolkit-2017
15
Ø Potentialforknowledgeandlearning:Anypotentialforthecreationorthestrengtheningofknowledge,collectivelearningprocessesorinstitutionsshouldbehighlighted.
Ø Contributiontothecreationofanenablingenvironment:Thesustainabilityofoutcomesandresultsbeyondthecompletionoftheinterventionshouldbehighlighted.Theproposalshouldexplainhowproposedmeasureswill createconditions thatareconducive toeffectiveandsustained participation of private and public-sector actors in low-carbon and/or resilientdevelopmentthatgobeyondtheprogramme.
Ø Contributiontoregulatoryframeworkandpolicies:Theproposalshouldelaborateonhowtheproposedproject/programmeadvancesnational/localregulatoryorlegalframeworkstosystematically drive investment in low-emission technologies or activities, promotedevelopmentofadditionallow-emissionpolicies,and/orimproveclimate-responsiveplanninganddevelopment.
PerformanceMeasurement Framework (PMF): A performancemeasurement system intended tomonitor theFund’s resultsat theproject,programmeandaggregateportfolio levels.TheGCFhasdistinctPMFsformitigation,adaptationandREDD+activities.ThePMFscompriseasetofindicatorsthatmeasureprogress towards intendedresultsbasedon theparadigm-shiftobjective,Fund-levelimpactsandproject/programmeoutcomesoutlinedintheFund’smitigation,adaptationandREDD+logicmodels.Privateclimatefinance:Thefinancialresourcesmobilisedfromprivatesectortoleveragethepublicclimatefinanceinmitigatingandadaptationontheimpactofclimatechangeindevelopingcountries.Privateclimate finance is represented inmany formssuchasForeignDirect Investment (FDI),andphilanthropictomentionafew.Procurement: The process through which products and services are acquired or purchased.Procurementtakesintoaccountthebudgeting,supplychainandpayment,amongstotherfactors.Theprocurement process will also involve identifying an entity’s needs, identifying and evaluatingpotentialsuppliers,andnegotiatingwiththesesuppliersoverthepriceandquantitytofindthebestresultforanorganisationwithrespecttotheirculture,missionandmandate.
Ø ChiefProcurementOfficer(CPO):Aslargeprocurementscanbeverycomplexandlengthy,manyorganisationswillemployaCPOtohandlemajoracquisitions.
Ø Procurement laws:Most countries have strong government procurement laws to protectagainstfraudandlocalprotectionism.
Project:Asetofactivitieswithacollectiveobjective(s)andconcreteoutcomesandoutputsthatarenarrowlydefinedinscope,space,andtime;andthataremeasurable,monitorable,andverifiable.ProjectPreparationFacility(PPF):SupportsAEsinprojectandprogrammepreparation.Itisespeciallytargeted to support direct access entities, andmicro-to-small size category projects. The PPF cansupportprojectandprogrammepreparationcostsfromallAEs,especiallydirectaccessentitiesandespeciallyforprojectsinthemicro-to-smallsizecategory.FundingavailableisuptoUSD1.5millionforeachPPFrequest,andcanbeprovidedthroughgrantsandrepayablegrantswhileequitymaybeconsideredforprivatesectorprojectsthroughgrantsorequity.FundingproposalsdevelopedwiththePPFshouldbesubmittedtotheGCFBoardwithintwoyearsoftheapprovalofaPPFrequest.
GCFAccreditationToolkit-2017
16
Programme:Asetofinterlinkedindividualsub-projectsorphases,unifiedbyanoverarchingvision,commonobjectivesandcontributiontostrategicgoals,whichwilldeliversustainedclimateresultsandimpactintheGCFresultareasefficiently,effectivelyandatscale.Publicclimatefinance:Thefinancialresourcesthataremobilisedfromthepublicrevenuessourcessuchastaxestomitigateandadapttotheimpactsofclimatechangeindevelopingcountries.Results Management Framework (RMF): A life-cycle approach to results management throughmeasurementstoimprovedecisionmaking,transparencyandaccountability.Theapproachisinlinewith improving the way that the Fund functions by achieving outcomes through implementingperformancemeasurement,learningandadapting,inadditiontoreportingperformance.
Small Islands Developing States (SIDS): Low-lying coastal countries that tend to share similarsustainable development challenges, including small but growing populations, limited resources,remoteness,susceptibilitytonaturaldisasters,vulnerabilitytoexternalshocks,excessivedependenceoninternationaltrade,andfragileenvironments.TheSIDSwerefirstrecognisedasadistinctgroupofdeveloping countriesat theUnitedNationsConferenceonEnvironmentandDevelopment in June1992.Special Climate Change Fund (SCCF): The SCCF was established to finance projects relating toadaptation, technology transfer and capacity building, energy, transport, industry, agriculture,forestryandwastemanagementandeconomicdiversification.Thisfundshouldcomplementotherfunding mechanisms for the implementation of the Convention. The Global Environment Facility(GEF),astheentitythatoperatesthefinancialmechanismoftheConvention,hasbeenentrustedtooperatethisfund.
SpecialisedFiduciaryStandards:ThesestandardsrefertotheinstitutionalcapacitiesthatwillmakeentitieseligibletoundertakespecialisedactivitieswithintheGCFbasedonthenatureandscopeoftheirmandate.Theseinclude(a)Projectmanagement;(b)Grantawardmechanismsand/orfundingallocationmechanisms;and(c)On-lendingand/orblending.
Strategicplanning:Isanorganisation’sprocessofdefiningitsstrategyordirection.Inaddition,makingdecisionsontheallocationofresources,eitherfinancialorin-kindresources,towardsthepursuitofthis strategy or direction. Strategy itself has many definitions, but generally describes how anorganisation’sends(goals)willbeachievedbythemeans(resources).
Theoryofchange:Amethodologyforplanning,participationandevaluationthatisusedtopromotelong-termchange.Thetheoryofchangedefineslong-termgoalsandthenmapsbackwardtoidentifynecessarypreconditions.Theinnovationoftheoryofchangeliesinmakingthedistinctionbetweendesiredandactualoutcomes,aswellas inrequiringstakeholderstomodeltheirdesiredoutcomesbeforetheydecideonformsofinterventiontoachievethoseoutcomes.Thetheoryofchangeisaninclusiveprocessinvolvingstakeholderswithdiverseperspectivesinachievingsolutions.Theultimatesuccess of any theoryof change lies in its ability to demonstrateprogress on the achievementofoutcomes. Evidence of success confirms the theory and indicates that the initiative is effective.Therefore, the outcomes in a theory of change must be coupled with indicators that guide andfacilitatemeasurement.Theaddedvalueofatheoryofchangeliesinoutliningaconceptualmodel
GCFAccreditationToolkit-2017
17
thatdemonstratesthecausalconnectionsbetweenconditionsthatneedtochangeinordertomeettheultimategoals.
Trustfunds:FundsearmarkedforspecificprogrammeswithintheUNsystem.
United Nations Framework Convention on Climate Change (UNFCCC): Is an internationalenvironmentaltreatynegotiatedattheEarthSummitinRiodeJaneirofrom3to14June1992,thenenteredintoforceon21March1994.
Vulnerability:Thedegreetowhichasystemissusceptibleto,orunabletocopewith,adverseeffectsof climate change, including climate variability and extremes. Vulnerability is a function of thecharacter,magnitudeandrateofclimatevariationtowhichasystemisexposed,itssensitivityanditsadaptivecapacity.
GCFAccreditationToolkit-2017
18
1. SummaryRespondingtoclimatechangechallengesrequirescollectiveactionfromallcountries,governments,cities, communities, businesses and private citizens.With USD 10.3 billion currently pledged, theGreenClimateFund(GCF)istheworld’slargestfunddedicatedtothefightagainstclimatechange.DesignedtobethemainfinancialinstrumenttomobiliseUSD100billionperyearby2020frombothpublic and private sources, the GCF is the centrepiece to address the pressing mitigation andadaptationneedsofdevelopingcountries.
Whythistoolkit?
This toolkit is part ofUnitedNations Environment-funded project entitled “SupportUzbekistan inidentification,assessmentandstrengtheninganationalinstitutiontodirectlyaccessclimatefinancefrom theGCF", andaims toprovideguidanceonGCFprocessand requirements toUzbekentitiesinterestedinseekingaccreditation.
WhatdoestheGCFsupport?
The GCF aims to support developing countries in achieving a paradigm shift to low-emission andclimate-resilientpathways.Thisisachievedbyfundinginnovativeandtransformativelow-emission(mitigation)andclimate-resilient(adaptation)projectsandprogrammesdevelopedbythepublicandprivatesectorstocontributetotheimplementationofnationalclimatechangeprioritiesindevelopingcountries.Cross-cuttingprojectsthatdeliverco-benefitsintermsofbothmitigationandadaptationarealsoeligibleforfunding.
HowcanUzbekistanaccesstheGCF?
UzbekistancanaccesstheGCFthroughthreemainaccessmodalities:
• International Access: Through international Accredited Entities (AEs), whereby all three keyfunctions – fund oversight, management, and implementation – are undertaken at theinternationallevel;
• Direct Access (DA): Through national, sub-national and regional AEs. In this case, bothimplementationandexecutionaredelegatedtothenational level,usuallytoanationalentity;and,
• Enhanced Direct Access (EDA): Under this modality, only the fund oversight remains at theinternational,whilethefundmanagement,implementationandexecutionarealldelegatedtothenationallevel,usuallytoanationalentity.
AEsarelegallyaccountabledirectlytotheGCF’sBoardfortheoverallmanagementofprogrammesandprojects,aswellasforthefinancial,monitoringandreportingaspectsoffundedactivities.TheysuperviseormaycarryoutalsothefunctionsofExecutingEntities(EEs)thatareresponsiblefortheoperationalimplementationandexecutionofGCF-fundedprojectsorprogrammes.EEsaregenerallynotaccreditedwiththeGCFandthereforecannotreceiveitsfinancedirectly.
GCFAccreditationToolkit-2017
19
WhocanbecomeanAEoftheGCF?
To access the GCF’s finance through the direct access modality, Uzbekistan can support theaccreditation of a national or subnational Direct Access Entity (DAE). These can be nationalgovernment ministries and agencies, national development banks, financial intermediaries andclimate funds.Uzbekistancanselectanynumberofentities toaccess,manageanddistributeGCFfunding,anddoesnothavetogothroughanymultilateralagencies.Aprospectivesub-nationalornationalentitymustreceiveformalapprovalfromtheNDAthroughnomination.Inaddition,itmustdemonstratethattheyareabletomanagetheGCF’sresourceseffectivelyandefficiently,inlinewiththestandardsandcriteriasetoutintheGCF’saccreditationrequirements.International,regional,nationalandsubnationalentities-fromboththepublicandprivatesectors-can become AEs of the GCF, provided they successfully receive accreditation. In 2017, newapplicationsforaccreditationfromnationalDAEs,entities intheAsia-PacificandEasternEuropeanregions,privatesectorentities,inparticularthoseindevelopingcountrieswillbeprioritisedbytheGCFtoensureabalanceofdiversityofAEs.Inaddition,entitiesrespondingtoRequestsforProposals(RFPs) issued by the GCF will be favoured, for example including a pilot phase for EDA; a pilotprogramme to supportMicro Small andMediumEnterprises (MSMEs); and a pilot programme tomobiliseresourcesatscaleinordertoaddressadaptationandmitigation.Anentitycanapplyforaccreditationifitcandemonstrate:
• Asolidtrackrecordofimplementingthetypeofprojectsorprogrammesthattheinstitutionwilloverseeasanimplementingentity;
• Experienceinmanaginginternationalaidanddevelopmentorclimatefinance;• Effective and documented processes and policies to reduce fiduciary, environmental, and
socialrisks;and,• Itsscopeofworkshouldberelatedtoclimatechangeadaptationandmitigation.
HowtoapplyforGCFaccreditation?
Theaccreditationprocessincludesthreemainphases:
1. Pre-accreditationandcompletenesscheck;2. AccreditationreviewandGCFBoarddecision;and,3. Post-accreditationreviewandlegalarrangements.
Oncethelegalarrangementsareconcludedandtheentityisaccredited,theAEcansubmitaproposaltotheGCF.
HowtomeetGCFaccreditationrequirements?The GCF uses a ‘fit-for-purpose’ accreditation approach to enables a wide range of entities withdifferentlevelsofexistingcapacitiestogainaccreditation.Entitiescanqualifyfordifferentlevelsofaccreditation,dependingon their ability todemonstratea track recordof fiduciary standardsand
GCFAccreditationToolkit-2017
20
EnvironmentandSocialSafeguards(ESS).Inaddition,entitiesareexpectedtodemonstratetheyhavethecompetencies,policiesandprocedurestoperformactivitiesinlinewiththeGCF’sgenderpolicy.Becomingaccredited to theGCF is a rigorousprocess. It can takeas longas1-2 years tobecomeaccredited,whilstonaverage,ittakes6-9monthstocompletedependingonscope,sizeandrisklevelofaccreditation.HowtodevelopandsubmitafundingproposaltotheGCF?AnAEcansubmitfundingproposalstotheGCFspontaneouslyonan-ongoingbasisorbyrespondingtoanRFPpublishedontheGCFwebsite.FundingproposalssubmittedtotheGCFshouldincludeano-objection letter signedby theNationalDesignatedAuthority (NDA),Uzhydromet.Through theno-objection procedure, theNDA is responsible for ensuring that funding proposals are alignedwithnationalpriorities.TheGCFprojectcycleincludessevenmainsteps:
• TheAEortheNDA,Uzhydromet,submitsaconceptnote(voluntary);• TheAEsubmits the fundingproposal to theGCF, inconjunctionwithano-objection letter
signedbytheNDA,Uzhydromet;• TheGCFreviewsselectedsectionsoftheproposalandtheIndependentTechnicalAdvisory
Panel(ITAP)oftheGCFundertakesatechnicalassessmentandprovidesrecommendations.• Basedonthereviewandthetechnicalassessment,theGCFdecideswhetherornottoapprove
thefunding;• Ifthefundingproposalisapproved,aFundedActivityAgreement(FAA)betweentheAEand
theGCFisnegotiatedandsigned;• TheprojectorprogrammeenterstheGCFportfolio,movingintotheimplementationphase.
FundsaretransferredtotheAEaccordingtoagreedtranches;and,• Theprojectorprogrammebecomeseffective,andtheprocessofmonitoring,evaluationand
reportingcommencesandcontinuesuntiltheprojectorprogrammeclosesandexitstheGCF’sportfolio.
AEsshoulddevelopfundingproposalsincloseconsultationwiththeNDA,Uzhydromet,andwithdueconsiderationoftheGCF’sResultManagementFramework(RMF)andInvestmentFramework.TheGCF’sRMFdefinestheelementsofaparadigmshifttowardslow-carbonandclimateresilientcountry-drivendevelopmentpathwayswithinindividualcountriesandacrosstheFund’sactivities.TheRMFincludestwokeyelements:thelogicmodelandthePerformanceMeasurementFramework(PMF).The funding proposal should also include a brief description of the expected performance of theproposedproject/programmeagainst theGCF investment criteria. These are defined in theGCF’sInvestment Framework and include: climate impact potential, paradigm shift, sustainabledevelopment, responsiveness to the needs of the recipient, country ownership, efficiency andeffectiveness.
GCFAccreditationToolkit-2017
21
Whatsupportisavailabletoseekaccreditation?TheReadinessandPreparatorySupportProgrammewasestablishedbytheGCFtoenhancecountryownershipandbuildthecapacity(or ‘readiness’)ofnationalentitiesofaccessingtotheFund.Thisprogramme can provide funding to entities looking for accreditation to the GCF. Under thisprogramme,readinesssupportisavailabletoprospectivenationalentitiesseekingaccreditationandtoexistingdirectaccessentitiestodevelopprojectandprogrammepipelines.Thesupportisprovidedfor awareness raising of accreditation processes and standards, institutional gap analyses; anddevelopingpersonalisedcapacitybuildingplanstoaddress identifiedgaps.Arequest forreadinesssupportcanbesubmittedthroughtheNDA,Uzhydromet.
Onceaccredited,whatarethemonitoring,evaluationandreportingrequirementstofulfilasaGCFAccreditedEntity?TheAEsareprimarilyresponsiblefortheM&EofGCF-fundedprojectsorprogrammes,andwillreportaccordinglytotheGCF.M&Erequirementsincludethelogframeandidentificationofindicatorsinthefundingproposal,annualperformancereportsfromtheprojectorprogrammeandinterimandfinalevaluationsattheprojectorprogrammelevel.What’snext?Entities interested in applying for accreditationare invited to review theaccreditationapplicationdocumenttogetfamiliarisedwiththerequiredsupportingdocuments.Theycanalsocompletetheonlineaccreditationself-assessmenttoolontheGCFwebsitetodoanearlyassessmenttodetermineiftheirorganisationisreadytostarttheaccreditationprocessoftheGCFandhelpidentifyanyobviousgaps.ProspectiveentitiesarealsoencouragedtoexpresstheirinteresttotheNDA,Uzhydromet,inseekingaccreditationtotheGCF.
GCFAccreditationToolkit-2017
22
2. Introduction
2.1. PurposeofthisdocumentThis toolkit was commissioned through UN Environment’s project “Support Uzbekistan inidentification,assessmentandstrengtheninganationalinstitutiontodirectlyaccessclimatefinancefromtheGCF".Themainobjectiveof theproject is to identifya suitableDAE inUzbekistan tobeaccreditedtotheGCF.Assuch,thistoolkitaimstoprovideguidancetopotentialcandidatenationalUzbekentitiesthatseekaccreditationtotheGCFtoactasaGCFAE,regardingitsaccreditationprocessandrequirements.
2.2. LimitationsofthisdocumentThisdocumentshouldbeconsideredasa“living”documentandbesubjecttoreviewandmodificationinresponsetointeralia:changesintheGCFoperationalmodalitiesandpolicies.UsersofthistoolkitshouldalsobearinmindthattheGCF’sResultsBasedFramework,GenderPolicyandinterimESSarealso likely toevolve following thecompletionof the initial resourcemobilisationperiod,basedonexperience gained and lessons learned. In addition, it should be noted that while this documentintendstoinformpotentialapplicantsontheGCFaccreditationprocessandrequirements,itisaguideonlyanddoesnotguaranteelaterGCFaccreditation.
Wearealwaysseekingtoproducetoolkitsthatareappropriateforourtargetaudience.Ifyouhaveanysuggestionsonhowwecouldimprovethistoolkitpleasegetintouchwiththeauthors.
3. EssentialstoknowabouttheGCFbeforeseekingaccreditation
3.1. WhatdoestheGCFsupport?�The GCF finances low-emission (mitigation) and climate-resilient (adaptation) projects andprogrammes developed by the public and the private sector to contribute to the climate changeprioritiesofcountries.Cross-cuttingprojectsthatdeliverco-benefitsintermsofbothmitigationandadaptationareeligibleforfundingbytheGCF.Tohelpachieveaparadigmshifttowardslow-emissionandclimate-resilientdevelopment,theGCFhas identified eight strategic impact areas (see Figure 1), noting that for an individual project orprogramme,severalcanapply.
GCFAccreditationToolkit-2017
23
Figure1:GCFStrategicimpactareas(source:reproducedbyauthorsfromGCFInfographics)
3.2. Howmuchandwhattypeoffinanceisavailable?�
As of September 2017, the GCF has raised USD 10.3 billion equivalent in pledges from 43 stategovernments.Sofar,themajorcontributorshavebeentheUnitedStates,Japan,theUnitedKingdom,France and Germany. However, eight developing countries also pledged finance, including Chile,Colombia,Indonesia,Mexico,Mongolia,Panama,PeruandVietnam.TheGCFprovidesfourfinancialinstruments:grants,concessional loans,equityandguarantees(seeTable1below).Grants includereimbursable grants (providing funding after expenses have been incurred) and non-reimbursablegrants.Concessionalloansincludeseniorloansandsubordinateloans.Itisimportanttonotethattwoormoreinstrumentsmaybeblended,withmorethanoneinstrumentbeingusedbytheFunditselfon a particular project or programme, or a GCF instrument or instruments being combined withinstrumentsfromothersourcesoffinanciers.Grantsincludereimbursablegrants(providingfundingafterexpenseshavebeenincurred)andnon-reimbursablegrants.Concessionalloansincludeseniorloansandsubordinateloans.Itisimportanttonotethattwoormoreinstrumentsmaybeblended,withmorethanoneinstrumentbeingusedbytheGCFitselfonaparticularprojectorprogramme,oraGCFinstrumentorinstrumentsbeingcombinedwithinstrumentsfromothersourcesoffinanciers.Table1:GCFFinancialInstruments(source:Acclimatise,GCFproposaltoolkit2017)
Instrument Definitions
GrantsResourcesgenerallychannelledtofundinvestmentswithouttheexpectationthat the money be repaid. Grants can be provided up-front or disbursedthroughanincentive-basedscheduleafterachievingspecificgoals.
Grants can financeactivities thatwouldhave leftunfundedby themarketsuch as information generation, data analysis, development anddissemination of knowledge products; capacity building of nationalinstitutionsforarobustpolicyreformandprioritysetting.
ReimbursablegrantAssimilatedtoloans,reimbursablegrantsconsistincontributionprovidedtoarecipientinstitutionforinvestmentpurposes,withtheexpectationoflong-
GCFAccreditationToolkit-2017
24
termreflowsatconditionsspecifiedinthefinancingagreement.Theproviderassumestheriskoftotalorpartialfailureoftheinvestment;itcanalsodecideifandwhentoreclaimitsinvestment.
Non-reimbursablegrant
Unlikereimbursablegrants,non-reimbursablegrantsarestandardtransfersmade in cash, goods or services forwhich no repayment is required. Thisamountstodirectaidasopposedtorepayableassistance.
Concessionalloans
The up-front transfer of resources from one party to another with theagreementthatthemoneywillberepaidonconditionsmorefavourablethanmarkettermsisknownasconcessionalorsoftlending.Concessional lending includes a grant component that can be quantifiedbasedonhowfavourablethelendingtermsare(the‘grantelement’oftheloan).
Guarantees Commitmentsinwhichaguarantorundertakestofulfiltheobligationsofaborrower to a lender in the event of non-performance or default of itsobligationsbytheborrower,inexchangeforafee.Theycancovertheentireinvestmentorjustaportionofit(partialguarantee).
Equity Consistsofaninvestmentintoaprojectorassettoleveragedebtandachievebetterreturns.
3.3. WhatistheroleoftheNationalDesignatedAuthority?
CountriesappointaNDAtoactasaninterfaceandthemainpointofcommunicationbetweenthecountryandtheGCF.InUzbekistan,thisistheCentreofHydrometeorologicalService(Uzhydromet).TheNDAalsoplaysacrucialroleinfacilitating,supportingandcreatinganenablingenvironmentforGCFprocesseswithinaneligiblecountry.ActingasUzbekistan’sNDA,Uzhydrometisresponsiblefor:•ActingasthefocalpointforcommunicationwiththeGCF,AEsandnationalstakeholders(includingprivatesectoractors);•IdentifyingnationalfundingprioritiesforengagementwiththeGCF,throughthedevelopmentofastrategiccountryworkprogramme;•Nominating foraccreditationapplication sub-national andnationalentities applyingunder thedirectaccesstrack;and,•Recommend funding proposals and concept notes received fromAEs that are consistentwithnationallaws,regulations,developmentandclimatepriorities,throughtheimplementationoftheno-objectionprocedure.
�
GCFAccreditationToolkit-2017
25
Figure2:KeyfunctionsoftheNDA(source:AcclimatiseNDAtoolkit2017)
3.4. HowcanUzbekistanaccesstheGCF?
�UzbekistancansubmitfundingproposalstotheGCFthroughthreemainaccessmodalities(seeFigure3).Thesemodalitiescanbeusedsimultaneously.
Figure3:GCFaccessmodalities(source:AcclimatiseNDAtoolkit2017)
Internationalaccess:Underthismodality,UzbekistancanaccesstheGCFthroughinternationalAEs.The key functions – fund oversight, management, and implementation – are undertaken at theinternationallevelwithinamultilateralorinternationalinstitution,e.g.UnitedNationsDevelopment
GCFAccreditationToolkit-2017
26
Programme(UNDP)orUNEnvironment.Executionmaytakeplaceat thenational levelormaybemanagedwithinthemultilateralinstitution.
DA:Underthismodality,UzbekistancanaccesstheGCFthroughnational,sub-nationalandregionalAEs. These entities are referred as DAEs. In this case, only the fund oversight and managementfunctionremainattheinternationallevelandbothimplementationandexecutionaredelegatedtothenational level,usuallytoanationalentity.Also,theadministrationof funds iscarriedoutbyanationalentity.
EDA: Under this modality, only the fund oversight remains at the international, while the fundmanagement, implementation and execution are all delegated to the national level, usually to anationalentity.Unlike the traditionaldirectaccess track, therewillbenosubmissionof individualprojectsorprogrammesbecausedecision-making for the fundingof specificpilotactivitieswillbedevolvedatthecountrylevel.ThroughtheEDAmodality,theGCFaimstomovefromthefinancingofstand-aloneprojectstowardsamorecomprehensiveandstakeholder-drivenprogrammaticapproach.Theobjective is toenhancecountryownershipofprojectsandprogrammesbydevolvingdecisionmakingatcountrylevel,therebyallowinggreaterinvolvementandinputfromnationalstakeholders.ItshouldbenotedthattheEDAmodalityisstillbeingpilotedandassuch,mayevolveinthenearterm.UndertheEDApilotprogramme,USD200millionhasbeeninitiallyallocatedtosupportatleast10pilots,includingatleastfourpilotstobeimplementedinSmallIslandDevelopingStates(SIDS),LeastDevelopedCountries(LDCs)andAfricannations.Todate(asof12October2017),onlyonefundingproposalhasbeenapprovedatthe14thBoard(October2016)fromtheEnvironmentInvestmentFund(EIF) in Namibia “Empower to Adapt: Creating Climate-Change Resilient Livelihoods throughCommunity-BasedNaturalResourceManagement(CBNRM)inNamibia”.ThereiswiderangeofentitiesthatcanactasAEsfortheGCF.AEsarelegallyaccountabledirectlytotheGCF’sBoardfortheoverallmanagementofprogrammesandprojects,aswellasforthefinancial,monitoring and reporting aspects of funded activities. In addition to project managementresponsibilities,AEscanbe intermediarieswhichadministergrantsand loanswhileblendingfundswiththeirownandothers.AEsarealsocommonlyreferredtoasImplementingEntities(IEs),whilenational and regional DAEs are referred as National Implementing Entities (NIEs) and regionalImplementingEntities(RIEs)respectively,andinternationalaccessentitiesarereferredasMultilateralImplementing Entities (MIEs). Working under the oversight of AEs, EEs are responsible for theoperationalimplementationandexecutionofGCF-fundedprojectsorprogrammes.EEsaregenerallynot accreditedwith theGCF and therefore cannot receive its finance directly. However, they areexpectedtooperateinaccordancewiththeGCF’srelevantstandardsandguidelines.AnAEmayalsocarryoutthefunctionsofanEE.ThelistofexistingAEsisavailableat:
{www.greenclimate.fund/partners/accredited-entities/ae-directory}.
3.5. Whatistheroleoftheprivatesector?�
The GCF aims at maximising private sector engagement in climate change activities to providetransformational solutions and catalyse private finance. To achieve this, the GCF has set up a
GCFAccreditationToolkit-2017
27
dedicated Private Sector Facility (PSF) throughwhich it is engagingwith pension funds, insurancecompanies,corporations,localandregionalfinancialintermediaries,andthecapitalmarkets.ThePSFis managing two alternative mechanisms: the mobilisation of funding at scale and MSME pilotprogrammes.The formeraims tomobilise fundsat scale from institutional investors suchas commercialbanks,investmentfunds,insurancecompanies,pensionfundsandsovereignwealthfunds.Toengagewiththese institutional investors, the Fund intends to develop a rangeof investible financial products,someofwhich include: green bonds, commercial paper, syndications and club deals. Institutionalinvestorscanbenefitfromtheseproducts,whichcanhelpthemtoraiseadditionalthird-partycapitalforclimaterelatedinvestments.Initially,USD500millionhavebeenallocatedtothisprogrammeandan RFPwas launched to identify aminimum of three high-impact projects and programmes thatmobiliseprivatesectorinvestmentinclimatechangeactivityatscale.Intotal,350conceptnoteswerereceivedandapproximately150wereshortlistedforapreliminaryreview,conductedinOctober2017.The20-30bestconceptnoteswillbeannouncedinearlyDecember20171.ThelatterusespublicfinancetoworkwithlocalMSMEs–tounlockinnovativesolutionsfortacklingclimatechange,inparticularonadaptationusingRFPstowhichallAEsthatareabletodemonstrateatrackrecordofsuccessfullyworkingwithandfinancingMSMEs,canrespondto.AfirstMSMERFPwaslaunchedin2016.Twooftheselectedproposals,bothfromDAEs,wereapprovedatits15thBoardbyXacbank,acommercialbank fromMongolia for the ‘BusinessLoanProgrammeforGHGEmissionsReduction’proposalandthe‘SCFCapitalSolutions’proposaloftheDevelopmentBankofSouthernAfrica.AsecondMSMERFPisexpectedtobepublishedsoon,basedonthelessonslearnedfromthefirstround.
1Furtherinformationisavailableat:http://www.greenclimate.fund/documents/20182/730867/RFP_Results_Snapshot.pdf/cecb671f-ef12-48a4-bc97-57b3d2ae419b
Figure4:SupportprovidedbytheGCF’sPrivateSectorFacility(PSF)(source:Acclimatise,GreenClimateFundProposalToolkit2017)
GCFAccreditationToolkit-2017
28
4. WhocanbecomeaGCFAccreditedEntity?��
�4.1. Overview
International,regional,nationalandsubnationalentities-fromboththepublicandprivatesectors-can become AEs of the GCF, provided they successfully receive accreditation. In 2017, newapplicationsforaccreditationfromnationalDAEs,entities intheAsia-PacificandEasternEuropeanregions,privatesectorentities,inparticularthoseindevelopingcountrieswillbeprioritisedbytheGCFtoensureabalanceofdiversityofAEs.Inaddition,entitiesrespondingtoRFPsissuedbytheGCFwillbefavoured,forexampleincludingapilotphaseforEDA;apilotprogrammetosupportMSMEs;andapilotprogrammetomobiliseresourcesatscaleinordertoaddressadaptationandmitigation.Anentitycanapplyforaccreditationifitcandemonstrate:
• Asolidtrackrecordofimplementingthetypeofprojectsorprogrammesthattheinstitutionwilloverseeasanimplementingentity;
• Experiencemanaginginternationalaidanddevelopmentorclimatefinance;• Effective and documented processes and policies to reduce fiduciary, environmental, and
socialrisks;and,• Itsscopeofworkshouldberelatedtoclimatechangeadaptationandmitigation.
To access the GCF’s finance through the direct access modality, Uzbekistan can support theaccreditation of a national or subnational DAE. These can be national governmentministries andagencies,nationaldevelopmentbanks,financial intermediariesandclimatefunds.Thecountrycanselectanynumberofentitiestoaccess,manageanddistributeGCFfunding,anddoesnothavetogothroughanymultilateralagencies.Aprospectivesub-nationalornationalDAEmustreceive formalapprovalfromtheNDAthroughnomination.Inaddition,itmustdemonstratethattheyareabletomanagetheGCF’sresourceseffectivelyandefficiently,inlinewiththestandardsandcriteriasetoutintheGCF’saccreditationrequirements.InordertobecomeaccreditedtotheGCF,asubnationalornationalentitymustmeetthefollowingrequirements2:
• Basicfiduciarystandards;• Specialisedfiduciarystandards;• Environmentalandsocialsafeguards;and,• Genderpolicy.
2 The full application form is available at: https://www.greenclimate.fund/documents/20182/574712/Form_05_-_Accreditation_Application.pdf/7cef5ed0-e42e-475a-9bd7-e099d64d6231
GCFAccreditationToolkit-2017
29
Figure5:TheGCF’sbasicandspecialisedfiduciarystandards,ESSandgenderpolicy(source:AcclimatiseNDAtoolkit2017)
FurtherinformationonthesespecificaccreditationrequirementsisprovidedinSection6.
4.2. Fit-for-purposeaccreditationThe GCF uses a ‘fit-for-purpose’ accreditation approach to enable a wide range of entities withdifferentlevelsofexistingcapacitiestogainaccreditation.Entitiescanqualifyfordifferentlevelsofaccreditation,dependingontheirabilitytodemonstrateatrackrecordoffiduciary,environmentandsocialstandards.Basedon this simplifiedand tieredapproach, fiduciary standardsandESSareadjusted to suit thenature, scope and risks of the proposed activities (by activity and institution type). This tieredapproach classifies applicant entities according to the intended scale, nature and risks of theirproposedactivities.
GCFAccreditationToolkit-2017
30
Throughthefit-for-purposeapproach,entitiescangetaccreditedbasedon:• Theirintendedfiduciaryfunctions;• Thesizeoftheirproposedprojectsandactivitieswithinprogrammes;and,• The environmental and social risk level of their proposed projects and activities within
programmes.
Figure6.TheGCF’sfit-for-purposeapproachtoaccreditation,relatedtotheintendedscope(fiduciaryfunctions),intendedsize(projectsize)andintendedenvironmentalandsocialriskofintendedactivitiesusingGCFfunding(source:AcclimatiseNDAtoolkit2017)
GCFAccreditationToolkit-2017
31
4.3. StatusoftheGCF’saccreditationportfolioAsofOctober2017,59entitieshavebeenaccreditedtotheGCF,andthereare186entities intheaccreditationpipeline.MostoftheAEsaremultilateral(46%)–asshownbelow:
�
�
�
�
�
�
�
�
�
Figure7:RepartitionofAEsperaccessmodality(source:preparedbytheauthors)
ThosemultilateralAEsinclude:
• Multilateraldevelopmentinstitutions,suchastheUnitedNationsDevelopmentProgramme(UNDP);
• Multilateraldevelopmentbanks,suchastheWorldBankandtheAsianDevelopmentBank(ADB);
• Commercialfinancialinstitutions,suchasHSBC;and,• Internationalnon-governmentorganisations,suchasConservationInternationalFoundation;• Privatedevelopmentbanks,suchasGroupeAgenceFrançaisedeDéveloppement(theFrench
DevelopmentBank).Therearealso21nationalDAEs,aspresentedinthetablebelow.
GCFAccreditationToolkit-2017
32
Table2:NationalDAEstotheGreenClimateFund(source:GCFdirectoryofAccreditedEntities)
Organisation Country DescriptionAgency for AgriculturalDevelopment(ADA)
Morocco Nationalpublicentitywhichprovidesactionplansandvalue-addedsolutionstoaddressagriculturalneedsatthe
localandnationallevels.Itsmandate,underthenationalgreenplaninplacesince2008,istocontributetosocial
and economic development through more resilient and productive agriculture. ADA has developed a
comprehensive portfolio of climate change-related projects and programmes worth approximately USD 33
million,whichhasbeenfinancedbybilateralandmultilateralorganisations.
CDGCapital Morocco Financialinstitutionwhichfocusesonassetmanagementservices,corporateandinvestmentbankingandcapital
investment.
China Clean DevelopmentMechanism FundManagementCentre(China CDM FundManagementCentre)
China NationalclimatefundthatsupportslowcarbongrowthandclimateresilienceinChina.Itisarevolvingfundthat
receivesregularcapital injectionsfromleviescollectedbythegovernmentoncleandevelopmentmechanism
projectsinChina(UNFCCC).
Centre de Suivi Écologique(CSE)
Senegal National entitywhose core activities include environmentalmonitoring, natural resourcesmanagement and
conductingenvironmentalimpactassessments.Ithasbuiltpartnershipsatthelocal(subnational)andnational
levels, as well as with international donors, in order to develop climate change projects and programmes,
particularlyintheareasofenvironment,agricultureandlivestock.
DepartmentofEnvironment(DOE)
Antiguaand
Barbuda
TheDOEbelongstothecountry’sMinistryofHealthandEnvironment.Itsmissionistoprovidetechnicaladvice
andimplementprojectsandprogrammesonbehalfoftheGovernment.Theseprojectsaredesignedtoprotect
and enhance the country's environment, aswell as seek common solutions to national, regional and global
environmentalproblems(DOE’swebsite).
Environmental InvestmentFund(EIF)
Namibia This isanationalentityandenvironmental fund thatwasestablishedwithamandateofbeinga sustainable
source of funding for the development and implementation of environmentally sustainable development
projectsandprogrammesinpartnershipwithbothpublicandprivatesectororganisations.
GCFAccreditationToolkit-2017
33
Organisation Country Description FijiDevelopmentBank(FDB) Fidji ProvidesfinanceforprojectsthatcontributetothedevelopmentofFiji’seconomy.Loanfundsareprovidedfor
agricultural,smallandmedium,aswellascorporateenterpriseprojects.FDBfocusesonthefollowingsectors:
agriculture, miningandquarrying,manufacturing, transport, communicationsand storage,wholesale, retail,
hotelsandrestaurants,professionalandbusinessservices,buildingandconstructionandrealestate.
TheFijigovernmentalsousesFDBasafinancialvehicleinitsdevelopmentprojects/plansandspecialassistance
programmes thatmay be necessary from time to time. Over the years FDB has introduced a range of loan
packagesandservicesaligningitwithitsstrategicobjectivesandcustomerdemands(FDB’swebsite).
Foreign EconomicCooperationOffice(FECO)
China FECO is part of theMinistry of Environmental Protection of China, with amandate of improving economic
cooperation in the area of environmental protection through management of financial assistance from
internationalfinancialorganisations.FECOmobilisesfinancialresourcesfrominternationalandbilateralsources.
Sinceitsestablishment,FECOhasimplementedprojectsthatprotecttheenvironmentandcontributetoclimate
changemitigationandadaptationintheagriculture,forestry,transport,energyandwaterresourcessectors.
Infrastructure DevelopmentCompanyLimited(IDCOL)
Bangladesh IDCOL is a non-bank financial institution (NBFI) that finances the development of medium to large-scale
infrastructureandrenewableenergyprojectsinBangladesh.Thecompanyisthemarketleaderinprivatesector
energyandinfrastructurefinancinginthecountry.
Korea Development Bank(KDB)
Korea Nationalentitythatwasfoundedwiththepurposeofsupplyingandmanagingmajorindustrialcapitaltohelp
developtheeconomyoftheRepublicofKorea.Sinceitsestablishment,KDBhasbeenprovidingfinancingforthe
development and promotion of industries, the expansion of social infrastructure development of countries,
includingthatoftheRepublicofKorea,thestabilizationoffinancialmarketsandthefacilitationofsustainable
growth.KDBhasplacedclimatechangeandsociallyresponsibleinvestmentaspolicyissuesthatareaddressed
initsannualplanning.
Ministry of Finance andEconomic Cooperation(MOFEC)
Federal
Democratic
Republicof
Ethiopia
MOFEC’smandateistooverseetheplanningandimplementationofdevelopmentprogrammes,includingthose
thataddressclimatechange. Itsactivities inclimate-resilientdevelopmentpathways,valuedatoverUSD400
million, include mitigation and adaptation projects and programmes in a variety of sectors, particularly
agriculture,water,energy,forestry,buildings,industriesandtransport.Someofitskeyactivitiesinthesesectors
includenaturalresourcesmanagementthroughwatershedmanagement,afforestationandreforestation,energy
generationandaccess,andlow-carbontransportsystems.
GCFAccreditationToolkit-2017
34
Organisation Country Description Ministry of NationalResources of Rwanda(MINIRENA)
Rwanda Nationalentity,specificallyapublicsectorministry,whichisresponsibleforenvironment,climatechangeand
natural resources management at the local and national levels. MINIRENA in partnership with national
stakeholders,hasastrategyinplacetosupportnationaldevelopmentgoals,particularlyingreengrowth,climate
resilience,andthesustainablemanagementandconsumptionofnaturalresources.ThegoalofMINIRENAisto
provide solutions to the environmental and resource challenges faced, including the imbalance between
populationandnaturalresourcesthathasseriousimpactsonsectorssuchasagriculture,energy,infrastructure,
land,waterresourcesandforestry,inachievingnationallong-termsustainabledevelopment.
National Bank forAgriculture and RuralDevelopment(NABARD)
India National financial institution in IndiawithatotalbalancesheetofoverUSD40billion. Ithasthemandateof
promoting sustainable agriculture and rural development through innovative, sustainable and equitable
agricultureandruralprosperitybyprovidingfinancialandtechnicalsupport.Ithasbuiltpartnershipswithother
nationalentities, financial institutionsandnon-governmentalorganisations inorder to implement innovative
ideas through loans, guarantees, blended finance and other structures in the areas of agriculture, natural
resourcesmanagement, fisheries, rural livelihood improvement, renewableenergyandmicro financeamong
others.
National EnvironmentManagement Authority(NEMA)
Kenya Nationalentitywhichwasestablishedin2002withtheobjectivesofsupervisingandcoordinatingenvironmental
activitiesandservingasthemainnationalbodytoimplementenvironmentalpolicies inallsectorswithinthe
country. In addition to its role as an environmental regulatorybody,NEMAadditionally implements its own
projects.NEMAhasvastexperienceinthefieldofclimatechangeadaptationandmitigation,co-implementing
projectsrangingfromUSD10milliontoUSD255millionwithlocalandinternationalorganisations.Someofits
past and current activities include building resilience to climate change and adaptive capacity of vulnerable
communities, environmental management, coastal development, technical assistance and natural resource
management.
Palli Karma-SahayakFoundation(PKSF)
Bangladesh Wasestablishedtofightagainstpovertythroughemploymentgeneration.Itisanon-for-profitcompanywhose
objectivesaretoprovidefinancialassistanceandinstitutionaldevelopmentsupporttoappropriateorganisations
for implementing sustainable inclusive financial programmes for reduction of poverty through creating
productiveemploymentopportunitiesforthemoderateandultra-poor,smallandmarginalfarmersandmicro-
entrepreneurs(PKSFwebsite).
GCFAccreditationToolkit-2017
35
Organisation Country Description Peruvian Trust Fund forNational Parks andProtected Areas(Profonanpe)
Peru Nationalentityandenvironmentalfundwhosemandateistoprovidestableandlong-termfundingaswellasto
develop and implement innovative strategies for conservation and management of protected areas. Its
partnershipsatlocal,national,andinternationallevelswithdonorshaveallowedittoaddressclimatechange
issues such as deforestation and forest degradation as well as to develop climate change projects and
programmes,particularlyintheareasofenvironment,agricultureandlivestock.
PT Sarana MultiInfrastruktur(PTSMI)
Indonesia National entitywith the goal of serving as a catalyst for accelerating national infrastructure development in
Indonesia. PT SMI supports the fulfilment of its government’s infrastructure development objectives by
implementing projects through public–private partnerships. In addition, the entitymobilises resources from
multilateralandbilateralfinancialinstitutionsinordertofinanceinfrastructureprojects.PTSMIiscontributing
to the sustainable development and climate resilience of communities in Indonesia by financing water,
renewableenergygeneration,transportandagriculture-relatedinfrastructureprojects.
Small IndustriesDevelopment Bank of India(SIDBI)
India SpecificallyaddressesthefinancialanddevelopmentalneedsoftheMSMEsector.FinancialsupporttoMSMEs
isprovidedbywayofindirectrefinancetobanksandfinancialinstitutionsforonwardlendingtoMSMEsandvia
directfinanceinareaslikeriskcapital,sustainablefinance,receivablefinancingandservicesectorfinancing.
South African NationalBiodiversity Institute(SANBI)
SouthAfrica National entity and a research institute that coordinates research, monitors and reports on the state of
biodiversityinSouthAfrica.SANBIalsoprovidesplanningandpolicyadviceandpilotsmanagementmodels.It
has developed and implemented climate-resilient projects that deliver multiple and sustainable benefits to
communitiesinanefforttorespondtolocaladaptationneedsandnationalclimatechangepriorities.SANBIhas
achievedthisbymobilisingfinancialresourcesfromvarioussources,includingmultilateralfinancialinstitutions.
UnidadParaelCambioRural(Unit for Rural Change,UCAR)
Argentina Government agency located within the Ministry of Agroindustry, which is responsible for implementing
environmentalandsocialsustainableprojectsfinancedtotallyorpartiallybyexternalresourcesatthenational
andprovinciallevels.UCARoffersawidevarietyofpublicinvestmentsinruralservicesandinfrastructurethrough
grants,concessional loansandguarantees.UCAR, inpartnershipwithnationalstakeholders,hasastrategy in
placetosupportnationalsustainabledevelopmentandgrowth,particularly intheforestry,agriculture,sugar
industry,fisheries,aquaculture,trainingandinnovationsectors.
GCFAccreditationToolkit-2017
36
Organisation Country Description XacBank Limited LiabilityCompany(LLC)
Mongolia PrivatecommercialbankthatservesclientsfromindividualsandMSMEstoMongolia’slargestcorporationswith
afullspectrumofinclusivebanking,fairinvestmentandotherfinancialproductsandservices.Theentitystrives
tobeadynamicleaderintheMongolianfinancialsector,settingthehigheststandardsincorporategovernance
andsocialandenvironmentalresponsibility,whilereturningfairvaluetoitsshareholders.
GCFAccreditationToolkit-2017
37
5. HowtoapplyforGCFaccreditation?
5.1. Whatarethekeyconsiderationsbeforestartingtheaccreditationprocess?
• Accreditation is a time-intensive process and a minimum of six months (if no readinesssupport is required) should be planned to be dedicated to the process. The prospectiveaccreditedentitywillberequiredtofrequentlyinteractwithkeyGCFstakeholdersalongtheaccreditationprocess,suchasthecountry’sNDA,theGCFRegionalAdvisor,SecretariatandAccreditationPanel.Threequartersofallaccreditationapplicantshaveexperienceddelayssofar,withdirectaccessentitiestakingonaverageninemonthstogainaccreditation(seeBox1);
• It is necessary to be able towrite, read and speak fluent English for the process, as allaccreditationdocumentsmustbesubmittedinthislanguage,inadditiontocommunicationssuchasemailandteleconferencing.TheGCFishoweverexploringthepossibilityofenablingsubmissioninalltheUNofficiallanguages;
• TheNDA’sapprovalisnecessarytoapplyforanationalorsubnationalentity.TheNDAwillprovidealetterofnomination,thatmustbeincludedintheapplication,toensurethattheentityiscontributingtothecountry’sclimatechangeanddevelopmentpriorities.
• Accreditationfeesmayberequiredpriortogainingaccreditationandwillvarydependingontheaccreditationscaleandscope.EntitiesinLDCsorSIDSarenotrequiredtopayanyfeesforbasicaccreditationcoveringmicroandsmall-sized.SeethefullfeesanddescriptioninTable3.IftheSecretariatorAccreditationPanelarerequiredtoreviewtheapplicationmorethantwice,additionalfeesmayapply;
• The GCF’s policies and guidelines change frequently following decisions made at Boardmeetingsand sometimes inbetween.That iswhy,entitiesmust continuouslymonitor theGCF’swebsite fornewdocuments tokeepup todate. Inaddition topolicies, requests forproposalsmaybepublishedandentitiesthatrespondtoRFPswillbeprioritised.AllnewGCFdocuments are available at: {https://www.greenclimate.fund/boardroom/board-meetings/documents};and,
• All application materials must be submitted electronically via the Online AccreditationSystem (OAS), since no hard-copy is accepted. The OAS allows applicants to check theirapplicationstatusonlineandreceiveregularnotifications.
TheOASrequestformisavailableontheGCFwebsiteat:{www.greenclimate.fund/documents/20182/319135/20160602_-_OAS_Account_Request_Form.docx/13906136-1e76-47d4-b2a7-ff291350baa8}TheOASplatformisavailableontheGCFwebsiteat:{https://accreditation.gcfund.org/_layouts/15/GCFLOGIN/Default.aspx?ReturnUrl=%2f_layouts%2f15%2fAuthenticate.aspx%3fSource%3d%252F&Source=%2F}
GCFAccreditationToolkit-2017
38
Box1.HowlongdoesittaketogetaccreditedtoGCF?Becomingaccredited to theGCF is a rigorousprocess. It can takeas longas1-2 years tobecomeaccredited,whilstonaverage,ittakes6-9monthstocompletedependingonscope,sizeandrisklevelofaccreditation.IfaprospectiveAEmeetsthefast-trackrequirements,theaccreditationpanelaimstomakeadecisionwithin3months.Thefast-trackisfororganisationsthathavealreadybeenaccreditedbytheGlobalEnvironmental Facility (GEF), Adaptation Fund (AF) and theDirectorate-GeneralDevelopment andCooperation–EuropeAidoftheEuropeanCommission(DGDEVCO).IforganisationsalsoapplyforsupportthroughtheGCFReadinessProgramme,thisprocessmaytakelonger.
5.2. Whatarethekeystagesandstepstoapplyforaccreditation?TheaccreditationprocessisstructuredaroundthreemainstagesasshowninFigure8.
Figure8:ThreestagesoftheGCFaccreditationprocess(source:AcclimatiseNDAtoolkit2017)
Stage1 OpeningofanOASaccount
NoobjectionletterbyNDA
Submissionofapplicationforaccreditation
Paymentaccreditationfee
Institutionalassessmentandcompleteness
checkbytheGCF
Stage2 ApplicationPanelreview
Boarddecisiononaccreditationapplication
Stage3 ValidationAEfeepayment
LegalarrangementsandAMA
GCFAccreditationToolkit-2017
39
Athree-stepprocessStage1.Pre-accreditationandcompletenesscheck:TheprospectiveAEtocollecttherelevantinformationanddocumentstoapplyforaccreditation.Thiswillbecompletedin5steps:
• TheprospectiveentitywillopenanaccountontheOASviatheGCFSecretariat.TheOASwillenabletheentitytocommunicatedirectlywiththeGCFSecretariat, includingonreadinesssupport(iftheentitymakesarequesttoseekreadinesssupport);
• The entity will request and/or receive a letter of nomination for accreditation from thecountry’sNDA;
• After having obtained a letter of nomination from the NDA, the entity can submit thecompleted application for accreditation through the OAS, including the requiredaccompanyinginstitutionalpolicydocumentandevidenceofimplementation;
• Theentitywillexecutepaymentoftherelevantaccreditationfees;and,• TheGCFSecretariatwillundertakeaninstitutionalassessmentandcompletenesscheckofthe
documentedmaterialprovidedby theentity regarding theentity’spolicies, standardsandguidelinesrelevanttotheGCF’saccreditationrequirements.
Theinstitutionalassessmentandcompletenesscheckisfinalisedoncetheentityhasprovidedallthenecessary documented material, and the accreditation application will move onto Stage 2 –accreditationreviewandBoarddecision.Iftheinformationisunclear,incompleteormissing,theGCFwillrequestadditionalevidence.Accreditation feeswillvarydependingontheaccreditationscaleandscopeapplied for.Entities inLDCsorSIDSarenotrequiredtopayanyfeesforbasicaccreditationcoveringmicroandsmall-sizedprojects;entitiesfromanyotherdevelopingcountryarerequiredtopayaminimumofUSD1,000.Feesforbasicaccreditationvary,fromUSD1,000foraccreditingmicrosizedfundingtoUSD25,000tolarge scale funding. Additional fees, which also rise with the scale of funding accredited for, arerequiredforeachspecialisedfiduciarystandardtheentitywishestogainaccreditationfor.ThefullfeesareoutlinedinTable3.ThesefeesarerequiredbeforetheaccreditationapplicationisapprovedbytheBoard,andotherfeesmayapply,forinstanceiftheGCFSecretariatorAccreditationPanelarerequiredtoreviewtheapplicationmorethantwice.
GCFAccreditationToolkit-2017
40
Table3:Overviewofaccreditationapplication'sfees(source:AcclimatiseNDAtoolkit2017)Financialcapacitycategory
Totalprojectedcostsat the time of theapplication
Fee level for accreditationapplication for basic fiduciarystandards,ESSandgender
Fee for accreditationapplication for specialisedfiduciarystandards
Micro Less thanorequal toUSD10million
DAE from developing countries: nofeeInternational access entities: USD1,000
USD 500 per specialisedfiduciarystandard
Small AboveUSD10millionuptoUSD50million
DAEfromSIDSandLDCs:nofeeDAE not from SIDS and LDCs: USD3,000Regional and international accessentities:USD5,000
USD 1,000 per specialisedfiduciarystandard
Medium AboveUSD50millionuptoUSD250million
Allentities:USD10,000 USD 3,000 per specialisedfiduciarystandard
Large Above USD 250million
Allentities:USD25,000 USD 7,000 per specialisedfiduciarystandard
Stage2.AccreditationreviewandGCFBoarddecision:TheGCF’sindependentAccreditationPanelwillreviewthesubmittedaccreditationapplicationandthesupportingdocuments.Basedontherecommendationofthe IndependentAccreditationPaneland of each Boardmember’s own evaluation, the Boardwillmake a final decision. This processincludestwomainsteps:
• AccreditationPanelapplicationreview:TheapplicationwillbereviewedbytheAccreditationPanel to assesswhether itmeets theGCF’s basic fiduciary standards, specialised fiduciarystandards, environmental and social safeguards, and gender policy. Through the fit forpurpose approach, the Accreditation Plan will compare the applicant’s demonstratedcapacitiesversustheintendedactivitywiththeGCF,aswellastheentity’spasttrackrecord.Finally,thePanelwillprovidearecommendationtotheBoardspecifyingwhethertheentityshouldbeaccreditedornotandforwhichtypeandscaleofaccreditation.ThePanelmayalsodecidetorecommendtotheBoardtheapplicant isaccreditedforsmallerand/orlessriskyfinancial,environmentalandsocialactivitiesthanoriginallyappliedfor.
• Board decision on accreditation application: Following the recommendation from theAccreditationPanel,theGCFBoardwillmakeafinaldecisionontheaccreditationapplication.Therearefourpotentialoutcomes:
o Unconditionalapprovalforaccreditation;o Conditionalapproval,witharangeofconditionstobemetbytheentitytobeeligible
foraccreditation;o Referral back to Stage 1 of the accreditation process, providing further readiness
supporttobuildtheapplicant’scapacitiesbasedonthegapsidentified.Insuchcases,theapplicationwillbereconsideredatalaterdate,followingfurtherreviewbytheAccreditationPanel;or,
o Completerejection.TheGCFBoardwillconsiderapplicationsforaccreditationrecommendedbytheSecretariatandtheAccreditationPanelattheBoardmeetings.Assuch,applicationsshouldbesubmittedattheearliest
GCFAccreditationToolkit-2017
41
pointpossibleandatminimumofonemonthinadvanceoftherelevantBoardmeeting.OncetheGCFBoardapprovedtheaccreditation,theapplicantwillmoveontoStage3–post-accreditationreviewandlegalarrangements.Stage3.Post-accreditationreviewandlegalarrangements:Following accreditation approval by the Board, the prospective entity will complete the legalarrangementswiththeFund.Thisincludes:
• TheAE’sfeepaymentwillbevalidatedandregistered;and,• TheAEwillfinalisethelegalarrangementsandsigntheAccreditationMasterAgreement
(AMA)3 with the GCF. The legal arrangements and the contract for accreditation areoutlined in the AMA which describes the role, terms and conditions of the AE. Thisagreement reflects the fit-for-purpose accreditation approach, bymaking a distinctionbetweenvarioustypesofentitiesandtheirtypeofaccreditation,ratherthanfollowingaone-size-fits-alllegalformat.
TheAMAincludes:• TheconditionsthattheAEmustmeetpriortothedisbursementoffundsfromtheGCF;• ClausesrelatedtotheAE’sperformanceagainsttheGCF’spoliciesandstandardswhich
mayleadtoterminationoftheAMA;and,• Specification of the environmental and social risk category and financial size of
projects/programmesthattheAEmayundertakeusingtheGCFfunding.AEscanupgradetheiraccreditationstatusatanytime,oncetheyhavegeneratedsufficientpoliciesandexperiencetodemonstratetheircompliance.UpgradingentitieswillgostraighttoStage2oftheaccreditationprocess,wheretheadditionalcapacitieswillbeanalysedbytheGCFAccreditationPanel,unlesstheentitywishestocommenceatStage1,inordertoundergoareadinesssupportassessmentforthenewlyproposedaccreditationstandards.AEswillneedtore-applytoretaintheirstatuseveryfiveyears.
3 The GCF Board decisions and template of the Accreditation Master Agreement can be found at:https://www.greenclimate.fund/documents/20182/319135/Accreditation_Master_Agreement_Template.pdf/8c4f6cbf-ae17-4856-81c1-64ac8fbfa506
GCFAccreditationToolkit-2017
42
6. HowtomeetGCFaccreditationrequirements?Thissectionpresentstheapplicationformandcorrespondingareasofcompetencerequired,includingexamplesofevidence/documentationtobeprovidedbyanapplicant.Beforecompletingtherelevantquestionswithintheaccreditationapplicationform,anapplicantshouldhavesufficientcollectedallrelevantinformation.
Thefullapplicationformisavailableat:{https://www.greenclimate.fund/documents/20182/574712/Form_05_-_Accreditation_Application.pdf/7cef5ed0-e42e-475a-9bd7-e099d64d6231}
6.1. BackgroundandcontributiontoGCFobjectives
Thefirstthreesectionsoftheapplicationforminclude:• Section I: Description of the entity and contact information, track record of past climate
changeprojectsandprogrammes,accreditationbyotherfunds;• Section II: Informationon theways inwhich the institutionand its intendedactivitieswill
contributetofurtheringtheobjectivesoftheGCF;and,• Section III: Information on intended scope of projects/programmes and estimated
contributionrequested.Beforestartingtheapplicationprocess,itisimportantthattheapplicantidentifiespotentialactivitiestoundertakeusingtheresourcesoftheGCF.
GCFAccreditationToolkit-2017
43
Table4:SectionIoftheaccreditationapplication“Backgroundandcontactinformation”(source:GCFaccreditationform)Item Informationrequired Applicability Inputdata Examplesofsupportingdocumentation
1.1 Backgroundandcontactinformation
1.1.1 Legalnameoftheapplicantentity
Allapplicants Foralltypesofentities:• Foundinglegaldocument;• Documentationoflegalstatus.
1.1.2 Typeofinstitution Allapplicants Selectallthatapply:⎕International⎕Regional⎕National⎕Subnational⎕Publicsector⎕Privatesector⎕Other(pleasespecify):
Foralltypesofentities:Evidencedemonstratingyourtypeofinstitutionandoperations;Evidencemayalsohavebeenprovidedinotheritemsoftheapplication,inwhichcasethetextresponseshouldrefertotheitemnumber,documentname,sectionorpagenumber,etc.,ifitislocatedinanotheritem.
1.1.3 Sizeofinstitution Allapplicants Selectone:⎕1-10employees⎕11-50employees⎕51-200employees⎕201-500employees⎕501-1,000employees⎕1,001-5,000employees⎕5,001-10,000employees⎕Over10,000employees
Foralltypesofentities:• Listofheadcount/staffcount;• Locationofheadquarters;• Location(s)oflocaland/orregionaloffices.
1.1.4 Corebusiness Allapplicants Forgovernmentministries,departments,divisions,etc.:• Scannedcopyorextractof therelevantAct,Decree,orothersimilardocument
(highlightrelevantsections)• Document outlining powers of the Head of the entity and other key/relevant
authorities(highlightrelevantsectionsofthedocumentbyreferringtothesectionorpagenumber)
Forincorporated/registeredentities,suchasprivateandpublicsectorentitiesandcivilsocietyorganizations,etc.:
• CertificateofIncorporation/Registration• Memorandum and Articles of Association, if applicable (highlight relevant
sections)• Visionand/ormissionstatement• Businesspermitandlicensetooperate
Forinternationalandregionalentities:• Governinginstrument;Agreementtoestablishtheentity.
GCFAccreditationToolkit-2017
44
Item Informationrequired Applicability Inputdata Examplesofsupportingdocumentation1.1.5 Sector(s) that the entity
operatesinAllapplicants Foralltypesofentities:
• Sectorsmayinclude,forexample,energy,agriculture,transportation,etc.• Project/programmeexamplesdemonstratingoperationsinthesectorsindicated• Evidencemayalsohavebeenprovidedinotheritemsoftheapplication,suchasinitem
1.1.4, inwhich case the text response should refer to the itemnumber, documentname,sectionorpagenumber,etc.ifitislocatedinanotheritem.
1.1.6 Registered address,including Country PostalCode
Allapplicants Notrequired
1.1.7 Website Allapplicants Notrequired1.1.8 Primary
FocalPointFirstName Allapplicants Foralltypesofentities:
• Officialletterfromtheapplicantentitydesignatingtheselectedpersonastheprimaryfocalpoint.
• If theperson is thesameastheone(s)nominatedforgainingOASaccess, theofficialletterofOASrequestmaybeprovidedasevidence.
1.1.9 Lastname 1.1.10 Position/Title 1.1.11 Email 1.1.12 Telephone 1.1.13 Fax 1.1.14 Secondary
FocalPointFirstName Allapplicants Foralltypesofentities:
• Officialletterfromtheapplicantentitydesignatingtheselectedpersonastheprimaryfocalpoint.
• If theperson is thesameastheone(s)nominatedforgainingOASaccess, theofficialletterofOASrequestmaybeprovidedasevidence.
1.1.15 Lastname 1.1.16 Position/Title
1.1.17 Email 1.1.18 Telephone 1.1.19 Fax
GCFAccreditationToolkit-2017
45
Item Informationrequired Applicability Inputdata Examplesofsupportingdocumentation1.2 BackgroundInformationonTrackRecord1.2.1 Type(s)of
projects/programmesundertaken
Allapplicants Selectallthatapply:Mitigation:⎕ ⎕Energygenerationandaccess⎕ ⎕Energyefficiency⎕ ⎕Transport⎕ ⎕Buildings,cities,industriesandappliances⎕ ⎕Landuse/forestry(REDD+)⎕ ⎕Institutionalandregulatorysystems⎕ ⎕Other(pleasespecify):Adaptation:
⎕ ⎕Enhancinglivelihoods⎕ ⎕Healthandwell-beingandfoodandwater
security⎕ ⎕Infrastructureandbuiltenvironment⎕ ⎕Ecosystemandecosystemservices⎕ ⎕Institutionalandregulatorysystems⎕ ⎕Climateinformation/earlywarningsystems⎕ ⎕ Awareness strengthening and climate risk
reduction⎕ ⎕Other(pleasespecify):Public/private:
⎕ ⎕Public⎕ ⎕Private⎕Cross-cutting
Foralltypesofentities:• Informationorevidenceonprojectsundertakeninthetypesselected• Evidence may also have been provided in other items of the
application, such as in sections 4, 5, 6 or 7, in which case the textresponseshouldrefertotheitemnumber,documentname,etc.ifitislocatedinanotheritem.
1.2.2 Size(s)ofprojects/programmesundertaken,includingtotalprojectcostsinUSDandduration
Allapplicants Foralltypesofentities:• Listofprojects/programmesundertakeninthepast3yearsincluding
project/programmename,sector,totalproject/programmecost,roleand responsibilities of the applicant, contribution to project fundingandduration.
• Evidence may also have been provided in other items of theapplication, such as in sections 4, 5, 6 or 7, in which case the textresponseshouldrefertotheitemnumber,documentname,sectionorpagenumber,etc.ifitislocatedinanotheritem.
GCFAccreditationToolkit-2017
46
Item Informationrequired Applicability Inputdata Examplesofsupportingdocumentation1.2.3 Type(s)offinancial
instrument(s)deployedinprojects/programmesundertaken
Allapplicants Selectallthatapply:⎕ ⎕Grants⎕ ⎕Concessionalloans(senior)⎕ ⎕Concessionalloans(subordinated)⎕ ⎕Equity⎕ ⎕GuaranteesPlease specify what other types of financialinstrumentsyouhavedeployed,ifany:
Foralltypesofentities:• List,withscopeofeachtypeoffinancialinstrumentsthattheapplicant
hasexperienceindeployinginprojects/programmesundertakenbyit;• At least one copy of an agreement for each of the financial
instrument(s) deployed in projects/programmes undertaken. Forexample, if the applicant selects “Grants” indicating that it hasexperienceindeployinggrants,acopyofagrantagreementshouldbeprovidedasevidenceoftheapplicant’sexperiencewithdeployingthisfinancialinstrument.
• Evidence may also have been provided in other items of theapplication, such as in sections 4, 5, 6 or 7, in which case the textresponseshouldrefertotheitemnumber,documentname,sectionorpagenumber,etc.ifitislocatedinanotheritem.
1.2.4 Environmentalandsocialrisklevel(s)ofprojects/programmesundertaken
Allapplicants Selectallthatapply:
⎕ ⎕CategoryA/Intermediation1(high)directly⎕ ⎕ Category A / Intermediation 1 (high)
indirectlythroughexecutingentities⎕ ⎕ Category B / Intermediation 2 (medium)
directly⎕ ⎕ Category B / Intermediation 2 (medium)
indirectlythroughexecutingentities⎕CategoryC/Intermediation3(minimaltonone)directly
Foralltypesofentities:• At least 3 project/programme examples of each environmental and
socialriskcategorythathasbeenselectedbytheapplicant;• Evidence should indicate how the risk category was identified and
assigned to each project/programme provided as supportingdocument.
• Evidence may also have been provided in other items of theapplication,suchasinsection6,inwhichcasethetextresponseshouldrefertotheitemnumber,documentname,sectionorpage
1.2.5 ExperienceandtrackrecordwithPerformanceStandards2-8
Allentities Select those which you have previouslyimplemented:⎕PerformanceStandard2Labourandworkingconditions⎕PerformanceStandard3Resourceefficiencyandpollutionprevention⎕PerformanceStandard4Communityhealth,safetyandsecurity⎕ Performance Standard 5 Land acquisitionandinvoluntaryresettlement⎕ Performance Standard 6 Biodiversityconservation and sustainable management oflivingnaturalresources⎕PerformanceStandard7Indigenouspeoples⎕PerformanceStandard8Culturalheritage
Foralltypesofentities:• Evidence (e.g. project/programme appraisal report, completion
reports,etc.)showinghowselectedPerformanceStandardshavebeenmanagedinprojects/programmesundertakenbytheapplicant.
• Evidence may also have been provided in other items of theapplication,suchasinitem1.2.4andsection6,inwhichcasethetextresponseshouldrefertotheitemnumber,documentname,sectionorpagenumber,etc.ifitislocatedinanotheritem.
GCFAccreditationToolkit-2017
47
Item Informationrequired Applicability Inputdata Examplesofsupportingdocumentation1.3 BackgroundInformationonAccreditationbyOtherFundsorInstitutions1.3.1 Conditionsandlimitations,
ifany,regardingaccreditationwiththeGlobalEnvironmentFacility(GEF),AdaptationFund(AF),andDirectorate-GeneralDevelopmentandCooperation–EuropeAidoftheEuropeanCommission(EUDEVCO)
EntitiesaccreditedunderGEF,AFandEUDEVCOasof17October2014
Foralltypesofentities:• Decisionsonaccreditation,whichcan includepubliclyavailable
informationordocuments;• Letter or other documented form of confirmation of
accreditation;• List of conditions and/or limitations, if any, at the time of
accreditation.
1.3.2 StatusofcompliancewithaccreditationrequirementsoftheGlobalEnvironmentFacility(GEF),AdaptationFund(AF),andDirectorate-GeneralDevelopmentandCooperation–EuropeAidoftheEuropeanCommission(EUDEVCO)
Entitiesaccreditedunder GEF,AF and EUDEVCO as of17October2014
Foralltypesofentities:• Letter, report or other form of documentation indicating status of
compliancewiththeaccreditationrequirementsofGEF,AF,and/orEUDEVCO, as applicable, regarding conditions stipulated, if any, at thetimeofaccreditation.
GCFAccreditationToolkit-2017
48
Table5:SectionIIoftheaccreditationapplication“InformationonthewaysinwhichtheinstitutionanditsintendedactivitieswillcontributetofurtheringtheobjectivesoftheGreenClimateFund”(source:GCFaccreditationform)
Item Informationrequired Applicability Inputdata Examplesofsupportingdocumentation
2 Giventheurgencyandseriousnessofclimatechange,thepurposeoftheFundistomakeasignificantandambitiouscontributiontotheglobaleffortstowardsattainingthegoalssetbytheinternationalcommunitytocombatclimatechange.TheFundwillcontributetotheachievementoftheultimateobjectiveoftheUnitedNationsFrameworkConventiononClimateChange(UNFCCC).Inthecontextofsustainabledevelopment,theFundwillpromotetheparadigmshifttowardslowemissionandclimate-resilientdevelopmentpathwaysbyprovidingsupporttodeveloping countries to limit or reduce their greenhouse gas emissions and to adapt to the impacts of climate change, taking into account theneedsof thedevelopingcountriesparticularlyvulnerabletotheadverseeffectsofclimatechange.
2.1 Astatementdetailingthewaysinwhichthe entitywill contribute to furtheringtheobjectivesoftheGreenClimateFund.
Allapplicants Notrequired
2.2 Astatementonhowtheentityintendstostrengthen capacities of or otherwisesupport potential subnational, nationaland regional implementing entities andintermediaries in order to meet, at theearliest opportunity, the accreditationrequirementsoftheGreenClimateFundinordertoenhancecountryownership
Requiredforentitiesunderinternationalaccesstrack
Optionalforallotherentities
Notrequired
GCFAccreditationToolkit-2017
49
Table6:SectionIIIoftheaccreditationapplication:“Intendedscopeofprojects/programmesandestimatedcontributionrequested”(source:GCFaccreditationform)
Item Informationrequired Applicability Inputdata Examplesofsupportingdocumentation
3.1 Theme(s)ofintendedprojects/programmes
Allapplicants Selectallthatapply:⎕Mitigation⎕Adaptation⎕Cross-cutting(bothmitigationandadaptationinanindividualproject/programme)
Notrequired
3.2 Type(s)ofintendedprojects/programmes
Allapplicants Selectallthatapply:Mitigation:
⎕Energygenerationandaccess⎕Energyefficiency⎕Transport⎕Buildings,cities,industriesandappliances⎕Landuse/forestry(REDD+)⎕Institutionalandregulatorysystems⎕Other(pleasespecify): Adaptation:
⎕Enhancinglivelihoods⎕Healthandwell-beingandfoodandwatersecurity⎕Infrastructureandbuiltenvironment⎕Ecosystemandecosystemservices⎕Institutionalandregulatorysystems⎕Climateinformation/earlywarningsystems⎕Awarenessstrengtheningandclimateriskreduction⎕Other(pleasespecify): _______________________Public/private:⎕Public⎕Private⎕Cross-cutting
Notrequired
GCFAccreditationToolkit-2017
50
Item Informationrequired Applicability Inputdata Examplesofsupportingdocumentation
3.3 Size(s)ofintendedprojects/programmes,includingduration
Allapplicants Selectallthatapplies:
Notrequired
3.3 Size(s)ofintendedprojects/programmes,includingduration
Allapplicants Selectallthatapply:⎕Micro (maximum total projected costs at the timeofapplication, irrespective of the portion that if funded bythe Green Climate Fund, of up to and including USD10million for an individual project or an activity within aprogramme)andduration:⎕ Small (maximum total projected costs at the time ofapplication, irrespectiveof theportion that is fundedbytheGreenClimateFund,ofaboveUSD10millionanduptoandincludingUSD50millionforanindividualprojectoranactivitywithinaprogramme)andduration:⎕Medium(maximumtotalprojectedcostsatthetimeofapplication, irrespectiveof theportion that is fundedbytheGreenClimateFund,ofaboveUSD50millionanduptoandincludingUSD250millionforanindividualprojectoranactivitywithinaprogramme)andduration;and⎕Large(totalprojectedcostsatthetimeofapplication,irrespective of the portion that is funded by the GreenClimateFund,ofaboveUSD250millionforan individualprojectoranactivitywithinaprogramme)andduration:
Notrequired
3.4 Estimated maximumcontributionamountatthetimeof application for an individualproject or an activity within aprogramme to be requestedfrom the Green Climate Fund(USDorasapercentageoftotalprojectedcosts)
Allapplicants
Notrequired
GCFAccreditationToolkit-2017
51
Item Informationrequired Applicability Inputdata Examplesofsupportingdocumentation
3.5 Type(s)offinancialinstrument(s)forintendedprojects/programmestoberequestedfromtheGreenClimateFund
Allapplicants Selectallthatapply:The following requires accreditation against thespecialized fiduciary criteria for grant awardand/orfundingallocationmechanisms:⎕Grants(insomecasesthismaybereimbursable)The following require accreditation against Specializedfiduciarycriteriaforon-lendingand/orblending:⎕Concessionalloans(senior)⎕Concessionalloans(subordinated)⎕Equity⎕GuaranteesPlease specifywhat other types of financial instrumentsyouareinterestedin,ifany:
Notrequired
3.6 Sources and types of additionalfinance for intended activities (ifapplicable), and how the sourcesandtypesofotherfinancewillbeapplied
Allapplicants Notrequired
3.7 Indication of the Green ClimateFund’sstandardsagainstwhichtheapplicationwillbeassessed
Allapplicants Selectallthatapply:⎕Basicfiduciarycriteria25,ESS26andgender⎕Specializedfiduciarycriteriaforprojectmanagement⎕Specializedfiduciarycriteriaforgrantawardand/orfundingallocationmechanisms28⎕Specializedfiduciarycriteriaforon-lendingand/orblending
Notapplicable
3.8 Environmental and social risklevel(s)ofintendedactivities
Allapplicants Selectallthatapply:⎕CategoryA/Intermediation1(high)directly⎕CategoryA/Intermediation1(high)indirectlythroughexecutingentities⎕CategoryB/Intermediation2(medium)directly⎕CategoryB/Intermediation2(medium)indirectlythroughexecutingentities⎕CategoryC/Intermediation3(minimaltonone)directly⎕CategoryC/Intermediation3(minimaltonone)indirectlythroughexecutingentities
Notrequired
GCFAccreditationToolkit-2017
52
6.2. BasicfiduciarystandardsThefullGCFpolicyforbasicandspecialisedfiduciarystandardscanbefoundat:{https://www.greenclimate.fund/documents/20182/319135/1.6_-_Fiduciary_Standards.pdf/083cfe10-46f4-4a73-b603-8d7bfd2a35bd}Intermsofbasicfiduciarystandards,allAEsarerequiredtodemonstrate:
• Keyadministrativeandfinancialcapacities:Covertheunderlyingprinciplesofensuringthatentitiesmanagefinancialresourcestransparentlyandaccountablyinlinewiththerelevantregulations and laws. They also ensure that entities’ administration and managementoperationsconformtotherequiredfiduciarystandardsandthattheyhaveatrackrecordofperformingtheseactivitieseffectivelyandefficiently;and,
• Transparency and accountability: Cover the underlying principles of protection againstfinancial mismanagement and other unlawful practices, to ensure that entities operateethically,transparentlyandwithfullaccountability.
Keyadministrativeandfinancialcapacities:Thisbasicfiduciarystandardisbrokendownintofivespecificrequirements:
• General management and administrative capacities: The organisation’s governance and
oversight structuresmustensure that theentityoperates in linewith its setmission,withclearlydefined,budgeted,andmonitoredobjectivesandgoalstoachieveit.Theseoversightstructuresshouldincludecommitteesforfinancial,auditandprocurementfunctions;
• Financial management and accounting: The entity must demonstrate that finances andaccountsarereportedperiodically,usinginternationallyrecognisedfinancialandaccountingstandards(seeBox2).Allpayments,disbursementsystems,businessplans,financialproductsandbudgetsshouldbepreparedtransparentlyfollowingdocumentedprocedures;
• Internal and external audit: Those audit functions must ensure adequate organisationaloperations by performing planned activities periodically, independently and in line withinternational auditing standards and be overseen by an independent audit committee.Processestoimplementandmonitorresponsestoauditors’recommendationsarerequired;
• Controlframeworks:Regularlyreviewedpoliciesandproceduresarenecessarytoensurethatall organisational operations, (for all roles including senior management), are deliveredeffectivelyandefficiently,thatfinancialrisksareidentifiedandmanagedappropriately,thatprocurement is undertaken sufficiently and that all applicable laws and regulations arefollowed;and,
• Procurement:Internalguidelinesandpoliciesarerequiredtoensurethatprocurementsareperformed economically, efficiently, fairly and transparently – with procurement awardspubliclyaccessible.Proceduresareprovidedaccordingtothetypeofprocurement.Executingentities’procurementproceduresmustbeoverseenandcapacities toreviewprocurementcomplaintsarerequired.
GCFAccreditationToolkit-2017
53
Box2.InternationalfinancialandaccountingstandardsthatmeettheGCFfiduciarystandardsThere are two main internationally used standards on financial reporting and accounting, theInternationalFinancialReportingStandards(IFRS)andtheGenerallyAcceptedAccountingPrinciples(GAAP).IFRSaregenerallyconsideredmoreofa‘principal-based’accountingstandard,whereasGAAPisconsideredtobemore‘rules-based’.Internationalauditingstandards:Professionalstandards fortheperformanceof financialauditing,and include the International Standards on Auditing (ISA) set by the International Federation ofAccountants.Globalassociationsforauditing,suchastheInstituteofInternalAuditorssubscribetothesestandards.Creditratingagencies:Domesticcreditratingagenciesgenerallygradetheabilityofentitiestorepaydomesticdebt,whileinternationalcreditratingagencieswillassigncreditratingsonbothdomesticandinternationaldebt.ThethreemaininternationalcreditratingsagenciesareMoody’s,StandardandPoor’s,andFitchRatings.
Transparencyandaccountabilitypolicies:Thisbasicfiduciarystandardisbrokendownintofivespecificrequirements:
• Code of ethics: There should be a documented policy setting out the ethical standardscommunicated toandupheldbyall individuals contractedbyor related to theentity.Thepolicymustbeoverseenbyanethicscommittee;
• Disclosure of conflicts of interest: There should be a policy defining the possible, actual,perceived,andapparentconflictsof interest,andprohibitedpersonal financial interestsofemployees and relevant parties. The principles used to address and sanction potentialbreachesofthispolicymustbeclearlylaidout;
• Preventing financial mismanagement: Experience in accessing finance from national andinternational sources must be demonstrated and a zero tolerance policy towards fraud,financial mismanagement and other forms of malpractice for all contracted individuals isrequired;
• Investigations:Thereshouldbeaninternal(orexternal),independentandobjectivefunctionfor investigating allegations of fraud, corruption and ethics breaches, that reports to theorganisation’s highest level. This investigation function must follow publicly availableguidelinesandreportcasetrendsperiodically;and,
• Anti-moneylaunderingandanti-terroristfinancingpolicies:Thesepoliciescovertheabilitytotraceandmonitortheelectronictransferoffunds,andprocedurestoadequatelyperformKnowYourCustomerduediligence.Thisamountstoidentifyingandverifyingclient’sidentitytoensuretheyarenotengagedinmoney-launderingorterroristfinancing.
GCFAccreditationToolkit-2017
54
Table7:SectionIVoftheaccreditationapplication:Basicfiduciarystandards(source:GCFaccreditationform)
Item Areaofcompetence
Specificcapacityrequired
Applicability Inputdata Examplesofsupportingdocumentation
4.1 KeyadministrativeandfinancialcapacitiesUnderlyingprinciplesforkeyadministrativeandfinancialcapacitiesare(thislistisnotexhaustive):financialinputsandoutputsareproperlyaccountedfor,reported,andadministered transparently in accordance with pertinent regulations and laws, and with due accountability; information relating to the overall administration andmanagementoftheentityisavailable,consistent,reliable,completeandrelevanttotherequiredfiduciarystandards;andoperationsoftheentityshowatrackrecordineffectivenessandefficiency.
4.1.1 Generalmanagementandadministrativecapacities
Aclearlydefinedgovernanceand oversight structure thatformally defines the roles,responsibilities and assignedauthority of each functionalarea and individual in theorganization; track record inthe preparation of businessplansandbudgets
Allapplicants Foralltypesofentities:• Organizationalchartwhichincludes:i) Clear reporting structure for Finance, Internal Audit,
Procurementandotherkeyfunctions;ii) Reporting structure of the Audit Committee and other
seniormanagementcommittees/governancebodies;• List of internal oversight bodies/committees
alongwith:iii) TermsofReference(TOR)andcompositionofeach
committee;iv) A copy of the rules regarding the appointment,
terminationandremunerationofmembersofsuchcommittees;
• Documentdescribingtheentity’sprocessesforsettinglongtermand short term objectives including the alignment of theobjectives/planswithitsmission
• Copyofcurrentstrategic/mediumtermplan:theplanshouldalsodefineindicators/metricsforallkeyorganisationalobjectives.Iforganisational objectives are further set in terms ofdepartmental/division level objectives, details of suchdeployment should also be provided. If current plan period iscomingtoanendwithinthenext6months,pleaseprovideacopyofnextplan;
GCFAccreditationToolkit-2017
55
Item Areaofcompetence
Specificcapacityrequired
Applicability Inputdata Examplesofsupportingdocumentation
i) Forprivatesectorentities:Evidence of ability to develop annual/strategic/medium term plan,includingdemonstratedevidenceofimplementationofthisplanfromthepast3years
• Copyoftheprevious1yearandcurrentyear’sannualplansandbudgets;
• Document describing how the entity’s long and short termplans,objectivesandbudgetsenable theentity toachieve itsmission;
• Briefwriteuponprocesses/proceduresandresponsibilitiesformonitoringandreportingonprogressmadeinattainmentofsetobjectivesincludingadherencetobudgets.
• 2annualorhalf-yearlyreportscontainingperiodicevaluationofachievement of organisational objectives and analysisexpenditurestobeprovidedasevidencethatsuchevaluationisundertakenandtheresultsthereof,arepublished.
ii) Forsmallprivatesectorentities• Asummaryoftheachievementofannualobjectivesandgoals
forthelasttwoyears.4.1.2 Financial
managementandaccounting
Periodicpreparationandreportingoffinancialstatementsinaccordancewithrecognizedaccountingstandards.
Allapplicants Foralltypesofentities:• FinancialStatementsforthepast3years.TheStatements
shouldinclude:i) Notes and disclosures explaining the accounting
framework/standard used, the basis of preparation of thefinancialstatements,andthespecificaccountingpolicies,ifany;
ii) AstatementofchangesinfinancialpositioncoveringCapital,Reserves,Debt,Assets,Project/EndowmentFundBalances,etc.;
iii) Astatementofcashflows;• BriefdetailsoftheFinancialInformationSystemsincludinga
list of major reports prepared and the periodicity of thereports;
• Copies of recent reports prepared as a part of the entity’sFinancialInformationSystem.
GCFAccreditationToolkit-2017
56
Item Areaofcompetence
Specificcapacityrequired
Applicability Inputdata Examplesofsupportingdocumentation
4.1.3 Internalandexternalaudit
Fully functionalindependent auditcommittee; the internalauditfunctioniscarriedoutin accordance withinternationally recognizedstandards; appointment ofan independent externalaudit firm to carry out itswork in accordance withinternationally recognizedstandards
Allapplicants Foralltypesofentities:• TermsofReferencefortheexternalauditfortheyearsforwhich
the audit reports have been provided. The entity in its textresponse or the ToRs to be provided as supporting documentsshouldclearlyindicatethattheworkoftheexternalauditfirmororganizationshouldbeconsistentwith recognized internationalauditing standards such as International Standards on Auditing(ISA),orotherequivalentstandards;
• Schedule/datesofmeetingsoftheAuditCommitteeheldoverthepast2years;
• Agendaandminutesofthepast2AuditCommitteemeetings;• InternalAuditpolicy/charter/ToRswhichare formally approved
bymanagement;• Evidence that the internal audit function is carried out in
accordance with internationally recognized standards such asthose prescribed by the Institute of Internal Auditors or otherequivalentstandards;
• Brief details of the structure of the internal audit functionincluding qualifications and experience of the auditors. Entityshould also provide information on how it ensures that theauditors adhere to recognised internal auditing standardsincludingprinciplesofintegrity,objectivityandconfidentiality;
• Copyofinternalauditprocedures/manual;• InternalAuditplansforeachofthepast3years;• Statusofexecutionofthepast3years’internalauditplans;• Sample of internal audit reports in the past 3 years, including
those relating to procurement, internal control systems andpaymentsanddisbursements,ifavailablealongwithinformationonhowthesereportsaredisseminatedtorelevantpeoplewithintheentity;
• Brief details of the process to monitor and assess the overalleffectiveness of the internal audit functions, including periodicinternalandexternalqualityassessments,includingacopyofsuchassessmentreports;
GCFAccreditationToolkit-2017
57
Item Areaofcompetence
Specificcapacityrequired
Applicability Inputdata Examplesofsupportingdocumentation
• Completeexternalauditreports,includingmanagementletters,for thepast3years, ifnot included in the financial statementsprovidedatSection4.1.2;
• Status of action taken in respect of all the observations/recommendations contained in the external and internal auditreports of the past 3 years including acceptance/sign- off ofclosuresbytheexternal/internalauditors.
Forprivatesectorentities/financialinstitutions• ArecentRegulator’sExaminationReport,includinganactionplan
inresponsetotheRegulator’srecommendations4.1.4 Control
frameworksDocumented processes inplace to ensure thatobjectives are achieved,including verification thatoperations are carried outeffectively, financial risksareassessedandmanaged,and proper financialmanagementiscarriedout
Allapplicants Foralltypesofentities:• Financialcontrolpolicy;• Financialcontrolprocedures;• Theabovepoliciesandproceduresshouldprovideevidence
of/demonstratethefollowing:- A control framework that includes clearly defined roles for
management, internal auditors, the board of directors orcomparablebody,andotherpersonnel(includingfiscalagentsandfiduciarytrustees,ifanyinvolved)withrespecttoInternalControl;
- Attheinstitutionallevel,risk-assessmentprocessesareinplacetoidentify, assess, analyze and provide a basis for proactive riskresponses/mitigatingactionsinidentifiedareas;
- Existence of a documented payment and disbursement system(policies,proceduresandDelegationofAuthority)preferablywithaflow chart. The system should provide for a clear segregation ofapproval and disbursement responsibility/authority including theorganization’scapabilitytoensurethatallpayments/disbursements(bothforprojectsandotherexpenditures)areproperlycheckedandmadeonlyforbona-fide/approvedpurposes.
- Evidence of system/procedures for identifying and assessing thedetails and adequacy of the internal controls annually. Thisassessmentshouldalsocoveraregular reviewbymanagementtocheck if duties are appropriately segregated to ensure adequateinternalcontrolinallkey/riskareas.
- The applicant should provide recentreports/documents/information as evidence of its effectiveimplementationoftheinternalcontrolframeworkasdefinedabove.
GCFAccreditationToolkit-2017
58
Item Areaofcompetence
Specificcapacityrequired
Applicability Inputdata Examplesofsupportingdocumentation
4.1.5 Procurement Formal procurementstandards, guidelines andsystems inplace to ensurefair and transparentprocurementprocesses
Allapplicants Foralltypesofentities:• Copy of the entity’s Procurement
Policy/Rules/Regulations/Guidelines (approvedbymanagement)which are transparent and fair and promote economy andefficiency in procurement, specify procurement requirements,accountability, and authority to take procurementdecisions/actions;
• Detailed procurement procedures, which include details ofcomposition and role of various committees, such as theProcurement Committee Tender Evaluation Committee, etc. andguidelines for different types of procurement managed by theentity, such as consultants/service providers, goods/supplies andworks;
• System/procedures for oversight/review/audit of the entity’sprocurementfunction;
• ProceduresforcontrollingprocurementbythirdpartiesorExecutingAgenciesundertakingprojectsfinancedbytheentity;
• CopyoftheProcurementdisputeresolutionprocess,ifnotalreadyincluded inor separate fromthePolicyorProcedures referred toabove;
• As evidence of compliance with the established policies andguidelines, the following documents/information should beprovided:
• 2setsofdocumentspertainingtolargeprocurementsundertakeninthepast3years;
• A sample of procurement oversight/ audit reports, both for theentityandExecutingAgencies
• Dataonprocurementcomplaintshandledinthepast3yearsalongwithbriefdetailsofsamplecasesandtheirclosure.
GCFAccreditationToolkit-2017
59
Item Areaofcompetence
Specificcapacityrequired
Applicability Inputdata Examplesofsupportingdocumentation
4.2 TransparencyandaccountabilityTransparencyandaccountabilityaretobedemonstratedthroughaneffectivecombinationoffullyfunctionalpolicies,procedures,systemsandapproaches.Theunderlyingprinciplesare:protectionandcommitmentagainstmismanagementandfraudulent,corruptandwastefulpractices;disclosureofanyformofconflictofinterest(actual,potentialorperceived);andcodeofethics,policiesandculturethatdriveandpromotefulltransparencyandaccountability.
4.2.1 Codeofethics A documented code ofethics or a set of clearand formalmanagementpoliciesinplacetodefineethical standards to beupheld by all individualscontracted orfunctionally related totheorganization
Allapplicants Foralltypesofentities:• Code of Ethics, which is documented and applicable to the
staff and associates like consultants, contractors, suppliers,etc.;
• Documented evidence of a contractual nature thatcommunicates this policy to all staff and other partiesfunctionallyrelatedtotheorganisation,withevidenceofsuchcommunication;
• Brief description of the system for oversight of the EthicsFunction,includingtheroleoftheEthicsCommitteeorotherrelevantbodies/committeeswithintheorganizationtowhomsuchfunctionshavebeenallocated.Thisshouldbesupportedbyevidencethattheoversightsystemisfunctioning.
4.2.2 Disclosureofconflictsofinterest
A disclosure policy orequivalent in place toestablish the necessarymandatory financialdisclosures of possible,actual, perceived orapparent conflicts ofinterest
Allapplicants Foralltypesofentities:• Financial disclosure policy or other documented policy
statement which defines possible, actual, perceived orapparent conflicts of interest including what constitutesconflict of interestorprohibitedpersonal financial interestsandalsodefinesthesanctionmeasuresforpartieswhichdonot disclose such conflicts on a proactive basis; Conflict ofinterestreviewandresolutionprocedures;
• Demonstration of practice, through sample statements ofannual disclosure of interest statements by employees ordisclosureinrespectofspecificcases/instances;
• 2 actual examples of conflict of interest cases that wereidentified/reportedandhowtheseweredealtwith
GCFAccreditationToolkit-2017
60
Item Areaofcompetence
Specificcapacityrequired
Applicability Inputdata Examplesofsupportingdocumentation
4.2.3 Preventingfinancialmismanagement
Demonstratedexperienceandtrackrecordinaccessingfinancialresourcesfromnationalandinternationalsources;Evidenceofapolicyofzerotoleranceforfraud,financialmismanagementandotherformsofmalpracticebystaffmembers,consultants,contractors,etc.
Allapplicants Foralltypesofentities:• Policyon financialmanagementor someotherdocumentwhich
describes the various malpractices which may occur and alsoplannedpreventionstrategies;
• Evidenceofastatementfromtopmanagementcommunicatingapolicyof zero tolerance for fraud, financialmismanagementandother forms of malpractice by staff members, consultants,contractors,orfromanyotherrelevantpartyassociateddirectlyorindirectlywiththeoperationsoftheentity;
• Process/avenues for reporting fraud, financial mismanagementandotherformsofmisconduct(theseshouldincludeplacementofaprovisionforreportingviolationsontheentity’swebsite);
• Policiesandproceduresforwhistleblowerprotection.4.2.4 Investigations Evidenceofan
independentandobjectiveinvestigationfunctionforallegationsoffraudandcorruption,withpubliclyavailabletermsofreference
Allapplicants For all types of entities: (Note: all entities should always be able todemonstrate that the investigations function is executed within theorganizationandthatitisindependentandhasaccesstoreportfindingstothehighestlevelsoftheorganization,ifneeded)• Evidencethattheorganisation’sinvestigationfunctionhaspublicly
available terms of reference that outline the purpose, authorityandaccountabilityofthefunction;
• Details of the investigations structure within the organisation.Also, how does the organisation ensure theindependence/authority of the investigation structure andprocess;Proceduresforinvestigatingfraudandcorruptionwithintheentity.Thisshouldincludeinformationonperiodicreportingtomanagement/Board on case trends/status of investigations. Asevidencesamplestatusreportsshouldbeprovided;
• In case the organisation’s investigation function is linked to anoutside investigation system (for example thenational/government investigation function), please provide thefollowinginformation:
- Details of the outside system including key procedures andauthoritylevels;
- Procedurefollowedwithintheentity,onreceiptofanyallegation,before the allegation is reported to or lodged with the outsidesystemforcarryingouttheinvestigation;
- Information on cases of violation of code of ethics, fraud orcorruption in the past 3 years, and on how such cases weredisposedof.
GCFAccreditationToolkit-2017
61
Item Areaofcompetence
Specificcapacityrequired Applicability Inputdata Examplesofsupportingdocumentation
4.2.5 Anti-moneylaunderingandanti-terrorist financingpolicies
Evidence of adequatecontrol and procedures inplace to enable theapplicantentitytocarryoutadequate “Know yourcustomer”duediligence
Allapplicants Foralltypesofentities:• Anti-money laundering (AML) and anti- terrorist (AT)
financingpolicy;
• “Knowyourcustomer(KYC)”duediligenceprocedurestocombatmoneylaunderingandfinancingofterrorism;
• 2copiesofreportsonKYCduediligenceexercisescarriedoutinthepast3years;
• Mechanisms to trace/monitor electronic transfer/wiring offunds;
• 2 copies of monitoring reports on electronic funds transferpreparedinthepast3years.
For private sector entities: Reports from regulators or periodicexaminationsbyregulatorsevaluatingtherobustnessoftheKYC/AML-ATfunction
GCFAccreditationToolkit-2017
62
6.3. Specialisedfiduciarystandards
Inadditiontoitsbasicfiduciarystandards,theGCFhasthreespecialisedfiduciarystandards:
• Project management: This set of standards covers an entity’s ability to manage climate
changeprojectsfromtheiridentificationrightthroughtotheirevaluationandtoensureall
potential project risks aremanaged. Projectmanagement is required if entities intend to
implement projects directly and/or oversee the implementation of projects by executing
entities. It is requiredforthemajorityofactivitiesandallAEssofarhaverequiredproject
managementaccreditation;
• Grant award mechanisms and/or funding allocation mechanisms: This set of standardscovers an entity’s ability to provide grants to third parties in a credible, transparent and
effectivewaythatensurestheimpactofgrantsonfinalbeneficiariesfurtherstheobjectives
of theGCF.Grantawardmechanismsand/or fundingallocationmechanismsare therefore
onlyrequirediftheentityintendstoawardgrantstothirdpartieswithGCFfunding;and,• On-lendingandblendingpolicies:Thissetofstandardscoversanentity’sabilityto‘on-lend’,
or lend theGCF’s resources to a third party and/or blend theGCF’s resourceswith other
sourcesoffunding,inacredibleandduediligentmanner.Thisstandardisrequiredifanentity
intendstoprovideloansandrisksharingproductstothirdparties.
Thesearerequireddependingonthescopeofanentity’sintendedactivitieswiththeGCF’sresources,
thatistosay,whetheranAEintendstoactasanimplementingentityand/orafinancialintermediary4.
Projectmanagement:
Thisspecialisedfiduciarystandardisbrokendownintofourspecificrequirements:
• Projectpreparationandappraisal:Thisincludesatrackrecord,guidelinesandframeworks
for climate changeproject identification, preparation, appraisal,monitoring and follow-up
must be demonstrated. The capacity to develop climate change objectives, baselines and
targets, while evaluating, incorporating and mitigating the technical, financial, economic,
legal,environmental,andsocialimpacts/risksduringpreparationandappraisalstagesisalso
required.
• Projectoversightandcontrol:Thisincludesoperationalsystems,proceduresandtemplates
for implementation, budgetary and reporting oversight of executing entities and project
sponsors, to monitor project performance and expenditure against agreed budgets, and
identifyopportunitiestoimproveperformance.
• Monitoringandevaluation:This includesdocumentedpolicies,proceduresandtools fora
monitoringandanindependentevaluationfunction(unit)ofprojectimplementationuntilits
closure, with an evaluation disclosure policy to ensure evaluation reports are broadly
disseminated.
4Inadditiontoprojectmanagementresponsibilities,anAEmaybeanintermediarywhichadministersgrantsandloanswhile
blendingfundswithitsownandothers.
GCFAccreditationToolkit-2017
63
• Project-at-risk systems and related project risk management capabilities: This includessystems,includinganindependentriskmanagementfunction,toensurefinancial,economic,
political and regulatory risks are identified during project implementation along with
problems interfering with set objectives and that these risks are addressed through
managementstrategies.
Grantawardmechanismsand/orfundingallocationmechanisms:
Thisspecialisedfiduciarystandardisbrokendownintofourspecificrequirements:
• Grantawardprocedures:Thisincludesatransparentanddocumentedmechanismtoaward
andevaluategrants,(grantapproval/evaluationcommittees),withclearlydefinedeligibility
criteriasuchaspublicisedgrantnoticesand/orcallsforproposals;
• Publicaccesstoinformationonbeneficiariesandresults:Thiscanbedemonstratedthrough
apolicyandguidelinesthatpublicisegrantawardresultswithinareasonabletimeframe;
• Transparentallocationoffinancialresources:Theorganisationneedspoliciesandproceduresfor performing due diligence that are externally audited and documented to assess the
eligibilityandcapabilitiesofgrantawardees.Theyarealsousedtoperformmonitoringand
evaluationofgrants.Theprogressofgrant implementationmustbeperiodicallypublicised
and in the event of financial irregularities or fraud, these should be suspended, reduced,
terminatedandawardedgrantsmustberecovered;and,
• Goodrecordinmeetingfinancialrequirementsformultilateralfunding:Goodscoringfrom
the public expenditure reviews, and evaluations, assessments/due diligence reports in
responsetomultilateralfundingreceivedmusthavebeengiventotheprospectiveentity.
On-lendingandblendingpolicies:Thisspecialisedfiduciarystandardisbrokendownintotenspecificrequirements:
• Appropriate registration and/or licensing by a financial oversight body or regulator incountryorinternationally:Alicenseclearingtheentitytoon-lendfinancialresourcesfroma
nationaland/orinternationalregulator;
• Track record, institutional experience and existing arrangements and capacities for on-lending and blending with resources from other international or multilateral sources:Previousexperienceon-lendingand/orblendinginternationalandmultilateralfinancefrom
multiplesources(fromfinancialassets’managementtospecialpurposevehicles);
• Creditworthiness: Proven capacity to lendmoney safely to others, recognised through an
internationalcreditratingfromareputableinternationalcreditratingsagency,aregulator’s
examinationreportorthemarketvalueoftheentity’sinvestments;
• Duediligencepolicies,processesandprocedures:Mechanismstoundertakeduediligence
reportinginordertoidentifythecreditqualityofloanrecipientsduringon-lendingoperations;
• Financial resource management, including analysis of the lending portfolio of anintermediary:Controlframeworksandprocedures–withintheentity’sfinancialmanagement
andcontrolpolicies–toevaluatetheloanportfoliooffinancialintermediaries;
GCFAccreditationToolkit-2017
64
• Public access to information on beneficiaries and results: Policies and guidelines forproviding information to the public on the entity’s on-lending and/or blending operations
(decisions,beneficiariesandresultsoffinancingoperations)arerequired;
• Investment management, policies and systems, including in relation to portfoliomanagement: Systems to ensure sound investment management, (policies, guidelines,
reportingandevaluationsonthemanagementofinvestmentportfolios);
• Capacitytochannelfundstransparentlyandeffectively,andtotransfertheGCF’sfundingadvantagesto finalbeneficiaries:Policies,periodicand independentreviews(internalandexternal audit) are in place to ensure funds channelled through intermediaries are
transparentlyandeffectivelyreachingfinalbeneficiaries;
• Financialriskmanagement,includingassetliabilitymanagement:Financialriskmanagement
policy,proceduresandstrategiesmustbeinplacewithassetsandliabilitiesoverseenbyan
assetliabilitycommittee;and,
• Governanceandorganisationalarrangements,includingrelationshipsbetweenthetreasuryfunctionandtheoperationalside:Therelationshipbetweentheentity’streasuryfunctionsandtheoperationalsidemustbesufficientlydescribedandsegregated.
GCFAccreditationToolkit-2017
65
Table8:SectionVoftheaccreditationapplication:Specialisedfiduciarystandards(source:GCFaccreditationform)
Item Area ofcompetence
Specific capacityrequired
Applicability Inputdata Examplesofsupportingdocumentation
5.1 ProjectmanagementProjectmanagementunderlyingprinciplesare:abilitytoidentify,formulateandappraiseprojectsorprogrammes;competencytomanageoroverseetheexecutionofapprovedfundingproposals,includingtheabilitytomanageexecutingentitiesorprojectsponsorsandtosupportprojectdeliveryandimplementation;andcapacitytoconsistentlyandtransparentlyreportontheprogress,deliveryandimplementationoftheapprovedfundingproposal.
5.1.1 Projectidentification,preparation andappraisal
Track record ofcapability andexperience in theidentification anddesign of projects orprogrammeswithintherespective jurisdiction;Documented processforproject appraisal toensure quality andmonitoringoffollow-upactions duringimplementation
Required forapplicants seekingprojectmanagementaccreditation
Foralltypesofentities:• Project preparation guidelines/framework, including
templates/formatsandrolesresponsibilitiesthereof;• Project appraisal guidelines /framework, including
templates/formats and roles responsibilities in projectappraisal;
• Policy or other document that outlines the entity’s riskassessment procedures/framework, including preparation ofrisk mitigation strategies/plans at the project design andappraisalstages;
• Framework/guidelines/procedures for undertaking QualityReviewduringproject preparation and appraisal process. Thisreview should also identify areas which requiremonitoring/follow-upactionsduringimplementation;
• 3examplesofprojectappraisalsundertakeninthepast3years(preferably climate changemitigation or adaptation projects)demonstratingthecapacityto:
- -Effectivelyusetheorganization’sguidelinesforprojectpreparationandappraisal;
- -Mainstreamenvironmental,socialandclimatechangeaspectsintoprojectpreparationandappraisal;
- -DemonstrateuseoftheRiskassessmentprocedures/frameworkforprojectrisksandintegratecorrespondingmitigationstrategies;
- - Demonstrate entity’s capacity to asses and incorporate technical,financial,economicandlegalimpactsoftheprojectatthepreparationandappraisalstageitself;
- -Incorporateoutcomesofthequalityreviewsundertakenduringthedesignandappraisalstagesintheprojectdocument5.
5Alternatively,separatequalityreviewreportsshouldbeprovidedforeachproject.
GCFAccreditationToolkit-2017
66
Item Areaofcompetence
Specificcapacityrequired
Applicability Inputdata Examplesofsupportingdocumentation
5.1.2 Project oversightandcontrol
Operational capacityandprocedurestooversee theimplementation of theapproved fundingproposal, monitorperformance andassess projectexpenditure againstproject budget;appropriate reportingcapabilities
Required forapplicantsseeking projectmanagementaccreditation
Foralltypesofentities:• Copy of the entity’s Operational manual/procedures covering
preparationof project implementationplans, includingprojectbudgets, reporting guidelines and templates to be used byexecutingentitiesorprojectsponsors;
• Implementation plans (which include project implementationplans, monthly/quarterly/annual project budgets, reportingguidelinesandtemplates)for2projectsundertakeninthepast2years;
• 3detailedprojectimplementationprogressreportsforprojectsimplementedinthepast3yearswhichdemonstratetheentity’soperational capacity and organizational arrangements tocontinuously oversee the implementation of the approvedfundingproposalinordertoregularlyassessprojectprogressvis-à- vis plans, expenditure against project budget as well as tomonitor and identify opportunities for improving projectperformanceagainstitsbudgetandtimelines.
5.1.3 Monitoring andevaluation
Capacities formonitoring andevaluation including aclearly defined andresourced monitoringfunction and anindependent evaluationbody or function thatfollows documentedand recognizedstandards; anevaluation disclosurepolicyisinplace
Required forapplicants seekingprojectmanagementaccreditation
Foralltypesofentities:• Policyand/orotherdocumentsoutliningtheentity’sMonitoring
and Evaluation function (including structure of themonitoringandevaluationunit,rolesandresponsibilities,procedures/tools/formats/templates);
• 3 sample monitoring and evaluation reports relating tomonitoringduring project implementation which demonstrateentity’scapacityto:
• undertake effective monitoring and evaluation in accordancewithitspoliciesandprocedures;
• undertakeanalysisofprojectexpenditurecomparedtotheprojectbudgetandabriefexplanationofmajorvariances;
GCFAccreditationToolkit-2017
67
Item Areaofcompetence
Specificcapacityrequired
Applicability Inputdata Examplesofsupportingdocumentation
• Monitor implementation of actions, if any, identified for theimplementationphaseduringtheQualityreview;
• ProjectEvaluationdisclosurepolicy;• Policiesandprocedureswhichoutlinetheentity’sactivitiesrelating
toprojectclosureandindependentevaluation,includingreportingon results achieved, lessons learned and recommendations forimprovement, dissemination of results and making key findingspubliclyavailable;
• Sample Terms of Reference of independent evaluationbody/consultant;
• 3 independent evaluation/project closure reports in respect ofprojectscompletedinthepast3yearsalongwithevidencethattheevaluation results were published as per the Project EvaluationDisclosurePolicy.
5.1.4 Project-at-risksystems andrelatedprojectriskmanagementcapabilities
A process or system inplace to flag early onwhen a project hasdeveloped problemsthatmay interferewiththe achievement of itsobjectives, and torespondaccordinglytoredresstheproblems
Required forapplicants seekingprojectmanagementaccreditation
Foralltypesofentities:• Proceduresforproject-at-risksystemtoensurespeedysolutions
toproblemswhichmay interferewith theachievementof theprojectobjectivesorleadtounintendednegativeconsequences;
• Examples of project problems addressed to demonstrateeffectivenessofthesystem.
GCFAccreditationToolkit-2017
68
Item Areaofcompetence
Specificcapacityrequired
Applicability Inputdata Examplesofsupportingdocumentation
5.2 Grantawardand/orfundingallocationmechanismsSpecificcapacitiesforgrantawardandfundingallocationmechanismsofgrantsinthecontextofprogrammesrequiretransparenteligibilitycriteriaandanevaluationprocess,agrantawarddecisionandprocedures,publicaccessto informationonbeneficiariesandresults,transparentallocationandimplementationoffinancialresources,andagoodstandingwithregardtomultilateralfunding.
5.2.1 Grant awardprocedures
A transparent grantawardmechanismwithformally documentedprocedures forevaluating proposalsand awarding grants,and clearly definedeligibilitycriteria;Grant award decisionstaken by authorisedbody in accordancewithgoodpractice
Required forapplicants seekinggrant awardand/or fundingallocationmechanismaccreditation
Sample grantnotices/call forproposals providedare comprehensiveand the criteria forexclusion, eligibility,selectionandawardsisincludedinthecallforproposals
Foralltypesofentities:• Composition and Terms of Reference of the Grant award
EvaluationCommittee;• Grantawardevaluationsystem/process/procedureswithclearly
defined rolesand responsibilities including thoseof theGrantEvaluationCommitteeandtheGrantApprovalAuthority;
• Samples of recent grant notices/calls for proposals withinformationonhowthesewerepublicised;
• Sample documents which provide evidence that the GrantAwardevaluationsystemiscompliedwithinrespectofallgrantsawarded. The sample documents should relate to the samegrantforwhichabovenoticeshavebeenprovided.ThesampledocumentsshouldalsocontaintheagendaandminutesoftherespectiveGrantEvaluationCommitteemeetingsinwhichthesegrants were discussed and approved/declined, evidence ofapproval by the Approving Authority and copies ofcommunicationsenttoallapplicants (successfulorotherwise)regardingtheirapplicationforgrant.
5.2.2 Public access toinformation onbeneficiaries andresults
Grant-awarding entityto make the grantaward results publicwithin a reasonabletimeframe
Required forapplicants seekinggrant awardand/or fundingallocationmechanismaccreditation
Foralltypesofentities:• Copy of policies/guidelines for providing information to the
publicregardingtheentity’sgrantdecisions;• Evidence of publication of grant award results for the last 3
grants/programmes/projects.
GCFAccreditationToolkit-2017
69
Item Areaofcompetence
Specificcapacityrequired
Applicability Inputdata Examplesofsupportingdocumentation
5.2.3 Transparentallocation offinancialresources
Systems in place toprovide assurance ontherealityandeligibilityofactivitiestobecarried out with thegrant award; torecover funds undulypaid and preventirregularities andfraud; to monitorprojectimplementation; andto suspend, reduce orterminate the grant inthe event of non-compliance
Required forapplicants seekinggrantawardand/orfunding allocationmechanismaccreditation
Foralltypesofentities:• Copy of documented framework/ system for undertaking due
diligence,includingprocurementprocedures,withclearlydefinedresponsibilities and applicable formats/templates, for assessingtheeligibilityandcapabilitiesofpotentialgrantawardees;
• Copy of entity’s policies and procedures (including formats) forundertakingMonitoring&Evaluationofgrants,alongwithreportsasevidenceofmonitoringofimplementationof3projectsinthepast 3 years;Copy of policies and procedures relating toSuspension,Reduction,TerminationandRecoveryofgrants;
• Does the entity have any policies/systems relating to providingaccess to the public to information on the periodic progress ofindividualprojects includingbudgetutilisationtoensuregreatertransparency in the use of funds by grantees? If yes, pleaseprovidebriefdescriptionofthepolicies/systemandevidenceofitsimplementation;
• Policies relating to external audit of the entity’s grant awardactivities and relevant. If this is done as a part of the entity’sexternalauditexerciseplease indicateaccordingly.Alternativelyprovidecopiesoflast3reportsonthegrantawardactivities.
Forprivatesectorentities:• Special/separate grant award audit reports as demonstrated
evidence of transparent and consistent application of grantawardingcriteria.
5.2.4 Good standing forfinancialrequirements withregard to multilateralfunding (e.g. throughrecognized publicexpenditurereviews)
Grant awarding entitywith a proven trackrecord of handlingmultilateralfunds
Required forapplicants seekinggrantawardand/orfunding allocationmechanismaccreditation
Foralltypesofentities:• Evidenceofgoodstandingwithregardtomultilateralfunding
in the form of evaluation/assessment/due diligence reportscommissionedbythemultilateralfundingsourcesorlettersofreferencefrommultilateralsponsors;
• Publicexpenditurereviews,ifanyundertaken.
GCFAccreditationToolkit-2017
70
Item Areaofcompetence Specificcapacityrequired
Applicability Inputdata Examplesofsupportingdocumentation
5.3 On-lendingand/orblendingAdditionalspecializedcriteriaforon-lendingandblendingwillapplyforintermediariesandimplementingentitiesthatwishtousefinancialinstrumentsotherthangrantswiththeGreenClimateFund’sresources.
5.3.1 Appropriateregistration and/orlicensing by afinancial oversightbody or regulator inthe country and/orinternationally, asapplicable
Anofficialrecordfromaregulator or licensingbodyclearingtheentityforon-lending
Required forapplicants seekingon- lending and/orblendingaccreditation
Foralltypesofentities:• On-lending registration or license from a national or
internationalregulator.• Ifsuchalicensedoesnotexistorapply,pleaseindicatethis
andexplain.
5.3.2 Track record,institutionalexperience andexistingarrangements andcapacities for on-lendingandblendingwith resources fromotherinternationalormultilateralsources
Previous experiencewith on-lending orblending usinginternationalormultilateralresources
Required forapplicants seekingon- lending and/orblendingaccreditation
Foralltypesofentities:• Dataforthelast3yearsinrespectoffundsforOn-lendingand
Blendingreceivedfromdifferent internationalandmultilateralfunding sources, including the management of assets underTrustArrangementsandotherarrangementssuchasSPVs;
• Projectdocumentsfor3on-lendingorblendingprojects,clearlystating the intermediaries and sources of international andmultilateralfunding;
• At least 3 examples of agreements for each of the financialinstruments that the applicant has indicated it is applying foraccreditation for (e.g., loans, equity and/or guarantees),undertakenbytheapplication.Forexample, if theapplicant isapplyingforthisspecializedfiduciarycriteriainordertoreceiveresourcesfromtheGreenClimateFundtodeployasequity,theapplicantshouldprovideatleast3relevantexamplesforwhichtheapplicantmadeanequityinvestment.
5.3.3 Creditworthiness Capacity to safely lendmoneytootherentities
Required forapplicants seekingon- lending and/orblendingaccreditation
Foralltypesofentities:• Ratings from recognised international credit rating
companies;• Iftheapplicantisnotrated,provideotherrelevantinformation
to evidence the applicant’s creditworthiness such as theRegulator’sexaminationreportorinformationregardingstatusofpaymentsinarrearsoftheentity’scurrentloanportfolioandmarketvalueofitsinvestments.
GCFAccreditationToolkit-2017
71
Item Areaofcompetence
Specificcapacityrequired
Applicability Inputdata Examplesofsupportingdocumentation
5.3.4 Due diligencepolicies, processesandprocedures
Mechanismsinplacetoensurethaton-lendingand/orblendingisdoneinacrediblemanner
Required forapplicants seekingon- lending and/orblendingaccreditation
Foralltypesofentities:• Copy of policies/guidelines/procedures for the entity’s On-
lending and/or Blending operations;Copy of theframework/system for undertaking due diligence with clearlydefined roles and responsibilities and applicableformats/templatesforassessingthecapabilitiesoftherecipientorganisations;
• 2on-lendingand/orblendingduediligencereports,includingthesoftwareemployedbytheentityinanalysingthecreditqualityofloanrecipients,forexampleMoody’sCreditAnalysisSoftwareorotherspecialisedsystems.
5.3.5 Financial resourcemanagement,including analysisof the lendingportfolio of theintermediary
Control procedures inplace to analyse thelendingportfoliooftheintermediary
Required forapplicants seekingon- lending and/orblendingaccreditation
Foralltypesofentities:• Financialmanagementpolicyoranyotherdocumentoutlining
the entity’s policy with respect to management of financialresources;
• Framework/procedures for evaluating an intermediary’slending portfolio; 2 lending portfolio assessment/analysisreports.
5.3.6 Public access toinformation onbeneficiaries andresults
Systemsandprovisionsinplaceforthegeneralpublic to accessinformation aboutbeneficiaries andresults of projectsfundedbytheentity
Required forapplicants seekingon-lendingand/orblendingaccreditation
Foralltypesofentities:• Copyof entity’s policies/guidelines for providing information to
thepublicregardingitsdecisionsonon-lendingand/orblendingoperations;
• Evidenceofpublicationofthelistofbeneficiariesofitson-lendingand/orblendingoperationsforthelast2years;
• Evidenceofpublicationofinformationonbeneficiariesandresultsof 3 projects completed in the past 3 years (preferably climatechangemitigationand/oradaptationprojects).
GCFAccreditationToolkit-2017
72
Item Areaofcompetence
Specificcapacityrequired
Applicability Inputdata Examplesofsupportingdocumentation
5.3.7 Investmentmanagement,policies andsystems, includingin relation toportfoliomanagement
Systems in place toensure soundinvestmentmanagement
Required forapplicants seekingon-lendingand/orblendingaccreditation
Foralltypesofentities:• Investmentmanagementpolicy;• Procedures/guidelines for managing the entity’s investment
portfolio;• Copiesof2investmentportfoliomanagementreportsprepared
inthe past 3 years, including the current investment portfoliovaluation.
5.3.8 Capacity tochannel fundstransparently andeffectively, and totransfer theGreenClimate Fund’sfundingadvantagestofinalbeneficiaries
Systems in place toensure that funds aretransparentlychannelled
Required forapplicants seekingon-lendingand/orblendingaccreditation
Foralltypesofentities:• Brief description of systems/ procedures/practices which
providerequisiteassurancethatthefundsprovidedbytheentityarechannelledtransparentlyandusedeffectively;
• Examplesof reports fromthepast threeyearsusedtocontroltheappropriateuseoffunds
• Entity’s policy and practices for annual/periodic independentreview/check/internalorexternalauditontheuseofitsfundsalongwithevidenceofsuchreviewsbeingundertaken;
• Data relating to 3 projects showing the advantages to finalbeneficiariesofprojectsimplementedbytheentity.
5.3.9 Financial riskmanagement,including assetliabilitymanagement
Capacity to managefinancialrisk
Required forapplicants seekingon-lendingand/orblendingaccreditation
Foralltypesofentities:• Financial risk management Policy and Procedures (if already
provided as a part of Internal Control Framework, then theapplicant can refer to the item and document where it iscontained);
• Briefdescriptionofmajorfinancialriskmanagementstrategiesplannedand implementedduringeachof the last2 yearsandanalysis/reports covering the impact/effectiveness of thestrategies;
• 2samplesoftheminutesofrecentmeetingsoftheentity’sAssetand Liability Committee (ALCO) or other committee thatmanagestheentity’sassetsandliabilities
GCFAccreditationToolkit-2017
73
Item Areaofcompetence
Specificcapacityrequired
Applicability Inputdata Examplesofsupportingdocumentation
5.3.10 Governance andorganizationalarrangements,includingrelationshipsbetween thetreasury functionand the operationalside(frontdesk
A link between thetreasury function andthe operationalfunction
Required forapplicants seekingon-lendingand/orblendingaccreditation
Foralltypesofentities:Details of the relationship between the treasury function and theoperationalfunctionswithevidencethattheappropriatesegregationofduties between the organizational unit responsible for businessdecisions and the unit responsible for disbursement covers possiblerisks.
GCFAccreditationToolkit-2017
74
6.4. Environmentalandsocialsafeguards
Environmentalandsocial safeguards (ESS)arenecessary to identify,preventandmitigateharmtopeople and their environment throughout the implementation of a project or programme.Mostmultilateralandbilateraldevelopmentagencieshaveadoptedpolicies,proceduresandguidelinesthatcoverthoseEnvironmentalandSocial(E&S)aspects.ESS systems have become gradually harmonised, and most align with the International FinanceCorporation’s(IFC)PerformanceStandards(PS)(seeFigure9below).TheGCF’sESSarebasedontheIFCPS,onaninterimbasisupsinceitisplannedthattheGCFwilldevelopitsownESSsystemwhenithasthenecessaryprojectandprogrammeexpertise.
Figure9:IFCESSperformancestandards(source:Acclimatise,GreenClimateFundProposalToolkit2017)
Thepolicy
ThereareeightIFCPSwhicharepartofanoverarchingsystemforthe“AssessmentandManagementofEnvironmentalandSocialRisksandImpacts”(PS1),andsevenrisk-specificstandards:
• PS1 – Assessment andmanagement of environmental and social risks and impacts: Theoverarchingsystemorproceduresforidentifying,assessingandmanagingtheactivityspecificrisks;
• PS2 – Labour andworking conditions: Ensuringworkers are informed of their rights andprovidedwithsafeworkingconditions;
• PS3–Resourceefficiencyandpollutionprevention:Avoidingpollutionandthegenerationofwaste,andusingresourcesefficiently;
• PS4–Communityhealth,safetyandsecurity:Avoidingadverseimpactsonhealthandsafety,andontheecosystemservicesusedbycommunities;
GCFAccreditationToolkit-2017
75
• PS5 – Land acquisition and involuntary resettlement: Avoiding forced evictions andminimisingdisplacement,orprovidingfaircompensationforresettlement;
• PS6–Biodiversityconservationandsustainablemanagementof livingnatural resources:Avoidingimpactsonbiodiversitythroughprotection;
• PS7–Indigenouspeoples:Identifyingandavoidingnegativeimpactsonindigenouspeoples;and,
• PS8–Cultural heritage: Avoiding impacts on andprotecting archaeological, historical andculturalsites.
InordertomeetPS1–Assessmentandmanagementofenvironmentalandsocialrisksandimpacts,theapplicantentitiesmusthaveaneffectiveEnvironmentalandSocialManagementSystem(ESMS).An ESMS is amethodology tomanage environmental and social risks on a permanent basis. Thisincludestheinstitutionalprocessesthatdemonstratethecapacityto identify,categorise,evaluate,mitigate, manage and monitor environmental and social risks that could arise from GCF-fundedprojectsandprogrammes.AcomprehensiveESMSshouldinclude:
• An E&S policy: A statement of commitment with values, principles, objectives and goalsgoverningtheE&Sperformanceofeachactivity;
• Aprocess to identify E&S risks and impacts:Aplanningprocess to identify E&S risks andimpactsacrossperformancestandards2-8;
• E&Sriskmanagementprogramme:OrganisationalstructurestomanageE&Srisks,includingtheimplementationofmitigationmeasurestoaddressE&Simpacts;
• OrganisationcapacityandcompetencytomanageE&Srisks:GuidelinesandstructurestoensurethatrelevantstaffhavethenecessaryskillstoundertakeE&Sriskmanagement;
• MonitoringandreviewprocessforE&Srisks:ProcesstomonitorandevaluatetheE&Sriskscovering PS2-8 of funded projects and programmes, to ensure that E&S management isimplemented;and,
• Structures for external communication on E&S risks: Public disclosure of relevant E&Sinformation is required via channels that also allow the receipt of public inquiries andconcernsonE&Srisks.
§ Risklevels
At theproject andprogramme level, E&S risks are categorised in three levels. The levels are splitbetweenenvironmentalandsocialriskfromfundingproposals(Categories)oranentity’sexposuretoenvironmental and social financial risk based on their grant award or on-lending portfolios(Intermediations).Theserisklevelsare:
• High risk: Covers funding proposals (Category A) and/or proposed investment portfolios(Intermediation1)whereactivitiesmayhavesignificantadverseenvironmentaland/orsocialrisksand/orimpactsthatarediverse,irreversibleorunprecedented;
• Mediumrisk:Coversfundingproposals(CategoryB)and/orproposedinvestmentportfolios(Intermediation2)whereactivitiesmayhavemildadverseenvironmentaland/orsocialrisksand/orimpactsthatarefewinnumber,generallysite-specific,largelyreversible,andreadilyaddressedthroughmitigationmeasures;and,
GCFAccreditationToolkit-2017
76
• Low risk: Covers funding proposals (Category C) and/or proposed investment portfolios(Intermediation3)whereactivitieshaveminimalornoadverseenvironmentaland/orsocialrisksand/orimpacts.
TheGCF’sfullenvironmentalandsocialpolicycanbefoundat:{www.greenclimate.fund/documents/20182/319135/1.7_-_Environmental_and_Social_Safeguards.pdf/e4419923-4c2d-450c-a714-0d4ad3cc77e6}DemonstratingcomplianceThe required ESMSwill vary depending on the environmental and social risk associatedwith theintendedactivitiesoftheapplicant:
• Highrisk:Theentity’sESMSneedstodemonstrateafullydevelopedanddocumentedtrackrecordassociatedwithallsixpolicyrequirementsofPS1aspartofaneffectiveESMS,whichisfullyconsistentwithallsevenriskcategoriesasoutlinedinPS2-8;
• Medium risk: The entity’s ESMS needs to demonstrate that itsmanagement programme,organisational capacity and competency, monitoring and review procedures and externalcommunications all align with high risk requirements, although less evidence ofimplementation is required.TheE&Spolicyand identificationof risksand impactsarenotrequiredtobeasformalised,butmustpresentandbeconsistentwithallsevenriskcategoriesasoutlinedbyPS2-8;and,
• Lowrisk:TheESMSwillnothavetobeadvanced.ItwillneedbasictomoderateprocedurescoveringfiveofthesixESMSpolicyareas,consistentwithallsevenriskcategoriesasoutlinedbythePS2-8.NoE&Spolicyisrequired.
If the applicant does not have an ESMS, a quality-based management system can be used as afoundationonwhichtobuildtherequiredESMS.Iftheapplicanthasdevelopedandimplementedaformalinternalenvironmental,labourorhealthandsafetysystemthatalignswithIFC’sPS,thismaybesufficient.ItisrecommendedthatagapassessmentbeconductedtoensurealignmentwiththeIFC’sPS.
GCFAccreditationToolkit-2017
77
Table9:Risklevelsandcorrespondingexamples(source:AcclimatiseNDAtoolkit2017)Risklevel
Fundingproposals Intermediation6 Examples
High CategoryAActivities withpotential significantadverse environ-mental and/or socialrisks and/or impactsthat are diverse,irreversible, orunprecedented.
Intermediation1(I1)When an intermediary’s existing orproposed portfolio includes, or isexpected to include, substantialfinancial exposure to activities withpotential significant adverseenvironmental and/or social risksand/or impacts that are diverse,irreversible,orunprecedented.
Large scale activities includingconversion or degradation,extraction, consumption,dischargeanddisposal relatedtonaturalhabitats:• Large-scaleforestry• Large-scaleagriculture• Large-scaleinfrastructure• Large resettlement
components• Impactsonindigenouspeoples• Serioushealthrisks
Medium CategoryBActivities withpotential mildadverseenvironmentaland/or social risksand/or impacts thatare few in number,generally site-specific, largelyreversible, andreadily addressedthrough mitigationmeasures.
Intermediation2(I2)When an intermediary’s existing orproposed portfolio includes, or isexpected to include, substantialfinancial exposure to activities withpotential limited adverseenvironmental or social risks and/orimpacts that are few in number,generally-site specific, largelyreversible, and readily addressedthrough mitigation measures; orincludes a very limited number ofactivities with potential significantadverse environmental and/or socialrisksand/or impactsthatarediverse,irreversible,orunprecedented.
Similartothosewithhighrisksbutoftensmallerinscale:• Small scale infrastructure,
includingmini-grids and smallscalerenewables
• Ecosystembasedadaptation• Energyefficiencyprogrammes• Small rehabilitation,
maintenanceandupgrades• Small scale agricultural and
ruraldevelopment
Low/No CategoryCActivities withminimal or noadverseenvironmentaland/or social risksand/orimpacts
Intermediation3(I3)When an intermediary’s existing orproposed portfolio includes financialexposure to activities thatpredominantly have minimal ornegligible adverse environmentaland/orsocialimpacts.
Includesoftapproachesandverysmallhardapproaches:• Advisoryservices• Education, training, capacity
building, and institutionaldevelopment
• Panningsupport• Awarenessraising• Smallscalereforestation• Monitoringprogrammes• Household energy supply and
efficiencyprogrammes
6 Activities involving investments through financial intermediation functions or through delivery mechanisms involvingfinancialintermediation.
GCFAccreditationToolkit-2017
78
Table10:SectionVIoftheaccreditationapplication:“Environmentalandsocialsafeguards”(source:GCFaccreditationform)
Item Areaofcompetence
Specificcapacityrequired Applicability Inputdata Examplesofsupportingdocuments
6 Environmental
andSocial
Management
System(ESMS)
The accreditation review against the Green Climate Fund’s environmental and social safeguards (ESS) will focus on the applicant’s
institutionalESMS.
• EntitiesthatdesiretoundertakeCategoryA/I-145orlowerrisk(CategoryB/I-2andCategoryC/I-3)typeprojects/programmeswillbe
requiredtohaveanESMSthatismatureanddocumented,withaproventrackrecordofmanagingthesetypesofprojects/programmes,
andthefullsupportofSeniorManagement.RequiredelementsoftheinstitutionalESMSaresetoutbelowinitems6.1-6.6
• EntitiesthatdesiretoundertakeCategoryB/I-246orlowerrisk(CategoryC/I-3)typeprojects/programmeswillberequiredtohavean
ESMSandaproventrackrecordofmanagingthesetypesofprojects/programmes,andthesupportofManagement.ThisESMSwilllikely
haveemergingelementsandwillnotbeasmatureinscopeordocumentation,oraswell-integratedintobusinessprocesses,astheESMS
requiredforCategoryA/I-1typeprojects/programmes,thoughitwillstillhavealloftheESMSelementslistedinitems6.1-6.6;
• Entities that desire to undertake Category C/I-347 type projects/programmes will only have an ESMS. Category C/I-3 projects, by
definition,containlittletonoenvironmentalorsocialrisksorimpacts.TheESMSrequiredwillbemoderateandverysimple,andwillnot
needalloftheESMSelementsrequiredbyhigherriskcategories.RequiredelementsoftheinstitutionalESMSareshowninitems6.1-6.6.
6.1 Policy CategoryA/I-1An environmental and social (E&S) policy
that:
• Includes an overarching statement of the
E&S objectives and principles guiding the
institution;
• States the E&S standards the institution
adherestoincludinglawsimplementinghost
countryobligationsunderinternationallaw;
• Indicateswhomwithin the institutionswill
ensureconformancewiththepolicyandbe
responsibleforitsexecution;
• Is consistent with the Performance
Standards(PS)1-8;• IsendorsedbySeniorManagement;• Is communicated to all levels of its
organization and may be communicated
publicly.
Requiredfor
applicantsseeking
CategoryA/I-1
accreditation
Foralltypesofentities:• A formal E&S Policy, or
equivalent, that includesthe
required specific capacities
which is fullydevelopedand
maintained;
• In the absence of a formal
policy, a description of the
specific institutional
capacities related to the
elements that would
otherwise be included in an
E&Spolicy;
• Year when E&S policy or
equivalent was
approved/endorsed.
CategoryB/I-2AnE&Spolicythat:
• IncludesanoverarchingstatementoftheE&S
objectives and principles which guide the
Requiredfor
applicants seeking
CategoryB/I-2
accreditation
Foralltypesofentities:• AnE&SPolicy,orequivalent,
that includes the required
specificcapacities
GCFAccreditationToolkit-2017
79
institution;• States the E&S standards the institution
adheres to including laws implementing host
countryobligationsunderinternationallaw;
• Indicates whom within the institutions will
ensure conformance with the policy and be
responsibleforitsexecution;
• IsconsistentwithPS1-8;
• IsendorsedbyManagement;
• Iscommunicatedwithintheorganization
• Year when E&S policy or
equivalent was approved
/endorsed.
CategoryC/I-3Notrequired.
Requiredfor
applicantsseeking
CategoryC/I-3
accreditation
Notrequired,butifavailablepleaseindicatethisandprovidesupportinginformation.
Item Areaofcompetence
Specificcapacityrequired Applicability Inputdata Examplesofsupportingdocuments
6.2 Identificationof
Risksand
Impacts
CategoryA/I-1Afullydevelopedanddocumentedinstitutional
processandtrackrecordthat:
• IdentifiestheE&Srisksandimpactsof
projects/programmesastheyevolveover
theprojectlife;• Isconsistentwithgoodinternational
industrypractice;
• IsconsistentwithPS1-8;
• Isintegratedintooperations.
Requiredfor
applicantsseeking
CategoryA/I-1
accreditation
Foralltypesofentities:Allelementsof
thisitemtaking
intoaccountthe
categoryof
environmental and social risk the
applicant is applying for must be
addressed.
For GEF entities eligible for andapplyingundertheGreenClimateFund fast-track accreditationprocess:Complete this section for a risk
and impacts identification
procedure or process and track
record that includes: PS2; PS3
except Pest Management; PS4
infrastructure and equipment
design and safety beyond dam
safety, hazardous materials and
management
safety, protection of priority
Foralltypesofentities:• A formal E&S risks and impacts
identification and assessment
procedure describing the due
diligence approach which isintegrated into business
processes, isroutinelyupdated,
andmay have been audited by
aninternalorexternaloversight
mechanism;• Ifariskcategorizationsystemis
alreadyused,alistofillustrative
projects from the past 3 years
andtheircategory,includingan
indication of who within the
organization determines the
categorization.
GCFAccreditationToolkit-2017
80
provisioningandregulating
ecosystemservices,
communityexposureto
disease,emergency
responseand
preparedness,
collaborationwith
communities, security force
management;and
PS6supplychainrequirements.
This section does not need to be
completedfor
otherPSrequirements.CategoryB/I-2Aninstitutionalprocessandtrackrecordthat:
• IdentifiestheE&Srisksandimpactsof
projects/programmes;
• Isconsistentwithgoodinternational
industrypractice;50Isconsistentwith
PS1-8.
Requiredfor
applicantsseeking
CategoryB/I-2
accreditation
Foralltypesofentities:Allelementsofthisitemtaking
intoaccountthecategoryof
environmentalandsocialriskthe
applicantisapplyingformustbe
addressed.
For GEF entities eligible for andapplying under the Green ClimateFund fast-track accreditationprocess:Completethissectionforariskand
impactsidentificationprocedureor
process and track record that
includes: PS2; PS3 except Pest
Management; PS4 infrastructure
and equipment design and safety
beyond dam safety, hazardous
materials andmanagement safety,
protection of priority provisioning
and regulating ecosystem services,
community exposure to disease,
emergency response and
preparedness, collaboration with
communities, security force
management;andPS6supplychain
Foralltypesofentities:• An E&S risks and impacts
identification and
assessment procedure
describing the due
diligence approach, which
may be implemented by
the relevant part of the
organization;
• Ifacategorizationsystemis
already used, a list of
illustrative projects from
the past 3 years and their
category, including an
indication of who within
the organization
determines the
categorization.
GCFAccreditationToolkit-2017
81
requirements.
This section does not need to be
completed for other PS
requirements.
CategoryC/I-3Aprocessthatscreensprojects/programmes
againstPS1-8andisabletoconsistentlyconfirm
the
riskcategory.
Requiredfor
applicantsseeking
CategoryC/I-3
accreditation
Foralltypesofentities:All elements of this item taking
intoaccountthe
category of environmental and
social risk the applicant is
applying formust be addressed
ForGEF entities eligible for and
applying under the Green
Climate Fund fast-track
accreditationprocess:Complete
thissectionforariskandimpacts
identification procedure or
process and track record that
includes:PS2;PS3exceptPest
Management;PS4infrastructure
andequipmentdesignandsafety
beyond dam safety, hazardous
materials and management
safety,protectionofpriority
provisioning and regulatingecosystem services, community
exposuretodisease,emergency
response and preparedness,
collaborationwithcommunities,
securityforcemanagement;and
PS6supplychainrequirements.
Thissectiondoesnotneedtobe
completed for other PS
requirements.
Foralltypesofentities:• A basic E&S procedure,
which may be
implemented by the
relevant part of the
organization;
• Ifacategorizationsystem
is already used, a list of
illustrative projects from
thepast3yearsandtheir
category, including an
indication of who
determines
categorization.
GCFAccreditationToolkit-2017
82
Item Areaofcompetence
Specificcapacityrequired Applicability Inputdata Examplesofsupportingdocuments
6.3 Management
Programme
CategoryA/I-1A fully developed and documented institutional
process and track record for managingmitigation
measuresandactionsstemmingfromtheE&Srisk
identificationprocess.
Depending upon the nature and scale of the
project/programme, themanagement programme
may consist of a documented combination of
operationalprocedures,practices,plansandrelated
supporting documents that are managed in a
systematicway.
Requiredfor
applicantsseeking
CategoryA/I-1
accreditation
Foralltypesofentities:Allelementsofthisitemtakinginto
account the category of
environmental and social risk the
applicantisapplyingformust
beaddressed.
For GEF entities eligible for andapplying under the Green ClimateFund fast-track accreditationprocess: Complete this section by
demonstrating management
processes and track record for the
issueslistedinitem6.2.Thissection
doesnotneedtobecompletedfor
otherPSrequirements.
Foralltypesofentities:• Evidence of management
programme, including
formal operational
processes or procedures
documenting practices
describing how individual
projects/programmes
mitigation actions will be
documented, tracked, and
applied;
• Auditreports(conducted
byexternalfirmor
organization)on
institutionalmanagement
programmeeffectiveness.
CategoryB/I-2A documented institutional process and track
record for managing mitigation measures and
actions stemming from the E&S risk identification
process.
Depending upon the nature and scale of the
project/programme, themanagement programme
may consist of a documented combination of
operationalprocedures,practices,plansandrelated
supporting documents that are managed in a
systematicway.
Requiredfor
applicantsseeking
CategoryB/I-2
accreditation
Foralltypesofentities:Allelementsofthisitemtakinginto
accountthecategoryof
environmentalandsocialriskthe
applicantisapplyingformustbe
addressed.
ForGEFentitieseligibleforandapplyingundertheGreenClimateFundfast-trackaccreditationprocess:Completethissectionby
demonstratingmanagement
processesandtrackrecordforthe
issueslistedinitem6.2.This
sectiondoesnotneedtobe
completedforotherPS
requirements.
Foralltypesofentities:• Operating processes or
procedures documenting
how individual
projects/programmes
mitigation actions will be
documentedandtracked;
• Audit reports on
institutional management
programmeeffectiveness
CategoryC/I-3A management programme consistent with the
level of E&S risk. The management programme
should indicatean institutionalprocess to identify
andmanagerisks(includingunanticipatedrisksand
Requiredfor
applicantsseeking
CategoryC/I-3
accreditation
Foralltypesofentities:Allelementsofthisitemtakinginto
accountthecategoryof
environmentalandsocialriskthe
applicantisapplyingformustbe
Foralltypesofentities:Ifneededduetounanticipatedrisks
orimpactsarisingafterscreening,a
descriptionoftheprocessand
organizationalcapacitytomanage
GCFAccreditationToolkit-2017
83
impacts), and designate roles responsible for
implementingtheprogramme.
addressed
For GEF entities eligible for andapplying under the Green ClimateFund fast-track accreditationprocess: Complete this section by
demonstrating management
processes and track record for the
issueslistedinitem6.2.Thissection
doesnotneedtobecompletedfor
otherPSrequirements.
E&Srisk
Item Areaofcompetence
Specificcapacityrequired Applicability Inputdata Examplesofsupportingdocuments
6.4 Organizational
Capacityand
Competency
CategoryA/I-1An organizational structure that defines roles,
responsibilities,reportinglinesandauthorityto
implement the ESMS, which includes Senior
Management. Key E&S responsibilities should be
defined and communicated, and supported with
humanandfinancialresources.
Technical staff with direct responsibility for the
project/programme performance have the
knowledge, skills and experience necessary to
understandandensureimplementationofPS1-8.
TechnicalstaffwithknowledgeofPS1-8areableto
properlycategorizepotentialfundingproposals.
Requiredfor
applicantsseeking
CategoryA/I-1
accreditation
Foralltypesofentities:Allelementsofthisitemtakinginto
accountthe
category of environmental and
social risk theapplicant isapplying
formustbeaddressed.
For GEF entities eligible for andapplying under the Green ClimateFund fast-track accreditationprocess: Complete this section by
demonstrating capacity and
competency for the issues listed in
item6.2.Thissectiondoesnotneed
tobecompletedforotherPS
requirements.
Foralltypesofentities:• Organizational charts that
identify units or
departments, line
management and the
individuals having E&S
performance and
complianceresponsibilities;• Job descriptions and
responsibilities of key E&S
personnel, including
expertiseandexperiencein
PS1-8;
• Proceduresforinformation
sharing(awareness)among
the investment, legal and
credit offices in the
organization’s E&S
requirementsandESMS;
• Descriptionof trainingand
developmentprograms for
E&S and other relevant
staff.
GCFAccreditationToolkit-2017
84
CategoryB/I-2An organizational structure that defines roles,
responsibilities and authority to implement the
ESMS,whichincludesSeniorManagement.KeyE&S
responsibilities should be defined and supported
withhumanandfinancialresources.
Technical staff with direct responsibility for the
project/programme performance have the
knowledge, skills and experience necessary to
understandandensureimplementationofPS1-8.
TechnicalstaffwithknowledgeofPS1-8,areableto
properlycategorizepotentialfundingproposals.
Requiredfor
applicantsseeking
CategoryB/I-2
accreditation
Foralltypesofentities:Allelementsofthisitemtakinginto
accountthecategoryof
Environmentalandsocialriskthe
applicantisapplyingformustbe
addressed.
ForGEFentitieseligibleforandapplyingundertheGreenClimateFundfast-trackaccreditationprocess:Completethissectionby
demonstratingcapacityand
competencyfortheissueslisted
initem6.2.Thissectiondoesnot
needtobecompletedforother
PS
requirements.
Foralltypesofentities:• Organizational
charts that
identify units or
departments,
line
management
and the
individuals
having E&S
performance
and compliance
responsibilities;
• Job descriptions and
responsibilities of key E&S
personnel, including
expertiseandexperiencein
PS1-8. CategoryC/I-3
Designated staff or staff members appropriately
locatedwithintheorganizationareknowledgeable
about PS1-8 and able to properly categorize
potentialfundingproposalsthrougha
screeningprocess.
Requiredfor
applicantsseeking
CategoryC/I-3
accreditation
Foralltypesofentities:Allelementsofthisitemtakinginto
accountthecategoryof
Environmental and social risk the
applicant is applying for must be
addressed.
For GEF entities eligible for andapplying under the Green ClimateFund fast-track accreditationprocess: Complete this section by
demonstrating capacity and
competency for the issues listed in
item6.2.Thissectiondoesnotneed
tobecompletedforotherPS
requirements.
Foralltypesofentities:Organizational chart of where
designatedstaffmemberswhomake
categorization decisions sit in theorganizationandreportinglines.
GCFAccreditationToolkit-2017
85
Item Areaofcompetence
Specificcapacityrequired Applicability Inputdata Examplesofsupportingdocuments
6.5 Monitoringand
Review
CategoryA/I-1Track record and internal processes to support a
monitoring/supervisionprogrammethattracksand
ensurescompletionofmitigationandperformance
improvementmeasures.Periodic performance reviews reported to Senior
Management on the effectiveness of the ESMS.
SeniorManagementhasatrackrecordoftakingthe
necessary steps to ensure that the intent of the
institutions policy is met and that procedures,
practicesandplansareimplemented
Requiredfor
applicantsseeking
CategoryA/I-1
accreditation
Foralltypesofentities:Allelementsofthisitemtakinginto
accountthecategoryof
environmental and social risk theapplicant is applying for must be
addressed.
For GEF entities for and applyingundertheGreenClimateFundfast-track accreditation process:Complete this section by
demonstratingmonitoring
competencyanda track record for
the issues listed in item 6.2. This
section does not need to be
completed for other PS
requirements.
Foralltypesofentities:Descriptionofmonitoringandreviewprogram,
includingprocessesandprocedures
• Examplesofhowlessonslearned
frommonitoringandevaluation
have influenced the
design/decisions concerning
specificprojects/programmes;
• Overall indicators that resultedfrom theprogram in thepast 3
years, which indicate a track
recordofthelevelofsuccessof
ESMSimplementationwithinthe
projects/programmes;
• Description of the review oraudit processes that verify this
data (institutional independent
review arm, outside audit firm,
oversight mechanism, etc.);
sampleofprojectauditreports;
• Description of the types andfrequency of reports, which
include E&S monitoring
information, that are submitted
to SeniorManagement; sample
of project monitoring and
evaluation reports prepared in
thelast3years;
• Examples of how E&S
supervision and auditing
activities have informed the
managementreviewandupdate
oftheESMS;
• Examples of how E&S
supervision and auditing
activities have resulted in
knowledgedissemination either
internallyorpublicly.
GCFAccreditationToolkit-2017
86
Item Areaofcompetence
Specificcapacityrequired Applicability Inputdata Examplesofsupportingdocuments
CategoryB/I-2Trackrecordandinternalprocessestosupporta
monitoring/supervision programme that tracks
and ensures completion of mitigation and
performanceimprovementmeasures.
Periodic performance reviews reported to Senior
Management, on the effectiveness of the ESMS.
Senior Management takes the necessary steps to
ensure that the intent of the institutions policy is
met and that procedures, practices and plans are
implemented.
Requiredfor
applicantsseeking
CategoryB/I-2
accreditation
Foralltypesofentities:Allelementsofthisitemtakinginto
account the category of
environmental and social risk the
applicant is applying for must be
addressed.
For GEF entities eligible for andapplying under the Green ClimateFund fast-track accreditationprocess: Complete this section by
demonstratingmonitoring
competencyanda track record for
the issues listed in item 6.2. This
section does not need to be
completedforotherPS
requirements.
Foralltypesofentities:• Description of monitoring
and review program and
previous years’ indicators
that resulted from the
program;
• Sample of project
monitoring and
evaluationreports.
CategoryC/I-3Moderate monitoring of projects/programmes to
ensure that therehavebeenno scope changesor
unanticipated impactsor risks requiringmitigation
andmanagement.
Requiredfor
applicantsseeking
CategoryC/I-3
accreditation
Foralltypesofentities:Allelementsofthisitemtaking
intoaccountthecategoryof
environmentalandsocialrisk
theapplicantisapplyingfor
mustbeaddressed.
ForGEFentitieseligible forandapplying under the GreenClimate Fund fast-trackaccreditationprocess:Complete
this section by demonstrating
monitoring competency and a
trackrecordfortheissueslisted
initem6.2.Thissectiondoesnot
needtobecompletedforother
PSrequirements.
Foralltypesofentities:• Descriptionofproject
monitoringprocess.
GCFAccreditationToolkit-2017
87
Item Areaofcompetence
Specificcapacityrequired Applicability Inputdata Examplesofsupportingdocuments
6.6 External
Communications
CategoryA/I-1Externalcommunicationchannelsthatallowthe
entityto:
• Receive and register external
communicationsfromthepublic;
• Screen and assess issues raised and
determinehowtoaddressthem;
• Provide,track,anddocumentresponses.
Requiredfor
applicantsseeking
CategoryA/I-1
accreditation
Foralltypesofentities:• Writtenprocessor
proceduresdescribing
externalcommunications
system• Location of system
(website,etc.);
• Register of
inquiries/complaints
• and responses from the
past1year. CategoryB/I-2
Externalcommunicationchannelsthatallowthe
entityto:
• Receiveandregisterexternal
communicationsfromthepublic;
• Screen and assess issues raised and
determinehowtoaddressthem;
• Provide,track,anddocumentresponses.
Requiredfor
applicantsseeking
CategoryB/I-2
accreditation
Foralltypesofentities:• Written process or
procedures describing
external
communications
system;
• Location of system
(website,etc.)
• Register of
inquiries/complaintsand
responsesfromthepast
1year.
CategoryC/I-3Externalcommunicationchannelsthatallowthe
entityto:
• Receive and register external
communicationsfromthepublic;
• Screen and assess issues raised and
determinehowtoaddressthem;
• Provide,track,anddocumentresponses.
Requiredfor
applicantsseeking
CategoryC/I-3
accreditation
Foralltypesofentities:• Written process or
procedures describing
external
communications
system;
• Location of system
(website,etc.);
• Register of inquiries/
complaints and
responses from the
past1year.
GCFAccreditationToolkit-2017
88
6.5. GenderGenderisofcriticalimportanceinbothclimatechangemitigationandadaptationaswomenandgirlsareparticularlyaffectedbytheimpactsofclimatechangeandassociatedsevereweatherevents.Forinstance,women’smortalityfromclimate-relateddisastersishigherthanthatofmen,andclimate-
inducedeventssuchasdroughtsexacerbatewomen’spovertyandunpaiddomesticandcareworkburdens.Thisisduetofactorssuchasentrencheddiscriminatorysocialandculturalnorms,alackofentitlements, and unequal access to land, water and productive assets, compounded by limited
mobilityanddecision-makingpowerinmanycontexts.Assuch,thereisanincreasingrecognitionofmainstreaminggenderinclimatefinance.
TheGCFisthefirstmultilateralclimatefundthatincludesagenderpolicyandagenderactionplan.AspertheGCF’sGenderPolicy,AEsarerequiredtodevelopandimplementtheirowngenderpolicy.
TheGCFgendermanual“MainstreamingGenderinGreenClimateFundProjects”isavailablehere:{http://www.greenclimate.fund/documents/20182/77885/gcf-toolkit-mainstreaming-gender/bb8aa893-db27-4d29-aba1-ff852e599504}
ThepolicyTheGCF’sgenderpolicycontainssixprinciplestoensuretheGCFcontributestogendersensitivity,
equalityandequity,asfollows:
• Commitment: the GCF commits to contributing to gender equality, as enshrined in
internationalagreementsandnationalconstitutions;
• Comprehensiveness:theGCFappliesitsgenderpolicytoallitsclimatechangemitigationandadaptationactivities,withoutregardtothenatureoftheimplementingentity(public/private,
international/national);
• Accountability: gender monitoring, impact and outcomes indicators are included in the
resultsmanagementandperformanceframeworksoftheGCF;
• Countryownership:NDAsmustalignwiththeGCF’sgenderpolicy;
• Competencies:TheGCFaimstoreachgenderbalancewithinitsownkeyadvisoryanddecision
makingbodies;and,
• Resource allocation: Climate change adaptation andmitigation projects and programmes
mustcontributetogenderequalityandwomen’sempowerment. TheGCF’sfullgenderpolicycanbefoundat:
{http://www.greenclimate.fund/documents/20182/319135/1.8_-_Gender_Policy_and_Action_Plan.pdf/f47842bd-b044-4500-b7ef-099bcf9a6bbe}
GCFAccreditationToolkit-2017
89
DemonstratingcomplianceApplicant entities are expected to demonstrate their competencies, policies and procedures toperforminlinewiththeGCF’sgenderpolicythrough:
• Previousexperienceinimplementingagenderpolicythroughprojectexamples
• Experiencesingenderandclimatechange
However, it is accepted that gender will commonly be a new element to many applicants’
organisationalpolicies.ThisiswhyiftheapplicantentitiesareunabletodemonstrateallGCF’sgenderpolicy elements, they have to demonstrate a willingness to acquire and develop all of thesecompetenciesasaminimumrequirement.
Box3:Understandinggender(source:SoanesM.,2017)Gender:Howsocietiesandspecificculturesassignrolesandascribecharacteristicstomenandwomenbasedontheirsex.Genderequality:Equalrights,power,responsibilitiesandopportunitiesforwomenandmen,aswellasequalconsiderationoftheinterests,needsandprioritiesofmenandwomen.Therefore,entailing
thatsocietyequallyvalueswomenandmen,andtherolestheyplay.Genderequity:Theprocessofbeingfairtomenandwomen.Toensuregenderequity,measuresmay
needtobetakentocompensatefor(orreduce)thedisparitycreatedbyhistoricalandsocialeffects,thatpreventwomenandmenfromoperatingonanequitablebasis.
Gendersensitivity:Understanding theways inwhichpeople thinkaboutgender, thesocioculturalfactorsunderlyinggenderinequality,andhowtoaddresstheseinequalities.Gendersensitivityimpliesconsiderationofthecontributionofwomenandmentosocietalchange,aswellasthemethodsand
toolsusedtopromotegenderequity,reducegenderdisparities,andmeasuretheimpactofclimatechangeandotherdevelopmentactivitiesonmenandwomen.
GCFAccreditationToolkit-2017
90
Table11:SectionVIIoftheaccreditationapplication:“Gender”(source:GCFaccreditationform)
Item Areaofcompetence
Specificcapacityrequired Applicability Inputdata
Examplesofsupportingdocumentation
7.1 Gender Demonstrate competencies,policies and procedures toimplement theGreenClimateFund’sGenderPolicy
Allapplicants Foralltypesofentities:• Extract from entity’s operational
policiesandproceduresrelatingtogender.
7.2 Demonstrate experience withgender and climate change,includingatrackrecordoflendingtobothmenandwomen
Allapplicants Foralltypesofentities:• Examples of 2 activities (e.g.,
projects/programmes undertaken, on-granting,on-lending,etc.)thatspecificallytargetwomenamongbeneficiaries;
• Evidence to show that the entity’sactivities (e.g., projects/programmesundertaken, on-granting, on- lending,etc.)havenon-discriminatorypracticesinterms of benefits and remuneration forbothmenandwomenemployees.
GCFAccreditationToolkit-2017
91
7. HowtodevelopandsubmitafundingproposaltotheGCF?Submitting a funding proposal to the GCF required to follow a step-wise approach. FurtherinformationabouttherequirementsfordevelopingandsubmittingafundingproposaltotheGCF,isavailableintheGreenClimateFundProposalToolkit2017,availableat:
{ http://acclimatise.uk.com/login/uploaded/resources/CDKN_Acclimatise_GCFproject-development-toolkit_062017.pdf}
7.1. GCFapprovalprocess
AnAEcansubmitfundingproposalstotheGCFthroughanAE.Theycansubmitspontaneouslyonanon-goingbasis,orbyrespondingtoarequest forproposalspublishedbytheGCF,NDAorAE.TheNDA/FocalPointandAEcanalsoconductmulti-stakeholderworkshopstogenerateproposal ideas
alignedwith the national climate change strategy, Nationally Determined Contribution and othernationalplans.Table12:OverviewofthekeyphasesoftheGCFprojectcycle(source:AcclimatiseGCFproposaltoolkit
2017)
1.Conceptnote(voluntary)
Aprojectproponentmaysubmit–throughanAE–aconceptnoteforfeedbackandrecommendations from the GCF, in consultation with the NDA. Alternatively, theconceptnotemaybesubmittedbytheNDAifanassociatedAEhasnotbeenidentifiedby a project proponent. The recommendationwill clarifywhether the concept is (1)endorsed;(2)notendorsedwithapossibilityofresubmission;or(3)rejected.IfaprojectproponentsubmitsaconceptnotethroughanAE,theNDAwillneedtobecopiedonthesubmission.TheGCFSecretariatwillreviewthealignmentoftheconceptwiththeinvestmentframework,RMFandotherGCFcriteria,respondtothesubmitter(withcopytotheNDA),andprovidefeedbackonalignmentwiththeGCF’sobjectives.
2.Proposalsubmission
AprojectproponentmaysubmitaproposaltotheGCF–throughanAE–inconjunctionwiththeno-objectionlettersignedbytheNDA.Atthisstage,theGCFacknowledgesthesubmissionandreviewsitforcompleteness.TheNDAshouldbeincludedinthedifferentstagesofcommunication.
3.Analysisandrecommendation
The GCF will carry out a desktop review that includes i) review of the expectedperformanceoftheprojectagainsteachofitssixinvestmentcriteriaandtheactivity-specific sub-criteria of the GCF; and ii) a review of consistency with its interimenvironmentalandsocialsafeguards,genderpolicyandotherpolicyguidelines.Once the proposal has passed this initial review stage, the Secretariat provides theproposal,supportingdocumentationandthepreliminaryoutcomeofthereviewtotheGCF’s ITAP. The ITAP provides an independent assessment regarding the expectedperformanceoftheprojectorprogrammeagainsttheactivity-specificcriteria.AfundingproposalmayrequireadditionalclarificationsfromtheAEbasedonassessmentbytheITAPandtheSecretariat,whichtheAEisexpectedtoclarify.After the ITAP assessment, the Secretariat compiles the funding proposal packageincludingi)thefundingproposal;ii)theno-objectionletterissuedbytheNDA;iii)theoutcome of the Secretariat’s review; and iv) the outcome of the independentassessment.ThefundingpackageisthensubmittedtotheGCFBoardforconsiderationnolaterthanthreemonthsbeforetheBoardMeetingwherethefundingproposalwillbeconsidered.
GCFAccreditationToolkit-2017
92
Figure 10: Overview of the GCF project cycle, including key steps and indicative timeline. The timeline should beconsideredasindicative,asitisdependentonanumberoffactorssuchas:theGCFworkloadandexistingpipeline,thelevelofcomplexityandduediligencerequirementsfortheproject,andthelevelofbaselineinformationavailableontheproject,suchastechnicalstudies(e.g.feasibilitystudies).(Acclimatise,GreenClimateFundProposalToolkit2017)
7.2. GCFapprovalcriteria
AfundingproposalmustdemonstrateitsalignmentwithsixinvestmentcriteriawhicharedefinedintheGCF’sInvestmentFramework.ThelistofcriteriaisprovidedinFigure11.TheGCF’sInvestment
Framework details possible indicators (or indicative assessment factors) thatmay help entities toquantifyimpactpotential.Forexample,arenewableenergyproject/programmemaywishtoprovide
4.Boarddecision BasedonthefundingpackageprovidedbytheSecretariat,theGCFBoardwillthenmakeoneofthefollowingdecisionsbyconsensus:• approvefunding• approvefundingwiththeconditionsandrecommendationsthatmodificationsare
madetothefundingproposal• rejectthefundingproposal.
GCFsendsanotificationtotheAE,interimtrusteeandNDAaboutthefundingdecision.5.Legalarrangements
Following theapprovalof funding for theproposal, anFAA isnegotiatedand signedbetweentheAEandtheGCF.
6.DisbursementandImplementation
TheprojectthenentersintotheGCF’sportfolio,movingintotheimplementationperiodwherebyfundsaretransferredtotheAEaccordingtoagreedtranchesasperthetermsheet’sdisbursementscheduleandotherkeytermsandconditions.TheGCF’sfiduciarystandardsandESSareapplied,andanexternalauditreportissubmitted.
7.Monitoringandevaluation(M&E)andreporting
Following these steps, the project becomes effective and the process of M&E andreportingcommencesandcontinuesuntil theprojectorprogrammeclosesandexitstheGCF’sportfolio.
GCFAccreditationToolkit-2017
93
theexpectednumberofmegawatt(MW)oflow-emissionenergycapacityinstalled,generatedand/orrehabilitated.
Foreachoftheseinvestmentcriteria,thefundingproposalshouldselectonlytheapplicableandrelevantsub-criteriaandindicators,asfollows:
• Theactivity-specificsub-criteriainformtheapprovalprocessforprojectandprogramme
allocationdecisions,andapplytobothadaptationandmitigationactions;and,
• Theindicators(indicativeassessmentfactors)seektoprovideclarityonhowthesub-criteria
canbeassessed.
Themethodology used for calculating the indicators and values should be provided. The fundingproposalcancomplementquantitativeindicatorswithqualitativeones.However,notall indicators
are applicable to all activities, and funding proposals are to focus only on those relevant to theproposal,countrycontextandGCFprioritiesonwhichtheproject/programmefocuses.
Figure11:GCFInvestmentCriteriaandtheirdefinitions(source:GCF,2014)Investmentcriterion1:ImpactpotentialThefundingproposalshouldspecifytheclimatemitigationand/oradaptationimpactoftheproposedproject or programme. TheGCF’s Investment Framework has four core indicators towhich every
fundingproposalshouldrespond.Thesecoreindicatorsshouldbebasedonsupportingevidencefortheproject/programme,ifpossiblefromevidencegatheredfrompre-feasibilityorfeasibilitystudies.
GCFAccreditationToolkit-2017
94
Thetwocoreindicatorsforimpactpotentialare:
• Mitigationcoreindicator:totaltCO2eqtobeavoidedorreducedperannum;and,
• Adaptation core indicator: expected total number of direct and indirect beneficiaries and
numberofbeneficiariesrelativetototalpopulation(e.g.totallivestobesavedfromdisruptionduetoclimate-relateddisasters).
Inadditiontothecoreindicatorsabove,specificvaluesforotherindicatorsmaybeprovidedbythefundingproposal asnecessary. Examplesofqualitative indicators include thedegree towhich the
proposedactivityavoidslock-inoflong-lived,high-emissioninfrastructure(mitigation)orlong-lived,climate-vulnerableinfrastructure(adaptation).Figure12:Elementsofthemitigationcoreindicators(source:Acclimatise,GreenClimateFundProposalToolkit2017)Figure13:Elementsoftheadaptationcoreindicators(Acclimatise,GreenClimateFundProposalToolkit2017)
GCFAccreditationToolkit-2017
95
Investmentcriterion2:ParadigmshiftpotentialTo demonstrate the paradigm shift potential of the project or programme, the funding proposalshoulddemonstratetheextenttowhichtheproposedactivitycancatalyseimpactbeyondaone-offproject/programmeinvestment,byemphasisingandprovidingevidenceforasmanyaspossibleof
thefollowingparadigmshiftfactors:
• Potential for scaling-up and replication (e.g. multiples of initial impact size) for bothmitigationandadaptation:Presentspecificvaluesforscaling-upandreplication(e.g.alocalprivatesectorbankabletopromotemitigationmeasuresbyofferingsoftloanstowomen-ledSMEstomaketheirbusinessesenergyefficientortogeneratecleanenergyfromrenewablesources).Afundingproposalwithahighpotentialforscaling-up,forexampleanearlywarning
system for an individual province that can be scaled up to several surrounding provinces,shouldpresentaconcreteplantodoso.Afundingproposalwithhighreplicationpotential,forexampleahydroelectricpowerstationinaregionwithseveralpotentialsitesidentifiedin
asupportingtechnicalstudy,shouldalsopresentspecificreplicationopportunitiesthatcanbeexplored;
• Potential for knowledge and learning: Highlight any potential for knowledge sharing orlearningatprojectorinstitutionlevel.Forexample,iftheprojectorprogrammewillgenerateusefullessonslearned,aplanshouldbeelaboratedthatspecifieshowthoselessonscanthen
becapturedandsharedwithotherindividuals,projectsorinstitutions,includingthroughthemonitoringandevaluationoftheproject/programme;
• Contribution to the creationof anenablingenvironment: Provide the arrangements that
ensurelong-termandfinanciallysustainablecontinuationofkeyoutcomesandactivities.In
caseswheretheplannedactivitiesdonotgeneratefinancialreflows,athoroughexplanationof long-term financial sustainability is needed. A funding proposal can also highlight theaspectsofmarketdevelopmentandtransformationinwhichtheproject/programmecreates
newmarketsandbusinessactivitiesatthelocal,nationalorinternationallevels.Iftheprojectorprogrammeaddressesoreliminatessystematicbarrierstolow-carbonandclimate-resilientsolutions,orchangesincentivesbyreducingcostsandrisks,theseaspectsmaybehighlighted;
• Contribution to the regulatory framework and policies: If the project or programmeadvancesnational/local regulatoryor legal frameworksand isexpectedtobringsignificant
benefitsinthisregard,pleaseelaborate.Ofparticularinterestistheshiftingoralignmentofincentivestopromoteinvestmentinlow-emissionorclimate-resilientdevelopment,and/orthemainstreamingofclimatechangeconsiderationsintopoliciesandregulatoryframeworks
atalldecision-makinglevels;and,
• Innovation: Describe any innovative ideas or elements, such as fostering new market
segments, creation of business models and/or the development or adoption of newtechnologies. As innovation is context-specific, the funding proposal should specify the
circumstancesinwhichtheinnovationtakesplace.
GCFAccreditationToolkit-2017
96
Figure14:Elementsoftheparadigmshiftpotential(Acclimatise,GreenClimateFundProposalToolkit2017)Investmentcriterion3:SustainabledevelopmentpotentialTodemonstratethesustainabledevelopmentpotentialoftheproposedprojectorprogramme,thefundingproposalshoulddescribetheexpectedenvironmental,socialandhealth,andeconomicco-
benefits, as well as the gender-sensitive development impact, which will aim to reduce genderinequalitiesinclimatechangeimpacts.Theseco-benefitsandwiderpositiveimpactsmaybedrawnfromaneconomicanalysisoftheproposedactivitiesandcanbestrengthenedwithmorequalitative
factors.
Figure15:Elementsofthesustainabledevelopmentpotential(Acclimatise,GreenClimateFundProposalToolkit2017)
GCFAccreditationToolkit-2017
97
Investmentcriterion4:NeedsoftherecipientTo demonstrate the needs of the recipient, the funding proposal should describe the scale andintensityofvulnerabilitytoclimatechangewithinthecountryandbeneficiarygroups,andelaborateonhowtheproject/programmeaddressestheneedsidentified.Examplesincludethefollowing:
• Vulnerabilityofthecountryandbeneficiarygroups(adaptationonly):Describethescaleandintensity of exposure to climate risks for the beneficiary country and groups,which couldinclude theexposureofpeople, socialoreconomicassets,or capital to risksderived from
climate change. Exposure could be expressed in terms of population size and/or social oreconomicassetsorcapital,includingrelevantgender-disaggregationindicators;
• Economicandsocialdevelopmentlevelofthecountryandaffectedpopulation:Describethelevelofsocialandeconomicdevelopment(includingincomelevel)ofthecountryandtargetpopulation. Examples of the target population may include minorities, disabled, elderly,
children,femaleheadsofhouseholds,indigenouspeoplesorothers;
• Absenceofalternativesourcesoffinancing:Describethebarriersthathavecreatedthelackofalternativefundingsourcesfortheproject/programme;and,
• Need for strengthening institutions and implementation capacity: Describe the
opportunitiestostrengtheninstitutionalandimplementationcapacityinrelevantinstitutions.Figure16:Elementscomprisingtheneedsofrecipient(Acclimatise,GreenClimateFundProposalToolkit2017)Investmentcriterion5:CountryownershipTo demonstrate country ownership of the proposed project or programme, the funding proposalshouldensurethatactivitiestobefinancedbytheGCFalignwithstrategicnationalobjectivesand
priorities, and help advance ambitious action on adaptation and mitigation in line with nationalpriorities. Inparticular,thefundingproposalshoulddemonstratethattheprojectorprogrammeis
GCFAccreditationToolkit-2017
98
coherentandalignedwiththenationalclimatestrategyandactionplan,andhowitsobjectivesarealignedwiththeprioritiesidentifiedinnationalclimatepoliciesandactionplans.
Underthisinvestmentcriterion,thefundingproposalshouldalsoprovidethefollowing:
• AbriefdescriptionofthecapacityoftheAEsorEEstodelivertheproject:ThisshouldincludeadetailedoverviewoftheAEorEEandtherespectiverolestheseentitieswillplay.Thetrackrecord and relevant experience of the entities in similar or relevant project/programme
circumstancesshouldbeprovided;and,
• A description of a stakeholder engagement process including feedback received from all
relevantstakeholders.
Figure17:Elementscomprisingcountryownership(Acclimatise,GreenClimateFundProposalToolkit2017)Investmentcriterion6:EfficiencyandeffectivenessTo demonstrate efficiency and effectiveness of the proposed project/programme, the fundingproposal should conduct an economic and financial analysis making the case for strong costeffectiveness and financial soundness (i.e. value for money). The funding proposal should
demonstratethefollowingasrelevant:
• Cost-effectiveness and efficiency: How the proposed financial structure (funding amount,
financial instrument, tenor and term) is adequate and reasonable in order to achieve theproject/programme’s objectives, including addressing existing bottlenecks and/or barriers.
How the structure provides the appropriate concessionality tomake the proposal viable,withoutcrowdingoutprivateandotherpublicinvestment;
• Co-financing, leveraging and mobilised long-term investments (mitigation only): For
mitigationprojects/programmes,theco-financingratio(totalamountoftheGCF’sinvestmentaspercentageoftotalprojectcosts)shouldbeprovided.Forprojects/programmesthatmay
not leverage a significant level of up-front co-financing, the fundingproposalmay instead
GCFAccreditationToolkit-2017
99
demonstrateasignificantlevelofindirectorlong-termlow-emissioninvestmentmobilisedasaresultoftheproposedactivities;
• Financial viability: The economic and financial rate of return (with andwithout theGCF’ssupport). Other financial indicators, including the debt service coverage ratio, may be
providedasapplicable.AdescriptionofthefinancialsoundnessinthelongtermbeyondtheGCF’s intervention, as well as the GCF’s financial exit strategy in case of private sectoroperations,shouldalsobeincluded;and,
• Applicationofbestpractices:Howthebestavailabletechnologiesand/orbestpracticesareconsideredandapplied,includingifapplicableanyinnovations,modificationsoradjustmentsthataremadebasedonindustrybestpractices.
Keyefficiencyandeffectivenessindicators(mitigationonly).
• Estimated cost per t CO2eq to total investment cost divided by the expected lifetime of
emissionreductions;and,
• Expectedvolumeof financetobe leveragedbytheproposedproject/programmeandasa
resultoftheGCF’sfinancing,disaggregatedbypublicandprivatesources.
Figure18:Elementscomprisingefficiencyandeffectiveness(Acclimatise,GreenClimateFundProposalToolkit2017)
7.3. GCF’sResultsManagementFramework
TheGCF’sResultsManagementFramework(RMF)definestheelementsofaparadigmshifttowardslow-carbon,climate-resilient,country-drivendevelopmentpathwayswithinindividualcountriesand
across the GCF’s activities. It includes two key elements: the logic model and the PerformanceMeasurementFramework(PMF).
GCFAccreditationToolkit-2017
100
Logicmodel:Thelogicmodeldemonstrateshowinputsandactivitiesareconvertedtochangesintheformofresultsachievedattheproject/programme,country,strategicimpactandparadigmshiftlevels.Figure19showsthelevelsofthelogicmodelandindicatestheestimatedtimerequiredtoachievetherelevantresultsfromthetimeofprojectinception.Generallyspeaking,theattributionoffundedactivitiestoresultsachievedbecomesincreasinglydifficultasonemovesfrominputstoresultsachievedattheparadigmshiftlevel.Inotherwords,thelogicmodelsforadaptationandmitigationrepresenttheresultschainandthetheoryofchange.Inthefundingproposal,thelogicmodelisreflectedinthelogframe(SectionHofthefundingproposaltemplate)whichwillenablethefundingproposaltodemonstratealong-termvisioninthechangesandimpactstobeachievedthroughtheproject.
Figure19:Sixlevelsoflogicmodels(Acclimatise,GreenClimateFundProposalToolkit2017)
GCFAccreditationToolkit-2017
101
PerformanceMeasurementFramework:The PFM is the performance measurement system intended to monitor the GCF’s results at theproject, programme and aggregate portfolio levels. It includes a set of indicators that measureprogress towards intended results based on the paradigm-shift objective, GCF-level impacts, andproject/programmeoutcomesoutlinedintheGCF’smitigationandadaptationlogicmodels.
GCFAccreditationToolkit-2017
102
8. Whatsupportisavailabletoseekaccreditationandhowtoaccessit?
8.1. Whatisreadinesssupport?TheReadinessandPreparatorySupportProgramme(referredtoastheReadinessProgramme)wasestablished by the GCF to enhance country ownership and build the capacity (or ‘readiness’) ofnationalentitiesofaccessingtotheGCF.ThemainobjectivesoftheReadinessProgrammeareto:
• Strengthencountrycapacity;• Engagestakeholdersinconsultativeprocesses;• Realisedirectaccess;• Provideaccesstofinance;and• Mobilisetheprivatesector.
Assuch,financialresourcescanbeaccessedthroughtheNDAtosupportinthefollowingareas:
• EstablishmentandstrengtheningoftheNDA;• Developmentof a country’s strategic framework, including thepreparationof country
programmesandconceptnotes;• Supporttoprospectivesub-nationalornationalentitiesseekingaccreditationandtoDAEs
toupgradetheiraccreditationcategoryanddevelopprojectandprogrammepipelines;and,
• Formulation of national adaptation plans and/or other adaptation planning process,includingnationaladaptationplans.
Theimplementationofactivitiescanbeundertakenby:• Thecountry’sNDA;or• Deliverypartner/s(DPs)(undertheoversightoftheNDA).
WhilethefundingcanbemanagedbytheNDAoradeliverypartner,allreadinessfundingrequestsmustbeinitiatedbytheNDA.DPsareselectedbytheNDAtoimplementactivitiesapprovedundertheReadinessProgramme.Theseare in charge of: development of readiness request proposals; implementation and supervision;fiduciarymanagement;progressreporting;andprojectcompletionandevaluation.DeliverypartnersmaybeAEsorotherinstitutionsassessedtomeetthefinancialmanagementcapacitiesrequirementsoftheGCF.Deliverypartnerscanbeinternational,regional,nationalandsub-national,public,privateornon-governmental institutions,well-versed in readinessactivitiesas theirdeliverypartners.TheNDAhastheflexibilitytoworkwithmultipleDPsforitsreadinessprojects.Resourcesmaybeprovidedintheformofgrantsortechnicalassistance.Anydevelopingcountrycanaccess these resources, although theGCF aims at allocating 50 per cent of the readiness supportresourcestoparticularlyvulnerablecountries,includingLDCs,SIDSandAfricanStates.
GCFAccreditationToolkit-2017
103
TheReadinessProgrammeprovides:
• UptoUSD1millionpercountryperyear.Ofthisamount,theNDAmayrequestuptoUSD300,000 per year to help establish or strengthen the NDA to deliver on the GCF’srequirements.Within this amount, amaximum of USD 100,000 can be used for NDA-ledstakeholdermeetings;and,
• UptoUSD3millionpercountryfortheformulationofnationaladaptationplansand/orotheradaptationplanningprocesses.
Withinthesecaps,countriesmaysubmitmultiplerequestsbasedontheneedsofthecountry.
8.2. Whatsupportisavailabletosupportaccreditation?Under the Readiness Programme, readiness support is available to prospective national entitiesseeking accreditation and to existing direct access entities to develop project and programmepipelinesasfollows:
• Fast-trackaccreditationsupportforeligibleentities;Eligibilityforthefasttrackdependsonthefollowingcriteria:
- Theentitywasaccreditedbyoneormoreofthefollowing:GEF,AF,orDGDEVCO;and,- Theentityisinfullcompliancewiththerelevantaccreditationrequirementsofthefund(s)they
are accredited to: GEF’s Minimum Fiduciary Standards and Minimum Standards onEnvironmentalandSocialSafeguards,AF’sfiduciarystandards,EUDEVCO’sfiduciarystandards7.
• Awarenessraisingofaccreditationprocessesandstandards(e.g.fiduciary,environmentandsocialsafeguards,andgender);
• Institutionalgapanalyses;and,• Developingpersonalisedcapacitybuildingplanstoaddressidentifiedgaps.
8.3. Howtosubmitarequestforreadinesssupport?
Therearefivemainstagestoreceivereadinesssupport.
Figure20:Stepstosubmitareadinesssupport.Thetimelineshouldbeconsideredasindicative,asitisdependentonanumberoffactorssuchas:theGCFworkloadandexistingpipeline.(source:AcclimatiseNDAtoolkit2017)
7underthepillarassessmentfor(i)internalcontrolsystem,(ii)accountingsystem,(iii)independentexternalaudit,(iv)rulesandproceduresforgrants,(v)procurementand(vi)subdelegation.
5.Completionandgrantclosure
4.Implementationmonitoringandreporting
3.Legalarrangements
andfirstdisbursement
2.Reviewofthereadinessproposalbythe
GCF
1.Submitareadinessproposal
TimeFrame:1-2Months
GCFAccreditationToolkit-2017
104
It shouldbenotedthat readinessproposalsarereviewed,approvedanddisbursed onaquarterlybasis.Thisaimstostreamlinesubsequentmonitoringanddisbursements.
1. Submitareadinessproposal
Acountrycansubmitareadinessproposalforoneoftheareasmentionedabove,bycompletingthereadiness proposal template{http://www.greenclimate.fund/documents/20182/104167/Readiness_Proposal_Template.docx/887fea5e-283a-468e-a624-edb15bd8f8f0}.TheproposalshouldbecompletedbytheNDAorfocalpoint(withsupportfromtheirDPwhererelevant)[email protected]
If the DP is not accredited to the GCF, a Financial Management Capacity Assessment (FMCA)questionnaire{http://www.greenclimate.fund/documents/20182/104167/Financial_Management_Capacity_Assessment_Template.docx/5328f652-cf6e-44ab-b115-ae081be805fb} should be completed andsubmittedwiththeproposal.
2. Reviewofthereadinessproposal
The GCF Secretariat reviews the submitted proposal and the FMCAwhere applicable. During thereviewGCFSecretariatmayrequesttheNDAorfocalpointtoprovideadditionalinformation,andmayalsoproposerevisions.TheNDAorfocalpointwillsubmitarevisedfinalproposal.
3. Legalarrangementsandfirstdisbursement
Followingtheapproval,legalarrangementsareconcludedintheformofagrantagreementbetweenthe GCF and the grant recipient, including the Standard Conditions{http://www.greenclimate.fund/documents/20182/104167/Standard_Conditions_for_Readiness_and_Preparatory_Support_Grants.pdf/5cb7fcfe-372e-42d9-9a22-b006fe1b7228}.
Tomakethegrantagreementeffective,alegalopinion{http://www.greenclimate.fund/documents/20182/104167/GCF_Opinion_Requirement_Readiness.docx/007eccaa-afc4-4e1f-939a-510e5bed41a8}ontheagreementneedstobecommunicatedtotheGCFSecretariat.
Thegrantrecipientmustalsosubmitaletterofauthorisation:{http://www.greenclimate.fund/documents/20182/104167/GCF_Authorized_Signatories_Template.docx/eaf5e9ed-414b-43e5-86ac-32af908f98ed}toconfirmthatauthorized/designatedofficersmaysubmitrequestsfordisbursements{http://www.greenclimate.fund/documents/20182/466886/Disbursement_Request_Template.docx/68f2edaa-9c39-4fd1-a20f-feb7f0e894a8}underthegrantagreement{http://www.greenclimate.fund/documents/20182/104167/Grant_Agreement_Template.pdf/29ad6122-b687-4682-8fc3-eaed303f7476}.
Alternatively,approvedproposalsmayalsobecoveredunderexecutedReadinessFrameworkAgreementswithdeliverypartners.
GCFAccreditationToolkit-2017
105
TheGCFSecretariatwillnotifytheNDAorfocalpoint(andthegrantrecipient,ifthisisnottheNDAorfocalpoint)ontheeffectivenessofthelegalarrangements.Whenthelegalarrangementscomeintoforceandeffect,theGCFSecretariatdisbursethefirsttrancheoffunding.
8.4. Implementation,monitoringandreporting
Theactivitiesincludedinthereadinessproposalwillbeimplementedinlinewiththeagreedworkplanandbudget.Afinancialmanagementsystemshouldbemaintained,withseparateaccounts(i.e.bankaccountorledger)andrecordsforreadinesssupport.
Followingtheagreedschedule,thegrantrecipientwillreporttoGCFagainsttheworkplan,budget,andagreed targets. Itwillalso reportonpotential revisionsoradaptations to the implementationplans.
Financial statements should be prepared in accordance with consistently applied accountingstandards,auditedonanannualbasisbyreputableindependentauditors,andfurnishedtotheGCFSecretariat inaccordancewiththereportingrequirementsset inthegrantagreement.ThereportssubmittedtotheGCFSecretariatwillbedisclosedontheGCFwebsite inaccordancewiththeGCFinterimdisclosurepolicy.
8.5. Completionandgrantclosure
Towards theendof thereadinessgrant implementationperiod, theGCFSecretariatandthegrantrecipientevaluateachievementsandprogress,andeventuallyagreeonthenextsteps.Whenrelevant,theGCFwillproceedtoclosethereadinessgrant.
GCFAccreditationToolkit-2017
106
9. Onceaccredited,whatarethemonitoring,evaluationandreportingrequirementstofulfilasaGCFAccreditedEntity?
TheAEisprimarilyresponsiblefortheM&Eoftheirfundedprojectsorprogrammes,andwillreportaccordinglytotheGCF.Monitoringandevaluationrequirementsfortheprojectorprogrammeinclude:
• logframeandidentificationofindicatorsinthefundingproposal• annualperformancereportsfromtheprojectorprogramme• interimandfinalevaluationsattheprojectorprogrammelevel.
Attheprojectfundingproposalstage,theAEshouldindicatetheactivities,outputs,outcomesandresultstobeachievedinrelationtotheresultsareasoftheRMFandthemitigationandadaptationPMFs.TheAEshouldprovideindicatorsatactivityandoutputlevelsandreportonthePMFindicatorsat outcome and impact levels. The GCF Secretariat will undertake second-level monitoring byrequestingtheAEstoreportregularlyontheindicatorsmentionedaboveandotherrelevantprojectperformanceindicators. Inaddition,duringthemid-termreviewsitwillbeverifiedthattheAEhasperformedtherequiredoversightonactivitiesunderthemonitoringplansofprojectsfinancedbytheGCF. These include, among other things, periodic supervision missions, audit reviews and multi-stakeholderengagement.Reportingrequirementsfortheprojectimplementationandpost-implementationperiodarepresentedinTable13.Table13:Reportingrequirements(source:AcclimatiseGCFproposaltoolkit2017)Report Description Timing/FrequencyQuarterly financialmanagementreports
These shouldprovidedates and amounts disbursedforeachfundedactivityandcompliancewithfinancialcovenants.
During theimplementationperiodQuarterly
Semi-annual
progressreportsThese should include a narrative report (withsupporting data as needed) on implementationprogress based on the log frame submitted in thefundingproposalandconsiderationsontheongoingperformance of the project/programme against theGCF Investment Framework criteria, includingupdatesontheindicatorsandareportonESSaswellasgender.Thereportshouldalignwiththemodalitiessetout intheGCFRMFanditsPMFsforadaptationandmitigation,asamendedandupdatedfromtimetotime.
DuringimplementationandpostimplementationperiodsSemi-annual
Interimevaluationreportandfinalevaluation reportfor each fundedactivity
Theseassesstheperformanceofthefundedactivityagainst the GCF investment framework criteria,includingfinancial/economicperformance,aspartofthe project/programmeefficiency and effectivenesscriteria.
Mid-point evaluationduringimplementationand final report atprojectcompletion
GCFAccreditationToolkit-2017
107
Beyond the standard reporting requirements for a stand-alone project, a programme should alsoincludeadditionalprogramme-levelreporting.Forexample,theAEmayreportonexperiencegainedand lessons learned from the design and implementation of the programme and how well theprogramme is achievingaddedvaluebeyondwhata collectionof standaloneprojectswouldhaveachieved.
GCFAccreditationToolkit-2017
108
10. What’snext?Once prospective accredited entities obtain a better understanding of the GCF accreditationrequirements, they can move forward with their application. The full application form includesexamples of supporting documents, and provides an overview of the information that mustaccompanyanapplicationforaccreditation:{http://www.greenclimate.fund/documents/20182/574712/Form_05_-_Accreditation_Application.pdf/7cef5ed0-e42e-475a-9bd7-e099d64d6231}They can also complete the online accreditation self-assessment tool on the GCF website thatoutlinestheminimumrequirementsthatanentitymustmeetbeforeitcanbeaccreditedtoreceivefundingfromtheGCF.ThistoolcanhelpprospectiveentitiesdoanearlyassessmenttodetermineiftheirorganisationisreadytostarttheaccreditationprocessoftheGCFandhelpidentifyanyobviousgaps,withadditionalguidanceprovidedontheGCFrequirementsandstandardsiftheywishtoinitiatetheaccreditationprocess:{http://www.greenclimate.fund/how-we-work/getting-accredited/self-assessment-tool}ProspectivecandidatesarefinallyencouragedtoexpresstheirinterestinseekingaccreditationtotheGCF,totheNDA,Uzhydromet.
GCFAccreditationToolkit-2017
109
11. FrequentlyAskedQuestionsaboutGCFaccreditationQuestion1:WhoiseligibletosubmitafundingproposaltotheGCF?Answer1:OnlyAEsareeligibletosubmitfundingproposalstotheGCF.AEscanbeprivate,public,non-governmental,sub-national,national,regionalandinternational.Question2:Whatis“enhancingdirectaccess”?Answer2:EnhancingDirectAccess(EDA)furtherextendstheprinciplesofdirectaccess.DirectaccessallowsnationalentitiestogetaccreditedundertheGCFandaccessfundingwithoutgoingthroughmultilateralagencies.EDAaimstofurtherenhancecountryownershipofprojectsandprogrammesbydevolvingdecisionmakingonfundingatcountrylevel,therebyallowinggreaterinvolvementandinputfromimpactedstakeholders.EDAisdesignedtoprovideanopportunityforAEsandcountriestomovebeyondthefinancing of individual, bankable projects towards a more comprehensive, stakeholder drivenprogrammatic approach, which is based on transparent criteria that are aligned with the GCF’sinvestmentcriteriaandresultsmanagementframework.In 2016, the GCF issued a first request for proposals, for a pilot phase to enhance direct access.CountriesparticipatingintheEnhancingDirectAccesspilotarerequiredtoexerciseoversightontheactivities to ensure transparency. Unlike the traditional direct access modality, there will be nosubmissionofindividualprojectsorprogrammestotheGCFbecausedecision-makingforthefundingofspecificpilotactivitieswillbedevolvedtothecountrylevel.FormoreinformationonEDA,pleaseseethe“EnhancingDirectAccess(EDA)–FrequentlyAskedQuestions”publishedbytheGCF.Question3:CanlocalNGOsaccesstheGCF?Answer3:Yes.LocalorganisationscanaccesstheGCFintwoways:
• Applyforaccreditation,afternominationbytheNDA.• WorkwithanexistingAE,forexampleservingasEEofjointprojectsorprogrammes.
Furtherinformationhowtobecomeaccreditedisprovidedinanonlineguide(GCF101)includingasetoffrequentlyaskedquestions,andontheGCFwebsite.Question4:Howlongdoestheaccreditationprocesstake?Answer4:Becomingaccreditedfordirectaccessisalonganddifficultprocess,takingninemonthsonaverage,whileinmanycasesittakeslonger,dependingonthesize,scopeandlevelofrisk.
GCFAccreditationToolkit-2017
110
Question5:WhatdoesFTstandfor?Answer5:Fasttrack-forentitiesalreadyaccreditedunderotherfinancialmechanismsoftheUNFCCC(AdaptationFund,GEF,andEUDEVCO).Question6:ShouldIgofortheaccreditation?Answer6:Beforeundertakinganylengthy,resource-demandingprocessitisimportanttoknowifitisfeasibletocompletetheprocesssuccessfully.Itisadvisabletotaketherapidself-assessmentbutalso to review the application formwith the required supporting documentation and the Stage Ichecklistindetailbeforecommittingsubstantialresources.Question7:Canwechangethelevelsofaccreditationunderthe“fitforpurpose”approach?Answer7:Changingbetweenlevelsofaccreditationunderthe“fit-for-purpose”modelwillbetimeconsuming and can cause confusion. Depending onwhether an upgrade or downgrade in level isrequested itmay require starting a new application online, and beginning the upload and onlineapplicationprocessagain.Question8:Whatkindofinputandcapacitiesdoestheaccreditationprocessrequire?Answer8:
• Theapplicationrequiressignificantinputfromvariousunitsacrosstheentity.Inordertoworkin a cohesive and efficientmanner it is important to ensure the team ismade up of theappropriate members and that all members understand and commit to providing theinformationrequiredtocompletetheapplication.Theimportanceofhavingatleast1seniormanagementofficialon-boardcannotbeunderstated.Thisisbecausetheapplicationrequiresinputfrommanydifferentunitsoftheentitywhomaybemoreorlesswillingtoworkwiththeinternaltaskteam.
• Thecapacityneededtoundertaketheaccreditationprocessshouldnotbeunderestimated.Capacityneedsareintermsof:1)Numberofstaffworkingonaccreditationand2)Institutionalcapacityoftheentitytopasstheaccreditationprocess.AseachroundoffeedbackwiththeGCFistimeconsumingandthetimingofthefeedbackisnotknown,itisusefultohavemorethanonepersonworkingontheaccreditationprocessaswellasonstand-bytoquicklyanswerquestionsastheGCFprovidesfeedback.Institutionalcapacitycanbeamajorchallengeduringaccreditation.Applicantsmayneedtobepreparedtoupdateexistingpolicies/proceduresorcreatenewones.Thismayrequiresignificanttimeandcosts.
Question9:Whatkindofevidenceshouldweprovide?Answer9:
• TheGCFaccreditationformprovidesexamplesofsupportingdocumentationthatacandidateentitycouldsubmit.See:
{https://www.greenclimate.fund/documents/20182/574712/Form_05_-_Accreditation_Application.pdf/7cef5ed0-e42e-475a-9bd7-e099d64d6231}
GCFAccreditationToolkit-2017
111
• Gather the required supporting documentation exactly as described by the GCF in theapplication form. If thesupportingdocumentationdoesnotexist, stateso. If itdoesexist,ensure that thenarrative textpoints to theexactpageorparagraph referencewithin thedocumentwhichaddressesthecriteriarequiredbytheGC
• ItisveryimportanttoensurethattheindividualclausesorprocessesrequiredbytheGCFarecontainedwithinpoliciesprovidedintheapplication.TheGCFwillseektodeterminenotonlythatthepolicy is inplace,butthatthepolicyaddressesthespecificpointsrequiredbytheGCF.ItisimportantthattheapplicantfullyunderstandthecriteriarequiredbytheGCFsothattheapplicantcanprovidethecorrectdocumentorsetofdocumentsthataddressthecriteria.
Question10:Doyourecommendaparticipativeapproach?Answer 10: Early engagement of stakeholders in the accreditation process may be beneficial,particularly in the long term.Earlydiscussionswith theNDAwill facilitate theprocessof theNDAgrantingtheletterofnominationaswellasfamiliarizeanentitywiththeuniquenominationprocessrequired by the NDA. Early conversations with a variety of stakeholders may facilitateproject/programmeimplementationandprovideinsightonthelevelofaccreditationtheentityshouldseek.Question11:Whenshouldacandidateentityprepareandsubmitaproject/programmetotheGCF?Answer11:Designingtheinitialproject/programmetobesubmittedatthesametimeastheentityundertakestheaccreditationprocessallowsfortheproposalreviewprocesstobeginquicklyfollowingaccreditation. Entities are permitted to submit concept notes once they have reached Stage II ofaccreditation.However,GCFwillonlyreviewfundingproposalsonceanentityreceivesaccreditation.EntitiesshouldnotethatGCFfundingproposalsarehighlydetailedandrequiresubstantialupfrontinvestment.Question12:Beingaccreditedisaguaranteeofacceptanceofallsubmittedprojects/programmes?Answer12:Entitiesshouldbeawarethateveniftheentityisaccredited,project/programmefundingproposalsarenotautomaticallyapproved.FundingproposalsmustbehighqualityandwellalignedwithnationalprioritiesandtheobjectivesoftheGCF.
Questions13:WhydoesGCFuseAEs?Answer13:GCFrecognisesthatindividualorganisationspossessthetypeofspecialistknowledgeandexperiencethatcanbebestutilisedtomobiliseclimatefinanceontheground.ThatiswhyGCFworksthrough a wide range of AEs to channel its financial resources to climate change projects andprogrammes. AEs can be private, public, non-governmental, sub-national, national, regional andinternational.TheuseofAEsissetoutintheGCFGoverningInstrument,thecentralinstitutionalguideforalloftheGCF’sactivities.
GCFAccreditationToolkit-2017
112
Question14:CananAEalsobetheNDA/focalpoint?Answer14:ANDAhasaverydifferentrolefromthatofanAE.ANDAactsastheinterfacebetweeneachdevelopingcountryandtheGCF.TheyensurecountryownershipbyprovidingbroadstrategicoversightofGCF'sactivitiesintheircountry,serveasthepointofcommunicationwiththeGCF,andensurethatinvestmentsarealignedwithlocalneedsandplanning.AEs are responsible for channelling GCF resources to particular programmes and projects. GCFaccreditsDAEs thatworkat the sub-nationalornational level, aswell asorganizationsworkingatregionalandinternationallevels.AEscanalsobegovernmentalornon-governmental,andpublicorprivateinnature.NormallytherolesofNDAandAEsaredistinctandseparate.However,insomecasesNDAsmayseektoalsobecomeAEstotheGCF.TheGCFSecretariatcanadviseonbestpracticesinthisarea.Question15:Doorganisationsneed tohave climate fundingproposals tobe consideredbyGCFbeforeseekingaccreditation?Answer15:No.Whilenotarequirement,however,GCFadvisesapplicantstohavewell-thoughtoutfunding proposals as their accreditation applicationswill be assessed on the type of projects andprogrammestheyintendtobringforwardforGCFfundingconsideration.Question16:HowareapplicantsforGCFaccreditationassessed?Answer 16:The accreditation process assesseswhether applicants are capable of strong financialmanagement and of safeguarding funded projects and programmes against any unforeseenenvironmentalorsocialharm.AwiderangeoforganizationscanbecomeAEs.ThatiswhyGCFhasintroduceda“fit-for-purpose”system to scale them differently according to their capacities and how they address the climatefinanceneedsofdifferentcountries.Whilethescopeofaccreditationvary,allentitiesneedtomeetanumberofbasicstandards.Thesearebasedon:
• Basicfiduciarystandards;• ESS;and,• Gender.
Basicfiduciarystandardssetthebaselineforappropriatefinancialmanagement.Thisincludesbeingable to demonstrate that financial inputs and outputs are properly accounted for, reported, andadministered transparently in accordance with relevant regulations and laws, and with dueaccountability.Informationaboutanorganization’soveralladministrationandmanagementmustbeavailable,consistent,reliable,completeandrelevant.Accreditationapplicantsmustalsobeabletodisplayatrackrecordineffectivenessandefficiency.
GCFAccreditationToolkit-2017
113
GCF’sinterimESSaredrawnfromtheperformancestandardssetbytheIFC,aninternationalbodywhichworkswiththeprivatesectorindevelopingcountries.TheeightPSare:
• Assessmentandmanagementofenvironmentalandsocialrisksandimpacts;• Labourandworkingconditions;• Resourceefficiencyandpollutionprevention;• Communityhealth,safetyandsecurity;• Landacquisitionandinvoluntaryresettlement;• Biodiversityconservationandsustainablemanagementoflivingnaturalresources;• Indigenouspeoples;and,• Culturalheritage.
Theaccreditationprocessassessestheapplicant’scapacityandcommitmenttomaintainanESMSatan institutional level (PS 1). Later, while reviewing accredited entity funding proposals, the GCFSecretariatwillcheckhowtheentityfollowsitsenvironmentalandsocialmanagementsystemtotakeactionthatmatchesspecificissuesrelatingtoPS2to8.GCF’s Gender Policy and Action Plan is based on guidance by the United Nations FrameworkConventiononClimateChange (UNFCCC) supporting genderequality, equity and sensitivity.MoredetailedinformationaboutGCF’sapproachtogenderandclimatechangeisavailablehere.The accreditation process assesses the capacity of applicants in terms of addressing gender –responsivesystemsatboththeinstitutionalandproject/programmelevel.WhilereviewingfundingproposalssubmittedbyAccreditedEntities,theGCFSecretariatcheckshowgenderconsiderationsaretranslatedintospecificactionstomeetgender–relatedstandardssetoutintheaccreditationprocessand assesses whether projects/programmes submitted by AEs are consistent with approachesoutlinedinGCF’sGenderPolicyandActionPlan.Question17:WhatisGCF’sfitforpurposeaccreditation?Answer 17:GCF’s innovative fit-for-purpose approach to approving organizations to become AEsrecognizestheirbroadrangeofactivitiesandcapacities.Entitiesvaryfromsmallgovernmentandnon-government groups managing activities of a few million dollars or less to large multilateraldevelopmentbanksfundingactivitiesrangingfromhundredsofmillionsofdollars.Fit-for-purposeisatieredaccreditationsystemwhichclassifiesapplicantentitiesbasedonthenatureof their organizations and the intended scale, nature and risks of their proposed climate financeactivities.Therefore,accreditationapplicants implementingor intermediatingprojectsandprogrammeswithlittleenvironmentalandsocialrisksandimpactsarenotrequiredtohavethesameenvironmentalandsocialmanagementsystemsinplaceascomparedtothosehandlinghigherlevelsofsuchrisks.
GCFAccreditationToolkit-2017
114
Thefit-for-purposeaccreditationreviewisbasedon:• Proposedprojectandprogrammeactivitysize;• Fiduciarystandards;and,• E&Sriskcategory.
Proposedprojectandprogrammeactivitysizeisdividedintofourcategories.
• Micro:maximumGCFcontributionofuptoandincludingUSD10million;• Small:maximumGCFcontributionofaboveUSD10millionanduptoandincludingUSD50
million;• Medium:maximumGCFcontributionofaboveUSD10millionanduptoandincludingUSD
250million;and,• Large:GCFcontributionofaboveUSD250million.
An entity accredited for a particular size category could submit a funding proposal for GCFconsideration where the total costs for the project are within the maximum size category. (Forexample,anentityaccreditedformediumcouldsubmitafundingproposalthatfallswithinthemicro,smallormediumsizecategory,butnotlarge).Therearethreetypesofspecializedfiduciarystandards.ThesestandardsallowanAEtoundertakeanactivitybyperformingthespecificfiduciaryfunctionrelatedtothestandard.
• Projectmanagement:Thisassessesthecapacityoftheapplicanttomanage,superviseandoversee the overall project or programme, either directly or indirectly through executingentities;
• Grant award and/or funding allocation mechanisms: This assesses the capacity of theapplicanttodisburseGCFfundsasan intermediarythroughacompetitiveandtransparentgrantawardprocess;and,
• On-lending/blending: This assesses the capacityof theapplicant to carryout intermediatefundingbyprovidingloans,blendingdifferentinstrumentsandresources,undertakingequityand/orprovidingguarantees.
Applicantsarealsoassessedhowwelltheycanmanageenvironmentalandsocialrisksandimpacts,basedontheirtrackrecord.Categoriesaredividedintonoorminimalrisk,mediumriskandhighrisk.ThesecategoriesalsotakeintoaccountwhethertheapplicantwillmanageprojectsorintermediateGCF resources through the awarding of grants, on-lending, blending, undertaking of equityinvestmentsorprovidingguarantees.ForprojectsandprogrammesmanagedbyanAE,theE&Srisklevelcanbe:
• Category A: Activitieswith potential significant adverse E&S risks and/or impacts that arediverse,irreversible,orunprecedented;
• CategoryB:ActivitieswithpotentialmildadverseE&Srisksand/or impactsthatarefew innumber,generallysite-specific,largelyreversible,andreadilyaddressedthroughmitigationmeasures;and,
• CategoryC:ActivitieswithminimalornoadverseE&Srisksand/orimpacts.
GCFAccreditationToolkit-2017
115
Projects and programmes involving investments through financial intermediation functions (grantaward or on-lending/blending) or throughdeliverymechanisms involving financial intermediation,shouldrefertothefollowingE&Srisklevels:
• High level of intermediation (Intermediation 1, I-1): When an intermediary’s existing orproposed portfolio includes, or is expected to include, substantial financial exposure toactivities with potential significant adverse E&S risks and/or impacts that are diverse,irreversible,orunprecedented;
• Mediumlevelofintermediation(I-2):Whenanintermediary’sexistingorproposedportfolioincludes,orisexpectedtoinclude,substantialfinancialexposuretoactivitieswithpotentiallimited adverse E&S risks and/or impacts that are few in number, generally-site specific,largely reversible, and readily addressed throughmitigationmeasures; or includes a verylimitednumberof activitieswithpotential significantadverseenvironmental and/or socialrisksand/orimpactsthatarediverse,irreversible,orunprecedented;and,
• Low level of intermediation (I-3): When an intermediary’s existing or proposed portfolioincludes financial exposure to activities that predominantly have minimal or negligibleadverseE&Simpacts.
Question18:IsitpossibleforAEstoupgradetheiraccreditationtype?Answer18:Yes.AnAEcanapplytoincludeanyadditionalcapacitiesithasdevelopedovertime.Thiswillthenincreaseitsfit-for-purposeaccreditationtype.ThisallowsittoseekGCFfundingforprojectsandprogrammesatahigherfinanciallevelthanitscurrentclassification.TheAEmayapplythroughtheOASbycreatinganewapplicationseekingforanupgradeofitsrelevantfunctions.Question19:Howlongistheentityaccreditedfor?Answer19:Fiveyears.GCFiscurrentlyworkingonwaystoassessAEsforre-accreditation.Question20:Howlongdoesaccreditationtake?Answer20:TheGCFSecretariatandtheAccreditationPanelaimtodecidewithinsixmonthsafterreceivingnecessaryandcompletedocumentationwhethertorecommendanapplicationtotheGCFBoard.Iforganizationsalsoapplyforreadinesssupport,thisprocessmaytakelonger.TheGCFSecretariatand theAccreditationPanelaims tomakeadecisionwithin threemonths fororganisations meeting fast-track requirements. These are organizations that have already beenaccreditedbytheGEF,AdaptationFundandDGDEVCO.Question21:Howmuchdoesaccreditationcost?Answer21:NationalandsubnationalapplicantsinSIDSandLDCsareabletoreceivewaiversofsomeaccreditationfeeswhenseekingaccreditationformicroandsmallsizecategoriesofprojects.
GCFAccreditationToolkit-2017
116
Accreditationfeesarebasedonthetotalprojectedcostsoftheproposedclimatefinanceprojectoractivitywithinaprogrammeatthetimeoftheapplication.Therearefourcategorieswhichrefertothetotalprojectedcostsoftheactivity,irrespectiveoftheportionthatisfundedbyGCF:
• Micro:UptoandincludingathresholdofUSD10millionforanindividualprojectoractivity.ThefeelevelforthisthresholdwillbeUSD1,000forthebasicfiduciarystandardsandUSD500foreachspecializedfiduciarystandard;
• Small:AboveUSD10millionanduptoandincludingUSD50millionforanindividualproject.ThefeelevelforthisthresholdwillbeUSD5,000forthebasicfiduciarystandardsandUSD1,000foreachspecializedfiduciarystandard;
• Medium:AboveUSD50million andup to and includingUSD250million for an individualproject or activity. The fee level for this threshold will be USD 10,000 for basic fiduciarystandardsandUSD3,000foreachspecializedfiduciarystandard;and,
• Large: Above USD 250 million for an individual project or activity. The fee level for thisthresholdwillbeUSD25,000forbasicfiduciarystandardsandUSD7,000foreachspecialisedfiduciarystandard.
Question22:Aresomeorganizationsprioritisedforaccreditation?Answer 22: Yes. In 2017, applications during Stage I will be checked by the GCF Secretariat inaccordancewiththeGCFBoard’sdecisiontoprioritiseapplicationsfrom:
• NationalDirectAccessEntities;• EntitiesintheAsia-PacificandEasternEuropeanregions;• Private sector entities, in particular those in developing countries, seeking a balance of
diversity of entities in line with decisions B.09/07, paragraph (g) and decision B.10/06,paragraph(h);
• EntitiesrespondingtorequestsforproposalsissuedbytheGCF,forexampleincludingapilotphaseforenhancingdirectaccess;apilotprogrammetosupportmicro-,small-,andmedium-sizedenterprises;andapilotprogrammetomobilizeresourcesatscaleinordertoaddressadaptationandmitigation;
• Entitiesseekingfulfilmentofconditionsforaccreditation;and• Entitiesrequestingupgrades.
Question23:WhatistheAccreditationPanel?Answer23:TheAccreditationPanelprovidesindependentadvicetotheGCFBoardaboutindividualapplicationsforaccreditation.Itismadeupofsixseniorexperts,evenlybalancedbyrepresentationfromdevelopedanddevelopingcountries.MembersoftheAccreditationPanelserveforthreeyears.Accreditation Panel members provide specialised knowledge on a range of issues feeding intoaccreditation decisions, including good practice in fiduciary principles and standards, ESS, andrecognized good practice in accreditation procedures. They can also consult with other relevantexpertswhennecessary.
GCFAccreditationToolkit-2017
117
Question24:HowcanIcontactGCFtofindoutmoreaboutaccreditation?Answer24:Pleasedirectenquiriesto:[email protected]:Whatifyourentitylacksatrackrecord?Answer25:Entitiesmaymeetmostoftheaccreditationcriteria,butlackthetrackrecordthatshowstheysuccessfullyandconsistentlyimplementthemsuccessfully.ThisincludestrackrecordsinprojectmanagementandmanagingE&Srisks.Thismayalsooccurwhereanentityhasrecentlydevelopedapolicyandhashadinsufficienttimetogenerateevidenceof itssuccessful implementation. Insuchcases,theAccreditationPanelmayrecommendtotheBoardthattheentitybeaccreditedbutwithadditionalconditionsattached,suchas:
• Morefrequentreportingrequirements;and,• Evidence of policy implementation before being able to receive GCF
project/programmefunds.TheAccreditationPanelwilldetermineonacase-by-casebasistheappropriaterecommendationsorconditionsforeachentitywheretheyhavealimitedtrackrecord.TheAccreditationPanelmayalsorecommendthatanentitybeaccreditedforlessrisky,lesscomplexand/orsmallerscaleprojectandfiduciaryactivities.Entitiescanalwaysupgradetheiraccreditationstatusatalaterdate.Question26:Canyourentityupgradeitsaccreditationstatus?Answer26:Intheeventthatanentityhasbeenaccreditedforcertainfiduciarystandards,projectandprogramme size, and E&S risks, which inhibit them from undertaking intended climate changeactivities,theymaywishtore-applyforaccreditationofupgradedcapacities.Entities can upgrade their accreditation status at any time, once they have generated sufficientpoliciesandexperiencetodemonstratetheircompliance.UpgradingentitieswillgostraighttoStage2oftheaccreditationprocess,wheretheadditionalcapacitieswillbeanalysedbytheAccreditationPanel, unless the entitywishes to commence at Stage 1 in order to undergo a readiness supportassessmentforthenewlyproposedaccreditationstandards.Question27:Whatifyourentityisaccreditedwithanotherfund?Answer 27: Entities who meet the fiduciary, environmental and social principles and standardscomparabletothoseoftheGCF’sstandardsareeligiblefor‘fast-track’accreditation,withashortenedStage2.ThisisavailableforallentitiesaccreditedundertheGEF,AdaptationFundandEU-DEVCO.Importantly,notalloftheGCF’srequiredstandardsarecoveredbythesethreefunds.Suchentitieswillalsobesubjecttoagapanalysis,toidentifywhichaccreditationstandardsmaystillneedtobedeveloped.
GCFAccreditationToolkit-2017
118
12. ReferencesDeutscheGesellschaft für Internationale Zusammenarbeit (GIZ) (2017), Climate Finance ReadinessProgramme (CF Ready), Frequently Asked Questions about Green Climate Fund ProposalDevelopmentDepartment of Environment of Antigua and Barbuda. About us. [Online]. Available at:http://www.environmentdivision.info/about_us_en_281cms.htmGreen Climate Fund (2015). Accreditation Application Form. [Online]. Available at:https://www.greenclimate.fund/documents/20182/574712/Form_05_-_Accreditation_Application.pdf/7cef5ed0-e42e-475a-9bd7-e099d64d6231Fayolle V. and Odianose S. (2017). Guyana Toolkit for the GCF’s National Designated AuthoritySecretariatandSteeringCommitteetoperformtheirGCFrolesandresponsibilities.July2017.London:Acclimatise.Fayolle,V.andOdianose,S. (2017)GreenClimateFundProposaltoolkit2017.London:AcclimatiseandClimateandDevelopmentKnowledgeNetwork.FijiDevelopmentBank(FDB).Aboutus.[Online].Availableat:http://www.fdb.com.fj/about-us/Palli Karma-Sahayak Foundation (PKSF). What is PKSF. [Online]. Available at: http://pksf-bd.org/portal/web/?page_id=85SoanesM.(2017).GreenClimateFundaccreditationtoolkit.January2017.InternationalInstituteforEnvironmentandDevelopment(IIED)UnitedNationsFrameworkConventiononClimateChange(UNFCCC),ChinaCDMFund–AnInnovativeClimate Financing Mechanism. [Online]. Available at:http://unfccc.int/files/secretariat/momentum_for_change/application/pdf/china_cdm_fund.pdf