undp: the green climate fund, everything you wanted to know in 8,5 min
TRANSCRIPT
Robert Kelly
UNDP GCF Focal Point - Africa
The Green Climate Fund:
Everything You Ever Wanted
to Know…in Eight-And-A-
Half Minutes
1
The GEF serves 6 international conventions…
Climate Change
Mitigation
Biodiversity
Land
Degradation
STAR Allocations Non-STAR GEF Trust Fund
International Waters
Chemicals
Enabling
Activities
LDCF SCCF
Sustainable
Forest
Management
1
3
Adaptation and mitigation (and REDD!) are eligible2
Mitigation Adaptation SIDS,LDCs,Africa
Other developing countries
All Non-Annex 1 countries are eligible, in principle, for GCF support
4
GCF projects are significantly larger than GEF projects3
10.2
7.5
27.1
0
5
10
15
20
25
30
0
2
4
6
8
10
12
GCF CIFs GEF-6
CC-M
LDCF FCPF SCCF AF
Total pledge ($ bn)
Ple
dg
e (
US
$ b
illi
on
s)
Ave
rag
e p
roje
ct s
ize
(US
$ m
illion
s)
1.30.9 0.8
3.6 4.1
2.1
0.3
4.2
0.3
6.6
Average project size ($ m)
26.7
Climate Fund Capitalisations
5
Project-cycle differences
FP
/
ND
A
GC
F
Secre
tari
at
GC
FB
oard
Ideas
Phase
Project Concept
Development
Full Proposal
Phase
Implementation
Phase
Impact
Period
Project idea
Voluntary work
programme
Project
concept note
development
Recommend-
ation to
proceed
Full proposal
preparation
Letter of No
Objection
Technical
reviews
Board decision
to proceed
Commission-
ing / launch
Management,
M&E
Project
Agreement
with AE
4
6
Project-cycle differences
FP
/
ND
A
GC
F
Secre
tari
at
GC
FB
oard
Ideas
Phase
Project Concept
Development
Full Proposal
Phase
Implementation
Phase
Impact
Period
Project idea
Voluntary work
programme
Project
concept
development
Recommend-
ation to
proceed
Full proposal
preparation
Letter of No
Objection
Technical
reviews
Board decision
to proceed
Commission-
ing / launch
Management,
M&E
Project
Agreement
with AE
4
Similar to an
NPFE – but
note: no
country STAR
allocations!
7
Project-cycle differences
FP
/
ND
A
GC
F
Secre
tari
at
GC
FB
oard
Ideas
Phase
Project Concept
Development
Full Proposal
Phase
Implementation
Phase
Impact
Period
Project idea
Voluntary work
programme
Project
concept
development
Recommend-
ation to
proceed
Full proposal
preparation
Letter of No
Objection
Technical
reviews
Board decision
to proceed
Commission-
ing / launch
Management,
M&E
Project
Agreement
with AE
4
A GCF concept
note is a
voluntary step
8
Project-cycle differences
FP
/
ND
A
GC
F
Secre
tari
at
GC
FB
oard
Ideas
Phase
Project Concept
Development
Full Proposal
Phase
Implementation
Phase
Impact
Period
Project idea
Voluntary work
programme
Project
concept
development
Recommend-
ation to
proceed
Full proposal
preparation
Letter of No
Objection
Technical
reviews
Board decision
to proceed
Commission-
ing / launch
Management,
M&E
Project
Agreement
with AE
4
There is
(currently) no
project
preparation
grant (PPG)
9
Project-cycle differences
FP
/
ND
A
GC
F
Secre
tari
at
GC
FB
oard
Ideas
Phase
Project Concept
Development
Full Proposal
Phase
Implementation
Phase
Impact
Period
Project idea
Voluntary work
programme
Project
concept
development
Recommend-
ation to
proceed
Full proposal
preparation
Letter of No
Objection
Technical
reviews
Board decision
to proceed
Commission-
ing / launch
Management,
M&E
Project
Agreement
with AE
4
The LoNO is
obtained at a
relatively late
stage
10
Project-cycle differences
FP
/
ND
A
GC
F
Secre
tari
at
GC
FB
oard
Ideas
Phase
Project Concept
Development
Full Proposal
Phase
Implementation
Phase
Impact
Period
Project idea
Voluntary work
programme
Project
concept
development
Recommend-
ation to
proceed
Full proposal
preparation
Letter of No
Objection
Technical
reviews
Board decision
to proceed
Commission-
ing / launch
Management,
M&E
Project
Agreement
with AE
4
Disbursements
(and agency
fee) are annual
and are
performance-
based
12
Not all Accredited Entities are born equal…6
Micro(up to US$
10m)
Small(US$ 10-
50m)
Medium(US$ 50-
250m)
Large(US$
250m+)
Total Project
Budget
High Risk (Category A)Activities with potential significant
adverse environmental and/or
social impacts that are diverse,
irreversible or unprecedented
Environmental & Social
Risks
Medium Risk (Category B)Activities with potential mild
adverse environmental and/or
social impacts that are few in
number, generally site-specific,
largely reversible and readily
addressed
Low Risk (Category C)Activities with minimal or no
adverse environmental and/or
social impacts
Fiduciary
Standard
Grants
On-Granting
Loans
13
Grants versus loans…7
• Fuzzy rules – case-by-case assessment
• Projects that do not generate revenues grants
• E.g. building a sea-wall; assisting subsistence farmers
• Projects that do generate revenues but not for the project itself
grants
• E.g. assisting small-scale commercial farmers; support to
SMEs
• Projects that do generate revenues for the project itself loans
• E.g. investing in a commercial wind farm; commercial
forestry
15
How to keep your RTA happy9
RTA fully
consulted
prior to GCF
project
development
OR ?
RTA not fully
consulted
prior to GCF
project
development
18
The purpose of the GCF
“The Green Climate Fund was established with a mission to advance
the goal of keeping the temperature increase on our home planet
below 2 degrees Celsius.
The Fund is a unique global initiative to respond to climate change by
investing in low-emission and climate-resilient development.
GCF was established by 194 governments to limit or reduce
greenhouse gas emissions in developing countries, and to help adapt
vulnerable societies to the unavoidable impacts of climate change.
Given the urgency and seriousness of the challenge, the Fund is
mandated to make an ambitious contribution to the united global
response to climate change.”
19
Structure of the GCF
Conference of Parties to the UNFCCC
Standing Committee on Climate Finance
GCF Board
As with the GEF, the
GCF is “accountable to
and will function under
the guidance of” the
COP
• The GCF has full
responsibility for funding
decisions
• The GCF receives annual
guidance from the COP
• The GCF provides an
annual report to the COP
• The COP can request
further information
20
Structure of the GCF
Conference of Parties to the UNFCCC
Standing Committee on Climate Finance
GCF Board
Risk Mitigation Committee(exposure and liquidity)
Investment Committee(GCF investment framework)
Ethics & Audit Committee(transparency, conflicts of
interest)
Private Sector Advisory
Group (PSAG)(mainstreaming private sector)
21
Structure of the GCF
Conference of Parties to the UNFCCC
Standing Committee on Climate Finance
GCF Board
Executive Director(Héla Cheikhrouhou)
22
Structure of the GCF
Conference of Parties to the UNFCCC
Standing Committee on Climate Finance
GCF Board
Executive Director(Héla Cheikhrouhou)
Country
Programming
Mitigation &
Adaptation
Private Sector
Facility
External
Affairs
Support
Services
23
National Designated Authorities (NDAs)
• The GCF Board has agreed that “a country-driven approach is a
core principle to build the business model of the Fund.”
• Countries are represented by National Designated Authorities
(NDAs) or Focal Points
• A Focal Point is typically individual within a ministry or
government agency. A Focal Point can be designated as a
preliminary first step while preparing to establish an NDA
(understood to be a team of people)
• However, NDAs and Focal Points have equivalent status in the
GCF
24
The role of National Designated Authorities (NDAs)
Focal Points / NDAs have 2 defined roles in the GCF:
1. To approve accreditation submissions from sub-national / national entities
2. To provide a Letter of No Objection (LoNO) for each project / programme
submission from an accredited entity:
o The LoNO can accompany the submission
o Or the LoNO can be supplied to the GCF Secretariat within 30 days of
submission
o If no LoNO is received within 30 days, the proposal is considered
cancelled
o FPs / NDAs decide how no-objection is determined, though there is an
expectation of stakeholder consultation
o Also, each proposal from an accredited entity must provide a
description of how country ownership was determined
27
But…
• $2.5 billion Board approvals target for 2016 – and $3.5bn in
each of 2017 and 2018
• 41 funding proposals are in the pipeline, totalling $2.4 billion in
GCF funding
• 9 proposals to be considered by the GCF Board in June – 4 of
which are from UNDP
• “Go home and start a conversation about the potential for
engagement with the GCF, reach out to NDAs, and get working
on your GCF proposals”
- Zaheer Fakir, GCF Co-Chair, speaking at UNFCCC event,
Bonn, May 2016