GCF 22nd Board Meeting Agenda & Results

GCF 22ND BOARD MEETING AGENDA ITEMS

GREEN CLIMATE FUND 22ND BOARD MEETING
VENUE: SONGDO, SOUTH KOREA
DATE: 26-28 FEBRUARY 2019

GCF’s Readiness and Preparatory Support Programme (RPSP)   
Green Climate Fund (GCF)’s Readiness and Preparatory Support Programme (RPSP) Objectives of the evaluation: To assess RPSP’s effectiveness; evaluate the objectives of country ownership; to review the approaches in the implementation To recommend gains in effectiveness, efficiency, country ownership and possibilities of sustainable impacts

Background and comments on RPSP
– RPSP was launched in 2014 as a strategic priority to enhance country ownership and funding access;
-evaluation results: about one-quarter of eligible countries have not yet accessed RPSP grant support
– the GCF should provide more tailored approaches and understand better the political, economic and social context of each country if it wants these countries to involve actively
– three-quarters of eligible countries have received RPSP grant approval at present
– demand from countries and potential DAEs has been fairly uniform across different groups of countries “about 77 percent of Small Island Developing States (SIDS), 74 percent of Least Developed Countries (LDCs), 80 percent of African countries, and 72 percent of other countries have so far received RPSP support.
– 35 of 148 eligible countries do not have approved RPSP grants.”
– “one-size-fits-all paradigm” of the readiness programme did not meet the “differentiated needs” of countries.
– 70% of the approved readiness programme proposals were operating towards strengthening the national designated authorities (NDAs). However, RPSP is still not equally shared and time-consuming
– the so-called ‘priority countries’ which refer to Africa, SIDS, and LDCS, have been shown to have weak in strengthening their NDAs; the majority of countries didn’t push for direct access entities but instead favour International Accredited Entities in seeking funds from GCF.
– “CSO (civil society) participation was rudimentary” in relation to country ownership.
-GCF Secretariat may accept multiple-year readiness requests of up to USD 3 million for three years while committing no more than USD 1 million per country per year
– approved “an additional amount of USD 122.5 million to be made available for the execution” of the RPSP.

Policy Proposals Approved
These included decisions on readiness and country programming; cancellation and restructuring policy; investment criteria indicators; and policy on the protection from sexual exploitation, sexual abuse and sexual harassment (separate articles to follow on some of the issues).
A few issues such as decision-making in the absence of consensus, guidelines on decisions without a Board meeting and updated gender policy and action plan proved contentious, and no agreement could be reached on these issues. These were deferred to the next meeting of the Board.

Replenishment Issues
Some of the key messages that emerged from the document include the following:
– that the needs of developing countries are urgent and significant; there is significant potential for the GCF to raise ambition to deliver greater impact, and learning and evolution of the Fund are needed for it to deliver its full potential.
– It emerged that developed countries, while acknowledging the growing needs of developing countries, said that the focus must be, among other matters, on the Secretariat’s capacity to deliver; to review feedback on implementation and results of the GCF’s investments; improving requests for proposals; involving more private sector and diversified use of instruments.
– While the draft decision was not made public, sources revealed to TWN that the draft decision outlined the urgency of the first formal replenishment process, spoke to the needs and priorities of developing countries, balancing financing for mitigation and adaptation, and outlined potential programming and managing capacities of the Secretariat and the increasing needs of developing countries, among other matters.

Decisions on the Agenda Discussed:
Outcome of Co-Chairs consultations:
– guidelines on decisions without a Board meeting – no decision taken
– Selection of the Executive Director of the independent Secretariat — Decides to select Mr. Yannick Glemarec for the post of the Executive Director of the independent Secretariat of the GCF for a four-year term

Matters related to Board-appointed officials
(a) Performance evaluation and criteria of the Heads of the Independent Units
– Decides that the Performance Oversight Committee of the Executive Director and Heads of the Independent Units will engage the independent external human resources firm following a procurement process in accordance with the Administrative Guidelines on Procurement and supported by the Secretariat
(b) Matters regarding the Board Policy on Ethics and Conflicts of Interest for Board-appointed Officials
– The matter was considered by the Board in an executive session, and a limited distribution decision was adopted regarding matters on the Board Policy on Ethics…

Status of GCF resources and portfolio performance – no decision was taken under this item

Matters related to the first formal replenishment of the Fund (a) Strategic Plan for the GCF
– Agrees that the Strategic Plan will continue to guide the GCF as a continuously learning institution in further developing its operational modalities and performance, with a view to achieving its overarching objective to promote the paradigm shift towards low-emission and climate-resilient development pathways in the context of sustainable development, and in particular that an updated Strategic Plan
(b) Strategic programming document outlining scenarios for the GCF replenishment – no decision taken under this agenda item
(c) Report from the group of Board members and alternate Board members representing the Board in the replenishment process – no decision taken

Consideration of funding proposals
Brazil: USD 96.5 million for reducing emissions from deforestation and forest degradation (REDD-plus) for results achieved by Brazil; Area: Amazon biome in 2014 and 2015; AE: United Nations Development Programme (UNDP)
Belize: USD 8.0 million for a climate resilient agricultural practices project; AE: International Fund for Agricultural Development (IFAD)
Mali: USD 29.6 million for solar rural electrification project, AE: Banque Ouest Africaine de Developpement (BOAD)
Kenya and Senegal: USD 18.8 million for Promotion of Climate-Friendly Cooking, AE: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)
Nigeria: USD 100 million for Nigeria Solar IPP Support Program for the financing of long-term financing Solar IPP projects, AE: Africa Finance Corporation (AFC)
Benin, Burkina Faso, Guinea-Bissau, Mali, the Niger, Togo: USD 69.6 million for a climate finance facility to scale up solar energy investments in Francophone West Africa; AE: West African Development Bank (BOAD)
South Africa: USD 100 million for the generation of renewable energy projects, AE: Development Bank of Southern Africa (DBSA)
Central/North Benin: USD 9.0 million for enhancing climate resilience of rural communities through the implementation of ecosystem-based adaptation in forest and agricultural landscapes; AE: UNDP
Namibia: USD 8.9 million for building the resilience of communities living in landscapes threatened under climate change through an ecosystems-based adaptation approach; AE: Environmental Investment Fund (EIF)

Consideration of accreditation proposals
Alternative Energy Promotion Centre (AEPC), based in Nepal, as contained in annex IV of document GCF/B.22/02;
Environmental Project Implementation Unit (EPIU) of the Ministry of Nature Protection of the Republic of Armenia Fondo Mexicano para la Conservación de la Naturaleza A.C. (FMCN), based in Mexico
National Fund for Environment and Climate (FNEC) of Benin Pacific Community (SPC), based in New Caledonia
JS Bank Limited (JS Bank), based in Pakistan Attijariwafa Bank (AWB), based in Morocco
Macquarie Alternative Assets Management Limited (MAAML), based in Australia
Luxembourg Agency for Development Cooperation (LuxDev), based in Luxembourg

Results management framework: Independent Evaluation Unit recommendations to improve the Results Management Framework, including the Secretariat management response
Board decisions:
– Requests the Secretariat to present for the Board’s consideration a revised results management framework and updated performance management frameworks…
– Also requests the Secretariat to develop, for the Board’s consideration at its twenty-third meeting, a proposal to respond to gaps in the current portfolio for measurement and evaluation design and/or evidence generation…
– Further requests the Secretariat to ensure that accredited entities should adequately budget costs related to data collection and baseline assessment as part of project costs to establish credibility of results reporting.

Matters related to the approval of funding proposals
Board decisions:
(a) Cancellation and restructuring policy Requests the Secretariat to implement the policy and to provide a report on the implementation of the policy for the Board’s consideration and further guidance… Also requests the Secretariat to report back to the Board, as part of its regular pipeline and portfolio update, on the implementation of this policy
(b) Investment criteria indicators Adopts the investment criteria indicators for a pilot period of one year as set out in annex VII to this decision…

Matters related to accreditation, including the framework review, and matters related to the baseline of accredited entities
Board decisions:
Requests the Accreditation Committee, with the support of the Secretariat, to consult with the Board and alternate members, accredited entities and national designated authorities and focal points on matters related to the review of the accreditation framework as contained in annexes XI and XII, and present an updated accreditation framework for consideration and adoption by the Board at its twenty-third meeting…

Updated gender policy and action plan
Board decisions:
Decides to continue the consideration of the Updated Gender Policy and Action Plan 2019−2021 with a view that it will be presented for the consideration and approval of the Board at its next meeting.

Policy on the protection from sexual exploitation, sexual abuse and sexual harassment
Board decisions:
– Adopts the Interim Policy on the Protection from Sexual Exploitation, Sexual Abuse, and Sexual Harassment…
– Requests the Independent Integrity Unit, in consultation with the Secretariat, to present to the Board for its consideration as a matter of urgency and no later than its twenty-third meeting an updated policy on the protection from sexual exploitation, sexual abuse, and sexual harassment, which also concerns counterparties in GCF-related activities

Risk management framework: compliance risk policy No decision taken

Matters related to the Fund’s prohibited practices policies
(a) Prohibited practices policies
Board decisions:
– Adopts the Policy on Prohibited Practices set out in annex XIV to this document to replace the Interim Policy on Prohibited Practices…
– Requests the Independent Integrity Unit, in consultation with the Secretariat, to develop policies on administrative sanctions and exclusions for consideration by the Board in 2019;
– Also requests the Board to update this Policy on the Prohibited Practices upon adoption of the Policy on ethics and conflicts of interest for active observers at its twenty-third meeting;
– Requests the Independent Integrity Unit to provide a brief report on experiences and lessons learned to the Board after two years as a basis for a wider review of the policies.
(b) Standards for the implementation of the Anti-Money Laundering and Countering the Financing of Terrorism Policy
No decision was taken (deferred to the 23rd GCF BM)

Administrative and budgetary matters
(a) Revised legal framework on human resources management
Board decisions:
– Decides to continue its consideration of the Revised Legal Framework on Human Resources with a view to present a revised proposal for the Board’s consideration at a future meeting…
– Requests the Budget Committee to analyse the current salary scales and the amounts for benefits and allowances payable…,
– and to present to the Board for its consideration at its twenty‐fourth meeting proposals for updates to the salary scale and current benefits and allowances.
(b) Set-aside for the operating costs of the GCF for 2019 and 2020: Budget Committee recommendation Board decisions: (a) Decides to set aside the amount of USD 45 million towards the operating expenses of GCF for 2020; (b) Also decides to set aside an initial amount of USD 100 million towards the risk buffer; and (c) Requests the Budget Committee to review the risk buffer requirement and update the Board on the adequacy of the amount at its twenty-fourth meeting.

Guidelines and procedures of the Independent Redress Mechanism
Board decisions:
– Adopts the Procedures and Guidelines of the Independent Redress Mechanism (Procedures and Guidelines)…
– Decides that such Procedures and Guidelines shall take effect from the date of this decision and shall replace the interim procedures for the reconsideration of funding decisions adopted by decision B.13/24, paragraph (a), from the date of this decision in respect of requests for reconsideration of funding decisions submitted to the Independent Redress Mechanism following the date hereof – Decides to designate the Ethics and Audit Committee of the Board as the “Board Committee” under the Procedures and Guidelines and entrusts the said Committee with responsibility for matters relating to the Procedures and Guidelines of the Independent Redress Mechanism…
– Requests the Head of the Independent Redress Mechanism, in consultation with the Ethics and Audit Committee, to consider options to facilitate the Board’s consideration of reports from the Independent Redress Mechanism containing its findings and recommendations relating to requests for reconsideration of funding decisions and grievances or complaints by those adversely affected or who may be affected by GCF projects or programmes…

Dates and venues of the following meetings of the Board Board decisions:
Date: 23rd Board Meeting- 6-8 July (Saturday-Monday), 2019
Venue: Songdo, Incheon, Republic of Korea