Eighteenth meeting of the GCF Board (B.18)

The Board, having considered document GCF/B.18/21/Rev.01 titled “Work Plan of the Board for 2018: Proposal by the Co-Chairs”:

1. Approves the work plan of the Board for 2018, as set out in annex I;
2. Requests the Co-Chairs to update the work plan following each meeting of the Board;
3. Reaffirms paragraph 18 of the Rules of Procedure that states the provisional agenda of each meeting of the Board shall be prepared by the Secretariat and distributed, with the approval of the Co-Chairs, at least 30 calendar days before the meeting of the Board in accordance with paragraph 18 of the Rules of Procedure;
4. Reaffirms paragraph 21 of the Rules of Procedure that states the Secretariat will transmit to Board members and alternate members the documentation relating to items on the provisional agenda at least 21 calendar days before the first day of the meeting scheduled, except in case of extraordinary meetings and in exceptional circumstances where, in the view of the Co-Chairs, a shorter period for the transmission of documentation is warranted;
5. Invites the Co-Chairs, in the case of exceptional circumstances which warrant periods less than 21 days for the transmission of documentation, to provide a timetable with the date by which the said documentation will be transmitted;
6. Requests the Executive Director of the Secretariat to take all necessary measures to ensure the timely preparation of documents to allow for the circulation of such documents as per the timelines identified in the Rules of Procedure as per paragraphs (c) and (d) above;
7. Decides that formal meetings of the Board will continue to be webcast live until the end of 2019;
8. Decides to consider the establishment of the Independent Appeals Panel requested pursuant to decision B.12/35, annex XXIX, paragraph 28, between the eighteenth and nineteenth meetings of the Board; and
9. Decides to consider the terms of reference for the independent evaluation of the Readiness and Preparatory Support Programme between the eighteenth and nineteenth meetings of the Board.

The Board, having taken note of the document GCF/B.16/Inf.08 titled “Facilitating an increase in proposals from direct access entities”: 

1. Takes note of the information related to support provided to direct access entities in connection with funding proposals set out in the Secretariat’s regular reporting to the Board, in particular document GCF/B.18/Inf.04 titled “Report on the activities of the Secretariat”, document GCF/B.18/07 titled “Readiness and Preparatory Support Programme: progress report”, document GCF/B.18/09 titled “Consideration of Accreditation Proposals” and document GCF/B.18/Inf.03 titled “Status of the GCF portfolio: pipeline and approved projects”;
2. Requests the Secretariat to include the information described in annex II in its regular reporting to the Board on the status of the GCF portfolio: pipeline and approved projects;
3. Also requests the Secretariat to include the information described in annex II in annual reports of the Green Climate Fund to the Conference of the Parties and any related addenda, including the addendum to the Sixth Report of the Green Climate Fund to the Conference of the Parties to be prepared and submitted to the twenty-third session of the Conference of the Parties;
4. Further requests the Secretariat to prepare for the Board’s consideration at its twentieth meeting a report on the analysis of the challenges, barriers, gaps and recommendations to achieve an increase in the amount of direct access proposals in the pipeline, taking into account the views of Board members and alternate Board members, national designated authorities/focal points and direct access accredited entities, and the initial review by the Secretariat of the Readiness and Preparatory Support Programme as requested in decision B.    18/09;
5. Requests the Secretariat, with a view to increase the amount of direct access proposals in the pipeline and in accordance with decisions B.18/11 and B.18/12 regarding the structure and staffing of the Secretariat and the work programme of the Secretariat for 2018 and administrative budget, to enhance its capacity to:
   
   1. Strengthen and actively support direct access accredited entities, in consultation with national designated authorities/focal points, as appropriate, in the development of concept notes and funding proposals, consistent with the objectives, guiding principles and procedures of the GCF; and
   2. Consider and provide feedback in a timely manner on concept notes and funding proposals received from direct access accredited entities or national designated authorities/focal points; and
6. Also requests the Secretariat to actively communicate the support available through the GCF to direct access entities and to provide relevant information on how direct access entities can access such support.

The Board, in line with paragraph 38 of the Governing Instrument for the GCF and in response to guidance from Conference of the Parties, having considered document GCF/B.18/12, titled “Options for support for technology collaborative research and development”:

1. Takes note of the options outlined in document GCF/B.18/12 for the GCF to support collaborative research, development and demonstration, in respect of the following approaches:
   
   1. Climate technology innovation systems; and
   2. Targeted climate technology research, development and demonstration support;
2. Encourages national designated authorities/focal points to collaborate with readiness delivery partners and accredited entities to submit readiness requests, concept notes, funding proposals and Project Preparation Facility proposals supporting technology collaborative research and development;
3. Requests the Secretariat to develop for consideration by the Board at its twentieth meeting the terms of reference for a request for proposals to support climate technology incubators and accelerators;
4. Also requests the Secretariat to continue collaborating with the Technology Executive Committee of the UNFCCC and the Climate Technology Centre and Network, including in the implementation of this decision, to enable support for technology development and transfer for facilitating access to environmentally sound technologies and for collaborative research and development for developing countries; and
5. Further requests the Secretariat to continue to consider complementarity and coherence with other related technology initiatives and activities, including technology needs assessments and technology action plans, and to report accordingly in the context of the Operational Framework on Complementarity and Coherence adopted in decision B.17/04.

The Board, having considered document GCF/B.18/15 titled “Matters related to the accreditation framework and policy gaps: Co-Chairs’ proposal”:

1. Decides to commence the review of the accreditation framework;
2. Requests the Secretariat to present a proposal for the revision of the accreditation framework that includes other modalities for institutions to work with the GCF, as early as the nineteenth meeting of the Board; and
3. Decides to extend the prioritization of entities applying for accreditation in accordance with decision B.14/08, paragraph (d)(i), until the end of the nineteenth meeting of the Board.

The Board, having considered document GCF/B.18/09 titled “Consideration of accreditation proposals”:

1. Takes note with appreciation of the assessments conducted by the Secretariat and the Accreditation Panel contained within the relevant annexes for the following applicants:
   
   1. Applicant 056 (APL056) is the China Clean Development Mechanism Fund Management Center (China CDM Fund Management Center) based in China, as contained in annex III;
   2. Applicant 057 (APL057) is the Department of Environment (DOE) of Antigua and Barbuda, as contained in annex IV;
   3. Applicant 058 (APL058) is the Fiji Development Bank (FDB), based in Fiji, as contained in annex V;
   4. Applicant 059 (APL059) is the Palli Karma-Sahayak Foundation (PKSF), based in Bangladesh, as contained in annex VI; and
   5. Applicant 060 (APL060) is the Sahara and Sahel Observatory (OSS), based in Tunisia, as contained in annex VII;
2. Accredits applicants APL056, APL057, APL058, APL059 and APL060, pursuant to paragraph 45 of the Governing Instrument for the GCF, and subject to, and in accordance with, the assessments by the Accreditation Panel contained in the relevant annexes for each of the applicants;
3. Takes note with appreciation of the assessment conducted by the Secretariat and the Accreditation Panel contained within the relevant annex for the following applicants seeking to upgrade its accreditation type:
   
   1. Acumen Fund, Inc. (Acumen), based in the United States of America, as contained in annex VIII;
4. Agrees to upgrade the accreditation type of Acumen Fund, Inc. as contained in decision B.09/07, paragraph (b), subject to, and in accordance with, the assessment by the Accreditation Panel contained in annex annex VIII;
5. Takes note that, pursuant to decision B.08/03, paragraph (k), the Secretariat, in consultation with the Accreditation Panel, is proposing that the eligibility to apply under the fast-track accreditation process be extended to those entities listed in annex IX; and
6. Decides that those entities referred to in annex IX are also eligible to apply under the fasttrack accreditation process for the standards of the GCF in accordance with decision B.08/03, paragraph (f), for entities accredited by the Adaptation Fund, and decision B.08/03, paragraph (g), for entities under the Directorate-General for International Cooperation and Development.

The Board, having considered document GCF/B.18/17 titled “Operationalizing the simplified approval process for certain activities, in particular small-scale activities”:

1. Approves the Simplified Approval Process Pilot Scheme (Pilot Scheme), as set out in annex X;
2. Decides that the Pilot Scheme shall be reviewed two years from its operationalization, or when the aggregate amount of approvals under the Pilot Scheme reaches USD 80 million of GCF financing, whichever is earlier; this review will be completed within three months from its commencement; and
3. Requests the Secretariat to:
   
   1. Operationalize such Pilot Scheme as expeditiously as possible and notify to the Board the date of its operationalization;
   2. Develop a proposal for approving funding proposals brought forward under this Pilot Scheme between meetings of the Board in the context of the ongoing work to develop further options for decision-making; and
   3. Report back to the Board upon completion of the review specified in paragraph (b) above, with recommendations based on the outcome of such review to further improve the efficiency and effectiveness of the process, and to consider expanding the type of eligible activities and increasing GCF funding.

The Board, having considered document GCF/B.18/06 titled “Request for proposals for the pilot programme for REDD-plus results-based payments”:

1. Takes note of the progress made in finalizing the draft request for proposals for the REDD- plus results-based payments pilot programme, as mandated in decision B.17/18, in the form set out in annex XI;
2. Decides to set, for the REDD-plus results-based payments pilot programme only, the valuation of results at USD 5 per tonne of verified emission reductions of carbon dioxide equivalent (t CO2 eq);
3. Decides to allocate up to USD 500 million to the request for proposals for the pilot programme for REDD-plus results-based payments;
4. Decides to adopt the request for proposals for the pilot programme for REDD-plus results- based payments as set out in annex XI and the corresponding scorecard provided in annex XII;
5. Requests the Secretariat to develop all corresponding templates and guidance for national designated authorities and accredited entities for applying to the request for proposals no later than two months after its adoption by the Board;
6. Requests the Secretariat to conduct an analysis of the experience with, and the progress made towards achieving the objectives of the pilot programme for REDD-plus results- based payments for its consideration no later than at its last meeting of 2019.

The Board, having considered document GCF/B.18/04/Rev.01 titled “Consideration of funding proposals”:

1. Takes note of the following funding proposals:
   
   1. Funding proposal 046 titled “Renewable Energy Program #1-Solar” by XacBank LLC, as contained in document GCF/B.18/04/Add.17;
   2. Funding proposal 047 titled “GCF-EBRD Kazakhstan Renewables Framework” by the European Bank for Reconstruction and Development, as contained in document GCF/B.18/04/Add.18/Rev.01;
   3. Funding proposal 048 titled “Low Emissions and Climate Resilient Agriculture Risk Sharing Facility” by the Inter-American Development Bank, as contained in document GCF/B.18/04/Add.19/Rev.01;
   4. Funding proposal 049 titled “Building the climate resilience of food insecure smallholder farmers through integrated management of climate risks (the R4 Rural Resilience Initiative)” by the World Food Programme, as contained in document GCF/B.18/04/Add.04 and 23;
   5. Funding proposal 050 titled “Bhutan for Life (BfL)” by the World Wildlife Fund Inc., as contained in document GCF/B.18/04/Add.05 and 23;
   6. Funding proposal 051 titled “Scaling-up investment in low-carbon public buildings” by the United Nations Development Programme, as contained in document GCF/B.18/04/Add.06 and 23; (vii) Funding proposal 052 titled “Sustainable and climate resilient connectivity for Nauru” by the Asian Development Bank, as contained in document GCF/B.18/04/Add.07 and 23;
   7. Funding proposal 053 titled “Enhancing climate change adaptation in the north coast and Nile Delta regions in Egypt” by the United Nations Development Programme, as contained in document GCF/B.18/04/Add.08 and 23;
   8. Funding proposal 054 titled “Implementation project of the integral management plan of the Lujan River Basin” by the Corporación Andina de Fomento, as contained in document GCF/B.18/04/Add.09 and 23;
   9. Funding proposal 055 titled “Poverty, Reforestation, Energy and Climate Change (PROEZA Project)” by the Food and Agriculture Organization of the United Nations, as contained in document GCF/B.18/04/Add.10/Rev.01 and 23;
   10. Funding proposal 056 titled “Scaling up climate resilient water management practices for vulnerable communities in La Mojana” by the United Nations Development Programme, as contained in document GCF/B.18/04/Add.11 and 23;
   11. Funding proposal 057 titled “Climate Action for Rural Development: communitybased adaptation and mitigation in Argentina” by the Unidad Para el Cambio Rural (Unit for Rural Change, UCAR), as contained in document GCF/B.18/04/Add.12 and 23;
   12. Funding proposal 058 titled “Responding to the increasing risk of drought: building gender-responsive resilience of the most vulnerable communities” by the Ministry of Finance and Economic Cooperation of the Federal Democratic Republic of Ethiopia, as contained in document GCF/B.18/04/Add.13 and 23;
2. Also takes note that, in relation to funding proposal 048, the accredited entity has changed the name of the proposal from “Climate-Smart Agriculture (CSA) Risk Sharing Facility for MSMEs” to “Low Emissions and Climate Resilient Agriculture Risk Sharing Facility”; therefore, all references to “Climate-Smart Agriculture (CSA) Risk Sharing Facility for MSMEs” stated in the funding proposal and its annexes, as well as in the relevant assessments made by the Secretariat and the Independent Technical Advisory Panel, shall be read as “Low Emissions and Climate Resilient Agriculture Risk Sharing Facility”;
3. Approves funding proposal 046 for the amount of USD 8,650,050, submitted by the XacBank LLC, subject to the conditions set out in annex XIII and in the respective term sheet set out in document GCF/B.18/04/Add.17;
4. Also approves funding proposal 047 for the amount of USD 110,000,000, submitted by the European Bank for Reconstruction and Development, subject to the conditions set out in annex XIII and in the respective term sheet set out in document GCF/B.18/04/Add.18/Rev.01;
5. Further approves funding proposal 048 for the amount of USD 20,000,000, submitted by the Inter-American Development Bank, subject to the conditions set out in annex XIII and in the respective term sheet set out in document GCF/B.18/04/Add.19/Rev.01;
6. Approves funding proposal 049 for the amount of USD 9,983,521, submitted by the World Food Programme, subject to the conditions set out in annex XIII and in the respective term sheet set out in document GCF/B.18/04/Add.23;
7. Also approves funding proposal 050 for the amount of USD 26,557,354, submitted by the World Wildlife Fund Inc., subject to the conditions set out in annex XIII and in the respective term sheet set out in document GCF/B.18/04/Add.23;
8. Further approves funding proposal 051 for the amount of USD 17,346,000, submitted by United Nations Development Programme, subject to the conditions set out in annex XIII and in the respective term sheet set out in document GCF/B.18/04/Add.23;
9. Approves funding proposal 052 for the amount of USD 26,910,000, submitted by the Asian Development Bank, subject to the conditions set out in annex XIII and in the respective term sheet set out in document GCF/B.18/04/Add.23;
10. Also approves funding proposal 053 for the amount of USD 31,385,000, submitted by the United Nations Development Programme, subject to the conditions set out in annex XIII and in the respective term sheet set out in document GCF/B.18/04/Add.23;
11. Further approves funding proposal 054 for the amount of USD 58,528,147, submitted by the Corporación Andina de Fomento, subject to the conditions set out in annex XIII and in the respective term sheet set out in document GCF/B.18/04/Add.23;
12. Also approves funding proposal 056 for the amount of USD 38,496,000, submitted by the United Nations Development Programme, subject to the conditions set out in annex XIII and in the respective term sheet set out in document GCF/B.18/04/Add.23;
13. Approves funding proposal 058 for the amount of USD 45,002,759, submitted by the Ministry of Finance and Economic Cooperation of the Federal Democratic Republic of Ethiopia, subject to the conditions set out in annex XIII and in the respective term sheet set out in document GCF/B.18/04/Add.23;
14. Decides that there was no consensus to approve funding proposal 055;
15. Also decides that there was no consensus to approve funding proposal 057;
16. Reaffirms that pursuant to annex IV to decision B.17/09, the Executive Director or his designee is authorized to negotiate and enter into legal agreements on behalf of the GCF with accredited entities and other parties involved in respect of funding proposals approved by the Board, taking into account any condition approved by the Board in this decision and in the decision accrediting the relevant accredited entity; and
17. Authorizes the Secretariat to disburse fees for each funded project/programme approved by the Board as per the disbursement schedule to be agreed in the funded activity agreement in accordance with the interim policy on fees for accredited entities adopted by the Board pursuant to decision B.11/10.

The Board, having considered document GCF/B.18/07 titled “Readiness and Preparatory Support Programme: progress report”:

1. Notes the request for additional budget allocation for the Readiness and Preparatory Support Programme for 2017 and 2018 to enable the continued processing and approval of readiness proposals, including for national adaptation planning and/or other adaptation planning processes;
2. Requests the Secretariat to implement immediate measures to address the quality issues identified in the Readiness and Preparatory Support Programme progress report; 

3. Agrees to conclude expeditiously the terms of reference for the independent evaluation of the programme by adopting a decision as soon as possible in between the eighteenth and nineteenth meetings of the Board, with an aim to initiate and conclude the evaluation by the twenty-first meeting of the Board, while reporting on the progress thereof at the twentieth meeting; 

4. Approves that the amount of USD 50 million be made available for the execution of the Readiness and Preparatory Support Programme to address immediate requests for the funding of national adaptation planning and/or other adaptation planning processes; and
5. Requests the Secretariat to present a revised work programme for the Readiness and Preparatory Support Programme, including a request for funding for 2018, for the Board’s consideration at its nineteenth meeting, based on the outcome of the initial review by the Secretariat of the Readiness and Preparatory Support Programme.

The Board, having considered document GCF/B.18/20 titled “Anti-Money Laundering and Countering the Financing of Terrorism Policy”:

1. Adopts the “Anti-Money Laundering and Countering the Financing of Terrorism Policy” contained in annex XIV to this document;
2. Requests the Head of the Independent Integrity Unit, under the supervision of the Ethics and Audit Committee, to develop the standards for the implementation of the Anti-Money Laundering and Countering the Financing of Terrorism Policy for consideration by the Board by its twentieth meeting; and
3. Authorizes the Ethics and Audit Committee to address issues that may arise in the implementation of this policy.

The Board, having considered document GCF/B.18/10 titled “Structure and staffing of the Secretariat”:

1. Notes the contents of document GCF/B.18/10;
2. Agrees to and adopts the proposed headcount of full-time-equivalent employees of 250 for 2018; and
3. Agrees to and adopts the new proposed structure as shown in annex XV.

The Board, having considered document GCF/B.18/13 titled “Work programme of the Secretariat for 2018 and administrative budget”:

1. Recognizes that the work programme will help to guide the activities of the Secretariat during 2018;
2. Approves the work programme 2018 as contained in annex XVI, and the goals and suggested policy priorities set out in the work programme, in accordance with paragraph 23(e) of the Governing Instrument for the GCF;
3. Also approves an administrative budget for the period of 1 January to 31 December 2018 in the amount of USD 63,558,006 as referred to in appendix I to annex XVI;
4. Further approves an administrative budget of the GCF for the periods 2019 and 2020 in the amounts of USD 42,289,607 and USD 44,107,723, respectively, to cover estimated staffing costs; and
5. Requests the Secretariat to compile at each meeting of the Board a consolidated Board document on all information reports.

The Board, having reviewed document GCF/B.18/02 titled “Dates and venue of the meetings of the Board in 2018”:

1. Confirms that the nineteenth meeting of the Board will take place in Songdo, Republic of Korea, from Tuesday, 27 February to Thursday, 1 March 2018; and
2. Decides to agree on the dates and venues for the twentieth and twenty-first meetings between the eighteenth and nineteenth meetings of the Board.