B.13/36: Risk and investment policies: Interim risk and investment guidelines

The Board, having reviewed document GCF/B.13/27/Rev.02 titled “Interim risk and investment guidelines: Risk Management Committee proposal”:

1. Adopts the Interim risk and investment guidelines as contained in annexes VIII and IX. These guidelines will expire the earlier of (i) the sixteenth meeting of the Board, or (ii) at the adoption of an updated set of risk policies and guidelines as determined by decision B.12/34;
2. Decides that, in case these interim guidelines expire and the Secretariat cannot yet confirm that adequate in-house risk management capacity is in place, the GCF will only be able to participate in a tranche aligned with the accredited entity on all terms and conditions other than pricing and must not be the largest contributor or financier in a tranche or any whole project, in order to mitigate GCF risk exposure;
3. Reiterates that the GCF intends to be an institution that takes risks that other institutions or funds are not willing or able to take; and
4. Requests the Secretariat to develop the necessary methodologies and internal procedures, hire a permanent Risk Manager and additional staff to enhance the Secretariat’s risk management capacity as a matter of urgency, and report to the Board, as part of the report on the activities of the Secretariat at each meeting, on the status of this process.