This document contains the outcome of the second review of the financial terms and conditions of GCF’s financial instruments that was undertaken in accordance with decision B.BM-2019/08. By regularly reviewing the financial terms and conditions of GCF’s financial instruments, the Fund will be able to better demonstrate clarity and consistency in the application of terms and conditions in GCF financial instruments used in projects that are approved by the Board including the reporting procedures and appetite for providing concessionality.

In summary, the review puts forward for the decision of the Board two main recommendations that requests the Secretariat to: (i) undertake further work on local currency and guarantees; and (ii) in consultation with the Investment Committee (IC), to take account of the findings and recommendations from the review related to concessionality in the context of developing a policy on concessionality.

Where appropriate, the review also proposes that recommendations which can be taken up by the Secretariat per the mandate granted by the Board is undertaken accordingly.