Thirty-first meeting of the GCF Board (B.31)

The Board:

1. Recognizes the current extraordinary circumstances resulting from the outbreak of the Omicron variant of coronavirus disease 19 (COVID-19)in the Republic of Korea;
2. Takes note that the Co-Chairs, guided by the best interests of the Fund pursuant to paragraph 10 of the Rules of Procedure of the Board, and on an exceptional basis and in the light of such current extraordinary circumstances, decided to change the modality of the thirty-first meeting of the Board to a net-meeting;
3. Confirms that the invocation by the Co-Chairs of paragraph 10 of the Rules of Procedure of the Board was warranted on an exceptional basis and in the light of the current extraordinary circumstances; and
4. Ratifies the decision of the Co-Chairs to change the modality of the thirty-first meeting ofthe Board to a net-meeting.

The Board, having considered the document GCF/B.31/09 titled “Appointment of members to the committees of the Board”:

1. Appoints as members of the Accreditation Committee, for a term starting on 1 January 2022:
   1. Mr. Antwi Boasiako Amoah;
   2. Ms. Gisella Berardi;
   3. Ms. Ornela Çuçi;
   4. Ms. Jennifer De Nijs; and
   5. Mr. Jan Wahlberg;
2. Also appoints as members of the Budget Committee, for a term starting on 1 January 2022;
   1. Ms. Katrijn Coppens;
   2. Mr. José Delgado;
   3. Ms. Kyunghee Kim;
   4. Ms. Marta Mulas Alcantara; and
   5. Mr. Karma Tshering;
3. Further appoints as members of the Ethics and Audit Committee, for a term starting on 1 January 2022:
   1. Mr. Wael Ahmed Kamal Aboul-Magd;
   2. Mr. Nauman Bashir Bhatti;
   3. Mr. Stéphane Cieniewski;
   4. Mr. Mathew Haarsager;
   5. Ms. Fiona Ralph; and
   6. Mr. Albara Tawfiq;
4. Appoints as members of the Investment Committee, for a term starting on 1 January 2022;
   1. Ms. Isatou F. Camara;
   2. Mr. Toshihiro Kitamura;
   3. Ms. Annette Windmeisser;
   4. Ms. Eliette Riera;
   5. Mr. Tlou Emmanuel Ramaru; and
   6. Ms. Yan Ren;
5. Also appoints as members of the Performance Oversight Committee of the Executive Director and Heads of Independent Units, for a term starting on 1 January 2022:
   1. Mr. Nauman Bashir Bhatti;
   2. Mr. Jean-Christophe Donnellier;
   3. Mr. Mathew Haarsager; and
   4. Mr. Tlou Emmanuel Ramaru.

The Board, having considered document GCF/BM-2021/27 titled “Revised terms of reference for the Head of the Independent Evaluation Unit”:

Adopts the revised terms of reference for the Head of the Independent Evaluation Unit as contained in annex I of this document.

The Board, having considered document GCF/B.31/13 titled “Selection process of the Heads of the Independent Units”:

1. Decides to amend the terms of referenceof theAd Hoc Selection Committee and the EAC selection process to include the selection process for the Heads of the Independent Integrity Unit and Independent redress Mechanism, as set out in annex II;
2. Decides that the Ethics and Audit Committee, in accordance with its ToR approved by Decision B.10/05, to make a recommendation to the Board on a candidate for the head of the IIU;
3. Also decides that the Ethics and Audit Committee, will make a recommendation to the Board on a candidate for the Head of the IRM;
4. Appoints as members of the Ad Selection Committee for the IEU:
   1. Ms. Nadia-Spencer Henry;
   2. Ms. Pacific Ogola;
   3. Mr. Karma Tshering;
   4. Mr. Lars Roth;
   5. Ms. Marta Mulas Alcantara; and
   6. Mr. Hans Olav Ibrekk;
5. Takes note of Board decision B.31/03 on the revised Terms of Reference of the Head of the Independent Evaluation Unit;
6. Decides to expand the scope of work of the procured selection firm to as set out in Annex II and request the Budget Committee to allocate the resources required to for this purpose;
7. Authorizes the Secretariat to amend the contract with the independent executive search firm, with due observance of applicable rules; and
8. Further requests the Selection Committee and the EAC to present their reports containing the recommendations regarding the outcome of the recruitment process in order for the Board to select the Head of the Independent Evaluation Unit, the Head of IIU and the Head of IRM no later than the thirtieth-fourth meeting.

The Board:

1. Takes note that the current four-year term of the Trustee expires on [11 April 2023];
2. Requests the Secretariat to undertake a review of the performance of the Trustee and the value for money of the services provided by the Trustee;
3. Also requests the Secretariat to notify the Board promptly upon the completion of the review in order for the Board to approve the renewal ofthe Trustee arrangements;
4. Confirms that once the Board renews the Trustee’s appointment, the Executive Director shall finalize the renewal of the term of the Trustee for a further four-year period, including by executing the necessary legal and administrative arrangements with the International Bank for Reconstruction and Developmentby the end of 2022, in a manner which ensures there is no discontinuity in trustee services;
5. Decides that, in respect of subsequent renewals of the term of the Trustee, the Secretariat is authorized to review the performance of the Trustee over the relevant period and, unless considered unsatisfactory by the Secretariat, to further renew the term of the Trustee; and
6. Also decides that in the event that:
   1. The Secretariat considers the outcome any of the reviews referred to in paragraph (e) above to be unsatisfactory;
   2. The Trustee wishes to materially deviate from the terms of reference of the Trustee as part of the renewal of term;
   3. The Trustee does not have an interest in continuing to provide trustee services to GCF; or
   4. The Secretariat and the Trustee are not able to conclude the necessary legal and administrative arrangements in a timely manner;
   The Secretariat shall promptly notify the Board and the Board shall take such action as is necessary to ensure there is no discontinuity in trustee services.

The Board, having considered document GCF/B.31/12 titled “Matters related to accreditation: Co-Chairs’ proposal on the updates to the accreditation framework”:

1. Takes note of the findings and recommendations in the Independent Synthesis of the GCF’s Accreditation Function undertaken by the Independent Evaluation Unit (see document GCF/B.26/Inf.05), as well as other related Independent Evaluation Unit evaluations that covered matters related to the GCF’s accreditation systems, the Secretariat’s management responses, and views from the Board in accordance with decision B.30/11;
2. Requests the Independent Evaluation Unit to present a management action report to the Board no later than one year following the adoption of this decision;
3. Agrees to the revised definitions of the size categories as contained in annex III to this document regarding the “scale of intended activities” and that these definitions shall apply to projects and programmes approved at or after the first Board meeting in 2024;
4. Adopts the updates to the accreditation framework set out in annex IV to this document to replace the initial guiding framework for the accreditation process adopted by the Board pursuant to decision B.07/02, paragraph (a), as of the date of effectiveness set out in annex IV;
5. Requests, pursuant to paragraph (d) above, the Accreditation Panel, with the support of the Secretariat, to establish a roster of competent external consultants and/or consultancy firms in accordance with the Administrative Guidelines on Procurement, and approves an additional budget of USD 700,000 under the administrative budget of the Board to be executed during the years 2022 and 2023 for the use of such external consultants and/or consultancy firms;
6. Also requests the Accreditation Committee, in consultation with the Secretariat and Accreditation Panel, to update the draft working modalities of the Accreditation Panel set out in annex I to document GCF/B.21/Inf.10 titled “Reports from committees, panels and groups of the Board of the Green Climate Fund” to reflect the use of external consultants and/or consultancy firms in the context of reviews of entities in Stage II (Step I), with a view to presenting such working modalities to the Board for its consideration no later than at its first meeting in 2023;
7. Decides, pursuant to decision B.23/11, to implement, on a pilot basis, a project-specific assessment approach that combines assessments undertaken during the existing accreditation and proposal approval processes in a fit-for-purpose manner, in accordance with the parameters set out in annex IV and taking into account decision B.19/13, paragraph (d);
8. Also decides, pursuant to paragraph (g) above, to request the Secretariat and the independent Technical Advisory Panel to prioritize, during the first year of project-specific assessment approach implementation, project-specific assessment approach proposals (with respect to the Secretariat) and accompanying funding proposals (with respect to the Secretariat and the independent Technical Advisory Panel) from (i) subnational, national and regional entities based in developing countries, particularly those from developing countries that have yet to have an approved GCF-funded activity at the time of the launch of the project-specific assessment approach; and (ii) entities responding to requests for proposal issued by GCF.¹ After the first year, unless otherwise decided by the Board, the approach for the review of project-specific assessment approach proposals shall default to a first-come-first-complete basis;
9. Approves an additional budget of USD 600,000 under the administrative budget of the Secretariat to be executed during the years 2022 and 2023, including for the procurement of the external consultants and/or consulting firms mentioned in paragraph (g), to cover the assessments of approximately 10 funding proposals submitted by entities under the project-specific assessment approach and the related legal arrangements for those project-specific assessment approach entities and related funding proposals approved by the Board;
10. Decides that entities with funding proposals approved within the scope of the project-specific assessment approach set out in paragraph (g) above shall be deemed accredited for the purposes of such approved funding proposals only;
11. Also decides that the Project Preparation Facility can also support project and programme preparation requests from entities not yet accredited to GCF, in particular subnational, national and regional entities, which have submitted a complete application for the project-specific assessment approach detailed in paragraph (g) above, and that the provisions of decision B.13/21 shall apply mutatis mutandis to such entities;
12. Requests the Secretariat to report to the Board on an annual basis on the operationalization and implementation of the approach referred to in paragraph (g) above, and decides to review the pilot framework for the project-specific assessment approach referred to in paragraph (g) above three years after its operationalization;
13. Decides to launch the process to review the accreditation framework in accordance with decision B.27/06, which, inter alia, mandates the Board to present a revised accreditation framework to address matters outlined in paragraph 26 (a)(i)–(v) of annex VI to that decision;
14. Requests the Secretariat, pursuant to the updated Strategic Plan for the GCF 2020–2023 adopted in decision B.27/06, to present an analysis of the accredited entity portfolio to identify strengths and gaps in coverage and capabilities no later than the thirty-second meeting of the Board;
15. Decides to develop a strategy on accreditation, as recommended by the Independent Evaluation Unit, that clarifies the role of accreditation in the GCF, building on the strategic approach to accreditation as outlined in the updated Strategic Plan for the GCF 2020–2023. In particular, the accreditation strategy should focus on:
    
    1. Improving the efficiency of the accreditation process, including the consideration of portfolio targets, performance indicators and milestones;
    2. Seeking to increase the share of direct access entities above the initial resource mobilization level, including by prioritizing accreditation of and capacity support for direct access entities of countries which do not yet have a national or regional direct access accredited entity, including by promoting the participation and accreditation of micro, small and medium-sized enterprises in GCF activities in all developing countries, including least developed countries, small island developing States and African States;
    3. Incentivizing capacity-building and alignment with the GCF mandate within the accreditation function and further strengthening the Accreditation Panel;
    4. Improving monitoring and reporting by accredited entities in terms of performance, results and alignment with the GCF mandate;
    5. Informing re-accreditation decisions with (i) an examination of accredited entities’ performance in contributing to GCF programming results, considering international access entities’ contribution to building capacities of direct access entities; and (ii) an assessment of the extent to which accredited entities’ overall portfolio of activities beyond those funded by GCF has evolved towards low-emission and climate-resilient development pathways;
    6. Ensuring that the re-accreditation assessments of accredited entities’ portfolios are based on clear, transparent and predictable criteria that are communicated to applicants;
    7. Providing guidance to international access entities to support the building of capacities of direct access entities;
    8. Improving the accreditation component of the GCF’s request for proposal modality; and
    9. Enhancing the provision of pre-accreditation and post-accreditation support, in particular for direct access entities, to strengthen capacity-building for candidate entities; and
16. Requests the Secretariat, under the guidance of the Co-Chairs, to prepare the accreditation strategy in an open, inclusive and transparent manner in accordance with the relevant provisions of decision B.23/03, including engaging in consultations with the Board, accredited entities, observers and national designated authorities, for consideration by the Board no later than its thirty-third meeting.

¹ The requests for proposal may include those for the pilot phase for enhancing direct access (decision B.10/04), the pilot programme to support micro, small, and medium-sized enterprises (decision B.10/11), and the pilot programme to mobilize funds at scale in order to address adaptation and mitigation (decision B.16/03).

The Board, having considered document GCF/B.31/02/Rev.01 titled “Consideration of funding proposals”:

1. Takes note of the following funding proposals:
   1. Funding proposal 182 titled “Climate-smart initiatives for climate change adaptation and sustainability in prioritized agricultural production systems in Colombia (CSICAP)” by the Corporación Andina de Fomento, as contained in document GCF/B.31/02/Add.01 and 06; and
   2. Funding proposal 183 titled “Inclusive Green Financing Initiative (IGREENFIN I): Greening Agricultural Banks & the Financial Sector to Foster Climate Resilient, Low Emission Smallholder Agriculture in the Great Green Wall (GGW) countries -Phase I" by the International Fund for Agricultural Development, as contained in document GCF/B.31/02/Add.02 and 06;
2. Approves funding proposal 182 for the amount of USD 73,283,080, submitted by the Corporación Andina de Fomento, subject to the conditions set out in annex V and in the respective term sheet set out in document GCF/B.31/02/Add.06;
3. Also approves funding proposal 183for the amount of EUR 104,415,189, submitted by the International Fund for Agricultural Development, subject to the conditions set out in annex V and in the respective term sheet set out in document GCF/B.31/02/Add.06;
4. 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 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
5. 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 policy on fees and the general principles and indicative list of eligible costs covered under GCF fees and project management costs adopted by the Board pursuant to decision B.19/09.

The Board, having considered limited distribution document GCF/B.31/03 titled “Status of approved funding proposals: Extension of deadline in respect of SAP016 (Fiji Agrophotovoltaic Project in Ovalau)”:

Decides to extend the deadline until 28 September 2022 for the execution of the funded activity agreement for the following approved funding proposal:

1. SAP016, titled “Fiji Agrophotovoltaic Project in Ovalau”.

The Board, having considered limited distribution document GCF/B.31/04 titled “Status of approved funding proposals: Extension of deadline in respect of FP150 (Promoting private sector investment through large scale adoption of energy saving technologies and equipment for Textile and Readymade Garment (RMG) sectors of Bangladesh)”:

Decides to extend the deadline until 28 September 2022 for the execution of the funded activity agreement, in a form and substance satisfactory to the Secretariat, for the following approved funding proposal:

1. FP150, titled “Promoting private sector investment through large scale adoption of energy saving technologies and equipment for Textile and Readymade Garment (RMG) sectors of Bangladesh”.

The Board, having considered limited distribution document GCF/B.31/05/Rev.01 titled “Status of approved funding proposals: Extension of deadline in respect of FP153 (Mongolian Green Finance Corporation)”:

Decides to extend the deadline until 120 days following the effectiveness of the accredited entity’s amended accreditation master agreement for the submission by the accredited entity of a certificate or legal opinion, in form and substance satisfactory to the Secretariat, confirming that the accredited entity has obtained all final internal approvals needed by it and has the capacity and authority to implement the proposed programme for the following approved funding proposal:

1. FP153, titled “Mongolian Green Finance Corporation”.

The Board, having considered limited distribution document GCF/B.31/06 titled “Status of approved funding proposals: Extension of deadline in respect of FP154 (Mongolia: Aimags and Soums Green Regional Development Investment Program (ASDIP))”:

Decides to extend the deadline until 28 September 2022 for the submission by the accredited entity of a certificate or a legal opinion, in a form and substance satisfactory to the Secretariat,confirming that the accredited entity has obtained all final internal approvals needed by it and has the capacity and authority to implement the proposed project/programme, for the following approved funding proposal:

1. FP154, titled “Mongolia: Aimagsand Soums Green Regional Development Investment Program (ASDIP)”.

The Board, having considered document GCF/B.31/07 titled “Consideration of accreditation proposals”:

1. Takes note with appreciation of the assessments conducted by the Secretariat and the AccreditationPanel contained within the relevant annexes for the following applicant for accreditation:
   1. Applicant115 (APL115) is the Jamaica Social Investment Fund (JSIF), based in Jamaica, as contained in annex VI to this document; and
   pursuant to paragraph 45 of the Governing Instrument for the GCF, subject to, and in accordance with, the assessments by the Accreditation Panel contained in the relevant annexes for each of the applicants, and subject to the completion of Stage III of the accreditation by having an effective accreditation master agreement, in accordance with decision B.24/13;
2. Approves the accreditation of applicant APL115, the Jamaica Social Investment Fund (JSIF), based in Jamaica, as contained in annex VI to this document;
3. Takes note with appreciation of the assessments conducted by the Secretariat and the Accreditation Panel contained within the relevant annexes for the following applicants for re-accreditation:
   1. Applicant R001 (RAPL001) is the Centre de Suivi Ecologique (CSE), based in Senegal, as contained in annex VII to this document;
   2. Applicant R002 (RAPL002) is the Peruvian Trust Fund for National Parks and Protected Areas (PROFONANPE), based in Peru, as contained in annex VIII to this document; and
   3. Applicant R004 (RAPL004) is the Acumen Fund, Inc. (Acumen), based in the United States of America, as contained in annex IX to this document; and pursuant to paragraph 45 of the Governing Instrument for the GCF, subject to, and in accordance with, the assessments by the Accreditation Panel contained in the relevant annexes for each of the applicants, and subject to the completion of Stage III of the accreditation by having an effective amendment to the original accreditation master agreement, in accordance with decision B.24/13;
4. Approves the re-accreditation of applicant RAPL001, Centre de Suivi Ecologique (CSE), based in Senegal, as contained in annex VII to this document;
5. Also approves the re-accreditation of applicant RAPL002, the Peruvian Trust Fund for National Parks and Protected Areas (PROFONANPE), based in Peru, as contained in the annex VIII to this document;
6. Further approves the re-accreditation and upgrade of applicant RAPL004, the Acumen Fund, Inc. (Acumen), based in the United States of America, as contained in annex IX to this document; and
7. Takes note of the efforts of the Development Bank of South Africa to advance the purpose of the GCF including through the Development Bank of South Africa Board’s Just Transition Investment Framework and related statements in the context of the United Nations Framework Convention on Climate Change and the Paris Agreement; and
8. Approves the re-accreditation of applicant R024 (RAPL024), the Development Bank of Southern Africa (DBSA), based in South Africa, as contained in annex IV to document GCF/B.30/03.

The Board, have considered the Independent Evaluation Units adaptation portfolio and approach of the Green Climate Fund undertaken, as well as relevant elements of the Independent Evaluations:

1. Takes note of the Independent evaluation of the adaptation portfolio and approach of the Green Climate Fund undertaken by the Independent Evaluation Unit, completed in accordance withthe Board approved work plan of the IEU;
2. Also notes the Secretariat’s management response to the Evaluation as presented in document GCF/B.30/13/Add.01;
3. Requests the IEU to present a management action report to the Board no later than one-year following the adoption of this decision;
4. Agrees to urgently clarify the GCF’s role in and vision for climate adaptation, inter alia, by requesting the Secretariat to update the draft paper on ‘Guidance on the approach and scope for providing support to adaptation activities’ for consideration by the Board at B.32, by incorporating the findings and recommendations of the evaluation and the views expressed by Board and alternate members at B.31.

The Board, having considered document GCF/B.31/10 titled “Dates and venues of upcoming meetings of the Board”:

1. Agrees and confirms that the thirty-second meeting of the Board will take place from Monday, 16 May 2022 to Thursday, 19 May 2022 in Antigua and Barbuda, noting that the first two days will be sessions for policy consultations;
2. Also agrees that the thirty-third meeting of the Board will take place from Monday, 27 June 2022 to Thursday, 30 June 2022 as an in-person meeting in the Republic of Korea;
3. Takes note that the Board agreed, in decision B.30/12, that the thirty-fourth meeting of the Board was set for Monday, 24 October to Thursday, 27 October 2022, subject to confirmation by the Board in accordance with paragraph 17 of the Rules of Procedure; and
4. Requests the Co-Chairs to continue to monitor the impact of the coronavirus disease 19 (COVID-19) pandemic on the operations of GCF, and to report to the Board appropriately.