B.05/04: Business model framework: Financial inputs

The Board, having reviewed document GCF/B.05/04 Business Model Framework: Financial Inputs:

1. Notes that the Fund will receive financial inputs from developed country Parties to the Convention;
2. Further notes that the Fund may also receive financial inputs from a variety of other sources, public and private, including alternative sources;
3. Decides that the Fund will maintain the flexibility to receive financial inputs on an on‐going basis;
4. Decides that the Fund will receive grants from public and private sources, and paid‐in capital contributions and concessional loans from public sources, and may receive additional types of inputs at a later stage to be decided by the Board;
5. Requests the Secretariat to include the specific risks associated with accepting concessional loans to the Fund, including the risk of cross‐subsidization, when developing the Fund’s risk management framework and investment strategy;
6. Requests the Secretariat to prepare a document for understanding and defining alternative sources of financial inputs to the Fund for consideration by the Board at its second meeting in 2014;
7. Requests the Secretariat to initiate discussions with the Interim Trustee to identify appropriate arrangements for receiving financial inputs;
8. Notes convergence on the importance of the relationship between the terms and conditions of financial instruments and the types of financial inputs received by the Fund.