Eleventh meeting of the GCF Board (B.11)

The Board, having considered document GCF/B.11/13 titled “Comparison of salary levels for comparable positions at other specialized global funds for the Heads of Accountability Units”:

1. Takes note of the information on the comparison of salary levels for comparable positions at other specialized global funds; and
2. Decides that the appointment level for the Heads of Accountability Units will range from IS-6 to IS-8 taking into account the candidate’s work experience, current position and educational background.

The Board, having considered document GCF/B.11/21 titled “The financial statements of the Green Climate Fund for the year ended 31 December 2014 and Annual Report 2014/15”:

1. Approves the financial statements of the Green Climate Fund (GCF) for the year ended 31 December 2014 as contained in Annex I to this decision; and
2. Takes note of the GCF Annual Report 2014/15 as contained in Annex II to this decision.

The Board, having considered document GCF/B.11/Inf.07/Rev.01 titled “Strategic plan for the Green Climate Fund (progress report)”:

1. Takes note of the submissions made by Board members and constituencies (document GCF/B.11/Inf.07/Rev.01) as requested by decision B.10/14;
2. Notes convergence on the importance and need to set out a strategic plan for the Green Climate Fund (GCF) in order to further operationalize the Governing Instrument for the GCF and guide the GCF as a continuously learning institution in further developing its operational modalities, with a view to achieving its overarching objective to promote the paradigm shift towards low-emission and climate-resilient development pathways in the context of sustainable development;
3. Also notes convergence that the strategic plan should:
   
   1. Be guided by the Governing Instrument and the objectives and guiding principles laid out therein, including the arrangements with the Conference of the Parties to the United Nations Framework Convention on Climate Change, as per decision GCF/B.05/16, as well as build on the progress already made through previous Board decisions;
   2. Be a living document to be reviewed and updated on a regular basis, as determined by the Board;
   3. Clearly articulate to the world the vision and operational priorities of the GCF, thereby making it more accessible to countries and strengthening its partnerships with national designated authorities/focal points and accredited entities;
   4. Identify opportunities, policy gaps and challenges in operationalizing these objectives and guiding principles;
   5. Present an action plan for the implementation of strategic measures to address these opportunities, gaps and challenges in order to strengthen the GCF as the distinctly transformational, high-impact, country-owned, dedicated climate fund, operating at scale; and
   6. With regard to the strategic measures referred to in paragraph (c) (v) above, place a particular focus on:
      
      1. Allowing the GCF to scale up its investments in developing countries with the objective of tapping its full potential to promote urgent and ambitious actions enhancing climate change adaptation and mitigation in the context of sustainable development, and to maximize engagement with the private sector;
      2. Setting out the approach of the GCF to programming and investing the Initial Resource Mobilization resources, while striving to maximize the impact of its funding for adaptation and mitigation, and seek a balance between the two;
      3. Ensuring that the GCF is responsive to developing country needs and priorities, while ensuring country ownership, enhancing direct access, ensuring fast disbursement, implementing a gender-sensitive approach, supporting multi-stakeholder engagement, ensuring the effective use of funds and enhancing transparency;
4. Decides to establish an ad hoc group of members of the Board/alternate members of the Board consisting of three developing country members (Mr. Omar El-Arini, two additional names to be added) and three developed country members (Mr. Henrik Harboe, Mr. Leonardo Martinez-Diaz, and Mr. Karsten Sach) to oversee and guide the Secretariat’s preparation of the strategic plan;
5. Requests the Secretariat to facilitate the work of the ad hoc group;
6. Also requests the ad hoc group of members to base their deliberations in particular on the submissions made by members and the comments made at the eleventh meeting of the Board and to ensure an inclusive engagement process with all Board/alternate members;
7. Invites members of the Board/alternate members of the Board, active observers and observer organizations to make submissions to the Secretariat on the elements contained in paragraph (c) above by 1 December 2015;
8. Requests the Secretariat to publish all submissions on the GCF website;
9. Decides to hold an informal meeting of the Board open to active observers well before the twelfth meeting of the Board that would address the strategic plan as one of the key issues for its consideration, and requests the ad hoc group to present an initial draft and guiding questions requiring further consideration by the Board as input to the informal discussions of the Board. In this regard, the Board requests the Secretariat to make the necessary arrangements; and
10. Requests the Secretariat, under the direction and guidance of the ad hoc group of members of the Board/alternate members of the Board, to present a strategic plan for the GCF for consideration and possible approval by the Board at its twelfth meeting

The Board, having reviewed document GCF/B.11/06 titled “Readiness programme implementation (progress report)”:

1. Takes note of the information presented in document GCF/B.11/06;
2. Reaffirms that readiness and preparatory support is a priority for the Green Climate Fund (GCF) in order to enhance country ownership, ensure a strong pipeline and provide sustained support for building institutional capacity to enable direct access, and emphasizes that the execution of the readiness programme should take into account different national circumstances;
3. Recalls that, in accordance with decision B.08/11, paragraph (j), progress in meeting the objectives of the readiness and preparatory support programme will be subject to an independent evaluation;
4. Underscores the importance of significantly increasing the approval and timely disbursement of resources to support developing countries in undertaking country programming processes, and strengthening national institutions from the public and private sectors to access the GCF and to build country programmes and pipelines;
5. Requests the Secretariat, in consultation with national designated authorities and focal points and readiness delivery partners, to present to the Board at its twelfth meeting a proposal to improve and simplify the process to access funds for country programming and readiness and preparatory support;
6. Decides that an additional USD 14 million is to be made available for the execution of the readiness and preparatory support programme, including the activities referred to in paragraphs (b) and (d) above;
7. Reaffirms that the GCF, through its readiness and preparatory support programme, in coordination with other programmes and channels, may support a voluntary country-driven national adaptation planning process in accordance with paragraph 40 of the Governing Instrument for the GCF and decision B.08/11;
8. Decides to review the interim readiness funding allocation system at its twelfth meeting, in accordance with decision B.08/11, paragraph (h);
9. Requests the Secretariat to present, for consideration by the Board at its twelfth meeting, a revised allocation system for readiness and preparatory support taking into account the needs and priorities of developing countries and in line with decision B.06/06; and
10. Also requests that the revised allocation system for readiness and preparatory support includes an information note on how the GCF can support developing countries in their voluntary national adaptation planning processes, including activities for which the funds can be used.

The Board, having reviewed document GCF/B.11/Inf.05 titled “Status of the Initial Resource Mobilization process”:

1. Takes note of the information presented in document GCF/B.11/Inf.05;
2. Urges contributing countries to confirm their pledges to the Green Climate Fund (GCF) in the form of fully executed contribution agreements/arrangements as soon as possible;
3. Requests the Secretariat to prepare, for consideration by the Board at its fifteenth meeting, a document for understanding and defining alternative sources of financial inputs to the GCF that would be additional to current contributions, in accordance with decision B.05/04, paragraph (f); and
4. Also requests the Secretariat to develop, for consideration by the Board at its fourteenth meeting, policies and procedures for contributions from philanthropic foundations and other non-public and alternative sources to the Initial Resource Mobilization process, in accordance with decision B.08/13, annex XIX, paragraphs 5, 6 and 7, including a due-diligence process for these contributions.

The Board:

1. Decides on the need to undertake and conclude a review of the performance of the Executive Director by the first meeting of the Board in 2016;
2. Establishes an Executive Director Performance Review Committee as an ad hoc committee of the Board in accordance with paragraphs 2(g) and 30 of the Rules of Procedure of the Board;
3. Adopts the terms of reference of the Executive Director Performance Review Committee, as set out in Annex I to this decision;
4. Appoints as members of the Executive Director Performance Review Committee:
   
   1. Mr. David Kaluba;
   2. Ms. Caroline Leclerc;
   3. Ms. Andrea Ledward; and
   4. Mr. Yingming Yang;
5. Reaffirms the terms of reference, including the job description and qualifications, for the Executive Director adopted by decision B.01-13/07 (Annex XVI to the decision), which will guide the performance review of the Executive Director;
6. Adopts the methodology for the performance review set out in Annex II to this decision;
7. Decides to engage the services of an independent external evaluation firm to support the Executive Director Performance Review Committee;
8. Endorses the terms of reference of the independent external evaluation firm, as set out in Annex III to this document;
9. Decides that the Executive Director Performance Review Committee will engage the independent external evaluation firm following a procurement process in accordance with the GCF procurement guidelines and supported by the Secretariat; and
10. Approves a budget for the performance assessment process of the Executive Director, including the costs of the independent external evaluation firm of up to USD 20,000.

The Board, having reviewed document GCF/B.11/20 titled “Update to administrative guidelines on corporate procurement”:

1. Decides to extend the period of application of the Corporate Procurement Guidelines on the Use of Consultants and the Corporate Procurement Guidelines for Goods and Services, as approved by the Board in decision B.08/21, to the end of its twelfth meeting;
2. Further decides that the Board will review the guidelines at its twelfth meeting; and
3. Authorizes the Executive Director to implement the guidelines.

The Board, having reviewed document GCF/B.11/12 titled “Administrative Budget of the Green Climate Fund for 2016–2018”:

1. Notes the proposed administrative budget of the Green Climate Fund (GCF), for the period from 1 January 2016 to 31 December 2016, as set out in Annex to document GCF/B.11/12;
2. Approves an administrative budget for the GCF of USD 29,157,227 as per the annex to this decision;
3. Requests the Secretariat to present a revised staff structure of the Secretariat and budget proposal for the GCF that responds to the strategic plan for the GCF for consideration by the Board at its thirteenth meeting; and
4. Decides to establish a Budget Committee as a standing committee of the Board, in accordance with paragraph 30 of the Rules of Procedure of the Board, and requests the Secretariat to present terms of reference of the Committee for consideration by the Board at its twelfth meeting.

The Board:

1. Requests the current Co-Chairs, assisted by the Secretariat, to present the report of the Green Climate Fund to the twenty-first session of the Conference of the Parties to the United Nations Framework Convention on Climate Change; and
2. Elects Mr. Zaheer Fakir and Mr. Ewen McDonald as the Co-Chairs for a period of one year.

The Board, having reviewed document GCF/B.11/05 titled “Initial monitoring and accountability framework for accredited entities”:

1. Recalling paragraph 23(j) of the Governing Instrument for the Green Climate Fund, adopts the monitoring and accountability framework for accredited entities as contained in annex I to this decision;
2. Requests the Secretariat to develop the appropriate tools and internal procedures to operationalize the initial monitoring and accountability framework, including standardized templates that take into account the nature of the entities and their capacities;
3. Also requests the Secretariat to annually report to the Board on the operationalization of the initial monitoring and accountability framework, including the Secretariat’s staffing requirements and budgetary implications;
4. Acknowledges that this framework is a living document and may be amended, as appropriate, based on lessons learned;
5. Adopts the interim policy on fees for accredited entities as detailed in annex II to this decision;
6. Requests the Accreditation Committee, with the support of the Secretariat, to develop a policy on fees for accredited entities for consideration by the Board by its fourteenth meeting. This policy will take into account the lessons learned from the interim policy on fees and relevant decisions of the Board and will explore options for a performance-based approach and appropriate incentives; and
7. Requests the Secretariat to conduct an analysis of the fee structure of comparable funds to establish the appropriateness and applicability of the fee structure to accredited direct access entities.

The Board, having considered document GCF/B.11/04 titled “Consideration of funding proposals” and its related addenda, as well as matters related to the proposal approval process:

1. Recognizes that the Green Climate Fund (GCF) has agreed an initial framework of policies and procedures related to the proposal submission and approval processes;
2. Notes that the GCF is a continuously learning institution and will draw on the lessons from this first round of proposal consideration in order to improve the process in future iterations;
3. Acknowledges existing policy gaps in the GCF approval process, including project eligibility criteria, calculation of incremental costs, and risk investment criteria;
4. Notes common areas in which projects could provide a better demonstration of how they meet existing GCF policies taking into account the gaps in paragraph (c) above at the eleventh meeting of the Board, including but not limited to:
   
   1. The linkage between climate actions and how they enable economic development to proceed in a sustainable manner;
   2. How the project/programme incorporates potential innovation;
   3. How benefits will be sustained once GCF financing ends;
   4. Monitoring and evaluation, including how lessons can be disseminated to inform and possibly promote replication in other regions/countries;
   5. How benefits for women and girls will be delivered;
   6. How fiduciary weaknesses in project countries will be addressed;
   7. Country ownership and effective stakeholder engagement; and
   8. Additionality of the funding;
5. Also notes convergence on the need within the approval process to enhance transparency, clarity, accessibility, balance, knowledge management and country ownership, including by actively seeking the participation of national designated authorities, focal points and relevant stakeholders in the early stages of the project cycle and beyond the provision of the no-objection letter;
6. Further notes convergence on the need to ensure that matters related to enhancing transparency and scaling up of the GCF pipeline are captured in the preparation of the strategic plan for the GCF and related decisions on country programming, and readiness and preparatory support, with the objective of ensuring sufficient country ownership and enhancing the participation of direct access entities;
7. Requests the Secretariat to provide an update of the pipeline portfolio and to submit it for information to the Board as part of the documentation submitted for every Board meeting;
8. Further requests the Secretariat to include the assessment of the independent Technical Advisory Panel (TAP) of each funding proposal as part of the documentation published on the GCF website for funding proposals;
9. Agrees to include in the consideration of the 2016 work plan matters related to outstanding decisions regarding the proposal approval process and the project and programme activity cycle. This would include consideration of matters related to the implementation of decision B.07/03 and Annex VII thereto and paragraph 53 of the Governing Instrument for the GCF with regard to the simplified process for the approval of proposals for certain activities, in particular for small-scale activities;
10. Decides to review the proposal approval process approved by the Board in decision B.07/03 and Annex VII to document GCF/B.07/11 based on the experience gathered from the review of the first batch of proposals submitted for consideration of the Board, with a view to:
    
    1. Strengthening and scaling up the GCF pipeline, including the country programme pipeline;
    2. Streamlining and improving the transparency of the proposal approval process;
    3. Defining further decision-making options, including deferral of proposal approvals;
    4. Reviewing how concept notes should work within the project cycle, facilitating the feedback of the TAP on concept notes and facilitating contact of the TAP with accredited entities as useful and necessary;
    5. Supporting the Board to make decisions regarding funding proposals;
    6. Strengthening project/programme eligibility criteria, including categories of incremental cost eligible for funding; and
    7. Developing interim procedures for redress pending the recruitment of the head of the independent redress mechanism; The review will include, but is not limited to, the policy gaps listed in paragraph (c) above and other common areas as contained in paragraph (d) above;
11. Requests the Secretariat to undertake this review overseen by the ad hoc group of Board members as set out in decision B.11/03, to discuss at the informal meeting of the Board and subsequently deliver a progress report at the twelfth meeting of the Board and a final report at the thirteenth meeting;
12. Also decides to establish a project preparation facility to provide funding of up to 10 per cent of requested GCF funding with a maximum of USD 1.5 million for any single proposal. The process would involve concept notes providing due justification of need from accredited entities. After an appropriate review and an initial assessment against the investment criteria and justification of need, the Secretariat will send its funding request for project preparation to the Board for approval. The project preparation facility would be targeted to small-scale activities and direct access entities. The Secretariat will review the project preparation facility for consideration by the Board at its fourteenth meeting;
13. Aspires to approve funding proposals in 2016 to a value of USD 2.5 billion;
14. Requests the Accreditation Committee in the accreditation strategy to include options for streamlining modalities for fast-tracking accreditation of national implementing entities using third-party assessments as appropriate;
15. Also requests the Secretariat, in consultation with the TAP, national designated authorities, focal points and accredited entities to simplify the funding proposal template and concept note template in an expeditious manner;
16. Decides that concept notes sent to the GCF should include a clear paragraph indicating how the project fits in with the country’s national priorities and its full ownership of the concept;
17. Takes note of the following funding proposals:
    
    1. Funding proposal 001 titled “Building the Resilience of Wetlands in the Province of Datem del Marañón in Peru” (submitted by Profonanpe), as contained in document GCF/B.11/04/Add.01;
    2. Funding proposal 002 titled “Scaling Up the Use of Modernized Climate Information and Early Warning Systems in Malawi” (submitted by the United Nations Development Programme), as contained in document GCF/B.11/04/Add.02;
    3. Funding proposal 003 titled “Increasing the Resilience of Ecosystems and Communities through the Restoration of the Productive Bases of Salinized Lands in Senegal” (submitted by Centre de Suivi Ecologique), as contained in document GCF/B.11/04/Add.03;
    4. Funding proposal 004 titled “Climate Resilient Infrastructure Mainstreaming in Bangladesh” (submitted by KfW Development Bank), as contained in document GCF/B.11/04/Add.04;
    5. Funding proposal 005 titled “KawiSafi Ventures Fund” (submitted by Acumen), as contained in document GCF/B.11/04/Add.05/Rev.05; (vi) Funding proposal 006 titled “Energy Efficiency Green Bond in Latin America and the Caribbean” (submitted by the Inter-American Development Bank), as contained in document GCF/B.11/04/Add.06; (vii) Funding proposal 007 titled “Supporting Vulnerable Communities in Maldives to Manage Climate Change-Induced Water Shortages” (submitted by the United Nations Development Programme), as contained in document GCF/B.11/04/Add.07; and
    6. Funding proposal 008 titled “Urban Water Supply and Wastewater Management Project in Fiji” (submitted by the Asian Development Bank), as contained in document GCF/B.11/04/Add.08;
18. Approves, contingent on the fulfilment of the conditions and due consideration of the recommendations as contained in Annex I to this decision, the amount of USD 6.24 million in grants for the project titled “Building the Resilience of Wetlands in the Province of Datem del Marañón in Peru”, submitted by Profonanpe;
19. Approves, contingent on the due consideration of the recommendations as contained in Annex I to this decision, the amount of USD 12.295 million in grants for the project titled “Scaling Up the Use of Modernized Climate Information and Early Warning Systems in Malawi”, submitted by the United Nations Development Programme;
20. Approves, contingent on the fulfilment of the conditions and due consideration of the recommendations as contained in Annex I to this decision, the amount of USD 7.61 million in grants for the project titled “Increasing the Resilience of Ecosystems and Communities through the Restoration of the Productive Bases of Salinized Lands in Senegal”, submitted by Centre de Suivi Ecologique;
21. Approves, contingent on the fulfilment of the conditions and due consideration of the recommendations as contained in Annex I to this decision, the amount of USD 40 million in grants for the project titled “Climate Resilient Infrastructure Mainstreaming in Bangladesh”, submitted by KfW Development Bank;
22. Approves, contingent on the fulfilment of the conditions as contained in Annex I to this decision, the amount of USD 20 million in equity and, subject to Acumen’s upgrade of the accreditation type for the specialized fiduciary standard for grant award and/or funding allocation mechanisms, USD 5 million in grants for the programme titled “KawiSafi Ventures Fund”, submitted by Acumen;
23. Approves, contingent on the fulfilment of the conditions and due consideration of the recommendations as contained in Annex I to this decision, the amount of USD 20 million of guarantee for the pilot phase in Mexico and USD 2 million as a programme development grant for the programme titled “Energy Efficiency Green Bond in Latin America and the Caribbean” in Colombia, the Dominican Republic and Jamaica, submitted by the Inter-American Development Bank;
24. Approves, contingent on the fulfilment of the conditions and due consideration of the recommendations as contained in Annex I to this decision, the allocation of USD 195 million for the next phases of the programme titled “Energy Efficiency Green Bond in Latin America and the Caribbean”, to be committed, subject to funding approval by the Board, in several tranches over the course of the next five years;
25. Approves, contingent on the due consideration of the recommendation as contained in Annex I to this decision, the amount of USD 23.64 million in grants for the project titled “Supporting Vulnerable Communities in Maldives to Manage Climate Change-Induced Water Shortages”, submitted by the United Nations Development Programme;
26. Approves the amount of USD 31.04 million in grants for the project titled “Urban Water Supply and Wastewater Management Project in Fiji”, submitted by the Asian Development Bank;
27. Reaffirms that pursuant to decision B.07/03, Annex VII, the Executive Director or her designee is authorized to negotiate and enter into legal agreements on behalf of the GCF with accredited entities in respect of funding proposals approved by the Board, taking into account any condition set by the Board in this decision and in the decision accrediting the relevant accredited entity; and
28. 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.

The Board, having considered the information contained in document GCF/B.11/19 titled “Updated administrative guidelines on human resources”:

1. Takes note of the recommendations made by members of the Board and the clarifications provided by the Secretariat;
2. Also takes note of the revised salary structure of the Asian Development Bank and the study conducted on the cost of living;
3. Notes that the Executive Director may apply, in exceptional cases based on experience and merit considerations, more flexibility to appoint staff on a broader range, between the minimum and midpoint, on each salary level, based on a gradual negotiation which starts at the minimum;
4. Approves the continued application of the administrative guidelines on human resources until the Board shall have approved the revised guidelines;
5. Requests Board members to provide written suggestions for possible changes to the guidelines by 15 December 2015;
6. Also requests the Secretariat to consider the proposed changes and present the revised guidelines with the appropriate changes to the Board for its approval; and
7. Decides to review the administrative guidelines on human resources at its twelfth meeting.

The Board, having reviewed document GCF/B.11/16 titled “Date and venue of the next meeting of the Board of the Green Climate Fund”:

1. Decides that:
   1. The twelfth meeting of the Board will take place in the week of 7 March 2016, in Songdo, Republic of Korea. The Co-Chairs will, in collaboration with the Secretariat, develop the provisional agenda and communicate the exact dates of the meeting;
   2. The thirteenth meeting of the Board will take place from Tuesday, 28 June 2016, to Thursday, 30 June 2016, in Songdo, Republic of Korea, with these dates to be confirmed at the twelfth meeting of the Board;
   3. The fourteenth meeting of the Board will take place from Tuesday, 18 October 2016, to Thursday, 20 October 2016, with these dates to be confirmed at the thirteenth meeting of the Board; and
2. Welcomes the confirmation by Ecuador of its interest to host the fourteenth meeting of the Board.

The Board, having reviewed document GCF/B.11/23 titled “Appointment of members to committees of the Board”:

1. Appoints as members of the Investment Committee, for a term starting on 8 July 2015:
   
   1. Mr. Frank Fass-Metz;
   2. Ms. Kate Hughes; and
   3. Mr. Atsuyuki Oike;
2. Also appoints as members of the Risk Management Committee, for a term starting on 8 July 2015:
   
   1. Mr. Arnaud Buisse;
   2. Mr. Masaaki Iizuka; and 
   3. Mr. Jacob Waslander;
3. Further appoints Ms. Ludovica Soderini as member of the Ethics and Audit Committee, for a term starting on the date of adoption of this decision;
4. Appoints Mr. Morten Elkjæ r as member of the Private Sector Advisory Group, for the second term; and
5. Also appoints as members of the Accreditation Committee, for the second term:
   
   1. Mr. Henrik Harboe;
   2. Mr. Leonardo Martinez-Diaz; and
   3. Mr. Anders Wallberg.