Thirtieth meeting of the GCF Board (B.30)

The Board, having considered document GCF/BM-2021/15 titled “Tenth Report of the Green Climate Fund to the Conference of the Parties to the United Nations Framework Convention on Climate Change”:

Requests the Co-Chairs, assisted by the Secretariat, to finalize the “Tenth Report of the Green Climate Fund to the Conference of the Parties to the United Nations Framework Convention on Climate Change”, presented in annex VIII, taking into consideration the comments made and decisions taken at the twenty-ninth and thirtieth meetings of the Board, and submit the revised report to the United Nations Framework Convention on Climate Change secretariat, in accordance with decision 7/CP.20, paragraph 23.

The Board, having considered document GCF/B.30/07 titled “Independent Assessment of the GCF Simplified Approval Process (SAP) Pilot Scheme” and its Add.01 titled “Secretariat management response to the Independent Assessment of the Green Climate Fund’s Simplified Approval Process (SAP) Pilot”:

1. Takes note of the assessment of the GCF Simplified Approval Process Pilot Scheme by the Independent Evaluation Unit, completed in accordance with the Board-approved workplan of the Independent Evaluation Unit;
2. Also takes note of the Secretariat’s management response to the assessment as presented in document GCF/B.30/07/Add.01;
3. Requests the Independent Evaluation Unit to submit a management action report to the Board no later than one year following the adoption of this decision.

The Board, having considered document GCF/B.30/02/Rev.01 titled “Consideration of funding proposals”:

1. Takes note of the following funding proposals:
   1. Funding proposal 169 titled “Climate change adaptation solutions for Local Authorities in the Federated States of Micronesia”, by the Pacific Community, as contained in document GCF/B.30/02/Add.01 and Add.19;
   2. Funding proposal 170 titled “Enhancing climate resilience in Thailand through effective water management and sustainable agriculture”, by the United Nations Development Programme, as contained in document GCF/B.30/02/Add.02 and Add.19;
   3. Funding proposal 171 titled “Enhancing Early Warning Systems to build greater resilience to hydro-meteorological hazards in Timor-Leste”, by the United Nations Environment Programme, as contained in document GCF/B.30/02/Add.03 and Add.19;
   4. Funding proposal 172 titled “Mitigating GHG emission through modern, efficient and climate friendly clean cooking solutions (CCS)”, by the Alternative Energy Promotion Centre, Ministry of Energy, Water Resources and Irrigation, Government of Nepal, as contained in document GCF/B.30/02/Add.04 and Add.19;
   5. Funding proposal 173 titled “The Amazon Bioeconomy Fund: Unlocking private capital by valuing bioeconomy products and services with climate mitigation and adaptation results in the Amazon”, by the Inter-American Development Bank, as contained in document GCF/B.30/02/Add.05 and Add.19;
   6. Funding proposal 174 titled “Ecosystem-based Adaptation to increase climate resilience in the Central American Dry Corridor and the Arid Zones of the Dominican Republic”, by the Central American Bank for Economic Integration, as contained in document GCF/B.30/02/Add.20 and Add.19;
   7. Funding proposal 175 titled “Enhancing community resilience and water security in the Upper Athi River Catchment Area, Kenya”, by the National Environment Management Authority, as contained in document GCF/B.30/02/Add.07 and Add.19;
   8. Funding proposal 176 titled “Hydro-agricultural development with smart agriculture practices resilient to climate change in Niger”, by the Banque Ouest Africaine de Développement, as contained in document GCF/B.30/02/Add.08 and Add.19;
   9. Funding proposal 177 titled “Cooling Facility”, by the World Bank, as contained in document GCF/B.30/02/Add.09 and Add.19;
   10. Funding proposal 178 titled “Desert to Power G5 Sahel Facility”, by the African Development Bank, as contained in document GCF/B.30/02/Add.14;
   11. Funding proposal 179 titled “Tanzania Agriculture Climate Adaptation Technology Deployment Programme (TACATDP)”, by the CRDB Bank PLC, as contained in document GCF/B.30/02/Add.15;
   12. Funding proposal 180 titled “Global Fund for Coral Reefs Investment Window”, by Pegasus Capital Advisors, as contained in document GCF/B.30/02/Add.16/Rev.01; and
   13. Funding proposal 181 titled “CRAFT - Catalytic Capital for First Private Investment Fund for Adaptation Technologies in Developing Countries”, by Pegasus Capital Advisors, as contained in document GCF/B.30/02/Add.17;
2. Takes note of the exceptional circumstances with regard to the matter of full compliance with the provision of no-objection letters as they relate to programmes submitted to the GCF, and further confirms that funding proposal 180 does not set a precedent;
3. Confirms that only countries that have provided a letter of no-objection that is fully in compliance with the initial no-objection procedure approved by the Board by decision B.08/10 can be considered by the Board;
4. Approves funding proposal 169 for the amount of USD 16,591,556, submitted by the Pacific Community, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.30/02/Add.19;
5. Also approves funding proposal 170 for the amount of USD 17,533,500, submitted by the United Nations Development Programme, subject to the conditions set out in document GCF/B.30/02/Add.18 and in the respective term sheet set out in document GCF/B.30/02/Add.19;
6. Further approves funding proposal 171 for the amount of USD 20,980,722, submitted by the United Nations Environment Programme, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.30/02/Add.19;
7. Approves funding proposal 172 for the amount of USD 21,128,224, submitted by the Alternative Energy Promotion Centre, Ministry of Energy, Water Resources and Irrigation, Government of Nepal, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.30/02/Add.19;
8. Also approves funding proposal 173 for the amount of USD 279,000,000, submitted by the Inter-American Development Bank, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.30/02/Add.19;
9. Further approves funding proposal 174 for the amount of USD 174,300,000, submitted by the Central American Bank for Economic Integration, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.30/02/Add.19;
10. Approves funding proposal 175 for the amount of USD 9,526,603, submitted by the National Environment Management Authority, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.30/02/Add.19;
11. Also approves funding proposal 176 for the amount of EUR 30,138,772, submitted by the Banque Ouest Africaine de Développement, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.30/02/Add.19;
12. Further approves funding proposal 177 for the amount of USD 157,000,000, submitted by the World Bank, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.30/02/Add.19;
    1. Requests the Secretariat to circulate to the Board the respective assessments included in the relevant cooling sector-related baseline studies pursuant to the condition set out in annex I for funding proposal 177, following their satisfactory submission by the World Bank to the Secretariat;
13. Approves funding proposal 178 for the amount of USD 150,000,000, submitted by the African Development Bank, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.30/02/Add.14;
14. Also approves funding proposal 179 for the amount of USD 100,000,000, submitted by the CRDB Bank PLC, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.30/02/Add.15;
15. Further approves funding proposal 180 for the amount of USD 125,000,000, submitted by Pegasus Capital Advisors, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.30/02/Add.16/Rev.01;
16. Approves funding proposal 181 for the amount of USD 100,000,000, submitted by Pegasus Capital Advisors, subject to the conditions set out in annex I and in the respective term sheet set out in document GCF/B.30/02/Add.17;
17. 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 the 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
18. 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.30/05 titled “Status of approved funding proposals: extension of deadline in respect of SAP018 (Enhancing Climate Information Systems for Resilient Development in Liberia (Liberia CIS))”:
Decides to extend the deadline until 6 February 2022 for 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. SAP018, titled “Enhancing Climate Information Systems for Resilient Development in Liberia (Liberia CIS)”.

The Board, having considered document GCF/B.30/03 titled “Consideration of accreditation proposals”:

1. 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 R008 (RAPL008) is the Environmental Investment Fund (EIF), based in Namibia, as contained in annex II to this document;
   2. Applicant R024 (RAPL024) is the Development Bank of South Africa (DBSA), based in South Africa, as contained in annex IV to document GCF/B.30/03;
   3. Applicant R031 (RAPL031) is the International Union for Conservation of Nature (IUCN), based in Switzerland, as contained in annex III to this document; and
   4. Applicant R007 (RAPL007) is the United Nations Development Programme (UNDP), based in the United States of America, as contained in annex IV 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 accreditation master agreement, in accordance with decision B.24/13;
2. Approves the re-accreditation of applicant RAPL008, the Environmental Investment Fund (EIF), based in Namibia, as contained in annex II to this document;
3. Approves the re-accreditation of applicant RAPL031, the International Union for Conservation of Nature (IUCN), based in Switzerland, as contained in annex III to this document;
4. Also approves the re-accreditation of applicant RAPL007, United Nations Development Programme (UNDP), based in the United States of America, as contained in annex IV to this document;
5. Takes note with appreciation of the assessment conducted by the Secretariat and the Accreditation Panel contained within the same annex IV for the following applicant seeking to upgrade its accreditation type: (i) United Nations Development Programme (UNDP) based in the United States of America, as contained in annex IV;
6. Agrees to upgrade the accreditation type of the United Nations Development Programme (UNDP) as contained in decision B.09/07, paragraph (b), subject to, and in accordance with the assessment by the Accreditation Panel contained in annex IV;
7. Takes note that, pursuant to decision B.08/03, paragraph (k), the Secretariat, in consultation with the Accreditation Panel, is proposing that the eligibility to apply under the fast-track accreditation process be extended to those entities listed in annex V; and
8. Decides that those entities referred to in annex V are also eligible to apply under the fast-track accreditation process for the standards of GCF in accordance with decision B.08/03, paragraph (f), for entities under the Adaptation Fund.

The Board, having considered document GCF/B.30/08 titled “Review of Secretariat capabilities to deliver the updated Strategic Plan for 2020 – 2023”:

1. Recalls that successful delivery of the GCF strategic vision, objectives and priorities for 2020–2023 is critically dependent on GCF taking steps to evolve its operating modalities and institutional capacity to successfully execute its programming strategy;
2. Notes the contents of document GCF/B.30/08;
3. Urges the Secretariat to enhance efforts to improve speed, predictability, access, impact, quality, efficiency, effectiveness and transparency, including through implementation of the further business process improvements identified in document GCF/B.30/08;
4. Agrees to and adopts the proposed Secretariat headcount of full-time equivalent staff of:
   1. 300 positions for 2022; and
   2. 350 positions for 2023;
5. Takes note that the build-up of staff headcount will be implemented on a phased basis over 2022, 2023 and 2024, in conjunction with the annual work programming and budgeting processes, and in conjunction with an overall reduction of the operating expense ratio of the Secretariat from 1.0 per cent to 0.7 per cent of assets under management;
6. Approves additional administrative budget for the GCF Secretariat as follows, recognizing these amounts supplement the budget for staff salaries and emoluments approved under annual budgeting processes:
   1. USD 1,602,438 for 2022 staff salaries and emoluments;
   2. USD 10,819,966 for 2023 staff salaries and emoluments; and
   3. USD 15,674,915 for 2024 staff salaries and emoluments;
7. Encourages the Secretariat to improve both geographical and gender balance consistent with paragraph 21 of the Governing Instrument for the GCF;
8. Requests the Secretariat, in filling new recruitments, to promote and improve geographical and gender balance, and to report to the Board in this regard on a regular basis;
9. Agrees to update the Secretariat structure to formalize a Division of Portfolio Management, recognizing the growing implementation responsibilities of GCF;
10. Requests the Secretariat to present a review of its organizational structure in conjunction with the strategic planning for the GCF second replenishment programming period;
11. Takes note of the views expressed by Board members regarding options for establishing a GCF regional presence, and requests the Secretariat to consult Board and alternate members and to present terms of reference for a feasibility study further examining options for a GCF regional presence, for consideration as a decision between meetings no later than March 2022; and
12. Confirms that the feasibility study does not prejudge the Board’s decision on a GCF regional presence.

The Board, having considered document GCF/B.30/09 titled “2022 work programme of the Secretariat and annual administrative budget of the GCF Secretariat, Board and Trustee”:

1. Recognizes that the work programme will help to guide the activities of the Secretariat during 2022;
2. Approves the 2022 work programme and the goals and suggested priorities set out therein, in accordance with paragraph 23(e) of the Governing Instrument for the GCF;
3. Urges the Secretariat, in working to implement the target agreed under decision B.27/06, to significantly increase funding channelled through direct access entities, to support a greater number and diversity of direct access entities to undertake programming with GCF and promote participation of local private sector actors and micro, small and medium-sized entities, including through technical assistance and capacity development for concept note and funding proposal preparation, approval and implementation, recognizing that this requires capacity and resources for sustained engagement on the part of both the Secretariat and direct access entities;
4. Approves an administrative budget for the GCF Secretariat found in table 6 of annex II to document GCF/B.30/09 for the period 1 January 2022 to 31 December 2022 in the amount of USD 79,399,930, which includes 28,641,111 in new funding as well as the USD 50,758,819 for 2022 staff salaries and emoluments that was approved by the Board in decision B.24/05;
5. Notes that the increase in consultancy budget requested in 2022 is contextualized with reference to the Secretariat’s 250 staff headcount and represents a short-term measure to bridge the capacity gaps of the Secretariat to meet its work programme goals in alignment with the updated Strategic Plan, while also noting that the consultancy budget will be expected to be reduced if the Secretariat’s staff headcount is increased;
6. Recognizes that the new funding of USD 28,641,111 includes a contingency budget of USD 1,556,861. The contingency budget will be used to support both the Secretariat and the independent units;
7. Requests the Executive Director to consult with the Budget Committee on the allocation of the contingency budget;
8. Approves USD 57,565,805 for projected staff salaries and emoluments for 2024;
9. Also approves a budget for the Board in the amount of USD 4,767,656 as found in table 5 of annex II to document GCF/B.30/09;
10. Further approves a budget for the Trustee in the amount of USD 3,646,000 as included in table 19 of annex II to document GCF/B.30/09;
11. Recalls decision B.22/20, paragraph (b); and
12. Requests, notwithstanding decision B.22/20, paragraph (b), the Secretariat, in consultation with the Budget Committee, to develop a proposal for updates to the GCF’s salary scale and current benefits and allowances, and to present such proposal for the Board’s consideration at its first meeting in 2022.

The Board, having considered document GCF/B.30/10 titled “Independent Redress Mechanism Work Plan and Budget for 2022”:

1. Approves the work plan and the administrative budget of the Independent Redress Mechanism for the year 2022 in the amount of USD 1,645,915, as contained in annex II and III, respectively, to document GCF/B.30/10; and
2. Notes that the Independent Redress Mechanism’s budget is based on curtailed travel expenses due to the evolving situation with regard to the COVID-19 pandemic, and that the Independent Redress Mechanism may need to present a supplementary budget for travel and case-related expenses in 2022 for the consideration and approval of the Board.

The Board, having considered document GCF/B.30/11 titled “Work Programme and Budget of the Independent Integrity Unit for 2022”:

1. Approves the work programme and budget of the Independent Integrity Unit for 2022, as contained in annexes II and III to document GCF/B.30/11 (total budgeted amount of USD 3,102,910); and
2. Requests the Budget Committee and the Ethics and Audit Committee to review the budget execution during 2022 and acknowledge that the Independent Integrity Unit may present to the Board, for its consideration at its thirty-second meeting, an additional budgetary request to execute its work programme for 2022.

The Board, having considered document GCF/B.30/12 titled “Independent Evaluation Unit 2022 Work Plan and Budget and Update of its Three-year Objectives and Work Plan”:

1. Approves the work plan and budget of the Independent Evaluation Unit for 2022 as contained in annex VI (total budgeted amount of USD 6,487,012);
2. Requests the Budget Committee to review the budget execution during 2022 and acknowledges that the Independent Evaluation Unit may present to the Board for consideration at its thirty-second meeting an additional budgetary request to execute its workplan for 2022;
3. Notes the update on the Independent Evaluation Unit’s rolling three-year work plan, outlined in annex VII as requested by the Board to ensure flexibility, learning and predictability for the Independent Evaluation Unit; and
4. Recalls decision B.24/04 and the Board-endorsed four-year policy cycle, and decision B.27/06, paragraph (p), and requests the Independent Evaluation Unit to deliver urgently the outputs from the review so that they can inform the Board in a timely manner in its review of the Strategic Plan for the GCF 2020–2023.

The Board:

1. Underscores the provisions of the Governing Instrument for the GCF, the Evaluation Policy for the GCF and the terms of reference of the Independent Evaluation Unit that specify, among other provisions, that:
   1. The GCF is a continuously learning institution guided by processes for monitoring and evaluation;
   2. The purpose of independent evaluations is to inform decision-making and to identify and disseminate lessons learned;
   3. Evaluation results should feed back into the development, update and design of strategies, policies and operations, thus contributing to enhancing the quality of the overall performance of GCF; and
   4. The Board is expected to actively consider findings and recommendations from Independent Evaluation Unit evaluations and incorporate them into the policies and advice the Board provides to GCF overall;
2. Confirms that the consideration of the simplified approval process policy at the thirtieth meeting of the Board does not prejudge future Board deliberations;
3. Urges the Co-Chairs to ensure that, in future Board meetings, the Board will actively consider evaluations, in line with the Evaluation Policy for the GCF;
4. Invites members and alternate members of the Board to consider the findings and recommendations of the following evaluations and the corresponding Secretariat management responses, and to provide any comments not later than 10 December 2021:
   1. Independent evaluation of the GCF’s country ownership approach;
   2. Independent evaluation of the GCF’s environmental and social safeguards and the environmental and social management system;
   3. Independent synthesis of the GCF’s accreditation function;
   4. Rapid assessment of the GCF’s request for proposals modality; and
   5. Independent evaluation of the GCF’s approach to the private sector; and
5. Requests the Independent Evaluation Unit to prepare a summary of views expressed by members and alternate members of the Board on each of the evaluations referred to in paragraph (d) above, so that these views can be incorporated into Board discussions and decisions on related policy items.

The Board, having considered document GCF/B.30/16/Rev.01 titled “Dates and venues of upcoming meetings of the Board”:

1. Decides that the thirty-first meeting of the Board will take place from Monday 7 February to Thursday, 10 February 2022 in Songdo, Incheon, Republic of Korea, should conditions allow for an in-person meeting;
2. Also decides that the thirty-second meeting of the Board will take place from Monday, 9 May to Thursday, 12 May 2022;
3. Further decides that the thirty-third meeting of the Board will take place from Monday, 27 June to Thursday, 30 June 2022;
4. Decides that the thirty-fourth meeting of the Board will take place from Monday, 24 October to Thursday, 27 October 2022;
5. Underscores the importance of the full participation and involvement of the entire Board from all constituencies in the Board meetings and pre-Board meeting consultation process as an essential condition for holding an effective and full participatory meeting; and
6. Requests the Co-Chairs to continue to monitor the impact of the COVID-19 pandemic on the operations of GCF, and to report to the Board appropriately.