European capacity building initiativeecbi What to do with the Adaptation Fund? Its role in...
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Transcript of European capacity building initiativeecbi What to do with the Adaptation Fund? Its role in...
eu
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cbiWhat to do with the Adaptation
Fund?Its role in relationship with the GCFSunday, 7 December, Swissôtel Lima
Benito MüllerDirector ecbi, MD oxford climate policy
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péen
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acité
s ecbi
for sustained capacity building in support of international climate change negotiations
pour un renforcement durable des capacités en appui aux négociations internationales sur les changements climatiques
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STRATEGIC PROSPECTS FOR THE ADAPTATION FUND
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cialized
fiduciar
y criteria
Project management
• Project preparation and appraisal (from concept to full funding proposal)
• Project oversight and control
• Monitoring and evaluation
• Project-at-risk systems and related project risk management capabilities
Grant award and/or funding
allocation mechanisms
• Grant award procedures
• Transparent allocation of financial resources
• Public access to information on beneficiaries and results• Good standing with regard to multilateral funding (e.g. through
recognized public expenditure reviews)
On-lending and/or blending
• Appropriate registration and/or licensing by a financial oversight body or regulator in the country and/or internationally, as applicable;
• Track record, institutional experience and existing arrangements and capacities for on-lending and blending with resources from other international or multilateral sources;
• Creditworthiness;
• Due diligence policies, processes and procedures;• Financial resource management, including analysis of the lending
portfolio of the intermediary;• Public access to information on beneficiaries and results;• Investment management, policies and systems, including in relation to
portfolio management;• Capacity to channel funds transparently and effectively, and to transfer
the Fund’s funding advantages to final beneficiaries;
• Financial risk management, including asset liability management;
• Governance and organizational arrangements, including relationships between the treasury function and the operational side (front desk).
GCF Modes of Engagement: Implementing Entities and Intermediaries
“Implementing Entity”
“Intermediary”
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GCF Scales of Engagement: Executing Entities
Large Executing EntityMedium/Large Project/Programme
Micro/Small/Medium Executing Entity (MSME)Micro/Small Project/Programme
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GCF Fast-track Accreditation
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nter
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Implementing Entity
Intermediary
Large Executing EntityMedium/Large Project/Programme
Micro/Small/Medium Executing Entity (MSME)Micro/Small Project/Programme
Bilateral (EU DEVCO)AF & GEF MIE/RIEs
AF NIE
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GCF Maximum Entropy Accreditation
Loc
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cial
Nat
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nter
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Implementing Entity
Intermediary
Large Executing EntityMedium/Large Project/Programme
Micro/Small/Medium Executing Entity (MSME)Micro/Small Project/Programme
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Adaptation Fund
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Pro
vinc
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atio
nal
Inte
rnat
iona
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Implementing Entity
Intermediary
Large Executing EntityMedium/Large Project/Programme
Micro/Small/Medium Executing Entity (MSME)Micro/Small Project/Programme
NIE
MIE/RIEs
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GCF Enhanced Direct Access (Pilot Phase?)L
ocal
Pr
ovin
cial
N
atio
nal
I
nter
natio
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Implementing Entity
Intermediary
Large Executing EntityMedium/Large Project/Programme
Micro/Small/Medium Executing Entity (MSME)Micro/Small Project/Programme
NFE
MitigationAdaptation
• Foreign public sector funding stream consolidation through national gateway (National Funding Entity)• In-country devolved access to the provincial and local level for engaging local stakeholders (communities, MSMEs)
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The Status Quo ScenarioL
ocal
Prov
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NIE
The Fund continues its current interim arrangements with the Global Environment Facility (GEF) and the World Bank, and its lines of accountability and reporting under the authority and guidance by the CMP. The Fund and the GCF are functionally independent from one another.
• Coherence could be enhanced through common guidance
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The Institutional Integration ScenarioL
ocal
Prov
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NIE
Different degrees of integration between the Fund and the GCF could be envisaged. Possible options may include the Fund serving as: the “Adaptation Window” of the GCF; a specialized instrument or window of the GCF; or a dedicated mechanism based on innovative sources (building on the experience of the CER-monetization process), etc.
• The AF Board would have no role to play in such an “institutional integration” or rather replication
• All Micro and Small project proposals for international GCF funding would instead be administratively approved
• The AF would not be a “window” or “instrument” under this form of “integration”, it would simply cease to exist.
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Why should the AF continue to exist?
• “It is fully operational and has a proven record, particularly in providing direct access. Indeed it is the first climate fund to engage in enhanced direct access, providing not only country ownership but country driven-ness. It is currently the only Fund with direct access projects/programmes under implementation; It is also operationally independent and able to perform its functions without extensive external support;”
• “Given its unique mandate to address concrete adaptation projects, the Fund can provide targeted and specialised support to project proponents, even for smaller projects in highly localized contexts;”
• “Its governance structure allows for greater (recipient) country ownership.”
The AF is a multilateral funding instrument tailor-made for and dedicated exclusively to (‘small-scale’) concrete adaptation projects with specialised services that cannot (cost) effectively be provided by wholesale funders.
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The Operational Linkage Scenario
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AF as GCF Multilateral Adaptation Funding Entity(“Multilateral Funding Window”)
Given the legal capacity of the Board, the GCF could conclude agreements with it, limited to certain operational aspects. This modality would allow the GCF to channel some of its operations (and resources) through the Fund (e.g. direct access, concrete adaptation projects). These agreements do not imply any change in the institutional arrangements for the Fund, and could be concluded by the Board regardless of them.
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GCF Enhanced Multilateral Access
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ovin
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nter
natio
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NIE
Multilateral Adaptation Funding Entity
Multilateral Mitigation Funding Entities
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cbiThank You!