GREENCLIMATE FUND

7 October 2020

GCF PROGRAMMING MANUAL

• Pre-recorded section:• Introduction from Executive Director• Overview of manual and the project cycle• Introduction to Funding Proposal user guide

• Live Q&A session with Secretariat staff

WEBINAR AGENDA

GCF PROJECT CYCLE

LINKS BETWEEN GCF PROGRAMMING FRAMEWORKS

THE PROJECT CYCLE

STAGE 1: COUNTRY, REGIONAL, ANDACCREDITED ENTITY WORK PROGRAMMES

STAGE 2: TARGETED GENERATION OF PROJECT OR PROGRAMME FUNDING PROPOSALS

Example: CIP (Climate Investment Platform)• Use of Requests for Proposals (RFPs)• REDD+• MSMEs• Enhanced Direct Access• Mobilising Funds at Scale

• Generation of Project Ideas through Dedicated Project Preparation Partnerships and Platforms

STAGE 3: CONCEPT NOTE

• Concept note development and review stages, including review criteria by GCF’s Climate Investment Committee• Support available for concept note and funding proposal

development• Notification process for NDAs and consultation with NDAs

STAGE 4: DEVELOPMENT OF FUNDING PROPOSALS

• Key elements of first level due diligence by the AE• Documentation and

completeness checklist • Information disclosure

requirements for projects and programmes under GCF’s Information disclosure policy

• Best case scenario – 190 days to complete FP review and send it to Board approval• Timeline also

depends on the AE responsiveness to the Secretariat’s comments

FUNDING PROPOSAL SUBMISSION AND REVIEW TIMELINE

STAGE 5: FUNDING PROPOSAL REVIEW PROCESS

STAGE 5: FUNDING PROPOSAL REVIEW PROCESS1. INITIAL REVIEW AGAINST INVESTMENT CRITERIA

IMPACT POTENTIAL PARADIGM SHIFT POTENTIAL

SUSTAINABLE DEVELOPMENT POTENTIAL

COUNTRY OWNERSHIP

NEEDS OF THE RECIPIENT EFFICIENCY AND EFFECTIVENESS

STAGE 5: FUNDING PROPOSAL REVIEW PROCESS 2. TECHNICAL ASSESSMENT

Interdivisional Project Team (IPT)

Division of Mitigation

and Adaptation

Private Sector Facility

Office of Portfolio

Management

Office of Risk Management

and Compliance

Office of General Counsel

Division of Country

Programming

ESS, GenderFinance,

Procurement

Country ownership

Financial structure, terms and conditions,

economic impact & viability, budgets

Adherence to project policies, AML/CFT, ESS,

Gender, IP, SEAH

Results accountability: ToC, log frame, GHG

calculations, M&E

AE/EE capacities and accreditation scope

ESS and project execution risks; risk

assessment by ORMC

First level due

diligence by AEs

Second level due diligence by GCF; independent appraisal

of FP by ORMC

2DD ensures:• Investments align with GCF mandate and policies• Assess impact of projects and programs• Potential risks to reflows, reputation• Sustainability of the Fund

Technical review by

project teams

STAGE 5: FUNDING PROPOSAL REVIEW PROCESS3. 2DD APPRAISAL BY INDEPENDENT UNIT WITHIN ORMC

• Scope of review: ITAP reviews according to 6 investment criteria

• ITAP makes recommendation on whether the project can be presented to the Board

• Lessons learnt from reviews included in the Annex (e.g. recent ITAP reviews were more stringent on climate rationale)

STAGE 5: FUNDING PROPOSAL REVIEW PROCESS INDEPENDENT TECHNICAL ASSESSMENT PANEL (ITAP) REVIEW

STAGE 6: BOARD CONSIDERATION AND DECISION

• FP must be published 21 days before Board meeting

• Board questions & clarifications:• written questions in advance,• at technical session held during informal

Board meeting,• at the Board meeting

STAGE 7: LEGAL ARRANGEMENTS FOR APPROVED PROPOSALS

Milestones in the FAA process*:

* The above timelines may be longer if the AE’s certificate of internal approval comes after Board approval

Standard timeline

Aspirational timeline

PORTFOLIO IMPLEMENTATION MONITORING & MANAGEMENT: OVERVIEW

STAGE 8: MONITORING FOR PERFORMANCE AND COMPLIANCE

ADAPTIVE MANAGEMENT TRIGGERS

STAGE 9: ADAPTIVE MANAGEMENT

Risk flags from monitoring tools

Ad-hoc reporting & engagement

Complaints to Secretariat, IIU & IRM

Requests from countries, AEs on changes in project design

STAGE 10: EVALUATION, LEARNING AND PROJECT CLOSURE

• Levels of evaluation vis-a-vis the roles & mandates of AEs, Secretariat and IEU in line with the Governing Instrument (GI) and MAF

• Linkages between evaluation and learning

• How the Secretariat operationalizes its learning & knowledge management function in line with the GI

• Project closure activities

FUNDING PROPOSAL USER’S GUIDE

FUNDING PROPOSAL USER'S GUIDE

Climate context, and how to elaborate a clear climate rationale/ climate problem in the context of the

proposed project activities

GCF’s results management framework and performance measurement frameworks, with details on how to fill

logical framework using the Fund's indicators

A detailed list of all investment criteria, sub-criteria and indicators relevant for Fund's investments are outlined

there as well, and other information

This is a comprehensive guide on putting together a Funding Proposal

Guidance is provided on various elements of the template including:

• Reduction in length: from 22 to 16 pages /page number limited to word limit

• Sections moved/modified: Sections combined and compressed with subsections

• Subsections removed and moved to the Annexes: Financial markets overview, Regulation, Taxation and insurance, Technical evaluation

• Additional annexes requested: stakeholder consultations, gender assessment and action plan, AE fee calculation and methodology, etc.

• Annex templates provided with links

KEY CHANGES FROM OLD TEMPLATE

1. Completed funding proposal template

2. NDA NOL(s)

3. Feasibility study

4. Economic and/or financial analysis

5. Detailed budget plan

6. Implementation timetable

7. Environmental and social safeguards disclosure form

8. Summary of consultations and stakeholder engagement plan

9. Gender assessment and project-/programme-level action plan

10. Legal due diligence

11. Monitoring and evaluation plans

12. Procurement plan

13. AE fee request

14. Co-financing commitment letter

15. Term sheet

16. Evidence of internal approval

17. Map(s) indicating the location of proposed interventions

18. Multi-country project/programme information

19. Appraisal, due diligence or evaluation report for proposals based on scaling up or replicating a pilot project

20. Procedures for controlling procurement by third parties or EEs undertaking projects financed by the AE

21. First-level AML/CFT (KYC) risk assessment

22. GHG calculations

23. Other references, such as Operations manual

FP TEMPLATE ANNEXES

PM FEEDBACK

• For enquiries, comments, and feedback, please email: pmfeedback@gcfund.org

• Document page: https://g.cf/progmanual

QUESTIONS & ANSWERS

GREENCLIMATE FUND