Engaging with the Green Climate Fund Liberal Seburikoko, Regional Adviser UNFCCC’s African Regional Workshop on NAMAs 17 August 2015 | Kigali, Rwanda

Facts at a Glance NAME GREEN CLIMATE FUND TYPE Financial Mechanism of the Convention - UNFCCC ESTABLISHED 11 December 2010 in Cancun, Mexico STAKEHOLDERS 194 Countries Signatories to the UNFCCC GOVERNANCE 24 Board Members Equal representation of developing and developed countries MANDATE To promote low-emission and climate-resilient development in developing countries HEADQUARTERS Songdo, Republic of Korea

Key steps for countries to engage: Establish and maintain a National Designated Authority (NDA) or Focal Point Strategic engagement through country programmes (optional) Identify and seek accreditation of entities to access resources from the Fund Develop projects and programmes to bring forward funding proposals through accredited entities

Financing architecture

Roles of NDAs and Focal Points

Accredited Entities Regional National International Ministry of Natural Resources of Rwanda National International

Role and Responsibilities of Accredited Entities Prepare projects Respect country ownership Project appraisal, structuring, supervision and evaluation Reporting

Fit-for-Purpose Accreditation Fiduciary functions Mandate & track record Basic Specialized Alignment with Fund objectives At least 3 year of operations Environment & Social risk category Project size Micro (>10mn) Small (10-50mn) Medium (50-250mn) Large (>250mn) A (high) B (medium) C (low)

Resources Allocation Framework $10.2 billion in pledges $5.75 billion in signed contributions 50/50 split between adaptation & mitigation Geographic balance 50% of adaptation resources for SIDS, LDCs and African states Mitigation (50%) SIDS, LDCs & Africa (at least half) Adaptation (50%)

What kind of projects/programmes are we looking for? Home What kind of projects/programmes are we looking for? Can be public or private sector projects/programmes that have one or more impacts in: 12

PSF Overview To mainstream the private sector into climate change mitigation and adaptation Why was the PSF created? What types of interventions will the PSF make? Fund climate risk assessment models and tools Long-term debt; liquidity backstops and refinancing; Equity required to develop a project to full bankability Guarantees to bear specific risk to entice hesitant investors Financial intermediaries that meet the Fund’s standards Accredited entities present funding proposals, either spontaneously or as a response to an RFP How can the private sector access the PSF?

How to prepare a project proposal? Home How to prepare a project proposal? After accreditation, an accredited entity can submit project and programme proposals for funding. Accredited entities must seek the no-objection(s) from the NDA(s) or focal point(s) for funding proposals. Funding proposals will be evaluated against the Fund’s investment criteria. 37

Investment Framework Impact Potential Potential to the achieve the Fund's objectives and result areas Paradigm Shift Potential Potential to catalyse impact beyond a one-off project or programme investment Sustainable Development Potential Potential to provide wider benefits and priorities Needs of Recipient Vulnerability and financing needs in recipient country Country Ownership Beneficiary country ownership of and capacity to implement funded activities Efficiency & Effectiveness Economic and, if appropriate, financial soundness of the programme/project

Potential Investment Priorities: Clustering Expected Results Mitigation Reduced emissions from Adaptation Increased resilience of 5 ENERGY generation and access 2 4 AGRICULTURE RESILIENCE OF SIDS Buildings, cities, industries and appliances Livelihoods of people and communities Transport Infrastructure + built environment 1 CITIES Health, food and water security 3 FORESTRY Ecosystems and ecosystem services Forests and land use

The Fund Reached Effectiveness in May 2015 Berlin Pledging conference and COP20 = $10.2 billion equivalent pledged by 32 countries, including developing ones Conversion into contributions agreements or arrangements with 24 governments for $5.75 billion Up to $ 2.5 Bn equivalent / year over 2015-18 It’s a great start and more resources are needed.

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