Accessing Finance Through The GCF
Accessing Finance through the GCF:An Introduction and Development of Project ProposalsAlastair Morrison / Adria LlachUrvaksh D. PatelDivision of Mitigation and AdaptationDivision of Country ProgrammingTraining Program to Support Renewable Energy Deploymentthrough Developing Project Proposals to Access Climate Finance23 October 2017 Tokyo, Japan
Overview Part I: The GCF Part II: Country Engagement Part III: Accreditation to the GCF Part IV: Projects and Programs Part V: Project Preparation Part VI: Approved RE Projects Part VII: Water Sector Examples
Part I: The GCF
Our History2009The Green Climate Fund is first proposed at COP 15 in Copenhagen, Denmark2010GCF gets established by the United Nations at COP 16 in Cancun, Mexico2011Governing Instrument is adopted at COP 17 in Durban, South Africa2012GCF Board meets for the first time, with equally balanced country representation2013Permanent headquarters for the GCF Secretariat established in Songdo, South Korea
Our VisionWith a Mandate:To promote low-emissionand climate resilientdevelopment indeveloping countries.
Our CharacteristicsCountry ownership through NDAs and focal pointsBalance between adaptation and mitigationEqual voice for developed and developing countriesDiversity of accredited entitiesDiversity of financial instrumentsDedicated Private Sector Facility (PSF)Largest dedicated climate fund globally
The GCF Architecture
Part II: Country Engagement
Engaging with GCFEstablish and maintain a National Designated Authority(NDA) or focal pointStrategic engagement through country programmesIdentify and seek accreditation of entities to accessresources from the FundDevelop projects and programmes to bring forwardfunding proposals through accredited entities
Roles of NDAs and Focal Points
Iterative ProcessCountryprogrammeResults inedevelopmentFundingproposals
Country Program BriefsState of Play140107 country program briefs1201201071009696Asia80Caribbean6015 countries9 endorsed1 official submission(Antigua & Barbuda)67Pacific14 countries10 endorsed1 draft submission( Federated States ofMicronesia)Africa45 countries11 endorsed1 official submission(Zambia)40232022 countries10 endorsedLatin America011 countries2 endorsed0B12B13B14B15B16B17B18Country programmesAs of 15 June 2017
Readiness: Four Areas of Support1. NDA strengthening2. Strategic frameworksUp to USD 1M percountry per year3. Support for direct access entities4. Adaptation planning processesUp to USD 3M percountry(not per year)
Private Sector FacilityWhy the PSF?InterventionspossibleAccess to theprivate sector To mainstream climate change mitigation and adaptationactions in the private sector. Fund climate risk assessment models and toolsLong-term debt, credit lines and refinancingEquity to develop a project to full bankabilityGuarantees to bear specific risks Accredited entities with private sector operations. Present funding proposals spontaneously or in response tocalls for proposals.
Part III: Accreditation to the GCF
A Diverse Network of Partners59 entities accredited to dateMoroccoMoroccoSenegalAntigua IndiaSouth AfricaMongolia
Who Can Apply for Accreditation?All entities, including international, regional, national and subnational andpublic and private entities, can apply for accreditation through one of twomodes of access:Direct access modality: for regional, national and sub-national entities.– Entities will need to accompany their application for accreditation with evidence oftheir nomination from the NDA or focal point designated from their country withtheir application for accreditation.– Entities may be eligible to receive readiness and preparatory support in terms ofcapacity-building in order to meet the GCF’s accreditation requirements.International access modality: for international entities, including UnitedNations agencies, multilateral development banks, international financialinstitutions and regional institutions.24
Fit-for-Purpose AccreditationMandate &track record Alignment with FundobjectivesFiduciaryfunctions Basic Specialized At least 3 year of operationsProject size Micro ( 10M) Small (10-50M)Environment &social riskcategory Medium (50-250M) A (high) Large ( 250M) B (medium) C (minimal or no)
Applying for AccreditationThe accreditation application will include thefollowing sections:6. Environmental and social safeguards (ESS)What you need to apply* Nomination by your NDA(s) orfocal point(s) (for subnational,national and regional entitiesapplying under direct access) Intended projects/programmes(for information purposes) Evidence of how yourorganization can meet the GCF’sfiduciary standards, ESS andgender policy Track record, which shouldinclude climate change-relatedprojects/programmes and thefiduciary, environmental andsocial practices applied7. Gender* This list is not exhaustive.1. Background and contact information of theapplicant entity2. Information on the ways in which theinstitution and its intended projects/programmeswill contribute to furthering the country’s climatestrategies and action plans, in line with GCF’sobjectives3. Information on the scope of intendedprojects/programmes and estimated contributionrequested for an individual project or activitywithin a programme4. Basic fiduciary criteria5. Applicable specialized fiduciary criteria
Accreditation Process Steps1.) Pre-accreditation1A2.) Accreditation1B2ANDA/FP nomination*receivedOAS account issuedOAS request received2E2BApplication receivedand accreditation feespaid2DStage IIILegal arrangementsStage ICompleteness check2CStage II (Step 2)Board decisionStage II (Step 1)AP ReviewAMA negotiationAMA executionAMA effectiveness*An NDA nomination letter is required for Direct Access entities only.Nomination is not required for International Access entities.AMA: Accreditation MasterAgreementAP: Accreditation PanelNDA: National Designated AuthorityOAS: Online Accreditation System
Which Entities Can be Prioritized in theAccreditation Process? National direct access entitiesEntities in the Asia-Pacific and Eastern European regionsPrivate sector entities, in particular those in developingcountries, seeking a balance of diversity of entities in linewith decisions B.09/07, paragraph (g) and decision B.10/06,paragraph (h)Entities responding to request for proposals issued by theGCF**Entities seeking fulfilment of conditions for accreditationEntities requesting upgrades
Which Entities Can be Fast-Tracked inthe Accreditation ProcessCertain entities may be eligible to apply under the fast-track accreditationprocess: Global Environment Facility (GEF) Adaptation Fund (AF) Directorate-General for Development and Cooperation – EuropeAid of theEuropean Commission (DG DEVCO)Recognizing that certain entities have completed the accreditation process ofother funds/institutions against fiduciary and environmental and social standardsthat may be comparable to the GCF’s fiduciary standards and ESS, the fast-trackprocess allows for eligible entities to focus their application on the GCF’saccreditation requirements (gaps) that have not been assessed in otheraccreditation processes.The fast-track process also allows for the accreditation review to focus on howthe entity addresses the gaps.
Accreditation FeesFinancialcapacitycategoryMicroTotal projected costs at the time ofapplication, irrespective of theportion that is funded by the GCF,for an individual project or activityFee Level for accreditationapplication for undertakingactivities related to Basic FiduciaryStandards, ESS and genderLess than or equal to USD 10 millionSubnational and national entities indeveloping countries includingSIDS and LDCs: no feeFee Level for accreditationapplication for undertakingactivities related to eachSpecialized Fiduciary Standarda, bUSD 500 eachAll other entities: USD 1,000SIDS and LDCs: no feeSmallAbove USD 10 million and up to andincluding USD 50 millionSubnational and national entities indeveloping countries other thanSIDS and LDCs: USD 3,000USD 1,000 eachAll other entities: USD 5,000MediumAbove USD 50 million and up to andincluding USD 250 millionUSD 10,000USD 3,000 eachLargeAbove USD 250 millionUSD 25,000USD 7,000 eacha SpecializedOther FeesOther feesmay apply iftheapplication isreviewedby theSecretariat orAccreditationPanel morethan twice.The amountof the feeis to bedeterminedon a case-bycaseapproach bytheSecretariat.Fiduciary Standards refer to: 1) project management; 2) grant award and/or allocation mechanisms; and 3) on-lending and/or blending (for loans,equity and/or guarantees).b For example an entity seeking accreditation for large activities; basic fiduciary standards, ESS and gender (USD 25,000); and all 3 specialized fiduciary standards(USD7,000 each: USD 7,000 x 3 USD 21,000) will be required to pay a total of USD 46,000 (USD 25,000 USD 21,000) in accreditation fees to the GCF.
Part IV: Projects and Programs
8 Strategic Results AreasWith a focus on Impacts Paradigm-shift potential Crosscutting adaptation-mitigationbenefits Sustainable development cobenefits
Six Investment CriteriaAgainst which proposals are assessedImpact potentialParadigm shift potentialPotential to contribute to achievement of Fund's objectivesand result areasLong-term impact beyond a one-off investmentSustainable development potentialWider economic, environmental, social (gender) co-benefitsCountry ownershipCountry ownership and capacity to implement (policies,climate strategies and institutions)Efficiency & effectivenessResponsive to needs of recipientsEconomic and, if appropriate, financial soundness, as well ascost-effectiveness and co-financing for mitigationVulnerability and financing needs of beneficiary in targetedgroup
Project Approval Process
Project Approval ProcessNDA2Concept note(optional)3SecretariatPossiblerequest forReadinesssupport byNDA6No-objectionPossiblesupport fromProjectPreparationFacility to AESubmission offundingproposal4Analysis andrecommendationTechnicalAdvisory Panel5BoardDecisionGCF BoardBased on Board decision B.07/03Legal arrangementsAccreditedEntityGenerationof ProjectideaTrustee1
Request for ProposalsMobilizing Resources At ScaleUnlock private sector investment 500 million allocationAny private sector organizationClosed 30 Aug 2017www.greencimate.fund/500m
Request for Proposals (cont.)Enhancing direct access(EDA)Micro-, small- & mediumsized enterprises (MSME) 200 million allocation 200 million allocationUp to 10 pilots 100 million for first pilotMin 4 SIDS, LDCs & Africa 100 million SIDS, LDCs & AfricaLast round: 31 Jan 2017Last round: 30 Aug 2016Accredited or potential entitiesAccredited or potential entities
Part V: GCF Portfolio
A Growing PortfolioApproximately 2.5B for 50 projects inover 60 CountriesMexicoEastern CaribbeanEl SalvadorSamoaColombiaEcuadorPeruCook IslandsChileArgentinaKazakhstanSerbia GeorgiaMongoliaArmenia UzbekistanMoldovaTajikistanTunisia JordanBhutanMoroccoEgyptPakistanBangladeshSenegal MaliIndiaViet NamGambia NigeriaEthiopiaSri LankaNauruBeninUgandaTuvaluMaldivesPNGKenyaSolomon ibiaMadagascarSouth AfricaStatus as of B18 (Oct 2017)Note that not all countries are represented on map
Portfolio CompositionStatus as of B17 (July 2017)
Portfolio CompositionStatus as of B17 (July 2017)
Estimated Climate ImpactPortfolioMitigation impacts981 MtCO2eqAdaptation impacts218 M beneficiariesStatus as of B17 (JUly 2017)
Investments by Results AreasPortfolioRelative weight of area in public and private sector projectsStatus as of B17 (July 2017)
Part VI: Project Preparation
Initial Proposal Approval Process- f fundingproposalsSecretariat4PPF analysisand approvalAnalysis andrecommendationTechnicalAdvisoryPanel5BoardBased on Board decision B.07/03BoardDecisionLegal arrangementsNote/PPF(optional)3 Submission ofTrusteeAccreditedEntity2 Concept6
Concept Note StageProvides basic information about a project or programme- Overall problem/baseline, objective and activities- Indicative financing scheme- Fit with GCF investment criteria, and need for GCFfinancing- Basic implementation arrangements- Not mandatory- No-objection letter is usually not needed, but consultationwith stakeholders (incl. NDA) is important.- Useful to get GCF feedback at an early stagePre-feasibility study is generally needed, especially for REprojects
Project Preparation Facility (PPF)What is onoffer?Support for project / programme developmentEspecially micro-to-small size projectsUp to USD 1.5M per project preparation requestHow toapply?Accredited entities, especially direct access, submit requestsRequest submitted with project / programme conceptIn conjunction with no-objection letter from NDA / focal pointWhat isassessed?Secretariat assesses concept against investment criteriaAlso assesses request for justification of needs & GCF policiesGCF Executive Director approves request
Eligible PPF activities1) Pre-feasibility and feasibility studies, project design;2) Environmental, social and gender studies;3) Risk assessments;4) Identification of programme/project-level indicators;5) Pre-contract services, including the revision of tenderdocuments;6) Advisory services and/or other services to financiallystructure a proposed activity; and7) Other project preparation activities, where necessary,provided that sufficient justification is available.
Funding Proposals -Submission Funding Proposals need to be fully designed andappraised, by the accredited entity. In the case of RFPs, submission by tentative AEs isalso possible. GCF can provide funding support to accreditedentities to prepare the project (PPF).
Funding Proposals - SubmissionWhat is expected in a Funding Proposal? No-objection from the country NDA(s) Feasibility study - providing rationale for proposeddesign, structure & costs Procurement plan, budget breakdown Environmental and social impact assessment Gender assessment and analysis Risk assessment Logic framework Stakeholder consultations
Funding Proposals – Approval Process(4 months or Second level due diligenceCheck forcompletenessAnalysis andRecommendationSubmission tothe BoardTAPAssessmentBoardDecision* In between meetingsor Board meeting
Lessons and ChallengesFocus on climate resultsClear benefits in terms of emission reductions (e.g. substitution of fossilfuels) or improving the resilience of infrastructure or livelihoods againstclimate changeTransformative and innovativeUsing innovative financing models, technical solutions, improvingregulatory framework, or allowing projects that could not happenotherwise.CREATING AN ENABLING ENVIRONMENTCreating a regulatory framework conducive to public and private sectorinvestment is key to achieving transformational outcomes. Laws and policy, regulatory bodies, contracts, incentives (subsidies, tax breaks )
Lessons and ChallengesRight level of concessionality and use of financialinstruments- LOANS in revenue-generating projects (most RE)- Reimbursable grant or guarantee to cover relevantproject risks (e.g. geothermal),- Grant in RE generally limited to technical assistance.Provision of cofinancing by other donors, Government orlocal private partnersConcessionality benefitting final userse.g. accessing cheaper loans, lower electricity tariffs
Investment Criteria –Attention Points (1)Climate Impact Potential Is the linkage to climate change relevant, clearand strong? Is the methodology to calculate emissionreductions robust? Is there a strong justification for increasedresilience, based on evidence of climate impacts?
Investment Criteria –Attention Points (2)Viability and Sustainability Is the proposal economically and financiallysound? Can results be sustained after GCF funding ends? Is there a plan and budget for operations andmaintenance?
Investment Criteria –Attention Points (3)Efficiency and effectiveness Impact vs funding (e.g. /tCO2) Justification for proposed financial instrumentand funding amount Co-financing and crowd-in additional source offinancing
Summarizing Determining country prioritiesIdentifying AEs, checking accreditation statusProject size ESS category fiduciary standardPresenting and discussing ideasClear mitigation/adaptation impact in GCF results areas?Compatible with accreditation status?Aligned with country strategies? (NDC, NAMA, NAP, NAPA)High performance against GCF investment criteria?Focus efforts on most promising projectsHigh impact, innovative, and sustainable
Part VII: Approved RE Projects
Approved RE se-projects
Sustainable Energy Facility(Geothermal Energy)Five Caribbean Small Island Developing StatesAccredited EntityIDBExecuting EntityCaribbean Development BankEmission Reductions9.4 MtCO2eqTotal FundingUSD 190.5M (plus USD 340Mleveraged from private sector)GCF FundingUSD 60M Loan USD 16M Reimbursable Grant USD 4M GrantDuration8 Years
Pacific Islands RenewableEnergy Investment ProgramPacific Islands/Cook IslandsAccredited EntityADBExecuting EntityTe Aponga Uira(Public power utility)Emission Reductions3 MtCO2eqTotal FundingUSD 16MGCF FundingUSD 12M GrantDuration2 Years
Overview of Water SectorClimate Change Adaptation andMitigationBy Alastair MorrisonSenior Water Sector SpecialistGreen Climate Fund
An overview of the main elements to be consideredwhen appraising a water related project in the contextof climate changeTHE CHALLENGE Significant long-term changes in the earth’s climate system Induced by human activities Climate change will be a fundamental driver of changes inwater resources Water will be the primary medium through which climatechanges impacts will be felt56
An overview of the main elements to be consideredwhen appraising a water related project in the contextof climate changeTHE CHALLENGE Impacts will be differently distributed among regions,income groups, gender, age, class, occupations Vulnerability indicators – e.g. LDCs, SIDS, geographicand societal factors Greatest impacts frequently on societies with the leastadaptive capacity Estimates of 100bn/year financing required57
Water Sector - MITIGATIONHYDROPOWERLow emission energy source New construction Rehabilitation Run of the river Reservoirs.Tidal powerNAVIGATIONLow emissiontransport optionBohernabreena Dam, Ireland58
Scaling Up Hydropower SectorClimate ResilienceTajikistanAccredited EntityEBRDExecuting EntityMinistry of FinanceEmission Reductions7.5 MtCO2eqTotal FundingUSD 133MGCF FundingUSD 27M Loan 23.0M GrantDuration5 Years
Tina River HydropowerSolomon IslandsAccredited EntityWBExecuting EntityMinistry of FinanceEmission Reductions2.53 MtCO2eqTotal FundingUSD 234MGCF FundingUSD 70M Loan 16M GrantDuration5 Years
Water projects - MITIGATIONWATER SUPPLY& SEWERAGEMajor energy user 6% of all Hong Kong’spower usage. Many cities have highleakage rates - a waste ofenergy (and money) Upgrade to most efficientequipmentTai Po Water Treatment works and pumping station, Hong Kong Energy from sludge61
Water projects - ADAPTATION.COASTAL ZONE MANAGEMENTHard vs Soft defencesClimate Change Impacts:Land-use planning Resilient buildingsSea level riseStorm surgesErosionWave impactsSaline intrusionsResilient livelihoods62
Water projects – TA and Capacity BuildingFORECASTINGHydrometeorologyRisk mappingRisk awarenessWarning systemsCulture of water.Ministry of Environment and Tourism, MongoliaGOVERNANCEIntegrated Water Resources ManagementStakeholder EngagementInstitutional StrengtheningCapacity Buil
2009 The Green Climate Fund is first proposed at COP 15 in Copenhagen, Denmark 2010 GCF gets established by the United Nations at COP 16 in Cancun, Mexico 2011 Governing Instrument is adopted at COP 17 in Durban, South Africa 2012 GCF Board meets for the first time, with equally balanced country representation 2013 Permanent headquarters for the GCF Secretariat established in Songdo, South Korea
May 02, 2018 · D. Program Evaluation ͟The organization has provided a description of the framework for how each program will be evaluated. The framework should include all the elements below: ͟The evaluation methods are cost-effective for the organization ͟Quantitative and qualitative data is being collected (at Basics tier, data collection must have begun)
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Worksheet #1 Factoring Polynomials: GCF and Factoring by Grouping Worksheet #1 Factoring Polynomials: GCF and Factoring by Grouping Find the GCF (greatest common factor) of the expressions. EX 5x2y2, 30x3y EX 2x(x 5), 15(x 5) The GCF is 5x2y The GCF is (x 5) EXERCISES: Find the GCF of the expressions. 1. x2, x6 2. 2 t4 .
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Algebra Review Notes Solving Quadratic Equations Part I 2 Method 1: Factoring Out the Greatest Common Factor (GCF) Factoring out the GCF can be done by using the distributive property. Ex 1: Factor . Step 1: Find the GCF of and . The GCF is . Step 2: Rewrite by factoring out the GCF.
Siklus Akuntansi Jasa BAGIAN PROYEK PENGEMBANGAN KURIKULUM DIREKTORAT PENDIDIKAN MENENGAH KEJURUAN DIREKTORAT JENDERAL PENDIDIKAN DASAR DAN MENENGAH DEPARTEMEN PENDIDIKAN NASIONAL 2003 Kode Modul: AK.26.D.2,3. BAGIAN PROYEK PENGEMBANGAN KURIKULUM DIREKTORAT PENDIDIKAN MENENGAH KEJURUAN DIREKTORAT JENDERAL PENDIDIKAN DASAR DAN MENENGAH DEPARTEMEN PENDIDIKAN NASIONAL 2003 Kode Modul: AK.26.D.2,3 .
