Green Climate Fund (GCF)
Sabin Basnyat Senior Energy Efficiency Specialist/ Transport LeadApril 2, 2019
GCF is a global fund created to support the efforts of developing countries to respond to the challenge of climate change.
GCF was set up in 2010 by the 194 countries who are parties to the UNFCCC, as part of the Convention’s financial mechanism.
The Fund seeks to promote a paradigm shift to low‐emission and climate‐resilient development, taking into account the needs of nations particularly vulnerable to climate change impacts.
We have a special focus on LDCs, SIDS, and African states (min. 50% of overall GCF adaptation funding).
GCF’s activities are aligned with the priorities of developing countries through the principle of country ownership.
A key innovation is to use public investment to stimulate private finance through the Fund’s dedicated Private Sector Facility.
Introduction to GCF
Country driven
Climate impact focus
Paradigm shift
Public+ private
Risk appetite to unlock ideas
GCF’s Accreditation Framework
GCF works through a network of Accredited Entities (AEs) to channel its resources for projects and programs.
AEs comprise private and public, non‐governmental, sub‐national, national, regional or international entities.
Accreditation is a fit‐for‐purpose due diligence process ensuring our partners share the same objectives as GCF, and that they have extensive experience and a strong financial and managerial infrastructure.
Mandate & track record Alignment with GCF’s objectives
At least three years of operations
Project size Micro (<USD 10M)
Small (USD 10‐50 M)
Medium (USD 50‐250M)
Large (>USD 250M)Fiduciary functions Basic
Specialized• Project management
• Grant award
• On‐lending/blending (loans, equity, guarantees)
Environmental & social safeguards A/I‐1 (potential high impact)
B/I‐2 (medium impact)
C/I‐3 (minimal or no impact)
A Diverse Network of Partners
84accredited entities
China Direct AccessPrivate Sector
International Access
Building Global Partnerships
What kind of support GCF provides?
• Readiness funding• Project preparation facility (PPF)• Funding proposals (FP)
• Request for Proposals (RfP)• Simplified Approval Process (SAP)
8 Results Areas
What do we look for?
Compliance with GCF Policies Fiduciary standards Risk Management ESS M&E Criteria Gender Policy Legal Standards
Additionality of GCF Funding Why GCF? Projects must crowd‐in
additional financing on top of GCF
Six Investment Criteria1. Impact Potential2. Paradigm Shift Potential3. Sustainable development
potential4. Recipient needs5. Country ownership6. Efficiency & effectiveness
Strong Climate Rationale Climate Impact of
investment is key Scientific evidence to
provided
Completeness of documentation
Feasibility study Financial Model Project Timetable Gender Analysis Environmental studies No‐objection letter
Country Driven Approach
Alignment with NDCs Early country (NDA)
engagement No‐objection letter
Energy Transport
Buildings, Cities, Industries
Ecosystems
Livelihoods of people & comm.
Forests and land use
Infrastructure
Health, food and water security
Holistic Integrated Mobility Planning (HIMP)
Readiness funding
cap per country per yearUSD 1 million
• NDA strengthening• Support for direct access entities (DAE)• Country support for
• Strategic frameworks, including country programmes, • concept notes, • pre‐feasibility studies
cap per country (not per year)USD 3 million
• National adaptation plans (NAP) and / or other adaptation planning processes
Project preparation funding
cap per request$1.5M
• Support for project/ programme development• Especially micro‐to‐small size projects
• Accredited entities submit requests• Especially direct access
• No‐objection letter from NDA/focal point
• Executive director approves requests
What is Project Preparation Facility (PPF)
• To support project and programme preparation, especially for micro‐to‐small category projects
• All accredited entities (AEs), especially direct accredited entities, can request support from the PPF
• Each request will be subject to a cap of USD 1.5 million• Proposals developed with PPF resources should be submitted
to the Board within two years after the PPF request was approved
What are the eligible PPF activities?
1. Pre‐feasibility and feasibility studies, as well as 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 tender documents; 6. Advisory services and/or other services to financially structure a proposed
activity; and 7. Other project preparation activities, where necessary, provided that
sufficient justification is available.
Examples of Transport PPF
Bhutan Indonesia
Entities World Bank/ Green Technology Center Korea
PTSMI
Title Green Transport System Intregrated BRT
Components Electric Bus fleet Hybrid/ PHEV/ EV buses
Route Infrastructure Route Infrastructure
Non Motorized transport Non motorized transport
Smart bus system with GPS, payment, information
PPF Amount $1,258,000 (GCF‐ $788,000 ) $1,526,543 (GCF‐ $526,311)
How is the funding proposal process
› Pakistan
Sources (USD mil) GCF financing going towards
• Incremental cost of the buses
• Installation of Bio‐gas facility
• Climate proofing the road• Last mile connectivity
GCF Loan 37.2
GCF Grant 11.8
ADB 442
Govt of Pakistan (Grants) 92.5
Total 583.5
1 : 11 Mitigation2.6 MtCO2e (lifetime)
Co‐financing Ratio
ESS
AClimate Impact
Modal Shift towards 0‐emission mass transit coupled innovation on technology and financing
GCF‐ADB‐Green BRT Karachi
Project Description
› The BRT will use 0‐GHG emission biomethane hybrid buses a world first.
› Produce its own biogas from cattle waste to cover 100% of the methane demand from BRT buses.
› Public Procurement for Private Sector Operation
› Bulk procurement of buses to be leased to Private operators on a full TCO basis
› Capacity building for the TransKarachi ( Main bus operator for the Province of Singh) on;
› Operation and Maintenance
› Bus Control system – Hub management system
› Bus routing systems and information management
› Smart fare collection system
› Bus station management system
√
Thank YouIf any questions please email:[email protected]
• Contribution to the shift to low‐emission sustainable development pathways
• Contribution to increased climate‐resilient sustainable development
Impact potential
• Innovation • Contribution to the creation or strengthening of knowledge,collective learning processes, or institutions
• Sustainability of outcomes and results • Potential for strengthened regulatory frameworks and policies• Potential for expanding the proposal’s impact
Paradigm shift
• Expected positive environmental impacts• Expected positive social and health impacts• Expected positive economic impacts• Potential for reduced gender inequalities
Sustainable development potential
Investment Framework Criteria
Investment Framework Criteria
•Scale and intensity of exposure of people, and social/economic assets to risks•Comparably high vulnerability of the beneficiary groups•Level of social and economic development of the country and target population•Opportunities for the GCF to overcome specific barriers to financing•Opportunities to strengthen institutional capacity in relevant institutions
Needs of the recipient
•Objectives are in line with priorities in the country’s national climate strategy•Experience and track record of the Accredited Entity or executing entities in key elements of the proposed activity
•Stakeholder consultations and engagement
Country ownership
•Financial adequacy and appropriateness of concessionality•Cost‐effectiveness (mitigation only)•Potential to catalyse and/or leverage investment (mitigation only)•Expected economic/financial internal rate of return Financial viability in the long run•Application of best practices and degree of innovation
Efficiency and
effectiveness
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