Initial strategic plan for the GCF

Transcription

1 This dcument captures the strategic plan as adpted by the Bard in decisin B.12/20. The strategic plan was sent t the Bard fr cnsideratin at B.12 in dcument GCF/B.12/06 titled Reprt n the develpment f the draft Strategic Plan fr the Green Climate Fund: Submissin frm the ad hc grup f Bard/Alternate members. All decisins and dcuments adpted at B.12 can be fund in dcument GCF/B.12/32 titled Decisins f the Bard twelfth meeting f the Bard, 8 10 March 2016.

2 Page 1 1. Intrductin As an perating entity f the financial mechanism f the UNFCCC and f the Paris Agreement, and the largest multilateral climate fund, the GCF will prmte the paradigm shift twards lwemissin and climate-resilient develpment pathways by prviding supprt t develping cuntries t limit r reduce their greenhuse gas emissins and t adapt t the impacts f climate change, taking int accunt the needs f thse develping cuntries particularly vulnerable t the adverse effects f climate change. In line with its respnsibilities, the GCF Bard has taken many imprtant plicy and peratinal decisins pursuant t its mandate as articulated in the Gverning Instrument, including the adptin f the essential requirements fr the Initial Resurce Mbilizatin, and accreditatin f natinal, reginal and internatinal entities. The actins f the Bard have instilled cnfidence in the Fund, which was manifested in pledges amunting t US$10.3 billin fr the Initial Resurce Mbilizatin (IRM), which secures financing fr the prgramming perid. This allwed the Bard t establish three pilt prgrammes amunting t up t USD 900 millin at its 10th meeting, and apprve the first funding prpsals amunting t USD 168 millin at its 11th meeting. After the GCF s rapid peratinalizatin, valuable pprtunities remain t be seized and plicy gaps and challenges remain t be addressed that wuld leverage the GCF s full ptential. In this initial phase f peratins, cre challenges and pririties include prgramming the GCF s resurces at scale while ensuring the highest level f transfrmatinal ambitin and a rbust reflectin f the GCF s guiding principles thrughut its peratins. Seizing these pprtunities and addressing remaining plicy gaps and challenges is expected t be a cntinuus learning prcess. Cnsequently, the Bard has decided t set ut a strategic plan t guide the GCF as a cntinuusly learning institutin with a view t achieving its verarching bjectives utlined in the Gverning Instrument. In that sense, the strategic plan will be reflected in the develpment f the GCF's wrk plans. Furthermre, the strategic plan seeks t articulate t the wrld the visin and peratinal pririties f the GCF, thereby making it mre accessible t cuntries and strengthening its partnerships with natinal designated authrities/fcal pints and accredited entities. The draft strategic plan sets ut the Bard s strategic visin fr the GCF, which extends beynd the IRM perid, as well as cre peratinal pririties fr the IRM perid, which are substantiated by an actin plan. The actin plan is t be implemented ver the curse f the IRM perid, with its expected time frame f It serves t address plicy gaps and t invest the Fund s resurces in transfrmatinal climate actin in a cuntry-driven manner. The actin plan will be reflected in the Bard's annual wrk plans thrughut the remainder f the IRM perid. The GCF Bard intends t review the strategic plan as part f each replenishment prcess with a view t revising the strategic visin if and as needed and t update the cre peratinal pririties and underlying actin plan fr the cming replenishment cycle taking int accunt evlving pririties including COP guidance. 2. The Bard s Strategic Visin fr the GCF a. Prmting the paradigm shift twards lw-emissin and climate-resilient develpment pathways

3 Page 2 The GCF will supprt develping cuntries in the implementatin f the ambitius Paris Agreement, whse aim is t enhance the implementatin f the UNFCCC including by hlding the increase in the glbal average temperature t well belw 2 C abve pre-industrial levels and t pursue effrts t limit the temperature increase t 1.5 C abve pre-industrial levels, enhancing adaptive capacity and fstering resilience, and making finance flws cnsistent with a pathway twards lw greenhuse gas emissins and climate-resilient develpment. Based n its mandate defined in the Gverning Instrument, the GCF will d s by prmting a paradigm shift twards lw-emissin and climate-resilient develpment pathways in the cntext f sustainable develpment. The GCF is therefre challenged t turn this abstract visin int practice. While this dcument desn t strive t prvide a further definitin f the cncept f paradigm shift, ther than that already prvided in the GCF s Initial Investment Framewrk, Bard/Alternate members, in the Infrmal Bard Dialgue, highlighted the fllwing cmpnents as being imprtant: financing innvative prjects and prgrammes, inter alia supprting the applicatin and disseminatin f cutting-edge climate technlgies, which are characterized by the highest levels f mitigatin/adaptatin ambitin, that can be scaled-up and/r replicated r lead t fundamental changes in behavirs and/r investment patterns; prgramming resurces at scale while seeking t maximize impact as well as achieve a balanced allcatin between mitigatin and adaptatin activities and a particular fcus n supprting thse develping cuntries particularly vulnerable t the adverse impacts f climate change, including LDCs, SIDS and African States; ensuring full cuntry-wnership thrugh its peratinal mdalities and by prviding adequate supprt t build the required cuntry capacity; ensuring transparent and inclusive prcedures with respect t all GCF-related activities; and crwding-in and maximizing the engagement f the private sectr in financing and implementing the paradigm shift twards lw emissin and climate resilient develpment pathways. b. Supprting the implementatin f the Paris Agreement within the evlving climate finance landscape Develping cuntries Intended Natinally Determined Cntributins (INDCs) t the Paris Agreement are an imprtant reference pint fr the Fund s prgramming, as are Natinal Adaptatin Plans f Actin, Natinal Actin Plans, Technlgy Needs Assessments and Natinally Apprpriate Mitigatin Actins. The Fund will prvide supprt in terms f finance, capacity building and technlgy transfer. By taking a hlistic apprach and by ffering cuntries a menu f chices bth in terms f delivery channels and instruments, the Fund is well placed fr this task. T achieve maximum impact, the GCF shuld build n its cmparative advantages and perate in cherence with the existing climate finance institutins. These include its ability t: prgramme and manage financing at scale; engage in partnerships with bth public and private actrs at varius levels; take n risks that ther funds/institutins are nt able r willing t take, including risks assciated with deplying innvative climate technlgies; pilt and ptentially scale-up and replicate innvative appraches; deply the full range f financial instruments at its dispsal;

4 Page 3 leverage additinal financial inputs frm innvative and alternative surces; and leverage its status as an perating entity f the financial mechanism f the UNFCCC t set new standards with regard t cuntry wnership, direct access and level f ambitin impacting the glbal practice f climate finance beynd its immediate engagement. 3. Operatinal Pririties After nly its initial capitalizatin, the GCF is the largest dedicated multilateral climate fund with pledges amunting t US$10.3 billin fr the prgramming perid. Cnsequently, the Bard has set an aspiratinal apprval target f US$2.5 billin fr Furthermre, the Bard has decided that it will initiate a frmal replenishment prcess nce the Fund's cumulative funding apprvals exceed 60 per cent f the ttal cntributins, cnfirmed by fully executed cntributin agreements/arrangements, received during the IRM. The Bard envisages that it is likely t ccur by end-june These numbers exemplify the Fund s ambitin and ptential t supprt ambitius climate mitigatin and adaptatin actin in develping cuntries at unprecedented scale. What is crucial, hwever, is that the Bard s ambitin t get the Fund ff the grund and up t scale swiftly des nt cmprmise n its ambitin t prmte cutting-edge innvatin and real transfrmatin twards the lw-emissin and climate-resilient future that the glbal cmmunity cmmitted itself t in the Paris Agreement. Only by setting the highest standards in terms f ambitin and cuntry wnership, and by ensuring that the Fund s unique guiding principles are ingrained thrughut its prcesses including thse within its accredited entities frm the very beginning, can the Fund make the strngest pssible cntributin. Hence, cre peratinal pririties particularly fr the IRM perid will be: 1. allwing the GCF t scale up its investments in develping cuntries with the bjective f tapping its full ptential t prmte urgent and ambitius actins enhancing climate change adaptatin and mitigatin in the cntext f sustainable develpment; 2. maximizing its impact by supprting prjects and prgrammes that are scalable, replicable and emply GCF resurces in the mst efficient manner by, inter alia, catalyzing climate finance at the internatinal and natinal level, including by maximizing private sectr engagement; 3. setting ut the apprach f the GCF t prgramming and investing the full amunt pledged fr the prgramming perid, while striving t maximize the impact f its funding fr adaptatin and mitigatin, and t seek a balance between the tw; 4. ensuring that the GCF is respnsive t develping cuntries needs and pririties including by enhancing cuntry prgramming and direct access e.g. thrugh enhanced supprt fr accreditatin f NIEs, ensuring fast disbursement, implementing a gendersensitive apprach, supprting multi-stakehlder engagement, ensuring the effective use f funds and enhancing transparency; 5. practively cmmunicating the GCF s ambitin in terms f bth scale and impact as well as its peratinal mdalities with a view t enhancing predictability and facilitating access. 4. Actin Plan

5 Page 4 The actin plan lists key strategic measures that the Bard intends t prmte. These serve t implement the peratinal pririties identified abve 1. Mst measures cntribute t the achievement f mre than ne peratinal pririty. c. Priritizing Pipeline Develpment Cnsistent with Bard Decisin B.08/13 (Annex XIX, Para 27), the Fund will develp a pipeline against the ttal amunt f pledges. Priritizing the develpment f a pipeline f cuntrydriven, high-impact prjects and prgrammes has the ptential t (1) scale up investment t achieve this gal and meet the aspiratinal gal f cmmitting USD 2.5 billin in 2016, (2) allw fr a mre strategic apprach t prgramming the Fund s financial resurces t meet, amng ther things, the strategic bjectives f the GCF as well as the replenishment trigger f cmmitting 60 per cent f the ttal cntributins, cnfirmed by fully executed cntributin agreements/arrangements, received during the IRM and (3) enhance respnsiveness t cuntries needs and cuntry wnership 2. Thrugh its Readiness Prgramme and direct engagement with NDAs and AEs, the GCF has undertaken effrts twards further develping its pipeline. Additinally, nce the prject preparatin facility agreed upn at B.11 is fully peratinal, Accredited Entities will be able t apply fr funding f up t 10% f requested GCF funding and a maximum f US$1.5 millin fr feasibility studies etc. Hwever, t meet its strategic gals and address the assciated peratinal challenges, the GCF needs t significantly step-up its effrts and accelerate its pace t ensure that the pipeline meets the transfrmatinal ambitin f the GCF. In this regard, the current GCF readiness supprt fr develping cuntries must be significantly enhanced t establish and strengthen the capacity f their NDAs and NIEs and t prepare their cuntry prgrammes. Against this backgrund, supprting the develpment f a Fund-wide pipeline f transfrmatinal prjects and prgrammes that meet the Fund s investment criteria and allw the GCF t scale up its investment cmmensurate with the resurces available fr the IRM perid is f utmst imprtance. Hence, the Bard intends t priritize pipeline develpment by: prviding enhanced readiness supprt 3 by building n an analysis f (a) the shrtcmings r bttlenecks f the current readiness activities, (b) readiness needs in develping cuntries and (c) best practice and lessns learned frm current readiness activities t encurage peer t peer learning; fllwing a fcus strategy t engage and supprt NDAs/FPs in develping cuntry prgrammes, cncept ntes and funding prpsals that have the ptential t yield an impact at scale and cntribute t the implementatin f cuntries' pririties as identified in INDCs r ther natinal strategies and plans. facilitating and supprting a structured dialgue invlving the Secretariat, NDAs, relevant AEs, and ther cuntry stakehlders, including the private sectr, t develp cuntry prgrammes and determine which pririties identified by cuntry strategies (INDCs, LEDS, NAPAs, NAMAs, etc.) are the best match fr GCF supprt. The structured dialgue will aim t help NDAs t identify the best AE and ther 1 Nte that many f these strategic items will be linked with ther items n the Wrk Plan fr 2016, and will be referenced thrughut. The strategic plan will als be clsely linked with the Accreditatin Strategy and the Cmmunicatins Strategy, bth f which are scheduled fr cnsideratin at B.12, B.13 and B.14 2 Apprval f cuntry wnership guidelines are scheduled fr cnsideratin at B.12 3 Presentatin f simplified prcess fr readiness requests and review f the readiness allcatin system are scheduled fr cnsideratin at B.12

6 Page 5 partners and help them design prgramming that meets the investment criteria f the GCF. ffering NDAs a standardized template with questins guiding the develpment f cuntry prgrammes; allcating sufficient resurces fr the Readiness Prgramme and the respective Activity Areas; and speeding up the disbursement f funds already apprved under the Readiness Prgramme irrespective f the status f agreements with regard t P&I fr GCF staff. practively engaging in high-level cnsultatins with NDAs/FPs and AEs related t the identificatin f natinal r reginal pririties and prgrammes that meet the Fund's investment criteria; identifying pprtunities fr the GCF t add value by c-financing prjects and prgrammes tgether with the GEF, the Adaptatin Fund r Multilateral Develpment Banks. Particularly in the early stages f peratins, this might be a way f scaling up quickly and capitalizing n and learning frm the knwledge and experience f these institutins; making increased use f simplified RFPs aimed at the public and private sectr in cnsultatin with the NDAs/FPs targeting prmising and innvative appraches ensuring that successful RFP prpsals can demnstrate a viable path t accreditatin and plan t ensure cuntry wnership; develping replicable appraches and ptentially standardized prducts that wuld allw prven appraches t be rapidly rlled ut in new lcatins where they match pririties identified in cnsultatin with NDAs/FPs; and peratinalizing results-based payments fr REDD+ in line with COP guidance and the Gverning Instrument, evaluating the implementatin f results-based payments, and assessing its applicability t ther sectrs within the purview f the GCF. b. Strengthening the Fund s Practive and Strategic Apprach t Prgramming Strengthening its practive and strategic apprach t prgramming is key t delivering cuntrydriven and cuntry-wned, high impact public and private sectr prpsals at scale n a meeting-by-meeting basis. In rder t be able t d s, the Bard and the Secretariat must gain a better understanding f the bjectives f and funding requests frm develping cuntries, the prject and prgramme pipelines that NDAs/FPs and AEs are planning n submitting t the Fund, and remaining gaps that the Fund needs t address pr-actively. In additin t triggering pipeline develpment, a practive and strategic apprach t prgramming als requires the Fund t retain capacity t identify key pririties, appraches, and themes, as it evlves and better understands where it can add value. In this regard, the GCF plans t: request all accredited entities t submit annual r multi-annual wrk prgrammes, prepared in cnsultatin with NDAs/FPs. Accredited entities are encuraged t actively participate in the structured dialgues described in Sectin 4 (A) with a view t preparing future wrk prgrammes. These wrk prgrammes shuld be prepared based n a standard template t be prvided by the Secretariat. They shuld identify and describe the prjects, prgrammes and ther activities, their indicative csts, and hw they wuld be a gd fit fr the GCF, fr each f the cuntries that the respective AE intends t assist. The Secretariat will then cnslidate the annual wrk prgrammes int ne dcument t be submitted t the Bard fr infrmatin and discussin. The Bard will take this input int accunt fr

7 Page 6 planning purpses. As these wrk prgrammes are nn-cnclusive, AEs may submit prpsals, including in respnse t RFPs, which are nt included in their wrk prgrammes. carry ut a market survey f what is needed t supprt climate actin (e.g., an analysis f thse cuntry pririties in which cuntries have the mst difficulty attracting finance) and successes r innvative ideas that culd be built upn. This wuld help identify areas where cuntries have struggled t mbilize finance and figure ut hw the GCF culd address the relevant barriers, and hw t develp its plicies and expertise t d s. The survey culd als help define GCF RFPs and replicable appraches/standard prducts in the future. c. Enhancing Accessibility and Predictability 4 Fr thse seeking GCF supprt fr climate actin in line with cuntries needs and pririties as well as the Fund s investment framewrk, the Fund s resurces shuld be accessible at reasnable up-frnt cst and lw risk. In that sense, enhancing accessibility and predictability can make an imprtant cntributin t engaging a wide variety f stakehlders and t scale up investment. Thus far, the GCF has made effrts t enhance predictability and accessibility thrugh direct engagement with a wide range f stakehlders and brad presence and visibility in internatinal fra, particularly the UNFCCC negtiatins. Additinally, the Secretariat has directly engaged with NDAs and AEs with a view t further develping cncept ntes and funding prpsals in line with the Fund s investment criteria. Furthermre, the GCF has taken steps t enhance stakehlders understanding f the GCF s peratins and prcesses thrugh its updates t its website and by publishing the Elements bklet. Despite these effrts, the GCF s current pipeline demnstrates that many stakehlders are still hesitant t engage with the Fund. Thus, the GCF intends t strengthen its practive and strategic apprach t prgramming, thus enhancing predictability thrugh a mre transparent planning f its financial resurces (cf. Sectin B). survey stakehlders including NDAs, AEs, ther delivery rganizatins, PSOs and CSOs with a view t gain a better understanding f what the barriers fr engagement are. signal mre clearly what kinds f prjects and prgrammes it is lking t finance. This requires prviding imprved and cherent guidance n the Fund's investment criteria, risk appetite, standards and prcesses t be published n the website and cmmunicated thrugh the Fund s cmmunicatin channels and the Readiness Prgramme. Finalizing minimum benchmarks in line with decisin B.09/05 can further serve t enhance predictability and accessibility t the Fund s resurces. 5 streamline and, wherever apprpriate, simplify its prcesses and templates particularly fr micr-scale activities in LDCs and SIDS. revise the prpsal apprval prcess based n the review decided in B.11/11 and simplify prpsal apprval prcedures as apprpriate. d. Maximizing the Engagement f the Private Sectr T date, the GCF has established the Private Sectr Facility, has accredited three private sectr entities, decided t establish a MSME Pilt Prgramme wrth up t US$200m and a Private Sectr fcused Pilt Prgramme fr Mbilizing Funds at Scale wrth up t US$500m, and it has apprved tw private sectr prpsals with a GCF funding vlume f US$ Apprvals Prcess Review are scheduled fr cnsideratin at B.12 and B.13, and the further develpment f the initial prpsal apprval prcess are scheduled fr cnsideratin at B.13 5 Indicative minimum benchmarks are scheduled fr cnsideratin at B.13

8 Page 7 In rder t tap the full ptential f its unique features including the Private Sectr Facility, the Bard aims t crwd-in and maximize the engagement f the private sectr at the natinal, reginal and internatinal level in financing and implementing the paradigm shift twards lw emissin and climate-resilient develpment pathways in line with develping cuntry s needs and pririties. T this end, the GCF intends t: analyse barriers t crwding-in and maximizing the engagement f the private sectr, including based n a survey amngst private sectrs actrs. Cntingent n the findings f this analysis, the GCF intends t develp a private sectr utreach plan. recnsider the extensive recmmendatins already prvided by the PSAG, pertaining inter alia t the need t undertake actins t enhance the capacity within the Secretariat, t assess the accreditatin prcedures fr private sectr entities, t enhance private sectr invlvement within the readiness prgramme and t spell ut the GCF s ability t reduce currency risks. e. Building Adequate Institutinal Capabilities In rder t achieve its peratinal pririties, the GCF has t ensure adequate institutinal capabilities. In this regard, the Bard intends t further build and maintain a well-staffed Secretariat 6 that can deliver all f its functins as prvided in the GI, including risk management, mnitring and accuntability 7, readiness, managing RFPs, and the prject preparatin facility 8. The GCF will strive t attract and retain the high levels f expertise required t carry ut GCF peratins and retain institutinal knwledge ver time; imprve the efficiency f the Bard s prcesses, including decisin-making related t funding prpsals. Cnsideratins include the implementatin f simplified prcedures fr apprvals r the delegatin f funding-decisins fr certain kinds f prpsals, as well as by mandating a cmmittee t present recmmendatins n funding prpsals t the Bard; finalize the peratinalizatin f the three independent accuntability units, including prviding sufficient staff and resurces t carry ut their duties 9 ; review the rle and structure f panels and grups that prvide independent advice t the Bard t ensure that they remain cmplementary t the rle f the Secretariat, while als ensuring that Panels and Grups have the necessary resurces and expertise t cmplete their duties t the highest level 10 ; strengthen the rle f NDAs by prviding sustained supprt thrugh the Readiness Prgramme and facilitate the dialgue between NDAs and AEs by mre clsely defining their respective rles (including vis-à-vis the Fund) and by ffering a platfrm fr knwledge sharing and a marketplace fr ideas; and assess whether the rle f the interim trustee shuld be enhanced t facilitate the administrative executin f funding decisins. 6 Apprval f updated administrative budget and staffing as a decisin in between meetings (B.11-B.12) 7 Further develpment f sme indicatrs in the PMF are scheduled fr cnsideratin at B.12 and Adpt TR fr the independent evaluatin f the Readiness and Preparatry Supprt Prgramme are scheduled fr cnsideratin at B.14 8 Review f the Prject Preparatin Facility are scheduled fr cnsideratin at B.14 9 Appintment f the Heads f the Independent Accuntability Units including perfrmance based Cntracts are scheduled fr cnsideratin at B.12 (prgress reprt) and B.13, and Interim Redress Mechanism are scheduled fr cnsideratin at B.12 and B Apprve TR fr the Review f ITAP are scheduled fr cnsideratin at B.13 and Review f ITAP are scheduled fr cnsideratin at B.14, Apprval f TR fr the Budget Cmmittee, and electin f members are scheduled fr cnsideratin at B.12, and Adpt TRs and initiate the review f the Cmmittees and Grups are scheduled fr cnsideratin at B.14

9 Page 8 5. Prcess fr the implementatin/further develpment/revisin/update f the Strategic Plan The strategic plan fr the GCF is a living dcument, which the Bard intends t review as part f each replenishment prcess taking int accunt evlving pririties including COP guidance. The strategic plan will be reflected in the GCF Wrk Plans by prviding high level strategic guidance n hw individual items can better cntribute t the verall bjectives f the GCF, and n whether any curse crrectins are needed. Hence, t ensure the successful implementatin f the strategic plan, the Bard intends t cnsider the peratinal pririties and actin plan included in this dcument when cnsidering the related agenda items included in the Wrk Plan fr 2016, and subsequent Wrk Plans. Linkages between the strategic plan and the 2016 Wrk Plan are referenced in ftntes thrughut this dcument and include the accreditatin and cmmunicatins strategy, the Readiness Prgramme, the apprvals prcess, the investment framewrk, the risk management framewrk, independent accuntability units, GCF grups and panels, and staffing. As the strategic plan, particularly the peratinal pririties, is further updated and revised based n peratinal experience, new elements may need t be cnsidered by the Bard. The strategic plan will be used as a tl t identify such elements, t enable their inclusin in the relevant annual Wrk Plan.

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