The Importance of Involving Stakeholders in the Green Climate Fund

1. ecbi The Importance of Involving Stakeholders in the Green Climate Fund LDC/ecbi Reception for the Green Climate Fund Hotel Bristol, Geneva, 24 August 2012 Benito Müller and Anju Sharma european capacity building initiative initiative européenne de renforcement des capacités for sustained capacity building in support of international climate change negotiations pour un renforcement durable des capacités en appui aux négociations internationales sur les changements climatiques

2. Background 47. Recipient countries will nominate competent subnational, national and regional implementing entities for accreditation to receive funding. The Board will consider additional modalities that further enhance direct access, including through funding entities with a view to enhancing country ownership of projects and programmes. “AccreditedImplementing Entities” means the national legal entities and multilateral organizations that have been accredited by the GCF Board as meeting its criteria for accessing funding in order to implement eligible activities approved by the GCF. “AccreditedFunding Entities” means the national legal entities and multilateral organizations that have been accredited by the GCF Board as meeting its criteria for accessing funding in order to approve and fund eligible activities. “Accredited Entities” means entities accredited by the GCF, such as accredited implementing entities or accredited funding entities. “(Enhanced) Direct Access” means access to GFC funds through accredited (funding) entities of recipient countries.

3. Enhanced Direct Access − Subsidiarity

4. Enhanced Direct Access − Why? • legitimacy, • effectiveness, and • efficiency 400p/$bn 250p/$bn

5. The Bangladesh Climate Chance Resilience Fund Enhanced Direct Access − How? Council Chair: Minister of Environment and Forests (MOEF), Council Secretary: Secretary MOEF

6. The Role of (local) Stakeholders Although the importance of stakeholder involvement and ownership in funding decisions is widely recognised, it has not been sufficiently operationalised by existing financial entities. Most of them have some level of participation by global stakeholders, but hardly any (certainly not enough) by local stakeholders, whose lives are most affected by the funded activities. They focus on ‘horizontal’ stakeholder participation (at the global level) rather than strengthening vertical participation (at the national and local level).

7. The Role of (local) Stakeholders The GCF should internalise lessons learnt by the other entities from the very start, and make a strong stakeholder process a key element in the design of the GCF. Three key aims should be kept in mind: • To establish strong ‘bottom-up’ stakeholder networks and links between the entities that take decisions on which activities are to be funded, and national and local stakeholders whose lives will be affected by the funded activities. • To consider ways in which stakeholder participation (in identifying, planning, implementing and monitoring funded activities) can be adequately funded, without compromising their important role as a watchdog. • To ensure that there are easily accessible ‘redress mechanisms’ at every level of decision-making, to which stakeholders can take their grievances.