Update and Opportunities for National Development Banks

1. Update and opportunities for National Development Banks Ousseynou Nakoulima, Chantal Naidoo & Louise Brown 7 October 2014

2. Origins of the Fund & purpose • Established by UN Climate Change Framework Convention (2011) • Global Purpose • make significant & ambitious contribution to combating climate change • promote paradigm shift towards low carbon climate resilient development pathways • Offering • provide supportto developing countries, taking into account especially needs of countries particularly vulnerable

3. Governance & Management • Legal persona with immunities and privileges as required • Board from developed/developing countries with 4 observers (2 each from civil society and private sector) • Secretariat: Executive Director and 3 Directors and full-time staff • Trustee: World Bank manages financial assets • Host country: Korea HQ in Songdo

4. Key features of the Fund

5. Current Progress & Status: 2014 • Investment Framework: Includes paradigm shift and sustainable development, • Allocation Framework: 50/50 Mitigation and Adaptation (with 50% being LDCs, SIDS and Africa)

6. Country Interface with the Fund: National Designated Authority • Can develop strategic country work program on a periodic basis to identify priorities for the Fund and preferred implementing entities • Endorses implementing entities through which the country will access the Fund • Participates in the development of proposals for funding by the Fund • Participates in pre-screening of project concepts alongside the secretariat - concept submission is optional • Can “object” to proposals that do not align with national priorities and needs • Is informed of the outcome of board decisions • Should keep abreast of program implementation and progress

7. Opportunity for National Development Banks: National Implementing Entities • This enables a country to access through its national institutions financial support directly from the Fund • Indicative roles and responsibilities • Origination and preparation of a funding proposal • Management and oversight of the implementation process • Monitoring and reporting on progress • Work directly/through other intermediaries to channel financial instruments to beneficiaries • Blending Fund, own and other resources to maximise impact • Accreditation required - compliance with standards and safeguards

8. Accreditation: Current status • Guiding framework on accreditation (7th Board meeting approved) • Provides for national and international implementing entities (direct/indirect access) – • For direct access - NDA and NIE partnership and support critical • Three stage assessment process through an Accreditation Panel • Key information to be assessed throughout accreditation process • Programme/project capabilities (e.g. size & types of risks managed) • Fiduciary standards • Environmental and social safeguards • Intended use of Fund resources • Existing accreditations with the GEF and/or Adaptation Fund may facilitate a faster accreditation process

9. Readiness & Preparatory Support • Purpose: Enabling countries to prepare to directly access the Fund and available on request – areas defined through interactive engagement

10. Immediate opportunities for NDBs • Early and continuous engagement with national NDA as potential National Implementing Entities – secure partnership • Determine the current profile of climate projects being funded - financial value and types of risk being assumed e.g. large/small scale • Consider intention and potential use of the Fund resources e.g. programme development, product innovation, intermediary • Assess capabilities of institution against Fund requirements & define areas of support needed • Governance: environmental & social safeguards (IFC) and fiduciary standards (refer Board decisions www.gcfund.org) • Pipelines: Investment & Allocation frameworks

11. Key contact details Readiness & Preparatory Support Yun Yang readiness@gcfund.org Accreditation enquiries Stephanie Kwan accreditation@gcfund.org