Draft Green Climate Fund Governing Instrument Forwarded to Durban
18 October 2011: The fourth meeting of the Transitional Committee (TC 4) for the design of the Green Climate Fund (GCF) aimed to conclude discussions for the design of the GCF ahead of the 17th session of the Conference of the Parties (COP 17) to the UNFCCC, scheduled to take place in Durban, South Africa, at the end of 2011.
During the meeting, which was held from 16-18 October 2011, in Cape Town, South Africa, participants identified issues for further discussion, including: the objectives of the GCF; the GCF's guiding principles; the fiduciary standards of members of the GCF board, including whether new standards should be developed or whether existing standards should be used; selection or appointment of members of the GCF board; relationship between the GCF and the COP, particularly whether the GCF would be under the authority of, and accountable to, the COP; operational modalities of the GCF board; allocation of funds under the GCF; direct access to funds; leveraging of funds for the GCF; complementarity; the GCF's legal form and status; transitional arrangements; the role of the private sector; funding windows; the independence of the GCF; and the ambition and purpose of the GCF.
Delegates considered a document containing the draft report of the Transitional Committee to the COP and the draft governing instrument for the GCF. The final outcome of the meeting consisted in the report of the Transitional Committee to the COP (TC-4/3), forwarded to COP 17 for its consideration and approval, containing the report of the Transitional Committee, the Committee's draft recommendations to the COP and the draft governing instrument for the GCF. Both the recommendations and draft governing instrument were considered, but not adopted, by the Transitional Committee.
In the draft recommendations from the Committee suggest that COP 17 should: take note of the report of the Committee; approve the governing instrument of the GCF as contained in Annex I of the report; request the UNFCCC Executive Secretary to invite regional groups and constituencies to nominate their Board members; request the Executive Secretary to invite parties to submit expressions of interest to host the GCF; invite voluntary contributions for the start-up of the GCF; request the Executive Secretary to set up an interim secretariat immediately after COP 17 to provide technical, administrative and logistical support to the Board; set the date for the first meeting of the Board; and consider the process for selection of trustee of the GCF.
The draft governing instrument for the GCF outlines the GCF's objectives and guiding principles, stating that in the context of sustainable development, the objective of the Fund is to promote the paradigm shift towards low-emissions and climate-reslient development pathways. It also outlines the GCF's governance and institutional arrangements, including its relationship to the COP and legal status, as well as the GCF board's rules of procedure, and roles and functions. In addition, the instrument outlines the rules relating to the GCF's: administrative costs; financial inputs; operational modalities; financial instruments; monitoring and evaluation; fiduciary standards; environmental and social safeguards; accountability mechanisms and termination. [Meeting Webpage] [TC-4 Report to COP 17] [IISD RS Briefing Note]