GCF Board Paves Way for Mobilizing Resources
21 May 2014: At its seventh meeting, the Green Climate Fund (GCF) Board took the final steps necessary to operationalize the Fund and begin mobilizing resources. The Board adopted decisions on results management, the initial process for approving proposals, accreditation of implementing entities and risk management.
The Board, which consists of 24 members, 12 from developing countries and 12 from developed, met in Songdo, South Korea, from 18-21 May 2014. The agenda centered around the six elements remaining from the sixth board meeting (held in Bali, Indonesia in February 2014) that were needed for the operationalization of the GCF.
The Board addressed the accreditation process for international, regional and national implementing entities, taking into consideration environmental and social safeguards and fiduciary standards. Board Members also agreed on: the initial proposal approval process, including the criteria for receiving funding; a mitigation and adaptation results management framework; and financial risk management and investment frameworks.
The meeting was co-chaired by Manfred Konukiewitz (Germany) and Jose Maria Sarte Salceda (Philippines). Konukiewitz expressed satisfaction with the progress made at the meeting, noting that with the decisions taken, the Board Members have "designed the fund to be ambitious and effective."
Salceda noted that while the negotiations were tough, the Board had shown its determination to make GCF a vital partner in developing countries' adaptation efforts. He stated that the decisions taken at the meeting demonstrate that the GCF "can and will succeed."
Commenting on the results of the meeting, UNFCCC Executive Secretary Christiana Figueres called for the speedy capitalization of the Fund, which, she said, should amount to at least US$10 billion. Figueres further emphasized that governments should make full use of the Fund, instituting international joint initiatives eligible for financing.
The GCF was established as an operating entity of the financial mechanism of the UNFCCC. Once operational, it will support developing countries as they pursue low-carbon, climate-resilient development. Fifty percent of the funds will be dedicated to adaptation and 50% will go toward mitigation. [GCF Press Release, 21 May 2014] [GCF Press Release, 17 May 2014] [UNFCCC Press Release] [GCF Seventh Board Meeting Agenda] [IISD RS Story on Sixth GCF Board Meeting]