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Comprehensive Introduction to the Green Climate Fund and Its Impact

Explore the Green Climate Fund's role, structure, climate mitigation and adaptation strategies, project types, history, and participatory monitoring and evaluation processes for civil society engagement.

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Mengol Training and Consultancy Services Abraham Lebeza MEL Expert Email:- lebezaalemu@gmail.com
Mengol Training and Consultancy Services In this introductory course on the Green Climate Fund, you will gain a better understanding of: • What the Green Climate Fund is, what it has been set up for, and why it is unique • International and National level GCF structures • The Green Climate Fund's approach to civil society engagement, gender and social inclusion • The key features of Monitoring & Evaluation in the GCF and how civil society can engage in GCF Monitoring & Evaluation processes
Mengol Training and Consultancy Services The Green Climate Fund (GCF) is the world’s largest climate fund and a critical element of the historic Paris Agreement. It is mandated to support developing countries raise and realize the ambition of their Nationally Determined Contributions (NDCs) towards low-emissions, climate-resilient pathways. Given the urgency and seriousness of the climate crisis, GCF is mandated to make an ambitious contribution to the united global response to climate change.
Mengol Training and Consultancy Services What is the green climate fund? The Green Climate Fund (GCF) is the world’s largest climate fund. It is an important operating entity of the Financial Mechanism of the UNFCCC based in Songdo, Incheon City, Republic of Korea. It was established by 194 governments to assist developing countries in mitigation and adaptation practices to counter climate change. To this end, the GCF invests in low-emission and climate-resilient development in order to limit or reduce greenhouse gas (GHG) emissions in developing countries, and to help vulnerable societies adapt to the unavoidable impacts of climate change.
Mengol Training and Consultancy Services other multilateral climate funds see the Adaptation Fund and the Global Environment Facility (GEF).
Mengol Training and Consultancy Services The GCF plays a key role in serving the Paris Agreement, providing climate finance to developing nations to help realize their climate ambitions. The GCF is mandated to support developing nations respond to climate change through implementing their Nationally Determined Contribution (NDC) ambitions towards low-emissions, climate-resilient pathways to limit global warming to well below 2 degrees Celcius, preferably to 1.5 degrees Celsius, compared to pre-industrial levels. Climate change is affecting people’s daily lives putting them at risk of damaging their health and livelihoods. The GCF was created to support vulnerable societies mitigate and adapt to climate change in order to attain the global goals set by the international community to combat climate.
Mengol Training and Consultancy Services Mitigation and Adaptation are two main responses to climate change: Mitigation:-The first response is to limit the phenomenon itself by controlling its causes: the increase of human-caused greenhouse gas emissions (GHG). This is called MITIGATION and refers to all the actions that help reduce emissions or enhance the sinks of emissions (such as forests or wetlands). Adaption:-The second response is taken because we failed to act early enough to mitigate all GHGs and limit climate change impacts. ADAPTATION refers to all the actions that help manage the current and future impacts of climate change.
Mengol Training and Consultancy Services Climate change mitigation consists of human interventions that reduce the sources or enhance the sinks of GHG emissions (Source: IPCC) - Glossary). GHG emissions include: Carbon Dioxide (CO2) - main sources: fossil fuel combustion, deforestation, cement production Methane (CH4) - main sources: fossil fuel production, agriculture, landfills Nitrous Oxyde (N2O) - main sources: fertilizer application, fossil fuel and biomass combustion, industrial processes Chlorofluorocarbon-12 (CFC-12) and Hydrofluorocarbon-23 (HFC-23) - main sources: refrigerants (air conditioning, fridge/freezer) Be careful: The word mitigation is also used in Disaster Risk Reduction work to describe "the lessening or minimizing of the adverse impacts of a hazardous event" that could be climate-related or not (for example, an earthquake). According to the IPCC (Intergovernmental Panel on Climate Change) Adaptation refers to "the process of adjustment to actual or expected climate and its effects. In human systems, adaptation seeks to moderate or avoid harm or exploit beneficial opportunities." Humans will need to adapt to many different impacts, including but not limited to: more frequent and/or intense climate hazards such as droughts, floods, dry spells, and hurricanes; temperature increases; glaciers melting; ocean acidification and temperature rise; sea-level rise; unpredictable rainfalls and shortening rainy seasons.
Mengol Training and Consultancy Services Types of adaptation and mitigation projects across the GCF portfolio. The GCF’s overall objective is to promote a “paradigm shift towards low-emission and climate-resilient development pathways by providing support to developing countries to limit or reduce their greenhouse gas emissions and to adapt to the impacts of climate change.” Thus, the GCF is designed to: Fund ambitious climate action. This entails a complex shift of policies, procedures and proposals with the ambition beyond what is already funded by existing multilateral and other climate funds. Specifically address the needs of developing countries that are particularly vulnerable to climate change effects. Hence, the fund’s target is to split its funding equally between mitigation and adaptation. Within the adaptation framework, it aims to spend at least 50 percent of its funding on those developing countries that are particularly vulnerable, such as the Least Developed Countries (LDCs), Small Island Developing States (SIDS) and African countries. GCF aims to deliver a 50:50 balance between mitigation and adaptation allocations in its portfolio, and ensure that at least 50% of adaptation funding goes to particularly vulnerable countries, including LDCs, SIDS and African States.
Mengol Training and Consultancy Services Adaption Mitigation Livelihoods of peoples , communities and regions Low emission energy and security Health and wellbeing of people, food and water security Low-emission modes of transport Infrastructure and built environment Building, cities , industries , appliances energy intensity Ecosystems and related services Land use and forests
Mengol Training and Consultancy Services Green Climate Fund history timeline 2009 The general concept for GCF is first proposed at the Conference of the Parties (COP) to the UNFCCC in Copenhagen, Denmark (COP 15). 2010 The COP in Cancun, Mexico (COP 16), decides to establish GCF. 2011 The Governing Instrument for the Green Climate Fund (GCF) was officially approved and adopted by the UN Framework Convention on Climate Change (UNFCCC) Conference of the Parties (COP 17) in Durban, South Africa, on December 11, 2011, under Decision 3/CP.17. 2012 GCF’s governing Board holds its first meetings. The Board is equally balanced with members from both developed and developing countries. 2013 GCF’s first Executive Director Héla Cheikhrouhou is appointed. The Fund establishes its permanent headquarters in Songdo, Republic of Korea, in December 2013.
Mengol Training and Consultancy Services Green Climate Fund history timeline 2014 Following the establishment of its operational principles and guidelines, GCF commences its initial resource mobilization, raising over USD 10 billion equivalent by the end of the year. Initial mobilization lasts until 2018, while the Fund remains open for further contributions during this time from both public and private sources. 2015 Initial mobilization lasts until 2018, while the Fund remains open for further contributions during this time from both public and private sources. 2015 The first investment decisions are taken, including both mitigation and adaptation projects, meeting the target set by the UNFCCC in advance of the Paris COP21. 195 countries agree to the historic Paris Agreement, which GCF now serves as a financial mechanism of the Convention.
Mengol Training and Consultancy Services Green Climate Fund history timeline 2016 2016 marks GCF’s first full year of operations, with the Fund developing a project portfolio of 35 projects, worth over USD 1.5 billion by the end of the year, to be implemented by its 48 Accredited Entities. 2017 The GCF made great strides in accelerating climate action on the ground, with 19 projects under implementation by the end of the year, totaling USD 633 million in GCF resources. 2018 With over USD 5 billion in resources committed to climate change projects, GCF launches its first ever replenishment. 2019 Contributors have pledged more than USD 9.8 billion for the GCF-1 programming period.
Mengol Training and Consultancy Services Participatory Monitoring and Evaluation Participatory Monitoring & Evaluation (PME) is a process through which stakeholders at various levels engage in monitoring or evaluating a particular project, program or policy, share control over the content, the process and the results of the monitoring and evaluation (M&E) activity and engage in taking or identifying corrective actions.
Mengol Training and Consultancy Services Participatory Monitoring and Evaluation (PME) focuses on the active engagement of primary stakeholders. The Green Climate Fund (GCF) requires that financed programmes, projects and activities are regularly monitored for impact, efficiency and effectiveness in line with rules and procedures established by the Board. The Green Climate Fund encourages the use of participatory monitoring involving targeted stakeholders and calls on Accredited Entities (AEs) to include at the project/programme level participatory monitoring approaches. This translates into the expectation that they involve communities and local stakeholders, including civil society organizations (CSOs), at all stages of the project/programme cycle. Monitoring and evaluation play a key role in tracking the GCF’s progress in moving towards its overall goal and in assessing the different criteria laid out in its investment framework and other guiding policies and frameworks. .
Mengol Training and Consultancy Services Principles of Participatory Monitoring and Evaluation (PM&E) focuses on monitoring (tracking and feedback), evaluation (valuing and performance review) as well as strengthening and deepening participation (shared learning, joint decision making, mutual respect, co-ownership, democratisation and empowerment).
Mengol Training and Consultancy Services Principles of Participatory Monitoring and Evaluation (PM&E) Participatory Monitoring and Evaluation (PM&E) is an inclusive approach where stakeholders—especially primary beneficiaries—actively engage in tracking and assessing a project's progress, rather than just acting as sources of data for outside experts. It shifts the focus from top-down control to local empowerment and shared learning.
Mengol Training and Consultancy Services Green Climate Fund history timeline Participation PME through stakeholder analysis and engagement ensures active participation of multi-stakeholders ranging from community beneficiaries (target and impact groups), community structures, government sectors, private sector, NGOs and CSOs Networks. PM&E offers new ways of assessing and learning from change that are more inclusive, and more in tune with the views and aspirations of those most directly affected. In order to achieve the intended goal of inclusiveness, PME practices are participative and responsive to feedback. Learning Participatory processes lead to learning among all participants which, when shared, leads to corrective action and subsequent program improvement (Rossman, 2015; Guijt & Gaventa, 1998). The emphasis is on practical or experiential learning. Considering that multi-stakeholder participatory M&E might be a new field for some stakeholders to be involved, developing a strategy to stimulate individual and collective learning and strengthen capacity for the process is necessary.
Mengol Training and Consultancy Services Green Climate Fund history timeline Negotiation PM&E requires negotiation to reach agreement about who will participate, what will be monitored or evaluated, how and when data will be collected and analysed, how findings will be shared, and what action will be taken. Flexibility PME is flexible and adaptive according to project-specific circumstances and needs. Flexibility is required on issues associated with developing indicators as well as combining different approaches and methods.
Mengol Training and Consultancy Services CF Evaluation Principles The Green Climate Fund (GCF) evaluation principles are the core tenets that ensure all assessments—whether conducted by the Independent Evaluation Unit (IEU), the Secretariat, or Accredited Entities (AEs)—are credible, transparent, and aligned with international development standards.  Impartial, Objective, and Unbiased: Evaluations must be operationally and analytically impartial. They must adhere to the highest ethical standards and policies addressing conflicts of interest.  Credible, Rigorous, and Evidence-Based: Evaluations must rely on high-quality data and robust methodologies, prioritizing the production of state-of-the-art evidence and actionable recommendations  Relevance, use and Participation  Credibility and rouboustness  Transparent and Participatory: The evaluation process should involve relevant stakeholders—including local communities, project partners, and National Designated Authorities (NDAs). Findings and methodologies must be accessible to promote openness.  Theory of Change (ToC) Driven: Evaluations must assess whether the funded activities effectively promote a paradigm shift toward low-emission and climate-resilient development, closely following the project's logic and ToC.  Learning and Accountability: Evaluations are designed to achieve a dual purpose: holding implementers accountable for results (both intended and unintended) and drawing lessons learned to improve future programming.  Gender-Sensitive and Human Rights-Based: GCF evaluations embed principles of equity, ensuring they measure impacts on gender equality, vulnerable groups, and local environmental safeguards.  National Ownership and Capacity-Building: Evaluations should respect national contexts and help strengthen the evaluation and monitoring capacities of developing countries.
Mengol Training and Consultancy Services CSO Engagement in GCF Project M&E Since 2015, the GCF moved from its design phase into its operational phase, the national processes are becoming more and more important. Civil society organisations in recipient countries must engage in dialogue with their national governments on how and where to allocate the funds. CSOs should also play a central role in monitoring future GCF-funded projects in terms of their effectiveness and possible negative social and environmental impacts on the ground. What we see so far in many countries, however, is very little civil society engagement with national governments in relation to climate finance and the GCF. This lack of engagement is mirrored at the international level, where there has been a continuous lack of participation of Southern CSOs in GCF Board meetings.
Mengol Training and Consultancy Services CSOs can engage with the GCF's M&E at the international level and national level through various avenues. • Attending a GCF Board meeting The GCF Board convenes three a year. These Board meetings provide opportunities for CSOs to speak with the Board members individually or as part of activities organised by the co-chairs such as lunch meetings where CSOs are invited to join and give their input. However, the costs of attending one or more Board meetings abroad (two of which are always held at headquarters in Songdo) is prohibitive for many Southern CSOs, especially for small grassroots organisations that work directly with people affected by climate change. More information about procedures to become an accredited observer can be found in the Observer section on the GCF website. • Become part of official monitoring structures or bodies at project level through the AE or EE. This will give the CSO’s a good chance to understand what’s happening with different projects and strategically help and understand every detail of the projects. • Support the inclusion of representatives from the communities in any monitoring and evaluation efforts by the AEs and/or the GCF to enhance transparency and participation in the whole process. • Take part in annual reviews of the GCF portfolio in countries to get updates and information on what’s happening in the GCF Portfolio. • Conduct independent CSO monitoring and assessments of GCF funded projects or programmes. • Face-to-face meetings can be done any time if there is a need and availability of the persons to be met. Mostly, these meetings are varied depending on needs and agenda for discussion.
Mengol Training and Consultancy Services Purpose of participatory CSO GCF M&E activities • Ensure that GCF-funded projects and programmes promote a shift towards low-carbon emissions and climate- and disaster-resilient development through the implementation of locally appropriate and gender-sensitive measures. • Ensure that the focus of these activities is in line with national priorities and strategies, like NDCs, National Adaptation Plans and Programmes of Action and broader sustainable development priorities, as well as locally defined ones. • Promote accountability towards the communities and people directly affected by the GCF- funded activities by ensuring that they are informed, they are heard and that project/programme outcomes are meaningful and relevant to them, and do not result in negative social and environmental impacts. • Promote a learning process that includes both the communities and CSOs involved, as well as national authorities, implementing entities and the GCF. This will include bringing in local knowledge from project partners and targeted communities with regards to concrete project needs as well as observations from CSO monitoring into GCF implementation.
Mengol Training and Consultancy Services Relevant definitions as stated in the GCF Evaluation Policy. Accountability Acceptance of responsibility by the GCF and its partners for achieving (or not) the objectives of the GCF, as contained in the Governing Instrument (GI). Capacity development Supporting the development of the competencies and abilities of GCF stakeholders and partners on how to measure and evaluate climate change adaptation and mitigation investments. Conflict of interest Evaluators are required to disclose in writing any past experiences of themselves, or of their immediate family, which may give rise to a potential conflict of interest, and to deal honestly in resolving any conflict of interest which may arise (based on the UNEG Code of Conduct for Evaluation in the UN System, 2008). Data All relevant GCF facts and information, including electronic data and documents. Secondary data is found in documentation from the AEs and other project partners, governments, research institutions, market data and other outside sources. Primary data is drawn from various sources, including interviews with key stakeholders, focus group discussions, field visits to project sites, direct observation, etc. The monitoring function provides valuable data for evaluation. Evaluation Assessment of an intervention or group of interventions to determine what works and what does not, for whom, how much, why, and under what circumstances.
Mengol Training and Consultancy Services Evaluation Assessment of an intervention or group of interventions to determine what works and what does not, for whom, how much, why, and under what circumstances. Evaluative evidence Presentation of data and facts generated through an assessment process conducted either by the Independent Evaluation Unit (IEU)the Secretariat, the independent units of AEs or independent evaluators. There are five types of evaluative evidence: evaluations, impact assessments, reviews, studies and syntheses. GCF evaluation criteria The overall evaluation criteria laid out in the approved terms of reference of the IEU. These include: (i) relevance, effectiveness, efficiency, impact and sustainability of projects and programmes; (ii) coherence in climate finance delivery with other multilateral entities; (iii) gender equity; (iv) country ownership of projects and programmes; (v) innovativeness in result areas; (vi) replication and scalability; and (vii) unexpected results, both positive and negative. The evaluation criteria also take into account the requirements of the monitoring and accountability framework (MAF).
Mengol Training and Consultancy Services GCF stakeholders Green Climate Fund stakeholders include the Board and its appointed bodies and groups, the Conference of the Parties (COP), the United Nations Framework Convention on Climate Change (UNFCCC), the [GCF] Secretariat, the IEU, the independent Redress Mechanism, the Independent Integrity Unit (IIU), accredited entities (AEs), national designated authorities (NDAs), civil society and the private sector. Monitoring and Accountability Framework (MAF) A structure of processes, reporting and consultations required of various GCF stakeholders with respect to tracking and monitoring results, stakeholder commitments, and resources invested by the GCF in GCF funded activities. The MAF has two components: (i) monitoring of AE compliance with the accreditation standards of the GCF; and (ii) monitoring and evaluation (M&E) of individual funded interventions (projects or programmes). Monitoring is a continuing process that collects and analyses data or information from Fund-supported projects/programmes to identify progress on activities and expected results. The GCF encourages participatory monitoring.
Mengol Training and Consultancy Services The Commonwealth Climate Finance Essentials E- learning Course MODULES  Climate Finance Proposal I  Climate Finance Proposal I (Key Tools and Methodologies for Project Development)  Tools for Determining Project Economic and Financial Viability  Environmental and Social Safeguards Framework
Mengol Training and Consultancy Services What is Climate Finance? According to the United Nations Framework Convention on Climate Change (UNFCCC), climate finance refers to: Local, national, or transnational financing drawn from public, private, and alternative sources that seeks to support mitigation and adaptation actions to address climate change.
Mengol Training and Consultancy Services Barriers to Accessing Climate Finance Deficit in access to development finance – For developing countries, particularly SIDS and LDCs most vulnerable to climate change, access to concessional financing remains a global challenge. Although climate and economic vulnerability have increased their needs, rules regarding things such as income graduation and official development assistance (ODA) exclude many SIDS from accessing affordable finance; this makes it increasingly difficult to enable critical resilience efforts in the developing world. Limited human and institutional capacity – A common constraint in many developing countries is the limited availability of human resources and technical capacities to identify available funding lines and to design, develop and advance project proposals, the modalities and processes through the various stages and processes required. This limited capacity to effectively present comprehensive activities, outputs, and impacts of project concepts in each fund’s logical framework hinders the ability of countries to fully access diverse sources of finance. There are also capacity constraints on the implementation side of climate finance projects, leading in some cases to significant under-spending and poor or delayed progress of approved projects. This also extends to the monitoring, reporting, and verification (MRV) aspect of climate finance.
Mengol Training and Consultancy Services Barriers to Accessing Climate Finance Meeting procedures and standards required by global funds – The multi-step accreditation processes associated with multilateral funds often include demanding criteria and process inconsistency across funding lines. This presents a significant challenge, particularly for the developing countries most in need of financial support. Strong national institutions that can meet the robust fiduciary standards necessary for direct access are, in many cases, not available. Many recipient countries experience difficulties in finding or developing organisations that meet the required staffing, expertise, experience, and internal controls to become an implementing entity.1 Limited availability of data required to support project proposals – The most climate-vulnerable countries are often burdened with data gaps, including inadequate historical climate data and socio- economic statistics for future projections. This is often due to the absence of climate models and systems that can gather and store such data, as well as limited technical expertise for their interpretation, which can further limit countries’ ability to provide accurate justification in developing financing proposals.
Mengol Training and Consultancy Services Barriers to Accessing Climate Finance Regulatory frameworks for attracting private and public finance – Private sector finance can substantially supplement ODA and other external multilateral climate funding lines to develop climate-resilient economies. In developing countries, there is often a misalignment of policy, legal and regulatory frameworks that do not create an enabling environment for private sector engagement. Moreover, inefficient monitoring of public climate finance flows can further inhibit private sector involvement and access to other funding sources. Limited resources for the development of national climate policies – Many member countries have limited capacity to establish broad, effective national climate policies that can support access and utilisation of climate finance across various sectors and stakeholders. This can impose significant constraints, delaying the flow of in-country finance and the rate of project implementation.
Mengol Training and Consultancy Services Climate Finance Proposals There are two main steps in the process of developing climate finance proposals: Step 1: Climate Finance Screening The first step in the project development process involves determining whether a project or programme is eligible for climate finance. This means assessing whether the initiative has a measurable adaptation and/or mitigation focus and determining its sectoral impacts. Step 2: Identification and Selection of Relevant Financing Sources While increasing numbers of climate funding sources are available, this does not directly translate into easier access for developing countries. In order for governments to accurately identify the right sources of climate finance, it is critical that they have an understanding of :(available funding source, The requirements of each funding source and The situational context of recipient countries)
Mengol Training and Consultancy Services Generally, there are two types of projects: 1. Projects that are concerned with adaptation or mitigation 2. Projects that integrate adaptation and mitigation elements into ongoing projects or programmes, such as climate proofing of sectoral schemes Climate proofing is the process of integrating climate change mitigation (reducing greenhouse gas emissions) and adaptation (preparing for extreme weather) into the design, location, and operation of assets. It ensures buildings and infrastructure withstand climate risks and remain functional over their lifespans.
Mengol Training and Consultancy Services ‘incremental cost’ according to the Green Climate Fund (GCF) refers the additional project expenses incurred for any added mitigation and adaptation components relative to a hypothetical baseline project. Conducting a barrier assessment is also a useful activity to understand the feasibility and viability of a project. Conducting climate vulnerability assessments in national and sub-national plans can assist in the climate finance screening process.
Mengol Training and Consultancy Services Process for identifying and selecting suitable climate finance sources Develop a clear understanding of country needs and context Assess domestic institutions' roles and capacities in accessing and channelling climate finance. Have clear mitigation and/or adaptation needs outlined in policy, including NDC and national adaptation priorities, sectoral actions, and consideration of relevant stakeholders. Analyse national climate budgeting systems to ensure they meet the required standards of climate funds. An additional benefit in obtaining a clear understanding of the country’s climate finance context is that it provides a basis for identifying innovative financing instruments — including blended finance facilities, debt-for-nature swaps, and equity funds — that may be applicable to the country’s climate financing landscape. Obtain a clear understanding on relevant financing sources Compile and assess detailed information on the potential finance sources available at the bilateral, multilateral, and private sector levels. Compile a national inventory of relevant climate funds, including details of funding windows, standards, and allocation limits. Select suitable financing channels Compare access modalities (direct and/or international) for climate funds to existing national structures and systems, ensuring compatible fiduciary, environmental, and social standards. Based on this assessment, select the type of access modality that is most relevant to the country's context. Summery Successfully accessing climate finance funding depends on a country's understanding of the available sources, the country's ability to meet their requirements, and a clear understanding of the local needs and priorities towards climate change.
Mengol Training and Consultancy Services 'There are three steps for determining whether an intervention is climate change relevant.‘ The three questions to consider are: • Does your project have an adaptation and/or mitigation focus? • Will the project result in measurable adaptation impacts and/or mitigation impacts or both? • Is financing required for the incremental cost associated with addressing climate change?
Mengol Training and Consultancy Services 'An initiative should be assessed for measurable adaptation and mitigation impacts to determine whether a project is eligible for climate finance.‘ This statement is true. An initiative should be assessed for measurable adaptation and mitigation impacts to determine whether a project is eligible for climate finance. For adaptation, this means a change in loss of lives, value of physical assets, livelihoods, among others. For mitigation, this means the intervention should results in emission reduction in tonnes of carbon dioxide equivalent.
Mengol Training and Consultancy Services Global Environment Facility The Global Environmental Facility (GEF) administers several funds,including:  The GEF Trust Fund  The Least Developed Countries Fund (LDCF)  The Special Climate Change Fund (SCCF)  The Capacity-Building Initiative for Transparency (CBIT)
Mengol Training and Consultancy Services The GEF Trust Fund supports the implementation of multilateral environmental agreements and serves as a financial mechanism of the UNFCCC.2 It has multiple focused initiatives, including the Small Grants Programme, which promotes community-based innovation, capacity development, and the empowerment of local communities and civil society organisations. LCDF The Least Developed Countries Fund (LDCF) plays a role in reducing vulnerability to climate impacts in areas that are crucial for development and livelihoods.3 This includes the sectors of agriculture and food security, water, health, disaster risk management and prevention, infrastructure, and fragile ecosystems. All LDCs are eligible to access funding from the LCDF.
Mengol Training and Consultancy Services SCCF The Special Climate Change Fund (SCCF) funds national and regional projects. As a global fund, it can be accessed by all developing countries to help address climate change. While adaptation so far has been the key priority, the following sectors are eligible for funding: Technology transfer and capacity building Mitigation in selected sectors, including energy, transport, industry, agriculture, forestry, and waste management Economic diversification CBIT The Capacity-Building Initiative for Transparency (CBIT) helps strengthen the institutional and technical capacities of countries to meet the enhanced transparency requirements defined in Article 13 of the Paris Agreement.4 It has three aims: Strengthen national institutions for transparency-related activities in line with national priorities Provide relevant tools, training, and assistance for meeting the provisions stipulated in Article 13 of the Paris Agreement Assist in the improvement of transparency over time.
Mengol Training and Consultancy Services Who is eligible for GEF grants? A country is eligible to receive GEF grants through an appointed national focal point, provided it is also eligible to borrow from the World Bank (the financial trustee of the GEF). GEF financing is intended to cover the incremental costs of a measure to address environmental issues, such as climate change, relative to a business-as-usual baseline. The co-financing conditions mean that GEF-funded projects need to be matched by finances provided by the grant- seeker.
Mengol Training and Consultancy Services Who can directly access GEF funding? In most cases, partner agencies (GEF implementing agencies) are the only institutions that can access GEF funding directly. However, countries can access direct funding for some enabling activities such as completing biennial update reports and national communications. GEF partner agencies need to comply with their fiduciary standards and environment and social safeguard (ESS) policies. There are currently 18 GEF agencies, including:
Mengol Training and Consultancy Services There are currently 18 GEF agencies, including: • UN agencies • Multilateral development banks • International financial institutions • Non-governmental organisations (NGOs)
Mengol Training and Consultancy Services The GEF provides funding through four modalities: Medium-sized projects (MSP) GEF project financing of less than or equivalent to USD 2 million. Full-sized projects (FSP) GEF project financing of more than USD 2 million. The FSP undergoes a full review process and takes longer to process applications in comparison to an MSP. The latter is directly approved and endorsed by the GEF Chief Executive Officer (CEO). Enabling activities A project for the preparation of a plan, strategy, or report to fulfil commitments under a Convention. Programmatic approaches A longer-term and strategic arrangement of individual yet interlinked projects that aim to achieve large-scale impacts on the global environment.
Mengol Training and Consultancy Services Project Cycles and Approval Processes The project cycles and approval processes for MSPs and FSPs are summarised below:
Mengol Training and Consultancy Services Pre-selection Project identification form Project preparation grant Full project document Proposal review
Mengol Training and Consultancy Services Green Climate Fund The Green Climate Fund (GCF) offers a range of financing instruments to both the public and private sectors in implementing projects that are related to climate change adaptation and/or mitigation. Over time, it aims for a 50:50 balance between adaptation and mitigation.
Mengol Training and Consultancy Services GCF Funding Windows and Modalities The GCF has made several windows available for financing and technical support, taking a programmatic approach implementing climate actions. These include: • Funding for adaption and mitigation • The Private Sector Facility This includes pilot programmes for mobilizing resources at scale and support to micro, small and medium-sized enterprises. • The Readiness and Preparatory Support Programme This includes a Project Preparation Facility and a programme for national adaptation planning. • A REDD+ results-based payment programme • An Enhanced Direct Access Programme This programme is designed to strengthen access by sub-national, national, regional, public, and private entities.
Mengol Training and Consultancy Services Developing a Project Proposal for the GCF There are two options when developing a project (or programme) proposal for the GCF. • One step process: An applicant directly develops the full funding proposal and submits it to the GCF for consideration. • Two step process:A concept note is developed and submitted for feedback before a full funding proposal is produced.
Mengol Training and Consultancy Services From Concept Note to Funding Proposal Accredited entities, potentially together with the designated executing entity, can develop a project or programme idea to voluntarily submit as a concept note to the GCF secretariat. The NDA or focal point should be consulted at this stage for its endorsement and approval of the concept note. NDAs or focal points can also submit their own concept notes without the involvement of an accredited entity. Following the submission, the GCF Secretariat conducts a first review and can either endorse the concept note, return it with feedback or reject it. If the concept note is endorsed, the project or programme idea can be developed into a full and detailed funding proposal. This proposal is then submitted to the GCF Secretariat along with a no-objection letter from the respective NDA or focal point.
Mengol Training and Consultancy Services GCP Project Cycle The GCF project activity cycle, as approved by the Board, consists of the following key stages: Project Idea Approval Project idea is approved via a domestic screening process. Concept Note GCF concept note is developed and submitted to the GCF for review (the development of a concept note is optional but recommended). Funding Proposal Full funding proposal is developed by the accredited entity. Funding Proposal Approval Full funding proposal is approved via a domestic no-objection procedure. At this step, indicative co-financing should also be approved (including from the domestic budget if needed). Funding Proposal Review Following the submission of the funding proposal by the accredited entity with associated documents including the no-objection letter, the GCF Secretariat will conduct a review of the proposal.6 The review process culminates in a decision by the GCF Board.
Mengol Training and Consultancy Services GCP Project Cycle The GCF project activity cycle, as approved by the Board, consists of the following key stages: Project Idea Approval Project idea is approved via a domestic screening process. Concept Note GCF concept note is developed and submitted to the GCF for review (the development of a concept note is optional but recommended). Funding Proposal Full funding proposal is developed by the accredited entity. Funding Proposal Approval Full funding proposal is approved via a domestic no-objection procedure. At this step, indicative co-financing should also be approved (including from the domestic budget if needed). Funding Proposal Review Following the submission of the funding proposal by the accredited entity with associated documents including the no-objection letter, the GCF Secretariat will conduct a review of the proposal.6 The review process culminates in a decision by the GCF Board.
Mengol Training and Consultancy Services Adaption Fund The Adaptation Fund (AF) process has innovative elements compared to other financing mechanisms, including: • A mandate to prioritise the needs of particularly vulnerable communities • The option for direct access to funds • A streamlined project cycle
Mengol Training and Consultancy Services The Adaptation Fund focuses on financing concrete, localized climate adaptation and resilience projects in vulnerable developing countries. Key areas include climate-resilient agriculture, disaster risk reduction, coastal zone management, ecosystem-based adaptation, and water security. Agriculture & Food Security: Developing drought-resistant crops, establishing rainwater harvesting systems, and promoting climate-smart farming techniques Disaster Risk Reduction: Setting up localized early warning systems for floods, droughts, and severe storms Water Management: Enhancing water security through water-efficient irrigation, greywater reuse, and watershed protection Ecosystem-based Adaptation (EbA): Using nature-based solutions, such as restoring mangroves, wetlands, and forests, to buffer communities against climate impacts Coastal Zone Management: Building physical and natural defenses (e.g., seawalls, reef restoration) to protect vulnerable coastal communities from sea-level rise
Mengol Training and Consultancy Services AF Project Cycle Submission The proponent submits a concept or fully developed project document based on the template as approved by the Board of the AF: A disbursement schedule with time-bound milestones will be submitted together with the fully developed project document. Proposals are submitted to the Board, nine weeks before each Board meeting, through the AF Secretariat. Technical Review The AF Secretariat will screen all proposals for consistency and provide a technical review based on the criteria approved by the Board: Proposals and technical reviews are then sent to the Project and Programme Review Committee (PPRC) for review. The AF Secretariat will forward comments on the project proposals and requests for clarification or further information to the implementing entities. Inputs received and the conclusions of the technical review by the AF Secretariat will be incorporated into the review template. Programme Review Committee The AF Secretariat will send all project proposals with technical reviews to the PPRC: The PPRC will review the proposals and provide its recommendation to the Board for a decision at the meeting and, if needed, the PPRC can consult independent adaptation experts. In the case of concepts, the Board can endorse, not endorse, or reject a proposal with a clear explanation to the implementing entities. In the case of fully developed proposals, the Board can approve, not approve, or reject a proposal with a clear explanation: Rejected proposals cannot be resubmitted.
Mengol Training and Consultancy Services Climate Investment Funds Within the wider Climate Investment Funds (CIF), there are two multi-donor trust funds: • The Clean Technology Fund (CTF) The Clean Technology Fund (CTF) provides emerging economies with scaled-up financing for the demonstration, deployment, and transfer of low-carbon technologies with significant potential for long-term GHG emission savings. It has a focus on larger emerging economies, and at present, no Pacific Island countries have accessed finance from this fund. • The Strategic Climate Fund (SCF) The SCF serves as an overarching framework to support three targeted programmes with dedicated funding and to pilot new approaches with the potential for transformational action aimed at a specific climate change challenge or sector. Targeted programmes under the SCF are: 1. The Forest Investment Program (FIP) aims to support developing countries’ efforts to reduce emissions from deforestation and forest degradation. It provides scaled-up financing for programmatic efforts (both public and private) to address the underlying causes of deforestation and forest degradation and to overcome the barriers that have hindered past efforts. 2. The Pilot Program for Climate Resilience (PPCR) was the first programme under the SCF to become operational. Its objective is to integrate climate risk and resilience into core development planning while complementing other ongoing country activities. 3. The Scaling-Up Renewable Energy Program in Low-Income Countries (SREP) is aimed at demonstrating the social, economic, and environmental viability of low-carbon development pathways in the energy sector. It seeks to create new economic opportunities and increase energy access through the production and use of renewable energy.
Mengol Training and Consultancy Services Which of the following international funds support both adaptation and mitigation interventions? • Global Environment Facility • Green Climate Fund • Adaptation Fund • Climate Investment Funds All of these international funds support both adaptation and mitigation interventions except for the Adaptation Fund. The Adaptation Fund finances concrete adaptation projects and programmes in developing countries. It does not fund projects that primarily aim to reduce greenhouse gas emissions.
Mengol Training and Consultancy Services Does a GCF funding proposal require a no- objection letter issued by the National Designated Authority? All funding proposals submitted to GCF must be accompanied by a no-objection letter (NOL) from the National Designated Authority (NDA)/focal point. It is a key tool for country ownership.
Mengol Training and Consultancy Services https://www.adaptation-fund.org/wp- content/uploads/2015/07/AF-Climate-Finance- Readiness-Seminar-for-NIEs-2_GCF- Introduction-20150728_for-web-use.pdf The Fund’s Six High-level Investment Criteria*
Mengol Training and Consultancy Services Parameter Description Impact potential Potential of the programme/project to contribute to the achievement of the Fund's objectives and result areas Paradigm shift potential Degree to which the proposed activity can catalyze impact beyond a one-off project or programme investment Sustainable development potential Wider benefits and priorities, including environmental, social, and economic co-benefits as well as gender-sensitive development impact Responsive to recipients needs Vulnerability and financing needs of the beneficiary country and population in the targeted group
Mengol Training and Consultancy Services Parameter Description Promote country ownership Beneficiary country ownership of and capacity to implement a funded project or programme (policies, climate strategies and institutions) Efficiency & effectiveness Economic and, if appropriate, financial soundness of the programme/project, and for mitigation-specific programmes/projects, cost-effectiveness and co- financing
Mengol Training and Consultancy Services Which of the following is not a programme of the Strategic Climate Fund of Climate Investment Fund? • Forest Investment Program (FIP) • Pilot Program for Climate Resilience (PPCR) • Clean Technology Fund (CTF) • Scaling-Up Renewable Energy Program in Low Income Countries (SREP) Within the wider Climate Investment Funds (CIF), there are two multi- donor trust funds: the Clean Technology Fund (CTF) and the Strategic Climate Fund (SCF). The CTF provides emerging economies with scaled- up financing for the demonstration, deployment, and transfer of low-carbon technologies with significant potential for long-term GHG emission savings.
Mengol Training and Consultancy Services Which of the following international climate funds are guided by the UNFCCC? • Global Environment Facility • Green Climate Fund • Adaptation Fund • Climate Investment Funds All of these international climate funds are guided by the UNFCCC except for the Climate Investment Funds. The Climate Investment Funds is a non–UNFCCC financing mechanism accessed through multilateral development agencies.
Mengol Training and Consultancy Services What is the role of the Independent Technical Advisory Panel (ITAP) in the GCF proposal development process? The ITAP will assess the proposal against GCF investment criteria and may add conditions or recommendations. If the GCF Secretariat and/or ITAP decides modifications are necessary, the accredited entity and national designated authority will meet to amend the funding proposal to reflect feedback.
Mengol Training and Consultancy Services Which of the following is not a modality of the Green Climate Fund?  Readiness and Preparatory Support Programme  Enabling activities  Project Preparation Facility  Funded proposals
Mengol Training and Consultancy Services Feature Climate Investment Funds (CIF) Global Environment Facility (GEF) Primary focus Exclusively climate change (mitigation and resilience) Broad environmental spectrum (biodiversity, chemicals, international waters, climate) Operating Framework Operates outside the UNFCCC framework; channels funds through Multilateral Development Banks (MDBs) Serves as a financial mechanism for multiple UN environmental conventions
Mengol Training and Consultancy Services The Green Climate Fund (GCF) and the Global Environment Facility (GEF) are both core operating entities of the Financial Mechanism of the UN Framework Convention on Climate Change (UNFCCC). While they both fund global climate action in developing nations, the GCF focuses exclusively on transformative, large-scale climate change mitigation and adaptation, whereas the GEF has a broader environmental mandate that includes biodiversity, land degradation, and chemicals
Mengol Training and Consultancy Services Feature Green Climate Fund (GCF) Global Environment Facility (GEF) Primary focus Climate change only (50/50 balance between mitigation and adaptation). Broad global environment (climate change, biodiversity, international waters, chemicals, and waste). Scale and type of projects Large-scale, paradigm-shifting, and highly scalable investments. Catalytic, innovative, pilot projects and capacity building. Grants, loans, equity, and guarantees heavily tailored for private sector engagement. Primarily grants, blended finance, and technical assistance. Founding Established in 2010 (at COP16) to serve the Paris Agreement. Established in 1991 to serve multiple environmental conventions. Partners Works closely with private sectors, national institutions, and NGOs. Partners with 18 international organizations and agencies.
Mengol Training and Consultancy Services Operationalising National Climate Funds National Climate Funds With billions of dollars from the public and private sectors expected to be channelled towards climate activities in the coming years, countries now have new and expanded opportunities to enhance their climate change action. To take advantage of these opportunities, the right institutional and financial mechanisms must be in place so that resources are efficiently allocated toward national climate and development priorities. An important tool to manage climate finance is a national climate fund (NCF).
Mengol Training and Consultancy Services steps for designing and establishing a national climate fund Define Clear Objectives: Determine whether the fund will primarily focus on climate adaptation (e.g., disaster resilience, agriculture) or mitigation (e.g., renewable energy) Determine Institutional Setup: Choose a governance structure, which usually involves a steering committee comprising representatives from government ministries, civil society, and the private sector to ensure transparency Establish Fiduciary Standards: Implement strict financial management and monitoring systems to build trust among international donors and enable direct access to global mechanisms like the Green Climate Fund. Develop the Project Cycle: Create transparent guidelines on how local projects are proposed, evaluated, approved, and funded
Mengol Training and Consultancy Services Accreditation Accreditation Support Funds finance projects and programmes through a wide range of institutions. To access funding, these institutions undergo a process of 'accreditation', designed to assess whether they are capable of strong financial management and safeguarding funded projects and programmes.
Mengol Training and Consultancy Services Who can become accredited? Organisations seen to have specialised capacities in driving climate action may apply to become fund-accredited entities. They can be private, public, non-governmental, sub-national, national, regional, or international bodies. They should have clear, detailed, and actionable climate change projects for progressing mitigation and adaptation. They must also meet the fund’s financial, environmental, social, and gender standards. Who should be involved in the accreditation process? It is advisable to have a dedicated team working on the accreditation process, with at least two to three persons exclusively for this task, and with the support of other internal and external experts The accredited entities developing funding proposals usually also oversee, supervise, manage, and monitor their respective approved projects and programmes. Who else can support the accreditation process? – It is important to have buy-in from the senior management of the organisation seeking accreditation; they will need to deliver a presentation to GCF on the type of projects for which funds are sought and pitch why they should be accredited. It is critical to have an accreditation support team within the nominated agency to help advance the work — with wide internal representation from, for instance, procurement and legal advisory teams. The accredited entities developing funding proposals usually also oversee, supervise, manage, and monitor their respective approved projects and programmes.
Mengol Training and Consultancy Services Who can become accredited? Organisations seen to have specialised capacities in driving climate action may apply to become fund-accredited entities. They can be private, public, non-governmental, sub-national, national, regional, or international bodies. They should have clear, detailed, and actionable climate change projects for progressing mitigation and adaptation. They must also meet the fund’s financial, environmental, social, and gender standards. Who should be involved in the accreditation process? It is advisable to have a dedicated team working on the accreditation process, with at least two to three persons exclusively for this task, and with the support of other internal and external experts The accredited entities developing funding proposals usually also oversee, supervise, manage, and monitor their respective approved projects and programmes. Who else can support the accreditation process? – It is important to have buy-in from the senior management of the organisation seeking accreditation; they will need to deliver a presentation to GCF on the type of projects for which funds are sought and pitch why they should be accredited. It is critical to have an accreditation support team within the nominated agency to help advance the work — with wide internal representation from, for instance, procurement and legal advisory teams. The accredited entities developing funding proposals usually also oversee, supervise, manage, and monitor their respective approved projects and programmes.
Mengol Training and Consultancy Services Accreditation Standards The Green Climate Fund (GCF) accreditation process is designed to assess whether applicant entities can effectively:  manage resources in line with the Fund’s fiduciary standards for the scale and type of funding sought, and  manage the environmental and social risks that may arise at the project level.
Mengol Training and Consultancy Services Accreditation Standards Entities seeking accreditation will be assessed against GCF policies and standards, including:  Initial fiduciary principles and standards of the Fund  Policy on the protection of whistleblowers and witnesses  Policy on prohibited practices  Anti-money laundering and countering the financing of terrorism policy  Environmental and social policy  Interim environmental and social safeguards of the Fund (performance standards of the International Finance Corporation)  Information disclosure policy  Gender policy
Mengol Training and Consultancy Services Accreditation Types There are two types of GCF accredited entities based on access modalities: Direct access entities are sub-national, national, or regional organisations that need to be nominated by NDAs or focal points. Nominated organisations may then be eligible to receive GCF readiness support. This funding is designed to help organisations in developing countries prepare to become accredited entities, as well as to help those that have already been accredited to strengthen their organisational capacities. International access entities can include United Nations agencies, multilateral development banks, international financial institutions, and regional institutions. GCF considers these organisations to have the wide reach and expertise to handle a variety of climate change issues, including ones that cross borders and thematic areas. International access entities do not need to be nominated by NDAs or focal points.
Mengol Training and Consultancy Services Which of the following are key steps when starting the accreditation process? When starting the accreditation process, it is critical that you ensure buy-in from the senior management (as they will need to deliver a presentation to GCF on the type of projects for which funds are sought and pitch why they should be accredited) and that you establish an accreditation support team within the nominated agency to help advance the work. In order to be accredited, applicant entities must first be nominated by which entity? From the onset, an applicant entity must be nominated for accreditation by a National Designated Authority/ Designated Authority. How long is accreditation valid under the Adaptation Fund? Accreditation is valid for five years. Accredited entities are requested to submit an online re-accreditation application through the accreditation workflow online system at least nine months prior to the expiry date.
Mengol Training and Consultancy Services Which of the following are key steps when starting the accreditation process? When starting the accreditation process, it is critical that you ensure buy-in from the senior management (as they will need to deliver a presentation to GCF on the type of projects for which funds are sought and pitch why they should be accredited) and that you establish an accreditation support team within the nominated agency to help advance the work. In order to be accredited, applicant entities must first be nominated by which entity? From the onset, an applicant entity must be nominated for accreditation by a National Designated Authority/ Designated Authority. How long is accreditation valid under the Adaptation Fund? Accreditation is valid for five years. Accredited entities are requested to submit an online re- accreditation application through the accreditation workflow online system at least nine months prior to the expiry date.
Mengol Training and Consultancy Services Introducing Key Tools and Methodologies Climate finance should be used to deliver transformational change by supporting climate change projects and programmes; this is identified in the theory of change and translated into the logical framework. A logframe systematically presents information about key project components, including how inputs and activities are converted into the desired changes at project, country, and paradigm shift levels. It also captures basic monitoring and evaluation requirements, which are essential to climate finance proposals. A logframe is critical to determine: • Activity level costs • Overall budget • Appropriate timelines • Key milestones All of this information is required by proposal templates. The logic of the model can be verified by working from the baseline, up through the activities and onwards to the objective.
Mengol Training and Consultancy Services Developing a Logical Framework There are several ways to develop a logframe, including using problem and objective analysis and backcasting. 1. Problem analysis can be used to analyse the problems the proposed project will address. The figure below shows a detailed problem tree with ‘causes and effects’ of the core problem: low private sector investment in renewable energy is contributing to carbon emissions negative air quality and health effects limited growth in new jobs 2. In objective analysis, the negative statements of the problem analysis become positive statements as the intended project outcomes, outputs, and activities. 3. The backcasting approach is the opposite of forecasting. This planning process starts with the desired future (climate mitigation or adaptation objective) and works backwards to identify the outcomes needed to connect the future and the present (baseline) situation. The sequential process to develop the logframe using backcasting is represented below:
Mengol Training and Consultancy Services Environmental and Social Safeguards  Environmental pollution  Hazards to human health, safety, and security  Impacts on communities  Threats to a region's biodiversity and cultural heritage Climate finance providers have adopted environmental and social safeguard policies to enhance sustainable development benefits and avoid unnecessary harm to the environment and affected communities. These policies allow institutions to identify and manage the environmental and social risks of their activities by assessing potential harms and then identifying and implementing steps to avoid, minimise, or mitigate these.
Mengol Training and Consultancy Services Gender Inclusivity In the absence of strong policy responses, climate change will have critical impacts on vulnerable people and communities, gender equality, and human rights. The integration of gender equity and social inclusion outcomes (GESI) is a priority for climate change projects and a precondition for accessing finance for many climate funds, as outlined below.
Mengol Training and Consultancy Services Gender Inclusivity Mainstreaming GESI aims to systematically integrate gender into every step of project design and implementation. Key methods for achieving strong GESI outcomes include: Conduct Intersectional Analyses: Assess how overlapping identities (e.g., gender, age, disability, ethnicity) impact an individual's ability to access services, resources, and decision- making power before implementing any program Ensure Targeted Participation: Actively involve women, youth, and marginalized groups in the design, execution, and monitoring of interventions to build agency and local ownership. Collect Disaggregated Data: Monitor progress by breaking down metrics by sex, age, disability, and other relevant demographics to measure real impacts on vulnerable communities Foster an Enabling Environment: Challenge harmful social norms and structures by creating inclusive policies, such as equal employment conditions, accessible infrastructure, and safe spaces free from harassment Appoint GESI Experts: Employ dedicated GESI personnel and local 'champions' to mainstream gender and inclusion across all operational levels and supply chains
Mengol Training and Consultancy Services Module2 Tools for Determining Project Economic and Financial Viability Economic Analysis Economic analysis is done from the perspective of the entire economy and assesses the impact of a project on the welfare of all the country's citizens. Its purpose is to assess whether a project is economically viable for the country.  Demand analysis  Alternative analysis  Multi-criteria analysis  Cost-benefit analysis and  Risk and sensitivity analysis
Mengol Training and Consultancy Services Tools for Determining Project Economic and Financial Viability Financial Analysis These analyses help establish whether a project is intrinsically viable: can the project generate sufficient internal cash resources to fully cover all costs, including debt service? Projects that are not intrinsically viable will need external support for operations and maintenance and/or debt servicing to be sustainable. The extent and nature of the analysis varies with the financing modality and nature of the project. Conducting Financial Analysis There are two broad methods for conducting financial analysis: 1. Incremental recurrent cost analysis 2. Financial statement analysis
Mengol Training and Consultancy Services Financial Cost-Benefit Analysis Where a project is intended to recover all costs without external support, financial evaluation is required to assess its financial viability. Cost recovery should not be dependent on any unpredictable subsidy or external support. The project must recover costs through user charges, improved efficiency leading to lower costs, or other predictable revenue sources (such as earmarked taxes and feed-in tariffs). This can be broken down into the following steps: 1. Prepare the project cost estimates. 2. Forecast incremental project net cash flows. 3. Determine the appropriate discount rate, usually the weighted average cost of capital (WACC)*. 4. Calculate the financial net present value (FNPV) at the WACC and the financial internal rate of return, the discount rate* at which FNPV is equal to zero. 5. Undertake risk and sensitivity analysis.
Mengol Training and Consultancy Services Incremental Cost The use of incremental costs, and the need to compare the proposed intervention to a baseline project scenario, provides a clear and transparent framework to directly link the proposed activities with climate change.
Mengol Training and Consultancy Services Incremental Cost Qualitative Methodology Proposals should include: • A detailed description of the baseline project scenario, assessing ongoing and planned activities and identifying differences in lifecycle costs between the proposed project and the baseline project • A clear identification of project components and associated costs that are directly related to climate change • An explanation of how the proposed incremental investments will achieve mitigation or adaptation results or reduce barriers to climate change-related activities Quantitative Methodology When sufficient data and capacity are available, quantitative estimates of incremental costs should be developed in concert with the economic analysis, which forecasts the costs and benefits of the proposed project over its estimated economic lifetime. Each economic analysis will forecast three scenarios: • The counterfactual scenario that would exist without the project • The project scenario, in which the project is implemented with climate considerations • The baseline project scenario, in which a similar project is implemented without climate considerations
Mengol Training and Consultancy Services Each economic analysis will forecast three scenarios: project scenario, baseline scenario, and counterfactual scenario. The project scenario is a scenario in which the project is implemented with climate considerations. The baseline project scenario is a scenario in which a similar project is implemented without climate considerations. The counterfactual scenario is a scenario that would exist without the project.
Mengol Training and Consultancy Services Summary Before you continue, take a moment to review the key learning from this section: • Incremental costs gives the additionality resulting from the implementation of the project i.e. the differences accrued as a result of the project, and going 'without' the project. • Project developers should consider the counterfactual scenario, the project scenario, and the baseline project scenario to arrive at incremental costs.
Mengol Training and Consultancy Services Meeting Investment Criteria While the investment criteria outlined in this section are based on those of the GCF, which a GCF proposal must deliver against, accessing any form of public climate finance usually requires meeting similar standards.1 Climate change activities that utilise private investment should ideally also be delivered against these criteria. Specific project and programme deliverables will often depend on the sectoral and national context.
Mengol Training and Consultancy Services Paradigm Shift Potential Paradigm shift potential refers to whether the proposed activity can catalyse impact beyond a one-off project or programme investment. A number of funds and donors prioritise projects that have a high potential of achieving a paradigm shift towards a low-carbon climate resilient pathway. The proposal could consider addressing the following criteria:  Potential for Replication and Scaling Up  Innovative Outcomes  Knowledge Sharing and Learning  Enabling Environment  National Policy and Regulatory Frameworks +
Mengol Training and Consultancy Services Which of the following is not an area for climate readiness support? • Establishment of monitoring, reporting, verification, and • evaluation systems • Accreditation support • Pipeline development • Project Preparation • Development of long-term strategies GCF’s Project Preparation Facility is used to develop project proposals; it is not an area for climate readiness support.
Mengol Training and Consultancy Services Which of the following is not an area for climate readiness support? • Establishment of monitoring, reporting, verification, and • evaluation systems • Accreditation support • Pipeline development • Project Preparation • Development of long-term strategies GCF’s Project Preparation Facility is used to develop project proposals; it is not an area for climate readiness support.
Mengol Training and Consultancy Services Summary Before you continue, take a moment to review the key learning from this section: Countries can enhance their climate finance readiness through continues strengthening of institutions and governance systems, creating enabling policy environment, working on knowledge, data, and information, and providing targeted project pipelines development. Many funders have windows and programmes to provide countries with technical assistance to ensure they attain climate finance readiness. Countries should follow these on available readiness opportunities from respective donors for support.
Mengol Training and Consultancy Services The GCF readiness and preparatory support can be provided to the government through an intermediary or domestic government agency. Which of the following can not access funding for readiness support? • A delivery partner that meets the financial management capacity and requirements of the GCF • An accredited entity • Any international development agency who has a track record of developing projects • Any international entity that is accredited or approved to implement readiness support any international development agency who has a track record of developing projects. Delivery partners must meet the financial management capacities and requirements of the GCF. Delivery partners who are not accredited entities must undertake a financial management capacity assessment to be approved to implement readiness support.