Strong Progress for the Green Climate Fund

Strong Progress for the Green Climate Fund: Fourth Board Meeting Sets Policy Direction After Appointing Executive Director

(Songdo Incheon City, Republic of Korea, 28 June 2013) –The Board of the Green Climate Fund met in Songdo, Incheon City, this week and put in place further foundations that will be critical for the fight against climate change in the developing world.

The Board took a number of decisions that outline key processes required for the operationalization of the Fund, including:

• Calling for nominations from developing countries of nationally designated authorities (NDAs) or focal points that will help ensure that country ownership and a country-driven approach are core operational principles of the fund; • Initiate the design of interim accreditation procedures for implementing entities and intermediaries; and • Commencing the development of terms and criteria of grants and concessional lending to be deployed by the Fund.

The Board made progress on the Fund’s dedicated Private Sector Facility, which will address barriers to private sector investment in adaptation and mitigation activities, such as market failures, insufficient capacity and lack of awareness. The Facility will operate with a Risk Management Committee, an Investment Committee and a Private Sector Advisory Group.

The Board also established an Independent Integrity Unit, an Independent Evaluation Unit, and an Internal Redress Mechanism to enhance accountability and monitor the Fund’s effectiveness.

The Board also took further steps towards establishing its Secretariat by deciding on a model for its administrative framework and selecting Ms. Hela Cheikhrouhou, a Tunisian national, as the Fund’s first Executive Director. Ms. Cheikhrouhou is currently the Director of the Energy, Environment and Climate Change Department at the African Development Bank (see www.GCFund.net for the press release announcing this appointment).

Mr. Zaheer Fakir, Green Climate Fund Board Co-Chair stated:

‘The huge progress we have made on the Fund’s business model framework during this Board meeting moves the Fund much closer towards operationalization.’

Mr. Ewen McDonald, Green Climate Fund Board Co-Chair, added:

‘The decisions that we have taken at this meeting will help ensure that both governments and the private sector are playing a role in combating climate change.’

Other decisions of the Board this week included:

- Agreement on establishing linkages with a range of other international bodies;

- The pathway forward for the creation of a communications strategy;

- Agreement to enhance the transparency of Board proceedings by making available the recording of future Board meetings; and - The constitution of a logo selection panel to judge the outcome of the Fund’s international logo competition.

The Board welcomed the contribution of the Fund’s newly-accredited observers to its proceedings in Songdo. These observers, representing civil society, the private sector and international organization, witnessed the Board make a series of decisions that moved the Fund closer towards operationalization.

The Board decided that the election of the Co-Chairs be scheduled for the end of its third meeting in 2013 and that the current Co-Chairs will continue their functions for the duration of that meeting.

The full decisions of the fourth meeting of the Board will be available on the GCF website: .

The Green Climate Fund is a new multilateral fund that was agreed by countries at the 2010 United Nations Framework Convention on Climate Change conference held in Cancun, Mexico. The Fund’s Governing Instrument was developed throughout 2011. The Fund’s purpose is to make a significant contribution to the global efforts to limit warming to two degrees Celsius by providing support to developing countries to help limit or reduce their greenhouse gas emissions, and to adapt to the unavoidable impacts of climate change.

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