Factor

Green Climate Fund, a fundamental instrument to promote climate action

23 December 2020

 

The Green Climate Fund (GCF) was designed to be a funding mechanism of the United Nations Framework Convention on Climate Change (UNFCCC), and is currently the largest funding fund supporting resilient and low emission development in developing countries.

 

How to apply for accreditation to the Green Climate Fund

Access to the Fund's resources is through Accredited Entities (AEs). Accredited Entities partner with GCF to implement projects. In order to align the activities of the GCF with the priorities of the countries receiving funding, the accreditation of Direct Access Entities is promoted. These can be sub-national, national or regional organizations that have specialized capacities to promote climate action.

In this framework, Factor Ideas for Change supports several organisations in Latin America, Europe and the Caribbean for their accreditation to the GCF, with the aim of developing the systems, procedures, documents and tools necessary to support the application for  accreditation. This process is accompanied by a capacity building process to understand the standards and requirements, collect evidence of compliance and close the current gaps found in the entities, with respect to the requirements of the GCF.

The accreditation process is rigorous; entities seeking accreditation to the GCF must demonstrate compliance with a set of policies and procedures aligned with GCF standards, in terms of fiduciary standards, environmental, social and gender policies of the GCF. In addition, they must have a proven track record and ability to formulate, approve and implement projects or programmes that involve different categories of environmental and social risks and various financial instruments.

 

The benefits of accreditation to the GCF

Accreditation provides access to a wide range of financial instruments to implement projects and programmes, including non-reimbursable resources, more favourable-than-market financing, equity participation, or guarantees that reduce major default risks. Furthermore, by becoming accredited, organisations gain visibility and can eventually gain access to a wider range of resources, as well as collaborate with a greater number of international and regional institutions. The practices implemented also strengthen national institutions, and even improve country systems, whether in institutional or operational frameworks.

Ultimately, the objective of the GCF is to catalyse a flow of climate finance for investment in low-emission and climate-resilient development, which will drive a paradigm shift to the global response to climate change.  GCF invests in adaptation and mitigation activities in developing countries, managing a portfolio of projects implemented by its partner organisations, known as Accredited Entities.

 

For more information please contact our Project Manager:

Dayana Vega

dvega@iamfactor.com

 

Factor Ideas for change

Factor has more than 15 years of experience offering technical consulting services in the areas of climate change adaptation and mitigation, carbon footprint analysis, sustainability, circular economy, renewable energy and carbon markets, amongst other things, undertaken on behalf of governments and international organizations, as well as for over 400 companies, with more than 1,100 projects undertaken within 40+ countries.

 

Source: Factor