Below is our letter submitted to the GCF board ahead of B.21. We share this with stakeholders in the wider context of climate development as both the public and private sector needs clear and strong signals from the GCF.
October 15, 2018
Mr Lennart Bage
Mr Paul Oquist
Songdo Business District
175 Art Center-daero
Yeonsu-gu, Incheon 22004
Dear GCF Board,
The GCF is at a critical juncture, following the issues that emerged at B.20. The world is watching, particularly in light of the IPCC report and will expect progress at COP24 in Katowice, Poland, later this year. The Climate Markets & Investment Association (CMIA), as the holder of the GCF Active Private Sector Observer seat, encourages firm steps towards good governance at B.21 to restore confidence in the board’s processes.
Both the public and private sector need clear and strong signals from the GCF as part of the overall UNFCCC framework both for the short-term – to catalyse action quickly leading up to 2030 (as the IPCC has noted) – and to deliver long-term after 2030. CMIA also notes that the B.21 agenda is particularly ambitious with 20 projects under review, totalling USD 1.1 billion in project proposals. Alongside the project proposals, the Board is also considering the accreditation of new project partners, as well as its policy framework. It is self-evident that the outcomes of B21 are crucial to progress and encouraging private sector markets to meet the climate challenge.
To effectively fulfil the B.21 agenda, there is a need for decision-making mechanisms in the absence of board consensus. CMIA applauds the GCF for actively seeking collaboration and alignment with the private sector at its Private Investment for Climate Conference in Songdo last week. At the conference, private and public stakeholders alike expressed the desire for a decision-making mechanism at the board.
CMIA would like to reiterate that the private sector needs clear guidance on the proposal submission process. We urge the GCF to give the secretariat the go ahead to publish guidelines to support private sector proposals.
In the words of the GCF Deputy Executive Director, Javier Manzanares “to engage with the private sector, we must speak the language of the private sector.” CMIA stands behind the need for GCF to reform its decision-making processes, rethink its approach to accreditation, project approval and engagement with NDAs and FPs to engage the private sector and unlock private finance.
CMIA wishes the GCF secretariat and the GCF board a highly successful B.21.
Climate Markets & Investment Association*
*The Climate Markets and Investment Association (CMIA) is an independent not for profit trade association that has been providing leadership from the private sector in the delivery of climate investment policy and market mechanisms since 2008. We hold one of two Active Private Sector Observer seats to the Green Climate Fund, and a private sector observer role at the World Bank’s Climate Investment Fund. Through climate policy, finance and investment, we are leading a global coalition of private sector actors to mobilise the trillions that will enable a transition to a climate-resilient, low-carbon, sustainable economy.