Conditionality refers to conditions that recipient entities need to fulfill to receive financial support from the GCF. These conditions may include earmarking funds to certain sectors, co-financing, procurement design fulfilling certain criteria under social and environmental context, etc.
Concessional loan is one of the financial instruments having special feature with no or lower interest and extended repayment schedule than those of standard market or multilateral loan provided by GCF to poor and climate vulnerable countries to execute climate actions and achieve sustainable development. There are two sets of concessional loans:
Concessional Loans 1 (deeply concessional): The interest rate is zero per cent with 15 to 40 years maturity including 5 to 10 years grace period.
Concessional Loans 2 (moderately concessional): The interest rate is based on benchmark rate of lending (Euros: European Central Bank rate, US dollars: United States Treasury bond rate) with 8 to 15 years including 2 to 4 years grace period.
A service fee is set at 0.75 per cent for both concessional 1 and 2.
Direct Access Entity (DAE) is a national or regional entity that is accredited with the GCF to access finance through the direct access modality to implement projects and programs. These entities can be private or public, non-governmental, sub-national, national or regional. Accredited Entities carry out a range of activities that usually include the development of funding proposals and the management and monitoring of projects and programs.
A reference point for establishing criteria for accrediting institutional capacities and entities seeking accreditation to the Fund, and for identifying, measuring and managing environmental and social risks. Its main purpose is to determine the key environmental and social risks the Accredited Entity intends to address in the conceptualization, preparation and implementation of funding proposals, and to provide guidance on how these risks are to be managed. An ESS is based on the eight Performance Standards of the International Finance Corporation.
A document developed by accredited entities with support from the Country Programming Division of the GCF that provides an overview of the AE’s areas of work, priority sectors and experience in implementing projects and programs across the GCF’s eight Strategic Impact Areas.
In ‘mandate and track record’, GCF reviews whether or not the applicant entity’s objectives/ mandate are aligned with those of GCF and whether the entity has completed at least three years of operation. Likewise, ‘fiduciary functions’ includes basic and specialized standards; ‘environmental and social risk categories’ includes high (category A), medium (category B) and low (category C) risk levels; and ‘project size’ includes micro (<USD 10 million), small (USD 10-50 million), medium (USD 50-250 million) and large (>USD 250 million). This is a tiered approach that classifies applicant entities according to the intended scale, nature and risks of their proposed activities.
An individual or authority designated by a developing country party to the United Nations Framework Convention on Climate Change (UNFCCC) to fulfil all functions of a National Designated Authority (NDA) on a temporary basis, until it has designated an NDA.
Document containing information on a proposed climate change project or program, which is submitted by an Accredited Entity to the GCF Secretariat to access GCF resources.
Refers to how societies and specific cultures assign roles and ascribe characteristics to men and women on the basis of their sex. For example, many cultures share expectations that women are more nurturing than men, and that men should be soldiers during wars.
Grant is a type of financial instrument provided by the GCF to address climate adaptation and/or mitigation project/program in the developing countries with no expectation of a return payment. Both international and national entities accredited by GCF are eligible for grants as per the agreed terms and conditions.
Accredited entity can receive grant from GCF. This grant can be awarded to other executing entities for implementation of selected programs and/or projects.
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