GCF Accreditation

The GCF deploys its resources through the support of Accredited Entities (AEs) which are responsible for the management, implementation, and oversight of GCF funded projects/programmes. GCF draws upon the wide reach of its Accredited Entities across the globe to translate innovative climate action ideas into projects on the ground. There are two accreditation modalities which are Direct Access and International Access. International Accredited Entities include multilateral development banks that have already established strong records in promoting the growth of developing countries. Direct Access Accredited Entities include sub-national, national or regional organisations with strong grassroot links to local innovation. GCF’s Accredited Entities, include a broad range of representation from the public, private, and non-profit sectors – highlighting that the breadth of expertise and capacities are key to driving climate action. The commonality among these organisations is their ability to develop climate finance proposals along with the capacities to implement them.

The AEs are accredited by the GCF based on size categories. An AE can only submit funding proposals up to the size for which they can be accredited.

A full list of GCF Accredited Entities can be found on the GCF website: https://www.greenclimate.fund/about/partners/ae

Direct Access is one of the Fund’s distinctive and differentiating features whereby developing countries access financial resources through national and regional entities. The Fund to allow national and sub-national organisations to receive funding directly, rather than only via intermediaries, to be able to support the cornerstone of the Fund’s operation – country driven and ownership. This modality will help developing countries exercise ownership of climate finance and allow for more comprehensive integration with national climate action plans.

All Direct Access Entities need to be nominated by a developing country NDA/ focal point. Organizations nominated to become Direct Access Entities may be eligible to receive GCF readiness support. This funding is designed to help organizations in developing countries prepare to become Accredited Entities, as well as helping those which have already been accredited to strengthen their organizational capacities.

The Enhanced Direct Access (EDA) window is an improved direct access accreditation modality in which funding decisions and project oversight responsibilities are devolved to the national or regional level. The accreditation for EDA requires a broader NDA institutional capacity within the developing country and aims to finance individual projects towards more comprehensive and stakeholder-driven approaches. The EDA provides some advantages over the direct access:

• Enhanced level of country ownership;
• More effective use of financial resources;
• Stronger involvement of local organisations and other stakeholders; and
• Flexible and context-specific approach.

International Access Entities can seek GCF accreditation directly without the need for a nomination by an NDA/ focal point. GCF considers these organizations to have the wide reach and expertise to handle a variety of climate change issues, including ones that cross borders and thematic areas.

During the accreditation process, an applicant entity’s policies and procedures, track record, and demonstrated capacity to undertake projects or programmes of different financial instruments and environmental and social risk categories are assessed against the standards of the Green Climate Fund. The result of the accreditation process will specify the project or programme activity size; fiduciary functions, which will shape how it operates using the Fund’s resources (grants, loans, equity, and guarantees); and the highest category of environmental and social risk of its intended projects.

An entity seeking accreditation will need to submit a completed application through GCF Accreditation, consistent with the fit-for-purpose accreditation approach at the Green Climate Fund. This approach recognises the role of a wide range of entities, which differ in the scope and nature of their activities, as well as their capacities in advancing the objectives of the Fund. The accreditation approach accommodates this diversity by matching the nature, scale, and risk of intended activities to the application of fiduciary standards, environmental and social safeguards, and gender policy.

The GCF accreditation process is divided into 5 steps: (1) Self-assessment, (2) Submission of application, (3) GCF and Accreditation panel assessment, (4) Board deliberation and decision, (5) Legal arrangements. The accreditation modalities (either Direct or International) will determine if the entity needs to be nominated by an NDA and the size categories (micro, small, medium, large) the size of the projects for which the accredited entity can submit funding proposals.