At its 21st meeting, the Board of the Green Climate Fund (GCF) requested the Independent Evaluation Unit (IEU) to undertake the Performance Review of the Fund. It asked that the Forward-looking Performance Review (FPR) be undertaken while considering the current stage of the Fund’s operations and with a view to the GCF being a learning institution. The FPR was published by the IEU on June 30th.
The FPR assessed:
- The progress made by the Fund so far in delivering its mandate set by the Governing Instrument (GI), and the achievements of the GCF's initial Strategic Plan;
- The appropriateness of GCF's business model;
- The extent to which it has responded to the needs of developing countries and the level of country ownership; and
- Its contribution to a paradigm shift towards low-emissions, high-resilience development pathways.
The Review makes four critical recommendations on what the Fund can do to ensure it is faster, better and smarter in meeting its objectives.
First, the GCF should strengthen its implementation and business processes (at headquarters and in-country) that are likely to better address differentiated developing country needs and capacities, with a focus on increasing the use of direct access entities. The focus of these changes should be to increase speed, predictability and transparency of processes.
Second, the GCF should institute a new strategic plan that positions it as a thought leader and policy influencer and establishes its reputation and niche in innovation, and, making an impact on country needs.
Third, the GCF should re-emphasise its support to adaptation investments while recognising the role of new actors in mitigation. Additionally, developing countries will be well served if the GCF strengthened the role and participation of the private sector, and encouraged innovative solutions to climate-related problems.
Lastly, we recommend a greater delegation of authority that emphasizes responsibility, agency and speed in delivering country climate needs.
Going forward, these recommendations should be used to make the GCF more transparent, innovative, predictable, speedy, and impactful.