WATCH THIS! NGO Newsletter #12: The Green Climate Fund: About to finance its first projects and programs

Scroll down for French and Spanish The Green Climate Fund is moving closer to financing its first projects and programs. If things are done the right way it could contribute effectively to global efforts to counter climate change, but first transparency in the decision making process needs to be guaranteed. In July, the tenth meeting …

WATCH THIS! Lettre d’Information ONG #11: ”Le GCF accrédite le premier groupe d’entités d’exécution”

Lors de la 9e réunion du Conseil du Fonds vert pour le climat (GCF) en Corée du Sud, le Conseil est passé à l’étape finale en ouvrant la voie au Fonds vert. Les sept premières entités d’exécution furent accréditées – un processus assimilé à une course politique pour l’approbation des premières propositions de financement pour octobre, et marqué par les critiques de la société civile concernant son manque de transparence.

WATCH THIS! Boletín ONG #11: ”El GCF acreditó al primer grupo de entidades de ejecución”

En la novena reunión de la Junta del Fondo contra el Cambio Climático (GCF) en Corea del Sur, la Junta pasó a la etapa final abriendo la vía al Fondo Verde Climático. Las siete primeras entidades de ejecución fueron acreditadas – un proceso asimilado a un curso político para la aprobación de las primeras propuestas de financiación antes de octubre, y caracterizado por las críticas de la sociedad civil relativas a su falta de transparencia.

WATCH THIS! NGO Newsletter #11: GCF accredits first batch of implementing entities

At the 9th Board meeting of the GCF (Green Climate Fund) in South Korea, the Board completed the final step in opening the door to the Fund. First seven implementing entities were accredited – a process led by political rush to approve first funding proposals by October and marked by criticism from civil society on the lack of transparency in the process.

News: Green Climate Fund’s decision to accredit first entities shadowed by intransparency over approval process

At the 9th Board meeting of the Green Climate Fund (GCF), which concluded last week in South Korea, seven entities were approved to pass through funding proposals by mid-year. However, the decision was criticised over the lack of transparency and stakeholder input in the process. The Board also adopted rules to screen project proposals but failed to exclude funding for fossil fuels. Expectations are now on countries to sign off the remaining US$4.5 billion for the fund that has been pledged in November 2014 ahead of the 30 April deadline.

Current CDM projects are not fit for results based finance

The future role of the Clean Development Mechanism (CDM) in the 2015 climate treaty is likely to be very limited. CDM advocates have therefore started to look beyond traditional funds for offsets and are now eyeing at climate finance. However, the CDM in its current state does not provide environmental and social standards needed for climate action.

Why CDM projects do not qualify for GCF finance

With a large baggage of stranded carbon credits with no buyers in sight, the CDM has started to flirt with the idea of accessing climate finance through the Green Climate Fund to pay for emission reductions delivered by CDM projects without using the offset credits. However, the criteria of the adopted GCF accreditation framework suggest that the CDM in its current form seems out of the climate finance game.

Expectations for COP20 in Lima

Success at the upcoming COP20 in Lima to establish the groundwork for a future climate treaty will largely depend on the willingness of rich nations to live up to their promises of delivering climate finance. With tangible commitments on climate action only expected throughout 2015, the challenge in Lima will be to establish necessary rules without having certainty of the level of ambition countries are prepared to make.

Campaign Focus: CDM needs to catch up with social standards already in place for other mechanisms

A new chance to address the shortcomings of the CDM to implement robust public participation rules was born last year at the climate change conference in Warsaw where Parties requested the UNFCCC secretariat to collect information on practices for local stakeholder consultation and providetechnical assistance for the development of guidelines upon the request of countries. In June, at a recent Africa Regional Workshop in Windhoek Namibia, Designated National Authorities (DNAs) discussed how improvements to the role of local stakeholder consultations could be made and how to sustainable development impacts of Clean Development Mechanism (CDM) projects can be monitored. Carbon Market Watch participated at this two day capacity building workshop and highlighted that best practice guidance on how to implement existing rules is still needed.