Tools and guidance

Stage 1

Readiness proposal development

Stage 2

Proposal appraisal

Stage 3

Approval

Stage 4

Legal processing

Stage 5

Monitoring for performance and compliance

Stage 6

Adaptive management

Stage 7

Evaluation, learning and grant closure

Stage 1

Readiness proposal development

The first stage of the readiness programme is about the development of a proposal, which involves the NDA preparing the proposal, alongside a Delivery Partner (DP) if they wish. The complete proposal will include: the proposal template; the budget, procurement and implementation plan template; and letters of financial support from all participating countries, signed by their NDAs in the case of regional or multi-country proposals. The DCP regional desk will then carry out a completeness check to confirm that all required information and documentation have been provided with the proposal submission and will make clear which party is responsible for advancing the proposal.

Stage 2

Proposal appraisal

In the second stage, the proposal will be reviewed, endorsed and if applicable, approved. The Secretariat conducts appraisal to ensure that the proposal adheres to GCF standards and complies with GCF objectives and Board decisions. If the proposal does not meet quality standards, the DCP regional desk will inform the NDA and/or DP sharing the review sheet.

Stage 3

Approval

In the third stage, the endorsed readiness proposal is authorized by the Executive Director, the Deputy Executive Director, or the Director of Division of Country Programming, depending on whether the country is under UNSC sanctions or not and whether the amount to be approved for the proposal exceeds USD 500,000. Please find below the page link to the GCF website which displays approved readiness proposals.

Stage 4

Legal processing

In stage 4, the GCF and the grant recipient (NDA or DP) enter into the legal agreements. These agreements guide the administration of the readiness programme with standard conditions for the implementation of grant activities, including disbursement and use of grant proceeds, procurement, monitoring and reporting, audits, cancellation, and refunds. Please find below the page link to the GCF website which displays readiness framework agreements and grant agreements that include the approved proposals for your reference.

Stage 5

Monitoring for performance and compliance

In stage 5, there are three key stakeholders involved: The Secretariat, the fund agent, NDAs, and DPs. The Secretariat, or the fund agent (e.g., UNOPS) on behalf of the GCF, carries out monitoring and evaluation functions of individual readiness grants in line with its business model and MAF (monitoring and accountability framework). The stage begins with the first disbursement and covers project implementation and monitoring. The main tool used by the Secretariat for monitoring project implementation of readiness grants is progress reports, which are submitted as per the agreed schedule. The reporting for grants under Framework Agreements (FwA) are within timelines agreed upon in the FwA, while the reporting timelines under bilateral agreements may differ from one grant to another.

Stage 6

Adaptive management

To ensure the efficient and effective implementation of the readiness activities, the GCF employs an adaptive management approach. Adaptive management measures adopted by the Secretariat include granting extensions, budget reallocations, restructuring and cancellations to grants in response to changes and challenges encountered during the project implementation. Any such changes must be requested in a Letter of Request for Change and undergo the Secretariat’s review and approval.

Stage 7

Evaluation, learning and grant closure

The last stage of the readiness programme is about reflection and improvement as this helps the GCF to learn and evolve. Given the short-term nature of readiness grants, the GCF conducts reviews of the readiness grants to assess their performance on a rolling basis, mainly to capture outcomes, impacts or to make process refinements. This is done through Completion Reports and Financial Audit Reports. Completion reports are internal reports filled out by the DP/NDA. The reports include a description of results and outcomes of the project, final assessments of targets achieved against the logical framework, issues, and challenges, as well as lessons learned and best practices. The DP/NDA will submit final audited financial statements to confirm that GCF resources were used in accordance with the grant agreements and approved budget plans. These will be reviewed by the Secretariat to confirm whether the reports are to the satisfaction of the GCF. The final audit report is key to making the final transaction (final disbursement or refund) and reaching project closure.