18 November 2011: The UNFCCC Secretariat has published the report (FCCC/CP/2011/6) of the Transitional Committee (TC) for the design of the Green Climate Fund (GCF), which contains draft recommendations of the TC to the Conference of the Parties at its 17th session, including a draft governing instrument for the GCF.

Parties at the 16th session of the COP decided to establish the GCF to be designated as an operating entity of the financial mechanism of the Convention. COP 16 also decided that the GCF shall be designed by a TC, comprising 40 members, with 15 members from developed country parties and 25 members from developing country parties, with members having necessary experience and skills, in the areas of finance and climate change. The TC was tasked to develop and recommend to COP 17 operational documents for the GCF that address the issues outlined in the terms of reference.

The fourth meeting of the TC was held on 16-18 October 2011, in Cape Town, South Africa, where the report of the TC was considered.

The draft governing instrument for the GCF, which is contained in Annex I to the report, indicates that the Fund will play a key role in channeling new, additional, adequate and predictable financial resources to developing countries, and will catalyze climate finance, both public and private, and at the international and national levels. The Fund will strive to maximize the impact of its funding for adaptation and mitigation, and seek a balance between the two. The Fund will be governed and supervised by a Board that will have full responsibility for funding decisions. Arrangements will be concluded between the COP and the Fund to ensure that the Fund is accountable to and functions under the guidance of the COP. The Board will have 24 members, composed of an equal number of members from developing and developed country Parties. The Fund will establish an independent secretariat, which will service and be accountable to the Board. The World Bank will serve as interim trustee for the Fund, subject to a review three years after the operationalization of the Fund. The Fund will receive financial inputs from developed country parties to the Convention. The Fund will provide simplified and improved access to funding, including direct access, basing its activities on a country-driven approach and will encourage the involvement of relevant stakeholders, including vulnerable groups and addressing gender aspects. All developing country parties to the Convention are eligible to receive resources from the Fund. The Fund will have thematic funding windows, which initially will be for adaptation and mitigation. Access to Fund resources will be through national, regional and international implementing entities accredited by the Board.

The TC recommends to COP 17 that it: takes notes of the report of the TC; approves the governing instrument of the GCF; requests the UNFCCC Executive Secretary to invite regional groups and constituencies to nominate their board members; requests the Executive Secretary to invite parties to submit expression of interest to host the CGF; invites voluntary contributions for the start-up of the CGF; requests the Executive Secretary to set up an interim secretariat immediate after COP 17; sets the date for the first meeting of the board; and considers the process for the selection of the trustee of the GCF.

The UNFCCC Secretariat has also published an addendum (FCCC/CP/2011/6/Add.1), which contains the letter by which the Co-Chairs of the TC for the design of the GCF have transmitted the report to the COP. [Publication: Transitional Committee Report for the Green Climate Fund] [Publication: Addendum- Transitional Committee Report for the Green Climate Fund] [IISDRS Briefing Note on the Fourth Meeting of the TC for the Design of the GCF]