Policy on Restructuring and Cancellation

The Policy on Restructuring and Cancellation outlines the processes for modifying Green Climate Fund (GCF) projects before and after the execution of a funded activity agreement (FAA). It defines 'Major Changes' that require Board approval, such as those affecting climate outcomes or financial structures, and specifies the authority of the Executive Director (ED) to grant certain extensions and minor changes. The policy also details the consequences of failing to meet conditions, including the potential for project cancellation if a Major Change is not approved and the project is not otherwise progressed or withdrawn.

• The policy applies to all funding proposals approved by the GCF Board, including those approved before the policy's effective date, but explicitly excludes activities funded via the Project Preparation Facility and the Readiness and Preparatory Support Programme.
• If an accredited entity (AE) fails to meet a condition required before the execution of a funded activity agreement (FAA) within the specified period, the funding proposal approval becomes invalid.
• The Executive Director (ED) can grant a single extension for fulfilling conditions prior to FAA execution, provided the extension does not exceed the original period's length; any subsequent extensions must be approved by the Board.
• A 'Major Change' is defined by several criteria, including modifications that make a project inconsistent with the GCF mandate, material adverse deviations from intended climate or environmental outcomes, changes in executing entities with material effects, or shifts in environmental and social safeguards categories from lower to higher.
• Major Changes require a specific approval process involving consultation with the National Designated Authority or Focal Point (NDA/FP) and a final decision by the Board; if the Board rejects a Major Change and the AE does not proceed with the original decision or withdraw the proposal within 120 days, the project is cancelled.
• Waivers of conditions set in an Approval Decision generally require Board approval unless authority has been delegated to the ED.

APA

Green Climate Fund (n.d.). Policy on Restructuring and Cancellation. https://www.greenclimate.fund/sites/default/files/document/policy-restructuring-cancellation.pdf

Chicago

Green Climate Fund. Policy on Restructuring and Cancellation. n.d. https://www.greenclimate.fund/sites/default/files/document/policy-restructuring-cancellation.pdf.

Wikipedia

{{cite report |author=Green Climate Fund |title=Policy on Restructuring and Cancellation |url=https://www.greenclimate.fund/sites/default/files/document/policy-restructuring-cancellation.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greenclimatefundndpolicy, author = {{Green Climate Fund}}, title = {{Policy on Restructuring and Cancellation}}, institution = {Green Climate Fund}, url = {https://www.greenclimate.fund/sites/default/files/document/policy-restructuring-cancellation.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }