Sustainability guidance note: screening and categorizing GCF-financed activities
Summary
The document outlines a risk-based approach to environmental and social due diligence for GCF-funded projects. It details the screening process used to identify potential impacts early in project design and defines three risk categories (A, B, and C) that determine the depth of required assessments, mitigation measures, and stakeholder engagement. It also provides specific guidance for activities involving indigenous peoples and financial intermediation.
Key insights
- GCF employs a risk-based approach to environmental and social due diligence where the assigned risk category determines the depth of assessment, the mitigation measures required, the level of stakeholder engagement, and the disclosure of information.
- Environmental and social screening is a preliminary process conducted early in project development, typically during the preparation of concept notes or funding proposals, to identify potential risks and assign an initial risk category.
- GCF categorizes activities into three risk levels: Category A for activities with potential significant, diverse, irreversible, or unprecedented adverse impacts; Category B for those with limited, site-specific, and largely reversible impacts; and Category C for those with minimal or no adverse impacts.
- For programmes or projects composed of multiple component activities, the overall risk category is determined by the highest risk category among the individual subprojects or activities.
- Investments made through financial intermediation are categorized into three levels: I1 (high) for portfolios with exposure to Category A activities, I2 (medium) for exposure to Category B, and I3 (low) for exposure to Category C.
- Screening for activities involving indigenous peoples must determine the applicability of the GCF Indigenous Peoples Policy and assess risks to territories, resources, and livelihoods, including the potential need for free, prior and informed consent (FPIC).
Cite the original document
- APA
- Green Climate Fund (2019). Sustainability guidance note: screening and categorizing GCF-financed activities. https://www.greenclimate.fund/sites/default/files/document/sustainability-guidance-note-screening-and-categorizing-gcf-financed-activities.pdf
- Chicago
- Green Climate Fund. Sustainability guidance note: screening and categorizing GCF-financed activities. 2019. https://www.greenclimate.fund/sites/default/files/document/sustainability-guidance-note-screening-and-categorizing-gcf-financed-activities.pdf.
- Wikipedia
- {{cite report |author=Green Climate Fund |title=Sustainability guidance note: screening and categorizing GCF-financed activities |date=August 2019 |url=https://www.greenclimate.fund/sites/default/files/document/sustainability-guidance-note-screening-and-categorizing-gcf-financed-activities.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{greenclimatefund2019sustainability, author = {{Green Climate Fund}}, title = {{Sustainability guidance note: screening and categorizing GCF-financed activities}}, institution = {Green Climate Fund}, year = {2019}, month = aug, url = {https://www.greenclimate.fund/sites/default/files/document/sustainability-guidance-note-screening-and-categorizing-gcf-financed-activities.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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