Green Climate Fund (GCF) | Independent Redress Mechanism (IRM)
The Green Climate Fund was established in 2010 by 194 countries party to the United Nations Framework Convention on Climate Change (UNFCCC). The GCF aims to support a paradigm shift in climate-change response by investing in low-emission and climate-resilient projects and programs in developing countries. It focuses in particular on the needs of societies facing severe impacts due to climate change, including Least Developed Countries (LDCs), Small Island Developing States (SIDS), and African States. The GCF provides investment to “accredited entities” such as public institutions, development or commercial banks, or private companies that implement climate-resilient projects.
Green Climate Fund (GCF)
Created In: 2010
Headquarters: Songdo, South Korea
Member Countries: 194
Mission: The Green Climate Fund (GCF) is a new global fund created to support the efforts of developing countries to respond to the challenge of climate change. GCF helps developing countries limit or reduce their greenhouse gas (GHG) emissions and adapt to climate change. It seeks to promote a paradigm shift to low-emission and climate-resilient development, taking into account the needs of nations that are particularly vulnerable to climate change impacts.
The Accountability Office: Independent Redress Mechanism (IRM)
The GCF is in the process of developing its own internal environmental and social standards. In the interim, the GCF applies the International Finance Corporation’s Environmental and Social Performance Standards to ensure that its investments are in keeping with its mission. These standards cover eight requirements:
- Assessment and management of environmental and social risks and impacts
- Labor and working conditions
- Resource efficiency and pollution prevention
- Community health, safety, and security
- Land acquisition and involuntary resettlement
- Biodiversity conservation and sustainable management of living natural resources
- Indigenous Peoples
- Cultural heritage
The GCF uses a monitoring and accountability framework that requires accredited entities to submit annual self-reports on their compliance with the safeguards. In the GCF’s Information Disclosure Policy, the Fund commits to disclose any information not contained in a list of exceptions on its website, through other appropriate means, or upon request. The exceptions to disclosure include personal information, confidential information, and certain financial information that, if disclosed, may prejudice the financial or commercial interests of the GCF and its activities.
The Governing Instrument for the Green Climate Fund mandates the creation of “an independent redress mechanism that will report to the Board.” The GCF is in the process of operationalizing the Independent Redress Mechanism (IRM). The IRM was established to address reconsideration of funding decisions and “address the grievances and complaints by communities and people who have been directly affected by the adverse impacts through the failure of the project … to implement the Fund’s operational policies and procedures, including environmental and social safeguards.” The IRM’s terms of reference can be found here.
On November 1, 2016, Lalanath de Silva assumed office as the head of the Independent Redress Mechanism (IRM). Accountability Counsel and 25 partner organizations sent de Silva a welcome letter calling on him and the GCF to design and implement an accessible, responsive, and effective IRM. Mr. de Silva responded in a letter recognizing the challenges that communities face in accessing remedies for the negative impacts of development activities and expressing his commitment to working with the civil society organizations as head of the IRM. Mr. de Silva also announced that in 2017 the IRM would focus on preparing a revised Terms of Reference (TOR) for the IRM, followed by detailed guidelines and procedures.
Shortly after this announcement, the GCF released a public call for submissions on revising the IRM’s current TOR. The call for submissions suggested a number of questions for public submissions to address, including how the current TOR can be revised:
- To adequately cover all complaints received by the IRM under the GCF’s Governing Instrument;
- To take into account how the IRM should relate to or collaborate with similar redress mechanisms of accredited entities and implementing entities;
- To ensure redress is delivered in a timely and efficient fashion; and
- To ensure the lessons learned by the IRM are incorporated into the day-to-day work of the GCF.
Accountability Counsel collaborated with civil society partners in submitting recommended revisions to the TOR for the IRM on January 20, 2017. One submission included input from a range of global organizations. We also worked closely with our partners at the Center for International Environmental Law (CIEL) and the Centre for Research on Multinational Corporations (SOMO) on another submission. Both submissions stressed the importance of ensuring that the IRM is responsive, accessible, transparent, predictable, and independent. Namely, the submissions advocated for allowing all project-affected people to file complaints with the IRM, even if they can or do file with other grievance mechanisms at accredited entities and implementing entities, because the IRM is best suited to analyze whether GCF policies were met. We also called on the GCF to commit to establishing a compensation and remedy fund that can be used to help complainants cover the costs of seeking redress through the IRM. All of the submissions received on the TOR can be found here.
On September 25, 2017, the GCF’s Board approved the final TOR as a decision between Board meetings. An analysis of the final TOR is forthcoming. The GCF has also committed to launching a separate consultative process for developing guidelines and procedures for the IRM. Accountability Counsel recently partnered with civil society groups to provide a letter and joint comments on the Draft Procedures and Guidelines for the IRM. We also participated in a May 2018 consultation with IRM Head Lalanath de Silva to advise on ways to strengthen the mechanism’s proposed procedures. Our policy team emphasized the need to create an easily accessible venue, which included recommendations to ensure that human rights defenders and other complainants have safe avenues for their voices to be heard, and to extend the window for filing claims past the one year deadline proposed in the Draft Guidelines.
Accountability Counsel will continue to work with our partners to amplify the voices of those impacted by GCF funded projects and achieve greater accountability for climate change and climate adaptation investments.
Documents By Release Date
March 2017 – CSO comments on revised TOR for the GCF’s Independent Redress Mechanism
January 2017 – Accountability Counsel, CIEL, & SOMO comments on the revised TOR for the GCF’s Independent Redress Mechanism
December 2016 – Lalanath de Silva’s response letter to Accountability Counsel’s welcome letter
November 2016 – Welcome letter to the new head of the IRM, Lalanath de Silva from Accountability Counsel and several partners.