Project Concept Note User Guide

In Response to the
Second Call for Project Concept Notes
2020-2021
Glossary

Accredited An entity that is accredited by the GCF Board in accordance with the
entity (AE) Governing Instrument and relevant Board Decisions.
Concept note A document which provides essential information about a proposal to
(CN) seek feedback on whether the concept is aligned with the objectives,
policies and investment criteria of the GCF.
Effectiveness The capability of producing a desired result. Effectiveness constantly
measures if the produced/actual outputs meet the expected outputs.
Efficiency A measurable concept, quantitatively determined by the ratio of useful
output
to total input, which can be expressed by the mathematical formula r =
P/C, where P is the amount of useful output (product) produced per the
amount C (cost) of resources consumed. Efficiency focuses on achieving
the maximum output with minimum resources and may also be
expressed as a percentage of the result that can ideally be achieved.
Environmenta A reference point for identifying, measuring and managing
l and Social environmental and social risks to determine the key environmental and
Safeguards social risks the AE intends to address in the conceptualization,
(ESS) preparation and implementation of funding proposals, and to provide
guidance on how these risks are to be managed.
Executing An entity through which GCF proceeds are channelled for the purposes
entity (EE) of a funded activity or part thereof; and/or any entity that executes,
carries out or implements a funded activity, or any part thereof. An AE
may carry out the functions of an EE, though it is preferable if local and
national actors execute projects/programmes.
Investment Six investment criteria adopted by the GCF Board, namely impact
criteria potential; paradigm shift potential; sustainable development potential;
needs of the recipient; country ownership; and efficiency and
effectiveness.
National A core interface and the main point of communication between a
Designated country and the GCF. The NDA seeks to ensure that activities supported
Authority by the GCF align with strategic national objectives and priorities and
(NDA) help advance ambitious action on adaptation and mitigation in line with
national needs.
Private Sector A project could be considered private when all financial resources that
Project are
provided for its implementation from financing entities are more than
50 % owned and/or controlled by private shareholders.
Project A set of activities with a collective objective(s) and concrete outcomes
and outputs that are narrowly defined in scope, space and time; and
that are measurable, monitorable and verifiable.
Programme A set of interlinked individual sub-projects or phases, unified by an
overarching vision, common objectives and contribution to strategic
goals, which will deliver sustained climate results and impact in the GCF
result areas efficiently, effectively and at scale.

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Introduction

The objective of this user’s guide is to assist interested Project Proponents to develop a simplified
Concept Note to be submitted to the Indonesia National Designated Authority for GCF -Secretariat,
Fiscal Policy Agency - Ministry of Finance of Republic of Indonesia, in response to the Second Call of
Project Concept Note Period 2020-2021.
The Annex 5 in the Call of Project Concept Note Period 2020-2021 Document outlined a simplified
format of a Concept Note (CN). The simplified CN presents a summary of the proposed
project/programme. NDA will undertake a screening process of all submitted CNs against a set of
eligibility criteria. The Project Proponents will receive result and initial feedback on whether the CN
is aligned with the GCF’s objectives, policies, and investment criteria. The feedback will provide
information to further develop and strengthen the project/programme idea into a full format of
Project Concept Note, using a format given by the GCF. Putting together a full GCF CN requires
investment of time and human resources. However, the information gathered at the stage of CN
development will directly feed into the funding proposal and the opportunity to interact and receive
early feedback from the GCF secretariat increases chances for success.
Before developing the CN for a GCF project/program, it is important for Proponents to identify and
answer below questions to further guide in generating ideas for Concept Note:
➢ What does the GCF support?
➢ How much and what type of finance is available and what does the proposed
project/program need?
➢ Can the project/program secure a co-financing?
➢ What are the roles of different stakeholders that will be engaged in the proposed
project/program, and how to engage them since the beginning of CN development?

It should be noted that this user guide is only intended to guide the writing process in simplified CN.
Once the Project Applicants/Lead Organization as the Project Proponents received results from NDA
that their submission is successful and shortlisted, the Project Applicants/Lead Organization should
refer to the complete user guide of full Concept Note template given by GCF, which can be accessed
in https://www.greenclimate.fund/document/concept-note-template

Step by Step User Guide

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A. Project/Program Details

This section intends to collect information to assess the economic and technical viability of the
proposed project/programme. Please provide relevant details while adhering to the maximum
number of pages. The information will be helpful for the review and assessment of the concept note.

A.1 Context and Baseline (max. 1 page)

Sub-sections Description
Baseline information can be sourced from multiple sources
Climate vulnerabilities and including Studies, Surveys, Consultations, National Reports,
impacts in Indonesia Pilot projects, IPCC, IEA, IRENA, WRI, GAIN index, Global
Climate Risk Index, etc.
National GHG emission profile. Any assertions in the concept
GHG emissions profile in note must be evidence-based (e.g. from Biennial Update
Indonesia Reports, National Communication Reports to the UNFCCC,
Sectoral emission profile report, etc).
Mitigation and adaptation need Adaptation needs are ideally disaggregated by gender and age,
that the prospective can be found in national vulnerability and risk assessments as
intervention is expected to well as adaptation policy processes such as the National
address Adaptation Plans (NAPs).
Information can be found in INDCs or NDCs, as well as any
How the project fits in with the national, sub-national and sectoral policy documents related to
National Policy Documents climate change (e.g. 2020-2024 RPJMN, NDC Roadmaps, LCDI,
Sectoral Strategic Plans, etc).
Such as from the perspectives of social, gender, fiscal,
Main causes and barriers to be
regulatory, technological, financial, environmental,
addressed
institutional, etc.

A.2 Project / Programme description (max. 2 pages)

Sub-sections Description
• Impact: The project’s contribution to policy or
Expected set of components/outputs
programme objectives
and subcomponents/activities to
• Outcome: Direct benefits to the target groups
address the barriers identified that will
• Outputs: Tangible products or services delivered
lead to the expected outcomes
• Activities: Tasks to be undertaken.
• Identify anticipated climate risks, their impact,
Climate rationale by describing the
and the vulnerabilities of affected populations
benefits of the proposed investment
• Clearly articulate proposed activities and how
relative to the consequences of not
they address the expected climate risks, impacts
making any investments
and vulnerabilities.
• The project proponent is required to identify and
Describe in what way the involved consult with relevant stakeholders to gather
stakeholders are well placed to contextualised information on the
undertake the planned activities and project/program’s target area and population.
what will be the implementation Consultations should involve the target
arrangements and other relevant population, inclusive of ethnic minorities,
partners disabled, elderly, children, women, indigenous
people, and others.

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 • Clearly elaborate the proposed stakeholder
implementation arrangement

Can be referred to a secondary data, e.g. for

Initial identification of gender and social
international reports from Global Gender Gap Report,
gaps in your proposed project, related to
Human and gender gap index, Human Development
climate change risks and impacts, as well
Report, etc. For national report can refer to BPS report
as resilience
(on number of population differentiated by gender)
Risk identification (including
For environmental and social risks, refer to the ESS of
environmental and social risk and risk
the GCF, which are based on an interim basis on the
mitigation plan), and Key financial and
International Finance Corporation (IFC)’s eight PS and
operational risks and any mitigation
their objectives.
measures identified

A.3 Expected project results aligned with the Six GCF investment criteria (max. 3
pages)

All the relevant investment criteria should be considered for each proposal to understand its
individual context and merits. A project may be less strong on one criterion (e.g. sustainable
development potential) but stronger on another (e.g. impact potential). The two should be
considered together and not in isolation.
The methodology used for calculating the indicators and values should be provided. Project
proponents can complement quantitative indicators with qualitative ones. However, not all indicators
are applicable to all activities (to focus only on those relevant to the proposal, country context and
GCF priorities on which the project/programme focuses).
Sub-sections & Descriptions Indicative indicators (or assessment factors)
[Mitigation]: project lifetime total emission reductions in
1. Impact potential tons of CO2eq to be reduced per annum.
Separate indicators are [Adaptation]: the expected change in loss of lives, value of
proposed for the impact physical assets, livelihoods, and/or environmental or social
potential of mitigation and losses due to the impact of extreme climate-related
adaptation projects. The disasters and climate change in the geographical area of the
methodology used for project. Refer to the number of direct and indirect
calculating the indicators and beneficiaries of the project, considering the needs of
values should be provided. Indonesia which is vulnerable to the adverse effects of
climate change.
2. Paradigm shift
Degree to which the proposed
activity can catalyse impact
beyond a one-off project or
program investment. At least
one indicator should be met
Describe any innovative ideas or elements, such as fostering
new market segments, creation of business models and/or
a. Innovation; the development or adoption of new technologies. As
innovation is context-specific, the proposal should specify
the circumstances in which the innovation takes place.
Examples including multiples of initial impact size for both
b. Potential for scaling up and
mitigation and adaptation: specific values for scaling-up and
replication;
replication (e.g. a 30 MW hydroelectric power station that

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 can be replicated at four different specific sites in the
region).

If the project/programme will generate useful lessons

learned, a plan should be elaborated that specifies how
c. Potential for knowledge
those lessons can then be captured and shared with other
and learning;
individuals, projects or institutions, including through the
monitoring and evaluation of the project/programme.
• Highlight the aspects of market development and
transformation in which the project/programme
creates new markets and business activities at the local,
d. Contribution to the
national, or international levels.
creation of an enabling
• If the project/programme addresses or eliminates
environment;
systematic barriers to low-carbon and climate resilient
solutions, or changes incentives by reducing costs and
risks, these aspects can be highlighted.
If the project/programme advances national/local
regulatory or legal frameworks and is expected to bring
significant benefits in this regard, please elaborate. Of
e. Contribution to the
particular interest, is the shifting or alignment of incentives
regulatory framework and
to promote investment in low-emission or climate-resilient
policies;
development, and/or the mainstreaming of climate change
considerations into policies and regulatory frameworks at
all decision-making levels.
Consistent with a country’s climate change adaptation
f. Overall contribution to strategies and plans: show the degree to which the
climate-resilient programme or project reduces proposed risks of investment
development pathways; in technologies and strategies that promote climate
resilience in developing countries.
Economic co-benefits: e.g. total number of jobs created,
3. Wider benefits and priorities / amount of foreign currency savings, amount of
Sustainable development: government’s budget deficits reduced.
identify the positive co-benefits
Social co-benefits e.g. improved access to education,
– with an associated indicator,
improved regulation or cultural preservation, improved
baseline, and target values,
health, and safety.
disaggregated for men and
Environmental co-benefits e.g. improved air and/or water
women (if disaggregated data
quality, improved soil quality, improved biodiversity, and
are available domestically) – in
ecosystem services.
at least two of the four co-
Gender-sensitive development impact e.g. proportion of
benefit areas.
men and women in jobs created.
Vulnerability of the country and beneficiary groups
(adaptation only): scale and intensity of exposure to climate
4. Needs of recipients: Describe
risks for the beneficiary country and groups, which could
the scale and intensity of
include the exposure of people, social or economic assets or
vulnerability of the country and
capital to risks derived from climate change.
beneficiary groups and
Economic and social development level of the country and
elaborate how the
affected population: level of social and economic
project/programme addresses
development (including income level) of the country and
the identified needs. At least
target population (e.g. minorities, disabled, elderly,
one indicator should be met.
children, female heads of households, indigenous peoples
or others).

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 Absence of alternative sources of financing: barriers that
have created the lack of alternative funding sources for the
project/programme.
Needs for strengthening institutions and implementation
capacity: opportunities to strengthen institutional and
implementation capacity in relevant institutions.
5. Country ownership: Coherence Detail how its objectives are aligned with the priorities in
and alignment with the the NDCs, RPJMN, and/or other enabling policy and
country’s national climate institutional frameworks.
strategy and priorities AND
Stakeholder engagement Emphasize the consultative process in the description of
process and feedback received country ownership, both with the NDA and with the wider
from CSO and other relevant group of stakeholders.
stakeholders.
[Mitigation]: cost per tonne of CO2eq (total investment
cost/expected lifetime emission reductions)
[Mitigation]: indicate the ratio of co-financing (total amount
6. Efficiency and effectiveness:
of the GCF’s investment as percentage of project). For
Separate indicators are
projects/programmes that may not leverage a significant
proposed for the efficiency and
level of up-front co-financing, the AE may instead
effectiveness of mitigation and
demonstrate a significant level of indirect or long-term
adaptation projects. Provide
investment mobilized as a result of the proposed activities.
values and supporting
[Mitigation]: provide an estimate of the expected economic
justification, including the
internal rate of return and/or financial internal rate of
calculation methodology and
return, depending on the needs of the project. Expected
citations of relevant studies (if
volume of finance to be leveraged by the proposed
applicable). At least one
project/programs, disaggregated by public and private
indicator should be met.
sources.
[Mitigation and adaptation]: describe how the proposal
applies and builds on the best practices in the sector

B. Indicative financing / Cost information

Section B provides an overview of the financial instrument(s) to be used in support of the proposed
project or programme, and how the choice of financial instrument(s) will overcome barriers and
leverage additional public and/or private finance to achieve project objectives. While the GCF has no
clear requirements in terms of co-financing ratio required in a project or programme, securing co-
financing is highly recommended to encourage crowding in, that is, stimulating long-term
investments beyond the GCF resources and up-front commitments.
The GCF uses six financial instruments: grants, reimbursable grants, senior loans, subordinate loans,
guarantees and equity investments. It is important to note that two or more instruments may be
blended, with more than one instrument being used by the Fund itself on a particular project, or a
Fund instrument or instruments being combined with instruments from other sources of financiers.
Provide a breakdown of estimated costs according to the financing instruments and specify co-
financing information.
Note that grants can finance activities that would have been left unfunded by the market such as
information generation, data analysis, development and dissemination of knowledge products, and
capacity building of national institutions for a robust policy reform and priority setting.
B.1 Financing by components (max ½ page)

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 Descriptions Indicative indicators (or assessment factors)
The ‘Indicative total cost’ should be the sum of ‘GCF
financing’ amount and the ‘Co-financing’ amount.
On the ‘GCF financing’, provide a breakdown by
component and financial instrument. For each financing
Provide an estimate of the total cost instrument, specify the amount. If you select ‘senior
per component and disaggregate the loans’ and/or ‘subordinated loans’, please specify tenor in
source of financing. years and pricing in percentage.
On the ‘Co-financing’ section, specify financial
instrument; provide amount and indicate currency; list
the name of institutions that provide support for the
proposed project/programme.

B.2 Justification of GCF funding (max ½ page)

Descriptions Indicative indicators (or assessment factors)

Describe alternative funding options for the same
activities being proposed in the concept note, including
an analysis of the barriers for the potential beneficiaries
to access to finance and the constraints of public and
private sources of funding.
Justify the rationale of the GCF financial instrument(s) as
well as how this will be passed on to the end-users and
Explain why the project/programme beneficiaries. The justification for grants and
requires GCF funding, i.e. explaining reimbursable grants is mandatory.
why this is not financed by the public In the case of private sector proposal, concessional terms
and/ or private sector(s). should be minimized and justified as per the guiding
principles applicable to the private sector operations.
[Adaptation]: Describe how GCF funding will support
activities that will remain unfunded through mainstream
financial channels and targeting highly vulnerable
populations, including minorities, disabled, elderly,
children, female head of households, indigenous people
and others.

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Sekretariat NDA-GCF Indonesia
Badan Kebijakan Fiskal
Kementerian Keuangan Republik Indonesia
Gedung R.M. Notohamiprodjo Building, Lantai 5
Jl. Dr Wahidin Raya No. 1
Jakarta Pusat 10710

Telepon: (021) 3483 1678

E-mail: ndagcf-indonesia@kemenkeu.go.id