ESS Screaning

Environmental and Social Safeguards

Environmental and Social Safeguards (ESS) in the GCF Concept Note development refers to the policies, standards, and procedures designed to ensure that GCF-financed projects do not cause harm to people or the environment, and ideally, contribute positively to environmental sustainability and social equity. ESS in GCF are a set of principles and risk management tools used to prevent and mitigate environmental and social harm during project planning and implementation, promote sustainable development outcomes and ensure that activities are inclusive, participatory, equitable, and respect the rights of affected people.
When developing a GCF Concept Note, the Environmental and Social Safeguards are considered at an early stage to identify environmental and social risks which is to assess the proposed project’s potential environmental and social impacts.

Role of ESS in GCF Concept Note Development

In GCF Concept Note development, the Environmental and Social Safeguards (ESS) play a crucial role in identifying and managing potential risks associated with project activities. Projects are classified into three risk categories:

• Category A for high-risk projects with potentially significant adverse environmental and social impacts;
• Category B for medium-risk projects with limited, site-specific impacts that are largely reversible; and
• Category C for low or no-risk projects with minimal or no adverse impacts.

Proper ESS categorization helps determine the level of assessment and mitigation required, ensuring that risks are addressed early in project design.

Determine ESS Requirements:

Once the project’s ESS risk category is identified, the next step is to determine the specific safeguard requirements for the full funding proposal. Depending on the risk level, this may include conducting an Environmental and Social Impact Assessment (ESIA), preparing an Environmental and Social Management Plan (ESMP), or applying other appropriate safeguard tools. These measures ensure that environmental and social risks are effectively assessed, managed, and monitored throughout the project lifecycle.

Ensure Stakeholder Engagement and Disclosure:

To meet GCF requirements, project developers must ensure meaningful stakeholder engagement throughout the project design process, particularly with affected communities, women, Indigenous Peoples, and other vulnerable groups. ESS must also align with the host country’s national and local environmental and social regulations. In the GCF Concept Note template, Section C.4 “Indicative Safeguards Profile” is where developers outline potential environmental and social risks, specify the anticipated risk category based on the criteria explained in the previous section (A, B, or C), and describe the assessments or management plans to be prepared for the full proposal.

This section should also explain how ESS will be integrated into project design and implementation. ESS is closely linked with Gender and Social Inclusion (GSI), Free, Prior and Informed Consent (FPIC), participatory design approaches, climate resilience, and alignment with the Sustainable Development Goals (SDGs). The table below contains the summary of ESS that need to be included in a GCF concept note.

Environmental and Social Safeguards (ESS) and Gender and Social Inclusion (GSI) in GCF Concept Note (CN) development

The link between Environmental and Social Safeguards (ESS) and Gender and Social Inclusion (GSI) in GCF Concept Note (CN) development is both complementary and reinforcing. Together, they ensure that projects do no harm to people or ecosystems, are inclusive and equitable, and deliver climate benefits while respecting human rights and reducing inequalities .The table below illustrates how ESS and GSI linked in developing a GCF concept note.

For example, a GCF project focused on renewable energy infrastructure might raise ESS concerns related to the resettlement of local communities. From a GSI perspective, women in the affected area could lose access to informal livelihoods like small-scale farming and may face unequal compensation unless gender considerations are explicitly addressed. An integrated response would involve embedding gender analysis within the ESS process, actively involving women in consultations, and designing compensation and livelihood restoration measures that are gender-responsive and socially inclusive.

Developing Environmental and Social Safeguards in a GCF Concept Note

The following steps are developed as a guide in developing an Environmental and Social Safeguards for a GCF Concept Note.

Review the GCF’s interim ESS standards, based on the IFC Performance Standards. The project developer also need to be familiar with GCF Environmental and Social Policy³, GCF Gender Policy⁴, Project risk categories (A, B, C).

Screen the proposed activities for potential environmental and social impacts (positive and negative).
Consider the factors below in screening proposed activities:

• Land use and natural resource impacts
• Resettlement or displacement
• Impacts on Indigenous Peoples
• Labor and working conditions
• Pollution and waste
• Cultural heritage

Based on the understanding of GCF ESS framework and ESS risk and impacts, classify the project according to GCF risk categories below.

It is important to note that assigning ESS category is required in the Concept Note Template, Section C.4. Indicative safeguards profile.

To ensure the project reflects diverse perspectives and addresses potential concerns, it is critical to engage the stakeholders early and meaningfully. The factors that the project developer need to pay attention to in engaging the stakeholders are:

• Identify key stakeholders, especially vulnerable groups.
• Conduct early consultations to gather input and identify potential concerns.
• Ensure free, prior, and informed consent (FPIC) where Indigenous Peoples may be affected.
• Evidence of engagement should be noted in the GCF CN and built upon in the full proposal with the help of Participatory and Inclusive Approaches.

To integrate gender and social inclusion into the ESS process, the project developer need to pay attention to elements such as:

• Conducting a preliminary gender and social inclusion analysis alongside the ESS.
• Identifying how environmental and social risks may disproportionately affect women, Indigenous Peoples, youth, persons with disabilities, etc.
• Planning for gender-responsive and inclusive safeguards.
• Linking the above with ESS with the Gender Action Plan.

Proposing mitigation measures during the early project design phase can help the project planning. In proposing initial mitigation measures to address the identified environmental and social risks, the project developer needs to:

• Outline initial measures or strategies to mitigate the identified risks, including:
• Commitment to developing an Environmental and Social Management Plan (ESMP) or Environmental and Social Impact Assessment (ESIA) during full proposal stage.
• Indications of grievance redress mechanisms.
• Institutional arrangements for safeguards monitoring.
• Keep these as high-level, since the Concept Note is an early-stage document.

Use the identified information in the steps above to complete Section C.4 of the Concept Note template. The information required for Section C.4 of the Concept Note template include:

• Risk Category (A/B/C).
• Summary of key environmental and social risks.
• Planned measures to manage risks
• Description of stakeholder engagement so far
• Link to ESS tools that will be developed (such as ESMP, ESIA)

It is important to align ESS considerations with the host country’s environmental and social laws and policies. The alignment is done to ensure that ESS considerations also align with host country environmental and social laws and policies. This includes explicitly referencing any existing national safeguard systems that the project will utilize or strengthen.

During the preparation of ESS framework, it is critical to ensure that adequate capacity and resources are in place to manage environmental and social safeguards. The Concept Note should briefly indicate whether the Accredited Entity or Executing Entity has the necessary expertise. If capacity gaps exist, the concept note should outline plans to overcome the gaps, such as:

• Hire safeguards experts
• Build capacity
• Partner with institutions or consultants

The next step after preparing the ESS for concept note is preparing the funding proposal. The GCF Concept Note should flag the need for detailed assessments (ESIA/ESMP, gender and social studies). The Concept Note should reflect this in the proposed budget and timeline, ensuring that adequate resources are allocated. This stage also provides an opportunity to seek early feedback from the GCF on the safeguards approach, allowing for alignment and refinement ahead of full proposal submission.

Template

The ten key actions described above can be used to develop Environmental and Social Safeguards into a GCF Concept Note. Table below provides a simple and comprehensive checklist or initial Environmental Social Impact Assessment (ESIA) screening template suitable for GCF Concept Note.