GEF Awareness Briefing

Structure of this presentation

Global Environmental Issues; GEF focal areas,Conventions and Linkages

The GEF history, governance, structure, operational procedures and concepts

Project cycle information and examples

Summary and Discussion

The Global Environmental Focal Areas of the GEF

Biodiversity

Climate Change

International Waters

Ozone Depletion (only countries in transition)

And Land Degradation as it relates to the above focal areas.

The GEF and the Global Environmental Conventions

The GEF is the designated “financial mechanism” for the:

Convention on Biological Diversity (CBD) Convention on Climate Change (UNFCCC)

The GEF collaborates closely with other treaties and agreements to reach common goals (International Waters, POPs, CCD, Montreal Protocol)

Biodiversity

Biodiversity refers to the different life forms on earth -- species of plants and animals --, their genetic variations, and the complex ecological interactions among them.

Biodiversity is under threat largely from human-induced pressures.

Convention on Biological Diversity (CBD)

Objectives of the Convention Conservation Sustainable use Fair and equitable sharing of benefits

Financial Mechanism GEF is the financial mechanism of the

Convention

Climate change has significant implications for developing countries

Changes in timing and frequency of precipitation, extreme weather events

Impact on coastal areas

Risk for agricultural sector

Health risks

UN Framework Convention on Climate Change requires:

Developing country states (non-Annex I Countries) to prepare National Reports:

on their greenhouse gas emissions their national climate policies and their vulnerability to climate change

As the financial mechanism, the GEF provides funding for preparation of these reports.

The Convention is also the source of guidance for GEF funding of climate projects.

Climate Change Convention and Kyoto Protocol

Protocol (1997) sets GHG emission reduction targets for industrialized countries and defines flexible

instruments, emission credit trading, joint implementation, and the Clean Development Mechanism (CDM)

International Waters The Coastal Oceans and large fresh water basins whose

boundaries are shared by more than one country

International Waters provide a multitude of “goods” a few of which include:

High quality sources for irrigation and fisheries Drinking water supplies Sanitation Recreation Carbon sinks Climate Moderators Transport Corridors

International Waters

The coastal oceans and transboundary fresh water basin are under siege from:

Unsustainable irrigation diversion of fresh water Pollution discharge from industry, sewage +agriculture Over fishing Habitat loss and Wetland conversion Persistent Organic Pollutants (POPs) The GEF is not a financial mechanism for International Waters. However it supports Regional Sea Conventions,

UNCLOS, and selected maritime conventions

Land Degradation

Worldwide phenomenon Degradation of land in arid, semi-arid, and dry sub-humid

areas. In dry lands, soil quality, freshwater supplies, vegetation, and crops are all easily damaged.

Characterized by loss of biological or economic productivity and complexity in croplands, pastures, and woodlands.

Primary causes: over cultivation, overgrazing, deforestation, poor irrigation practices, poverty, political instability.

Land Degradation (LD) & GEF’s Role

Support country driven activities that prevent/ control land degradation through its interface with the GEF’s Focal Areas.

Addresses LD as part of national sustainable development plan

Complements, rather than substitutes other financing available

Possible if project design is from the bottom up (local needs as well as conservation)

Linkages The environment is interconnected

through all levels

Local, national, regional, global

Country projects funded by the GEF need to focus on preserving the integrity of the global environment, since all levels of the environment are interconnected

Country projects funded by the GEF need also to improve environmental conditions and sustainability at the local, national, and regional levels

Local

Regional

Global

Linkages

All the Focal Areas are linked: Climate change affects biological diversity Biological diversity affects land

degradation and climate change International waters affects biological

diversity and climate change Land degradation is linked to the other

focal areas

Global Environment Facility: Timeline

GEF Pilot Phase 1991 - 1994 $1 Billion US Dollars

Replenishment: 1995 - 1998 $2.2 Billion US Dollars 1999 - 2001 $2.8 Billion US Dollars

World Bank is the Trustee of the GEF Trust Fund

GEF is a Co-financier

GEF encourages partnerships by bringing together multiple sources of funding for projects

Key Concept: the GEF is not a project financier, but a project Co-financier providing “new and additional” funds to address global environmental issues

Origin of the Principle of Incremental Costs

Developing countries sought mechanism for funding the “incremental costs” of global environmental actions

This concept is at the heart of the CBD and UNFCCC, as negotiated and agreed by the Conferences of the Parties

Incremental costs calculations are also applied to work undertaken to fulfill the Montreal Protocol on Substances that Deplete the Ozone Layer

“Incremental Costs”

Cost of activities for the global environment beyond what is required for national development

GEF projects must complement national programmes and policies to maximize global benefits

1) Establish the baseline2) Determine cost of GEF alternative3) Incremental cost (project budget) = GEF alternative -- cost of baseline

Baseline and alternative funding

Baseline Outcome

IncrementalLocal

$2,531.37

$825.56

$329.21

$191.73

$5,631.86

Biodiversity

InternationalWatersOzone Depletion

Multi- FocalAreasClimate Change

GEF Portfolio (June 1999)in millions of US dollars

Total GEF $ 2,444.22

Total Co-Financing $ 7,065.51

TOTAL $ 9,509.73

7

GEF Governance Structure

operations, and amendments to the GEF Instrument.

COUNCIL32 Members :18 Recipient

14 Donor

ASSEMBLY

All 166Members

CONVENTIONS

Provide Guidance

on Policy &

Programme Issues

GEF Council meets every 6 months to review and approve all projects, Work Programmes, Business Plans, policies.

GEF Assembly meets every 3 years to review general policies,operations, and amendments to the GEF Instrument.

STAPSTAP

GEF Assembly

GEF Council

GEF Assembly

GEF Council

GEF SecretariatGEF Secretariat

UNDPUNDP UNEPUNEP World BankWorld Bank

ProjectsProjects

GEF Operational Framework

GEF Implementing Agencies:Your Partners to Help Develop and

Implement Projects

UNDP: technical

assistance / capacity building projects

UNEP: global/

regional and trans-boundary projects, support STAP

World Bank:

investment projects

U N D P U N E P W orld B an k

Executing Agencies with shared responsibility for GEF Project Cycle Management

African Development Bank

Asian Development Bank

European Bank for Reconstruction and Development

Inter-American Development Bank

Projects can also be executed by:

Government Agencies

UN Specialized Agencies

Non-Governmental Organizations

Bilateral Development Cooperation Agencies

Others from the private sector/institutes

GEF Funding Categories

Full-size projects ($1 million and up)

Medium-sized projects (up to $1 million)

Financing can be available for preparing projects

Small Grants Programme (up to $50,000)

Enabling activities

Project Development Funds (PDF-A up to $25,000PDF-B up to 350,000; PDF-C up to $1 million)

Other Project Eligibility Requirements

Country-driven and endorsed by host Government

Produce identifiable global benefits

Participation of all affected groups and transparency

Consistency with the Conventions

Possess strong scientific and technical merit

Financially sustainable and cost-effective

Include processes for monitoring, evaluation, and incorporation of lessons learned

Play catalytic role that leverages other financing

Develop project concept

Develop project concept

Present concept to an Implementing

Agency

Present concept to an Implementing

Agency

Option to pursue project development

financing

Option to pursue project development

financing

Develop project brief and/or

project document

Develop project brief and/or

project documentPresent project

document to Council

Present project document to

Council

Implement Project

Implement Project

Project impacts continue after completion of GEF funding

Project impacts continue after completion of GEF funding

Monitor and evaluate

Monitor and evaluate

Basic Project Cycle

The GEF Programmatic Approach

Purpose

Provide phased and sustained support for the implementation of a multi-year program that better integrates global environmental objectives into national strategies and plans.

The Programmatic Approach emphasizes

Translating national strategies into concrete action plans

Strengthened in-country policy, legal, and institutional arrangements

Agreed goals, milestones, and indicators for each phase

Sequenced disbursements based on identified milestones

A learning and adaptive management system

The Country Programming Framework depends upon:

A high level political commitment

Well advanced national biodiversity strategies or plans for biodiversity, energy, international waters, with clear priorities

Country commitment towards the key objectives and priorities

Willingness to work across sectoral ministries and agencies

Cooperation, collaboration, and joint programming with the implementing agencies and other partners towards the common objectives

Project Examples

GEF Briefing Summary

GEF is a co-financing mechanism bringing together GEF resources with those from Government, banks, NGOs, bilateral and multilateral agencies to address:

Biodiversity Climate Change International Waters Ozone Depletion Land degradation as it relates to these focal areas

GEF Projects address the global environment within the framework of country priorities.

GEF Briefing Summary

GEF projects are:

approved by a Governing Council

implemented by UNDP, UNEP, the World Bank and RDBs or by some partnership among these organizations) and they are

executed by Government agencies, regional development banks, UN agencies, NGOs and bilateral cooperation agencies, private sector groups, educational institutions

GEF BriefingDiscussion Session