GEF Policies and Processes in GEF 4

Sub-regional Workshop for GEF Focal PointsWestern and Central AfricaDakar, 21-23 May 2007

Introduction

I. New Vision for the GEF

II. Evolving Policies and Processes

III. Role of Countries

IV. Comparative Advantages of GEF Agencies

I. New Vision for the GEF

Strategic Innovative Equitable Accessible Focused

GEF will be Strategic

Set clear priorities for the global environment

• Refocus Focal Area Strategies Biodiversity Climate Change (mitigation and adaptation) International Waters Ozone Depletion Land Degradation Persistent Organic Pollutants (POPS)

• Build synergies for cross-cutting issues Sustainable forest management Sound chemicals management

GEF Sec will submit revised strategies for review and approval by June 2007 Council

GEF will be Strategic (continued)

Promote programmatic approach Move away from project driven approach

Develop and apply indicators of outcomes and impacts

GEF will be Innovative

Finance cutting edge and entrepreneurial efforts to establish sustainable technologies

Leverage global capital on sustainable development

Reach out to private sector at the country level

GEF will be Equitable

• Create special mechanisms by which more vulnerable countries can have easier access GEF resources

- Special focus on SIDS

• Ensure that a minimum level of resources are available to all countries under the RAF

GEF will be Accessible

Engage in direct and transparent dialogue with countries to ensure that new policies and procedures are understood

Enhance GEF’s corporate image and public communications

Improve data management system and website

GEF will be Focused

Equalize playing field among Agencies• Ensure all Agencies have direct access to GEF resources• Engage with Agencies based on comparative advantage

Simplify GEF project development process

• Redesign project cycle• Reduce and better manage pipeline

Target resources towards countries with greater potential to generate global environmental benefits and country performance

II. Evolving Policies and Processes

Resource Allocation Framework

Project Cycle

Focal Area Strategies

Small Grants Programme

Comparative Advantage of GEF Agencies

Allocations under the RAF

Initial Allocations are for the 4-year period of GEF4

Only 50% of Allocation can be used for approvals in first 2 years of GEF4

Allocations will be adjusted after 2 years if country performance and global benefits change

Group Allocations

Countries in Group collectively access group allocation

Average GEF4 allocation for countries in Group

• Biodiversity $1.6 million

• Climate Change $1.3 million

Group Allocations (continued)

To ensure equity and predictability to all countries in the Group the following provisions apply:

• One proposal up to $1 million to be reviewed expeditiously within national context

• Additional proposals to be reviewed in comparison with projects from all countries in the Group

• Group resources cannot be channeled to Small Grants Programme or Cross-cutting Capacity Building

Programming Resources under the RAF

GEF Secretariat engages in direct dialogues with countries

Countries determine national priorities and projects for GEF funding based on GEF guidance

Countries discuss identified priority concepts/projects with appropriate GEF Agency for further development

Managing Pipeline of Projects Under Preparation

GEF’s Goal: Balance resources availability with demand in predictable and transparent manner

Projects to be entered into pipeline based on

• Fit with GEF Focal Area Strategy

• National priority based on country endorsement

• Realistic project preparation timeframe

• Measurable results and global impacts

Managing Pipeline of Projects Under Preparation (continued)

Near term focus on Pipeline 2007

• Identified project priorities for preparation and approval in 2007

Projects to be considered for next Pipeline after June 2008

Focal Area (FA) Strategies

FA strategies presented to Dec 2006 Council considered as interim or working drafts

Based on Council guidance, CEO to revise strategies while ensuring consultative process, has established:• 5 Technical Advisory Groups (TAGs); in each of

the focal areas (POPs and Ozone combined).• Coordinating Strategy Advisory Group (SAG)

Purpose of revising FA Strategies: to sharpen their focus and harmonize/integrate approaches in different FAs

Revised FA Strategies will be presented to June 2007 Council for review and approval.

Focal Area (FA) Strategies(continued)

Interim strategies formed basis for 2007 pipeline, whereas revised strategies will provide basis for 2008-2010 pipelines

Focal Points can follow progress of this undertaking by visiting GEFSEC website:• http://thegef.org/Operational_Policies/

Operational_Strategy/GEFFocalAreaStrategies.html Focal Points welcome to provide feedback to on-going

work channeled through the Council Member in their respective constituencies

Proposed GEF Project Cycle

Objectives of the proposed new project cycle: Greater upstream strategic programming of

GEF resources; Reduction of project preparation time from

66 to 22 months on average; and Simplified GEF process and transparency

in decision making.

Project Review Criteria

Criteria for CEO Endorsement of Projects:

Final cost tables for project components, project management, consultants, and co-financing;

GEF Monitoring and Evaluation Policy provisions;

Explanation for any changes in expected global environmental benefits, consistency with focal area strategy, GEF grant amount and co-financing since PIF approval; and

Project preparation grant status report.

New Guidelines for SGP

Balancing the demands of Small Grants Programme (SGP) with available resources

New guidelines developed by SGP Steering Committee

• Expansion of SGP to 21 additional countries

• SGP Graduation policy

Determination of amount countries can allocate to Small Grants Programme

III. Role of Countries

Countries should rethink their approach to GEF

• Develop comprehensive and coherent GEF strategy in consultation with key stakeholders

• Integrate GEF priorities with broader national environment and sustainable development frameworks

• Identify national priorities for GEF funding

Role of Countries (continued)

• Dialogue with GEF Secretariat to discuss proposed project concepts and approach

• Endorse project concepts after proper consultation process

• Begin project development and implementation in partnership with appropriate Implementing Agencies

V. Comparative Advantages of GEF Agencies

Implementing Agencies (UNDP, UNEP and World Bank) • broad primary roles identified in the GEF Instrument

Executing Agencies (ADB, AfDB, EBRD, IADB, FAO, IFAD and UNIDO) • granted access to GEF resources and assigned

more definite roles based on specific business needs of the GEF

Level Playing Field

Move towards a more level playing field among the GEF agencies

• Executing Agencies have direct access to GEF funding based on their comparative advantages.

• Comparative advantage assessed by GEF

Secretariat, in consultation with the country, during the Project Concept Review.

Guiding criteria

• Increasing capacity of GEF to address new and emerging areas, and respond to country driven priorities and the requirements of the conventions;

• Increasing the diversity of experience from which the GEF can draw on for innovative interventions;

• Leveraging additional resources expanding the GEF’s capacity to mobilize financial

and technical resources and co-financing for its projects.

Assessment of Comparative Advantage

Comparative advantages assessed based on: Institutional role and core functions as

described in: official mandate mission statement policies approved by its governing body;

The agency’s actual capacity, expertise and experience • business plan; • portfolio of completed and ongoing projects;• Country Presence

Process

• Preliminary description of each agency’s comparative advantage with agency input

• Description of the role of each GEF agency within each of the GEF focal areas

• Agency comments by April 20 and paper available on web by May 11.

Thank you