Evaluation of the GEF Portfolio in ChinaEvaluation of the GEF Portfolio in China

Dr. Zhu Liucai, Director Ms. CHEN Lan, Project Coordinator

China GEF Office SHIPDET, October 31, 2007

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ContentsContentsChina GEF Office

Evaluation of GEF Projects in China

Overall Performance of GEF Projects in China

Issues Identified in the Evaluation

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China GEF OfficeChina GEF Office

China GEF Office, jointly established by the Ministry of Finance and the State Environment Protection Administration in April 2002, serving as a technical support body to assist the MOF in overseeing China GEF activities at the national level.

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The responsibilitiesThe responsibilitiesTrack and study the strategies and policies

issued by and related to GEF and relevant international environmental conventions;

Provide technical support for formulating general frameworks for cooperation between China and GEF;

Identify, review, supervise and evaluate GEF projects in China;

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The responsibilitiesThe responsibilitiesIdentify and organize domestic

expert teams for China GEF activities; and

Disseminate information about GEF issues and the progress and achievements of China GEF projects.

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GEF projects in ChinaGEF projects in China

China GEF projects are mainly distributed in five focal areas: climate change, biodiversity, POPs, international water, and multi-focal area.

By August 2007, GEF had approved 55 single country projects for China. In addition, China has also participated in 24 regional and global GEF projects.

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Evaluation: BackgroundEvaluation: Background

In order to strengthen the management of GEF projects, provide better guidance to future programming of GEF projects and to supporting negotiations in the fourth replenishment and demonstrate achievements of China GEF projects. By the authorization of MOF, China GEF Office carried out a comprehensive review of GEF projects from March 2004 to March 2005.

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Evaluation: ObjectivesEvaluation: Objectives

To Conclude the achievements of China GEF projects and their contributions to Chinese and global environmental protection an sustainable development;

To summarize the experience and lessons in the design, implementation and result replication of GEF projects in China;

To summarize project management experience at different levels, to identify weakness and underlying causes and propose measures to improve project management;

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Evaluation: ObjectivesEvaluation: Objectives

To provide technical support to revision and formulation of project management regulations, indicative programs, and financing and co-financing strategies of China in the future;

To enhance national ownership and country-drivenness in GEF projects;

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The organization of evaluation Inspection and evaluation work was organized and

authorized by the Department of International Cooperation, Ministry of Finance.

China GEF Office, the technical support unit to national GEF management, is responsible for organizing and participating in the review of the GEF projects at national, focal area and individual project levels.

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The organizationThe organization of evaluation of evaluationThe review is undertaken by an independent expert

team composing of 18 experts, including 7 experts on climate change, 7 on biodiversity and other areas, and 4 on financial management .

Two review groups on climate change and biodiversity each were set up within the team for efficiency of the review.

Experts on financial management joined the two review groups in the event of visits to project management offices while a separate report was prepared by them.

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Five Focus in the EvaluationFive Focus in the Evaluation

National ownership and country-drivenness;

Objectives and results;Design and implementation;Stakeholders’ participation;Financial management.

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Desk ReviewQuestionnaireVisit of PMO and StakeholdersField Visit

Evaluation: Methodology & ProcessEvaluation: Methodology & Process

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Overall Performance of GEF Overall Performance of GEF Projects in ChinaProjects in China

fact-findings and conclusions of the fact-findings and conclusions of the reviewreview

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ResultsResultsAs one of the sponsoring countries of GEF, China has been

keeping highly effective cooperation with GEF.

China’s GEF project activities have promoted implementation of the international environmental conventions, the development of environmental protection and sustainable development of China.

Meanwhile, the global benefits generated from these GEF projects represent a significant contribution of China to global environmental protection.

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1. Actively assisting fulfillment of national obligations 1. Actively assisting fulfillment of national obligations under related international environmental conventionsunder related international environmental conventions

Activities of some GEF projects either establish feasible national plans and action strategies for implementation of the MEAs, or examine the environmental status of certain fields and make report to international conventions and society.

These projects help the Chinese government improve the capability of implementation of MEAs and deliver the information to the international society that China is a responsible country.

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2. Promoting implementations of key plans and programs

GEF projects in China have clear objectives and are integrated with development and implementation of national programmes and actions. All projects have set up objectives under the framework of national sustainable development as a component of implementation of national programmes and actions and obtained prominent social benefits.

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2. Promoting implementations of key plans and programs

The completed project GEF/UNDP barrier removal for efficient lighting products and systems in China, keeping close link with “China green lights project”, has improved the capability of saving electricity, improving lighting quality, and environmental protection. The market share of energy saving lamp and ordinary lamp is 1:9 in 1993, whereas after the implementation of the project, the ratio is up to 1:2 in 2004.

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3. 3. Promoting formulation and enforcement ofPromoting formulation and enforcement of national national laws and regulations, sector ruleslaws and regulations, sector rules and technical standardsand technical standards “GEF/IBRD renewable energy

scale up program ”promotes the formulation and implementation of “China Renewable Energy Law”.

“China Energy Efficiency Label ”designed and promoted by GEF/UNDP “barrier removal for the widespread commercialization for energy-efficient CFC-free refrigerators in China energy conservation and GHG” .

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4. Enhancing capacity building of 4. Enhancing capacity building of domestic stakeholders at various levelsdomestic stakeholders at various levels

By implementation of GEF projects, project participants of all levels, whether the central government and the local governments or the corporations and individuals, have improved a lot in capacity building, environmental protection information and awareness, and international cooperation experiences.

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GEF/UNDP Demonstration of Fuel Cell Bus GEF/UNDP Demonstration of Fuel Cell Bus

Commercialization in ChinaCommercialization in China Linked with “the national scientific

and technical development plan for 2005-2020 ”.

To promote the “Green Olympic 2008”

New generation battery-powered buses are being operated in Beijing now.

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5. Bringing in advanced management 5. Bringing in advanced management conceptions and technologiesconceptions and technologies

The GEF projects of China also promote the development of domestic technologies through technology transfer, exploitation and application, especially the energy-efficient technology and renewable energy technology.

In the areas of biodiversity, international water, land degradation and POPs, China has been introduced advanced approaches of protected area management, integrated ecosystem management and POPs non-combustion disposal, respectively, by Chinese GEF projects.

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5. Bringing in advanced management 5. Bringing in advanced management conceptions and technologiesconceptions and technologies

GEF/IBRD energy conservation project introduced the new international energy-efficient mechanism “Contract Energy Management” and “Energy Management Company” into China, and drive the development of a new industry “Contract Energy Management”. “Beijing Jimen Hotel”-demonstration hotel of “Contract Energy Management”

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5. Bringing in advanced management 5. Bringing in advanced management conceptions and technologiesconceptions and technologies

The implementation of “GEF/UNDP barrier removal for the widespread commercialization for energy-efficient CFC-free refrigerators in China energy conservation and GHG reduction” project bring forward the energy-efficient technology of domestic refrigerator industry for 5-10 years. According to preliminary estimation, the electricity amount consumed by refrigerators could decrease 120 thousand million kw by the implementation of the project in the coming 10 years. The saved electricity amount is equal to saving 72 million tons of raw coal, and thus reducing 143 million ton CO2 emission, and the SO2 emission will be greatly reduced as well. The photo of energy-efficient CFC-free refrigerator.

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5. Bringing in advanced management 5. Bringing in advanced management conceptions and technologiesconceptions and technologies

Energy-saving stoves spread to local farmers to reduce

damage to biodiversity in GEF/UNDP multi-agency and

local participatory cooperation in biodiversity conservation in upland ecosystem, in Yun Nan Province.

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6. PPP: Attracting other funding sources6. PPP: Attracting other funding sources

GEF has the catalytic role as a “seed fund”. The national and international funds attracted and brought directly or indirectly by China GEF projects are far more than the grants from GEF.

The funds involve the loans and donations of international institutions such as WB, UNDP, UNEP, UNIDO, ADB, IFAD and foreign governments, the co-financing from domestic local governments of all levels, the loans of commercial banks, and the investment of private sectors, etc.

These funds have greatly promoted environmental protection and sustainable development of China.

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Issues Identified in the EvaluationIssues Identified in the Evaluation

In spite of the great achievements of GEF projects in China, a lot need to be improved in terms of project implementation. The following recommendations are made with the evaluation;

In order to substantially achieve country ownership and country-drivenness, the role of IA and EA in GEF project management should be further emphasized and elucidated;

Taking into consideration the reasonable proportion of co-financing;

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Issues Identified in the EvaluationIssues Identified in the EvaluationInternational and national-level experience exchan

ge and sharing among GEF projects in China should be promoted;

Management capacity of PMOs staff ,particularly those of new PMOs should be further built or developed;

The role of national experts should be emphasized as much as for international experts.

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Contacts UsContacts Us

WEB: www.gefchina.org.cn Dr. Zhu Liucai 0086-10-8857-5683 Zhu.liucai@gefchina.org.cn Zhu.liucai@sepafeco.org.cn Ms. CHEN Lan 0086-10-8857-5260 Chenlan@gefchina.org.cn