GEF Expanded Constituency Workshop12-14 March 2013

Dakar, Senegal

– The GEF – Overview and Update

History of the GEF1991 1992 1994 2013

World’s largest public

funder of projects and programs to benefit the

global environment

$1 billion pilot

program in the WB

Initial partners:

WB, UNDP, UNEP

At the Rio Earth Summit, negotiations

started to restructure the GEF out of the WB

GEF serves as financial mechanism for:CBDUNFCCCStockholm Conv. on POPsUNCCDMercury (NEW)

Also, although not linked formally to the Montreal Protocol, the GEF supports its implementation in transition economies.

Instrument for the

Establishment of the

Restructured GEF

Institutional FrameworkGEF Trust Fund

GEF Agencies• UNDP• UNEP• WB• ADB• AfDB• EBRD• FAO• IaDB• IFAD• UNIDO

GEF Secretariat

STAP

Evaluation Office

ProjectsCountries:• GEF OFPs / PFPs• Convention FPs• Other Gov’t Agencies• NGOs / CSOs• Private Sector

GEF CouncilCountries: Council Members

/ Constituencies

GEF Assembly

Conventions• CBD• UNFCCC• Stockholm (POPs)• UNCCD• Montreal Protocol• Mercury

Guidance Operations Action

GEF Trustee

Implementing Agency – Project Oversight

– Ensure quality of preparation– Disburse funds to Executing Agency – Supervise implementation– Be accountable to GEF Council– Keep GEF OFP informed– Help secure committed co-financing

Responsibility of GEF Agencies (1 of 2)

Executing Agency – Project Management

– Deliver project outcomes– Day-to-day management of funds– Report on results and use of funds

Responsibility of GEF Agencies (2 of 2)

Biodiversity, Climate Change, and Land Degradation

All countries have individual allocations

Minimum allocations:

Flexibility for smaller overall allocations ($7 M)

System for Transparent Allocation of Resources (STAR) (1 of 2)

$2M in CC $1.5M

in BD $0.5M in LD

Programs without Allocations: • International Waters• POPs & Sound Chemicals Management• Sustainable Forest Management• Enabling Activities• Cross-cutting capacity development• Country Support Programme• Regional & Global Projects & Programs• Small Grants Programme• Private Sector Engagement

System for Transparent Allocation of Resources (STAR) (2 of 2)

GEF-5

PIFs cleared by CEO

awaiting approval (M

US$)

Allocation Utilized(M US$)

Replenishment US$4.25Bn

STAR Envelopes (M US$)

Country CC BD LD Total Total Total Flexible

Burkina Faso 1.50 3.23 5.10 9.83 0 6.02 No

Cape Verde 3.52 2.00 1.48 7.00 0 0 Yes

Chad1.91 2.20 2.72 6.83 0 6.07

Yes

Guinée-Bissau 1.50 2.00 1.10 4.60 0 0 Yes

Mali 1.96 3.54 4.04 9.54 0 5.6 No

Mauritania 2.05 2.00 2.87 6.92 0 6.37 Yes

Niger 1.50 2.00 3.38 6.88 0 6.54 Yes

Senegal1.80 2.41 4.92 9.13 0 5.00

No

The Gambie 1.50 2.00 4.57 8.07 0 0 No

GEF-5STAR Allocations

PIF submitted on a rolling basis

18 months preparation for FSP: Council approval/ CEO Endorsement

12 months preparation for MSP: only if PPG requested PIF approval/project document approval

GEF-5 Project Cycle (1 of 4)

Council approval of Work Program - PIFs cleared by the CEO

CEO endorsement of project

GEF Agency approval of project –

Implementation starts

Project implementation continues to completion

- terminal evaluation and financial closure

GEF Project Cycle (2 of 4)For FSPs

Specific Project Cycle Steps

MSPs and EAs: Approved by the CEO on a rolling basis

Programmatic Approaches: Currently under review

GEF Project Cycle (3 of 4)

1. PPG included in PIF template2. MSP ceiling - $2 million3. All templates simplified4. Milestones monitored by GEFSEC5. Agency fees:

40% at Council approval60% at CEO endorsement

6. Umbrella projects for EAs approved by Council – No separate endorsement for individual projects.

Streamlining Measures

GEF Project Cycle (4 of 4)

HarmonizationOct 2012: WB Harmonization Pilot discussion starts with the WB

Objective To reduce administrative burden through involvement of GEF’s Program Managers in project design.

What has been harmonized1)No Parallel Process for Decision Making2)No GEF Review Sheets 3)No GEF-specific Project Templates4)New business standard: from a 10 to a 5-day response

Other Funds – LDCF, SCCF, NPIF, AFAdditional Trust FundsManaged by the GEF

Least Developed Countries Fund

(LDCF)

Special Climate Change Fund

(SCCF)

Nagoya Protocol Implementation

Fund (NPIF)

Secretariat ServicesProvided by the GEF

Adaptation Fund (AF)

LDCF• Established to address the

special needs of LDCs under UNFCCC

• Only existing Fund mandated to finance the preparation and implementation of NAPAs– 49 NAPAs funded already and 84

LDCF projects approved – LDCF resources now amount to

USD 540 M.

SCCF• Available to all developing

countries, parties to UNFCCC• Established to support

Adaptation and Technology Transfer activities, short and long-term– 41 adaptation projects

approved, 6 for technology transfer

– SCCF resources now amount to USD 242 M.

LDCF & SCCF

A separate trust fund created and managed by the GEF– Established in Feb 2011– Funds are additional to

STAR allocations

NPIFFunds projects that:

– Provide actual Access and Benefit Sharing (ABS)

– Promote technology transfer & private sector engagement

– Review capacities and needs on ABS with focus on existing policies, laws and regulations

A separate trust fund – Managed by the Adaptation Fund Board (AFB) – GEF provides secretariat services– World Bank as trustee– Established in 2007– Under Kyoto Protocol

Resources• 2% from monetized CERs • Annex-I parties contributions • Current Funding Availability: – US$ 123.7M

Adaptation Fund (1 of 3)

Adaptation Fund (2 of 3)Governance – AF Board- The AF Board is composed of 16 members and 16 alternates - A majority of members represent developing countries- AFB meets 3x a year, generally in Bonn- 2 representatives from each of the 5 UN regional groups- 1 representative of the SIDS- 1 representative of the LDCs- 2 other representatives from Annex I- 2 other representatives from non-Annex I

Adaptation Fund (3 of 3)

Access Modalities• National Implementing Entities (NIE) – Direct Access• Regional & Sub-Regional Entities (RIE) • Multilateral Implementing Entity (MIE)

Multilateral Implementing Entities• The 50 % cap reached at the 19th Board meeting• Pipeline established

National / Regional Implementing Entities• AF offers Project Formulation Grants

• UNFCCC: An operating entity of the financial mechanism– Mission: to support projects with a balanced allocation

between CCA and CCM

– World Bank as Trustee

• Head Office: Incheon, South Korea

Green Climate Fund (GCF) (1 of 2)

Governance – GCF Board– The GCF Board has 24 members and 24 alternates– Composed of an equal number of developing and developed countries– Including representatives of relevant UN regional groupings and

representatives from SIDS and LDCs– With necessary experience and skills, given gender balance– Selected by their respective constituency or UN regional group– 3-years term, eligible to additional terms– 2 co-chairs (one from a developed, another from a developing country) – Two-thirds of Board members needed for a quorum– Decisions by consensus

Green Climate Fund (GCF) (2 of 2)

• GEF Council May 2011: – Approval of a pilot to accredit up to 10 new

institutions to serve as GEF Project Agencies – At least 5 national institutions with size and regional

balance– Eligibility: national institutions, regional

organizations, CSOs/NGOs, UN specialized agencies and programs, other int’l organizations

Broadening the GEF Partnership

GEF-5 Private Sector Strategy: 3 Modalities1. Establish Public-Private Partnership (PPP) Programs with

multilateral development banks (MDBs) to support investments using non-grant instruments

2. Encourage countries to use STAR allocation grants for projects with private sector investments using non-grant instruments $ 30 M available now (very positive)

3. Support SME competitions to facilitate technology transfer and entrepreneurship

Public Private Partnerships in GEF-5 (1 of 3)

• Under the GEF instrument, a form of concessional finance that has the potential to earn a return (or reflow)

• Reflows are available to expand the pool of GEF resources available for future investments.

Examples:– Contingent Grant– Credit Guarantee or Risk Guarantee Fund– Equity Fund Investments– Concessional Loans– Performance Risk Guarantee– Revolving Fund– Risk Sharing Fund for Loan Provision

Non-Grant InstrumentPublic Private Partnerships in GEF-5 (2 of 3)

• The GEF June Work Program included two new PPPs– $20 Million with AfDB for renewable energy loans– $15 Million with IDB for equity investments in clean energy

and bio-diversity– UNIDO is coordinating to identify countries that wish to

pursue SME competitions as MSPs

PPPs – Current Status

Public Private Partnerships in GEF-5 (3 of 3)

Start Date• The Council requested the Secretariat to begin

implementation of the new structure beginning 01 Jan 2013.

Percentages• All projects approved/cleared by CEO will be subject to the

new fee policy as follows:• 9.5% for GEF project grants up to and including $10 million• 9.0% for GEF project grants above $10 million

New GEF Fee Policy

Replenishment: process in which donor countries, every 4 years, voluntarily pledge to provide resources to fund the GEF operations.

Previous Replenishments

GEF-6 Replenishment (1 of 3)

Composition• GEF Trustee (Chair)• GEF CEO (Co-Chair)• Donors: • Minimum contribution SDR 4 M

• Recipients: 4 representatives • (representing AFR, Asia/Pacific, ECA, and LAC)

• CSOs/NGOs: • 2 representatives

• Observers: • A) Potential donors B) GEF Agencies C) Conventions

GEF-6 Replenishment (2 of 3)

Process: Timetable• April 2013 (Paris)• Sept. 2013 (TBD)• Nov. 2013 (Washington)• Feb. 2014 (TBD)

Core Documents• Documents – Strategic Positioning– Programming– Policy

• GEF2020 Strategy• OPS5 (GEFEO)

GEF-6 Replenishment (3 of 3)

Time for Transformational Change – The role of the GEFThe GEF is uniquely positioned to support the stewardship

of the global environmental commons

The GEF must be: a champion of the global commons, an innovator, the partner of choice for environmental benefits, a catalyst in the evolving

architecture of environmental finance

Principles in Action: Collective leadership and effective communication,

Promoting country ownership, Resolute focus on achieving results, a lean and efficient organization

CEO Vision Statement

GEF 2020

The global environment is in crisis

Transformational change is needed

1) What is the GEF operating context today and what are the trends that should drive its focus?

2) What are the areas/activities that the GEF is in the best position to support?

3) How can the GEF maximize its potential as catalyst for sustainable change at scale?

4) Which actions can the GEF take in the short, medium and long-term to implement the vision?

Context

A long-term strategy for the GEFKey Questions for the GEF

Website – www.TheGEF.org– Council Member List– Focal Point List– Country Profiles– Country Fact Sheets– Country Support Programme– Documents & Publications

• Council Documents• Work Programs• Program Management Bulletin• Publications/Videos

– Templates – PIF, EAs

PMIS– Username and Password– Pre-PIF Tracking Tool– Project Information:

• Where to find PIFs, PFD, PIRs

Social Media– facebook.com/thegef1– twitter.com/thegef– youtube.com/gefsecretariat

GEF Online Resources

Thank you for your attention!

Questions?

The Global Environment Facility1818 H Street, NW, Mail Stop P4-400 - Washington, DC 20433 USA

Tel: (202) 473-0508 Fax: (202) 522-3240/3245www.thegef.org / secretariat@thegef.org