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– The GEF – Overview and Update. GEF Expanded Constituency Workshop 12-14 March 2013 Dakar, Senegal. History of the GEF. 1992. 2013. 1991. 1994. $1 billion pilot program in the WB. GEF serves as financial mechanism for : CBD UNFCCC Stockholm Conv. on POPs UNCCD Mercury (NEW)

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– The GEF – Overview and Update

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The gef overview and update

– The GEF – Overview and Update

GEF Expanded Constituency Workshop

12-14 March 2013

Dakar, Senegal


The gef overview and update

History of the GEF

1992

2013

1991

1994

$1 billion

pilot program in the WB

GEF serves as financial mechanism for:

CBD

UNFCCC

Stockholm Conv. on POPs

UNCCD

Mercury (NEW)

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

At the Rio Earth Summit, negotiations started to restructure the GEF out of the WB

World’s largest public funder of projects and programs to benefit the global environment

Instrument for the Establishmentof the Restructured GEF

Initial partners:

WB, UNDP, UNEP


Institutional framework

GEF Trust Fund

Institutional Framework

Guidance

Operations

Action

GEF

Trustee

GEF Assembly

STAP

  • Projects

  • Countries:

  • GEF OFPs / PFPs

  • Convention FPs

  • Other Gov’t Agencies

  • NGOs / CSOs

  • Private Sector

GEF Council

Countries: Council Members

/ Constituencies

GEF

Secretariat

  • GEF Agencies

  • UNDP

  • UNEP

  • WB

  • ADB

  • AfDB

  • EBRD

  • FAO

  • IaDB

  • IFAD

  • UNIDO

  • Conventions

  • CBD

  • UNFCCC

  • Stockholm (POPs)

  • UNCCD

  • Montreal Protocol

  • Mercury

Evaluation Office


The gef overview and update

Responsibility of GEF Agencies (1 of 2)

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


The gef overview and update

Responsibility of GEF Agencies (2 of 2)

Executing Agency – Project Management

  • Deliver project outcomes

  • Day-to-day management of funds

  • Report on results and use of funds


The gef overview and update

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

Biodiversity, Climate Change, and Land Degradation

All countries have individual allocations

Minimum allocations:

Flexibility for smaller overall allocations ($7 M)

$2M

in CC

$1.5M

in BD

$0.5M

in LD


The gef overview and update

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

Programs without Allocations:

International Waters

POPs & Sound Chemicals Management

Sustainable Forest Management

Enabling Activities

Cross-cutting capacitydevelopment

Country Support Programme

Regional & Global Projects & Programs

Small Grants Programme

Private Sector Engagement


Gef 5 star allocations

GEF-5STAR Allocations


The gef overview and update

GEF-5 Project Cycle (1 of 4)

  • 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


The gef overview and update

GEF Project Cycle (2 of 4)

For FSPs


The gef overview and update

GEF Project Cycle (3 of 4)

Specific Project Cycle Steps

MSPs and EAs:

Approved by the CEO on a rolling basis

Programmatic Approaches:

Currently under review


The gef overview and update

GEF Project Cycle (4 of 4)

Streamlining Measures

  • PPG included in PIF template

  • MSP ceiling - $2 million

  • All templates simplified

  • Milestones monitored by GEFSEC

  • Agency fees:

    40% at Council approval

    60% at CEO endorsement

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


The gef overview and update

Harmonization

Oct 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 harmonized

  • No Parallel Process for Decision Making

  • No GEF Review Sheets

  • No GEF-specific Project Templates

  • New business standard: from a 10 to a 5-day response


The gef overview and update

Other Funds – LDCF, SCCF, NPIF, AF

Additional Trust Funds

Managed by the GEF

Nagoya Protocol Implementation Fund (NPIF)

Special Climate Change Fund (SCCF)

Least Developed Countries Fund (LDCF)

Secretariat Services

Provided by the GEF

Adaptation Fund (AF)


The gef overview and update

LDCF & SCCF

LDCF

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.

  • 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.


The gef overview and update

NPIF

Funds 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 created and managed by the GEF

  • Established in Feb 2011

  • Funds are additional to STAR allocations


The gef overview and update

Adaptation Fund (1 of 3)

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


  • The gef overview and update

    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


    The gef overview and update

    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


    The gef overview and update

    Green Climate Fund (GCF) (1 of 2)

    • 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


    The gef overview and update

    Green Climate Fund (GCF) (2 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 genderbalance

    • 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


    The gef overview and update

    Broadening the GEF Partnership

    • GEF Council May 2011:

      • Approval of a pilot to accredit up to 10 new institutionsto serve as GEF Project Agencies

      • At least 5 national institutionswith size and regional balance

      • Eligibility: national institutions, regional organizations, CSOs/NGOs, UN specialized agencies and programs, other int’l organizations


    The gef overview and update

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

    GEF-5 Private Sector Strategy: 3 Modalities

    • Establish Public-Private Partnership (PPP) Programs with multilateral development banks (MDBs) to support investments using non-grant instruments

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

    • Support SME competitions to facilitate technology transfer and entrepreneurship


    The gef overview and update

    Public Private Partnerships in GEF-5 (2 of 3)

    Non-Grant Instrument

    • 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


    The gef overview and update

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

    PPPs – Current Status

    • 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


    The gef overview and update

    New GEF Fee Policy

    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


    The gef overview and update

    GEF-6 Replenishment (1 of 3)

    Previous Replenishments

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


    The gef overview and update

    GEF-6 Replenishment (2 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


    The gef overview and update

    GEF-6 Replenishment (3 of 3)

    Core Documents

    • Documents

      • Strategic Positioning

      • Programming

      • Policy

    • GEF2020 Strategy

    • OPS5 (GEFEO)

    Process: Timetable

    • April 2013 (Paris)

    • Sept. 2013 (TBD)

    • Nov. 2013 (Washington)

    • Feb. 2014 (TBD)


    The gef overview and update

    CEO Vision Statement

    Time for Transformational Change – The role of the GEF

    The GEF is uniquely positionedto 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


    The gef overview and update

    GEF 2020

    A long-term strategy for the GEF

    Context

    Key Questions for the GEF

    The global environment is in crisis

    Transformational change is needed

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

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

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

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


    The gef overview and update

    GEF Online Resources

    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


    The gef overview and update

    Thank you for your attention!

    Questions?

    The Global Environment Facility

    1818 H Street, NW, Mail Stop P4-400 - Washington, DC 20433 USATel: (202) 473-0508 Fax: (202) 522-3240/3245

    www.thegef.org / [email protected]


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