GEF Policies and Processes in GEF 4

1
GEF Policies and Processes in GEF 4

• Sub-regional Workshop for GEF Focal Points
• East and Southeast Asia
• Bangkok, 2-3 April

2
Introduction

• I. New Vision for the GEF
• II. Evolving Policies and Processes
• III. Role of Countries
• IV. Adaptation to Climate Change
• V. Comparative Advantages of GEF Agencies

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I. New Vision for the GEF

• Strategic
• Innovative
• Equitable
• Accessible
• Focused

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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

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GEF will be Strategic (continued)

• Promote programmatic approach
• Move away from project driven approach
• Develop and apply indicators of outcomes and
  impacts

6
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

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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

8
GEF will be Accessible

• Engage in direct and transparent dialogue with
  countries to ensure that new policies and
  procedures are understood
• Enhance GEFs corporate image and public
  communications
• Improve data management system and website

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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

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II. Evolving Policies and Processes

• Resource Allocation Framework
• Project Cycle
• Focal Area Strategies
• Small Grants Programme

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Resource Allocation Framework

• New system to allocate scarce GEF resources to
  all eligible countries
• Allocations are based on
• Global Environmental Benefits
• Country level Performance

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Resource Allocation Framework(continued)

• Provides predictability and transparency to
  countries
• Applies to Biodiversity and Climate Change focal
  areas in GEF4

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Allocations under the RAF

• Countries receive Individual Allocations in the
  Biodiversity and Climate Change focal areas
• OR
• Countries have access to Group resources in the
  Biodiversity and Climate Change focal areas

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Allocations under the RAF(continued)

• 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

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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

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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

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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

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Managing Pipeline of Projects Under Preparation

• GEFs 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

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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

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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.

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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

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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.

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Proposed GEF Project Cycle

• Progression from one phase to the next is
• through two discrete GEF review points
• Project Concept Agreement Review using Project
  Identification Form (PIF) and Project Preparation
  Grant (PPG)
• Work Program Inclusion/CEO endorsement for FSP
  CEO approval for MSP and EAs.

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Proposed GEF Project Cycle

• GEF Agencies are responsible for three
• major phases
• Project preparation
• Project approval and implementation supervision
• Project closing and evaluation

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GEF Pipeline Management

• All approved PIFs go into GEF pipeline
• Proposals in the pipeline will be processed with
  time-bound milestones
• Proposals not meeting the milestones are subject
  to cancellation policies approved by the Council.

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Monitoring and Evaluation Policy (2006)

• Purpose of ME in the GEF
• Promote accountability results, effectiveness,
  processes and performance
• Promote learning, feedback and knowledge sharing
  as basis for decision making on all levels
• Clarifies roles and responsibilities
• Includes minimum standards for project ME
• Available on www.thegef.org, under Evaluation
  Office, under Policies and Procedures

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Role of GEF Focal Point in ME

• No prescribed role depends on country and
  circumstances
• Portfolio or Project Monitoring depends on each
  country and project, as discussed during project
  ME design
• Involvement in evaluations on GEF matters
  depends on country and circumstances
• Assist Evaluation Office in identifying major
  relevant stakeholders, coordinate meetings and
  assist with agendas
• Particular responsibility for use of evaluation
  recommendations and to integrate lessons into
  project proposals
• Key role in keeping stakeholders consulted and
  involved about the plans, implementation and
  results of country GEF ME activities
• Comment on TORs of Country Reviews and coordinate
  country responses (for select countries only)
• Other?

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Project Review Criteria

• Country ownership
• Program and Policy Conformity
• Financing
• Institutional Coordination and Support
• Responsiveness to Reviews

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Country Endorsement(by Country National
Operational Focal Point)

• Endorsement is required the first time funding is
  requested from the GEF
• Projects in the biodiversity and climate change
  focal areas should follow the endorsement rules
  of RAF (all resources requested are out of
  country/group allocations).

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Project Identification Form (PIF)

• Submission of a PIF for CEO approval is on a
  rolling basis.
• PIF template includes key information on project
  idea and best estimate of project cost.

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Project Preparation Grant (PPG)

• Available only for
• Approved PIFs
• After receipt of Focal Point endorsement letter
• Grant amount based on estimate of project
  preparation costs and deducted from total project
  cost
• Approved on a rolling basis

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Country Endorsement(by Country National
Operational Focal Point)

• Endorsement required
• when Funding is first requested from the GEF
• for Work Program inclusion.
• PIFs for Biodiversity and Climate Change
  projects need to be in line with the agreements
  reached with a country during the direct
  dialogues with GEFSEC.

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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

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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

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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

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IV. Adaptation to Climate Change

• Funds for Adaptation - 230 M (currently
  available for adaptation/pledges)
• Features of Funds
• Strategic Priority on Adaptation (SPA) Trust Fund
• LDC Fund (UNFCCC)
• SCCF Fund (UNFCCC)
• Adaptation Fund under discussion (Kyoto Protocol)

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Different features

• GEF TRUST FUND
• Incremental cost
• Global benefits
• RAF
• Co-financing

• New FUNDS
• Additional cost
• Sliding scale (optional)
• NO RAF
• NO Global benefits
• Different approach to co-financing

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Piloting an Operational Approach to Adaptation
(SPA)

• Projects will Show how adaptation planning and
  assessment can be practically translated into
  projects that will provide real benefits
• 50 million allocation gt after an evaluation of
  the pilot the program will evolve
• Policy guidelines GEF Assistance to Address
  Adaptation
• SPA operational guidelines

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Climate Change New fundsLDCF and SCCF focus on
development

• Least Developed Countries Fund
• implementation of NAPAs (urgent and immediate
  needs)
• Special Climate Change Fund
• (a) top priority adaptation
• Areas Water, land management, agriculture,
  health, infrastructure development, fragile
  ecosystems, integrated coastal zone management,
  disaster risk management and prevention
• gt Complementarity of the funds

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Status of the new funds

• LDCF
• Existing resources, including pledges 115
  million
• The LDCF has supported the preparation of NAPAs
  in 44 LDCs and will support NAPA implementation
• SCCF
• Total resources, including pledges 60 million
• 34 million already programmed in projects on the
  ground
• gt About 90 million mobilized in the last 12
  months

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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

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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.

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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 GEFs capacity to mobilize
  financial and technical resources and
  co-financing for its projects.

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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 agencys actual capacity, expertise and
  experience
• business plan
• portfolio of completed and ongoing projects
• Country Presence

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Process

• Preliminary description of each agencys
  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.

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Thank you