GEF Awareness Briefing

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• GEF Awareness Briefing

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Structure of this presentation

• Global Environmental Issues GEF focal
  areas,Conventions and Linkages
• The GEF history, governance, structure,
  operational procedures and concepts
• Project cycle information and examples
• Summary and Discussion

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The Global Environmental Focal Areas of the GEF

• Biodiversity
• Climate Change
• International Waters
• Ozone Depletion (only countries in transition)
• And Land Degradation as it relates to the above
  focal areas.

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The GEF and the Global Environmental Conventions

• The GEF is the designated financial mechanism
  for the
• Convention on Biological Diversity (CBD)
• Convention on Climate Change (UNFCCC)
• The GEF collaborates closely with other treaties
  and agreements to reach common goals
  (International Waters, POPs, CCD, Montreal
  Protocol)

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Biodiversity

• Biodiversity refers to the different life forms
  on earth -- species of plants and animals --,
  their genetic variations, and the complex
  ecological interactions among them.
• Biodiversity is under threat largely from
  human-induced pressures.

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Convention on Biological Diversity (CBD)

• Objectives of the Convention
• Conservation
• Sustainable use
• Fair and equitable sharing of benefits
• Financial Mechanism
• GEF is the financial mechanism of the Convention

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Climate change has significant implications for
developing countries

• Changes in timing and frequency of precipitation,
  extreme weather events
• Impact on coastal areas
• Risk for agricultural sector
• Health risks

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UN Framework Convention on Climate Change
requires

• Developing country states (non-Annex I Countries)
  to prepare National Reports
• on their greenhouse gas emissions
• their national climate policies
• and their vulnerability to climate change
• As the financial mechanism, the GEF provides
  funding for preparation of these reports.
• The Convention is also the source of guidance for
  GEF funding of climate projects.

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Climate Change Convention and Kyoto Protocol

• Protocol (1997) sets GHG emission reduction
  targets for industrialized countries and defines
  flexible instruments, emission credit trading,
  joint implementation, and the Clean Development
  Mechanism (CDM)

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International Waters

• The Coastal Oceans and large fresh water basins
  whose boundaries are shared by more than one
  country
• International Waters provide a multitude of
  goods a few of which include
• High quality sources for irrigation and fisheries
• Drinking water supplies
• Sanitation
• Recreation
• Carbon sinks
• Climate Moderators
• Transport Corridors

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International Waters

• The coastal oceans and transboundary fresh water
  basin are under siege from
• Unsustainable irrigation diversion of fresh water
  
• Pollution discharge from industry, sewage
  agriculture
• Over fishing
• Habitat loss and Wetland conversion
• Persistent Organic Pollutants (POPs)
• The GEF is not a financial mechanism for
  International
• Waters. However it supports Regional Sea
  Conventions, UNCLOS, and selected maritime
  conventions

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Land Degradation

• Worldwide phenomenon
• Degradation of land in arid, semi-arid, and dry
  sub-humid areas. In dry lands, soil quality,
  freshwater supplies, vegetation, and crops are
  all easily damaged.
• Characterized by loss of biological or economic
  productivity and complexity in croplands,
  pastures, and woodlands.
• Primary causes over cultivation, overgrazing,
  deforestation, poor irrigation practices,
  poverty, political instability.

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Land Degradation (LD) GEFs Role

• Support country driven activities that prevent/
  control land degradation through its interface
  with the GEFs Focal Areas.
• Addresses LD as part of national sustainable
  development plan
• Complements, rather than substitutes other
  financing available
• Possible if project design is from the bottom up
  (local needs as well as conservation)

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Linkages

• The environment is interconnected through all
  levels
• Local, national, regional, global
• Country projects funded by the GEF need to focus
  on preserving the integrity of the global
  environment, since all levels of the environment
  are interconnected
• Country projects funded by the GEF need also to
  improve environmental conditions and
  sustainability at the local, national, and
  regional levels

Global
Regional
Local
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Linkages

• All the Focal Areas are linked
• Climate change affects biological diversity
• Biological diversity affects land degradation and
  climate change
• International waters affects biological diversity
  and climate change
• Land degradation is linked to the other focal
  areas

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Global Environment Facility Timeline

• GEF Pilot Phase
• 1991 - 1994
• 1 Billion US Dollars
• Replenishment
• 1995 - 1998
• 2.2 Billion US Dollars
• 1999 - 2001
• 2.8 Billion US Dollars
• World Bank is the Trustee of the GEF Trust Fund

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GEF is a Co-financier

• GEF encourages partnerships by bringing together
  multiple sources of funding for projects
• Key Concept the GEF is not a project financier,
  but a project Co-financier providing new and
  additional funds to address global environmental
  issues

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Origin of the Principle of Incremental Costs

• Developing countries sought mechanism for funding
  the incremental costs of global environmental
  actions
• This concept is at the heart of the CBD and
  UNFCCC, as negotiated and agreed by the
  Conferences of the Parties
• Incremental costs calculations are also applied
  to work undertaken to fulfill the Montreal
  Protocol on Substances that Deplete the Ozone
  Layer

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Incremental Costs

• Cost of activities for the global environment
  beyond what is required for national development
• GEF projects must complement national programmes
  and policies to maximize global benefits
• 1) Establish the baseline
• 2) Determine cost of GEF alternative
• 3) Incremental cost (project budget) GEF
  alternative -- cost of baseline

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Baseline and alternative funding
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GEF Portfolio (June 1999) in millions of US
dollars
Total GEF 2,444.22 Total
Co-Financing 7,065.51 TOTAL
9,509.73
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GEF Governance Structure
CONVENTIONS
COUNCIL
ASSEMBLY
32 Members
All 166
Provide Guidance on Policy Programme Issues
18 Recipient
Members
14 Donor

• GEF Council meets every 6 months to review and
  approve all projects, Work Programmes, Business
  Plans, policies.
• GEF Assembly meets every 3 years to review
  general policies,operations, and amendments to
  the GEF Instrument.

operations, and amendments to the GEF Instrument.
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GEF Operational Framework
GEF Assembly GEF Council
GEF Secretariat
STAP
UNDP
UNEP
World Bank
Projects
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GEF Implementing AgenciesYour Partners to Help
Develop and Implement Projects
UNEP global/ regional and trans-boundary
projects, support STAP
UNDP technical assistance / capacity building
projects
World Bank investment projects
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Executing Agencies with shared responsibility for
GEF Project Cycle Management

• African Development Bank
• Asian Development Bank
• European Bank for Reconstruction and Development
• Inter-American Development Bank

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Projects can also be executed by

• Government Agencies
• UN Specialized Agencies
• Non-Governmental Organizations
• Bilateral Development Cooperation Agencies
• Others from the private sector/institutes

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GEF Funding Categories

• Full-size projects (1 million and up)
• Medium-sized projects (up to 1 million)
• Financing can be available for preparing projects
• Small Grants Programme (up to 50,000)
• Enabling activities
• Project Development Funds (PDF-A up to 25,000
• PDF-B up to 350,000 PDF-C up to 1 million)

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Other Project Eligibility Requirements

• Country-driven and endorsed by host Government
• Produce identifiable global benefits
• Participation of all affected groups and
  transparency
• Consistency with the Conventions
• Possess strong scientific and technical merit
• Financially sustainable and cost-effective
• Include processes for monitoring, evaluation, and
  incorporation of lessons learned
• Play catalytic role that leverages other financing

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Basic Project Cycle
Project impacts continue after completion of GEF
funding
Develop project concept
Present concept to an Implementing Agency
Monitor and evaluate
Option to pursue project development financing
Implement Project
Develop project brief and/or project document
Present project document to Council
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The GEF Programmatic Approach

• Purpose
• Provide phased and sustained support for the
  implementation of a multi-year program that
  better integrates global environmental objectives
  into national strategies and plans.

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The Programmatic Approach emphasizes

• Translating national strategies into concrete
  action plans
• Strengthened in-country policy, legal, and
  institutional arrangements
• Agreed goals, milestones, and indicators for each
  phase
• Sequenced disbursements based on identified
  milestones
• A learning and adaptive management system

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The Country Programming Framework depends upon

• A high level political commitment
• Well advanced national biodiversity strategies or
  plans for biodiversity, energy, international
  waters, with clear priorities
• Country commitment towards the key objectives and
  priorities
• Willingness to work across sectoral ministries
  and agencies
• Cooperation, collaboration, and joint programming
  with the implementing agencies and other partners
  towards the common objectives

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Project Examples
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GEF Briefing Summary

• GEF is a co-financing mechanism bringing together
  GEF resources with those from Government, banks,
  NGOs, bilateral and multilateral agencies to
  address
• Biodiversity
• Climate Change
• International Waters
• Ozone Depletion
• Land degradation as it relates to these focal
  areas
• GEF Projects address the global environment
  within the framework of country priorities.

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GEF Briefing Summary

• GEF projects are
• approved by a Governing Council
• implemented by UNDP, UNEP, the World Bank and
  RDBs or by some partnership among these
  organizations) and they are
• executed by Government agencies, regional
  development banks, UN agencies, NGOs and
  bilateral cooperation agencies, private sector
  groups, educational institutions

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GEF BriefingDiscussion Session