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, GEF strategic
  priorities
• The GEF history, governance, structure,
  operational procedures and concepts
• Eligibility requirements, project cycle
  information, emerging issues
• Summary and Discussion

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The Global Environment Facility - GEF

• The GEF was established in 1991 to forge
  international cooperation and finance actions to
  address critical threats to the global environment

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The Global Environmental Focal Areas of the GEF

• Biodiversity
• Climate Change
• International Waters
• Ozone Depletion (only countries in transition)
• Land Degradation
• Persistent Organic Pollutants POPs

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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)
• POPs Convention
• The GEF is a designated mechanism for the
• Convention on Combating Desertification (UNCCD)
• The GEF collaborates closely with other treaties
  and agreements to reach common goals
  (International Waters, Montreal Protocol)

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The GEF and its Strategic Priorities

• Maximize project impacts and sustainability in
  the field
• Identify well-defined performance target
  indicators
• Consider developing a programmatic approach
• Consider preparing budget for each area of
  operation

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The GEF and its Strategic Priorities -
Identification

• Priorities from international Conventions
• Identify national priorities through reports,
  strategies, action plans, national dialogue
  consultations, etc.
• Identify gaps in project portfolio and projects
  with innovative approaches (including monitoring
  and evaluation)
• Update information regularly and refocus
  priorities as necessary

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Biological Diversity

• 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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Threats to Biodiversity

• Changes in land use patterns
• Land degradation
• Non-sustainable use of biodiversity
• Alien Species introductions
• Pollution

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Convention on Biological Diversity (CBD)

• Objectives of the Convention
• Conservation
• Sustainable use
• Fair and equitable sharing of benefits
• In relation to genetic resources
• Financial Mechanism
• GEF is the financial mechanism of the Convention

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GEF Strategic Priorities BIODIVERSITY

• Catalyze sustainability of systems of protected
  areas
• innovative financing
• capacity building for sustainability
• catalysing community / private sector linkages
• Mainstream biodiversity in production landscapes
  and sectors
• facilitate mainstreaming - policy/remove barrier
• develop market incentive - measure/demonstrate
• Build capacity for the Implementation of the
  Cartagena Protocol on Biosafety jointly with
  others
• Generate and disseminate good practices for
  biodiversity

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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
(UNFCCC)

• Requires developing country states (non-Annex I
  Countries) to prepare National Reports on their
• greenhouse gas emissions
• national climate policies
• vulnerability to climate change
• Financial Mechanism
• GEF is the financial mechanism of the Convention
  and 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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Convention on Climate Changeand Kyoto Protocol

• Protocol (1997) sets greenhouse gas (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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GEF Strategic PrioritiesCLIMATE CHANGE

• Transformation of markets for energy-efficient
  high volume products and processes
• Increased access to local sources of financing
  for renewable energy and energy efficiency
• Power sector policy frameworks supportive of
  renewable energy and energy efficiency

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GEF Strategic PrioritiesCLIMATE CHANGE -
Continued

• Productive uses of renewable energy
• Global market aggregation and national innovation
  of emerging technologies
• Modal shifts in urban transport and clean
  vehicle/fuel technologies
• Short term measures

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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
• Habitat for biodiversity
• 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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GEF Strategic PrioritiesINTERNATIONAL WATERS

• Catalyze financial resources for implementation
  of agreed actions
• SAP Implementation
• Expand global coverage with capacity building
  foundational work
• SAP Formulation
• Undertake innovative demonstrations
• Reduce contaminants
• Prevent marine invasives
• Address water scarcity

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Persistent Organic Pollutants (POPs)

• Characteristics and Effects of POPs
• Persistent ability to resist degradation
• Bio-accumulation
• Potential for long range transport (air, water,
  migratory species)
• Disrupts endocrine systems, suppresses immune
  systems, induces reproductive and developmental
  changes

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Convention on POPs

• Objectives of the Convention (May 2001)
• Total ban on production and use of 3 pesticides
  Aldrin, Endrin Toxaphene
• Elimination of production and use of 5 other
  pesticides (some exceptions), e.g., DDT, dieldrin
• Ban on production and new use of PCBs
• Minimization of un-wanted by-products of chemical
  processes and incineration products, e.g.,
  dioxins, furans
• Financial Mechanism
• GEF is the interim financial mechanism of the
  Convention

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GEF Strategic PrioritiesPOPS, OZONE DEPLETION

• Persistent Organic Pollutants
• Targeted capacity building
• Implement policy/regulatory reforms and
  investments
• Demonstrate innovative and cost-effective
  technologies and practices
• Ozone depletion
• Methyl Bromide Reduction

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Land Degradation (LD)

• Worldwide phenomenon
• Degradation of land in arid, semi-arid, and dry
  sub-humid areas
• 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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Convention to Combat Desertification (UNCCD)

• Support country driven activities that promote
  sustainable land management for maintaining and
  improving ecosystem integrity, stability,
  functions and services
• Addresses LD as part of national sustainable
  development plans
• Targeted capacity building for SLM and
  mainstreaming into national development
• Innovative, indigenous, on the ground investments
  to improve ecosystem integrity
• Complements, rather than substitutes other
  financing available GEF as value-added
• Financial Mechanism
• GEF is a financial mechanism of the UNCCD (as of
  Sep 03)

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GEF Strategic PrioritiesLAND DEGRADATION

• Strengthen institutional capacities
• Integrate principles of sustainable land
  management (SLM) within national development and
  policy frameworks, programs and plans
• Implement Policy and regulatory reforms
• Strengthen institutional capacities for SLM
• Implement innovative and/or indigenous
  sustainable land management practices

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Capacity Development

• Background - Capacity Development Initiative
  (CDI)
• Strategic partnership between the GEF Secretariat
  and UNDP
• Responding to developing country priorities and
  convention requests for support
• Achievements of CDI
• Mobilized regional experts
• Conducted extensive consultations
• Developed a framework for GEF action

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GEF Strategic Approach to Enhance Capacity
Building

• Self assessment of capacity building needs
  (NCSAs)
• Strengthening capacity building needs in GEF
  projects
• Targeted capacity building projects
• Country specific programs for addressing capacity
  building needs in LDCs and SIDS.

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National Capacity Self-Assessments (NCSAs)

• 200K available to GEF eligible countries through
  expedited procedures
• Complementary to recent or ongoing capacity
  assessment exercises
• Country-driven, multistakeholder, and iterative
• UNDP, UNEP and the World Bank
• 25K available for LDCs and SIDS for process
  design and proposal development
• Global Technical Support program for
  Implementation of NCSAs

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Capacity Building Next Steps

• Development of targets and indicators for
  measuring results and impacts of capacity
  building activities
• Development of operational modalities and project
  criteria for the implementation of the strategic
  approach
• Enhancement of capacity building components
  within GEF projects
• Country capacity building programs for LDCs and
  SIDS
• Global Technical support program.

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GEF Strategic PrioritiesCROSS CUTTING THEMES

• Capacity building
• Inclusion of national non-green agencies
• Sustaining community/private involvement
• Linkages to other GEF focal areas

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GEF Strategic PrioritiesCATALYTIC ROLE OF GEF

• Promoting all forms of sustainability
• Mainstreaming into national policy frameworks
  (NEAPs, BSAPs, NCs, NAPs, PRSPs, SAPs, etc)
• Partnerships (Govt / NGO / CBO / Private)

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Scientific and Technical Advisory Panel (STAP)

• What is STAP?
• The Scientific and Technical Advisory Panel to
  GEF
• Provides independent advice to advise GEF on
  scientific technical aspects of programs
  policies
• Who are STAP?
• 15 members from developed and developing
  countries with expertise in various GEF focal
  areas
• Serve for 2 years, except Chair and Vice-Chair
  who serve for 4 years
• Appointed by UNEP Executive Director, in
  consultation with GEF CEO, UNDP Administrator,
  and World Bank President

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STAP engages withthe ST community in 4 ways

• Through its members, and their access to
  scientific networks
• Through a roster of experts
• STAP has appointed roster of 250 experts
  worldwide to assess scientific and technical
  soundness of full-sized projects (above 1mn) and
  enabling activities prior to submission to GEF
  Council

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STAP engages withthe ST community in 4 ways

• Through targeted research
• Defined as Goal-oriented research that supports
  the GEF operational strategy by providing
  information, knowledge and tools that improve the
  quality and the effectiveness of the development
  and implementation of GEF projects and programs.
• Through technical workshops
• POPs
• Rehabilitation and Restoration of Drylands
• Groundwater
• Mainstreaming Biodiversity
• Etc.

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History of the GEF A Timeline

• GEF Pilot Phase
• 1991-1994 -- 1 Billion US Dollars
• Replenishments
• 1995-1998 -- 2.2 Billion US Dollars
• 1999-2001 -- 2.8 Billion US Dollars
• 2002-2005 -- 2.95 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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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
• Establish the baseline
• Determine cost of GEF alternative
• Incremental cost (project budget) GEF
  alternative -- cost of baseline

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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
• The COP of the UNCCD has accepted the GEF as an
  incremental financial mechanism to the
  co-financing leveraged by the Global Mechanism

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Current GEF Portfolio (in millions of US dollars)
Total GEF 5,242.68 Total Co-Financing 17,394.83
TOTAL 22,637.51
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GEF Governance Structure
CONVENTIONS
COUNCIL 32 Members 18 Recipient 14 Donor
ASSEMBLY All 176 Participants
Provides Guidance on Policy Programme Issues

• 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.

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GEF Institutional Framework

GEF Assembly GEF Council
STAP
GEF Secretariat
Office of ME
Implementing Agencies1. UNDP2. UNEP3. World
Bank
Executing Agencies1. ADF2.AFDB3. EBRD4.
FAO5. IADB6. IFAD7.UNIDO
Projects
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GEF Implementing Agencies Your Partners to
Help Develop and Implement Projects

World Bank
UNEP
UNDP
Investment projects
Global regional/ and trans-boundry projects,
support STAP
Technical assistance/Capacity building projects
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Executing Agencies with shared responsibility
for GEF Project Cycle Management

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

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GEF Projects can be managed 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
  - Project Development Funds (PDF)
• PDF-A up to 25,000 (up to 50,000 for MSPs)
• PDF-B up to 350,000
• PDF-C up to 1 million
• Enabling activities
• Small Grants Programme (up to 50,000)

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GEF Small Grants Program (SGP)

• Provides direct funding to NGOs and CBOs for up
  to a maximum of US 50,000/project
• Operates in a decentralized and flexible manner
  by establishing a country program
• Led by a National Steering Committee majority of
  members from civil society
• Committee responsible for designing national SGP
  strategy and approving individual grants
• Day to day management by National Coordinator

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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
Develop project concept
GEF review for eligibility and pipeline entry
OFP endorsement
Final evaluation
Project impacts continue after completion of GEF
funding
Implement, monitor and evaluate project
Secure project development funding option
GEF Council review and approval for CEO
endorsement for OFP
Prepare project proposal
GEF review for Work Program inclusion
CEO clearance
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Resource Allocation Framework

• What is RAF?
• Framework for allocation of resources to global
  environmental priorities and to countries based
  on performance

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Resource Allocation Framework

• Objective
• To maximize the impact of these resources on
  global environmental improvements
• To promote sound environmental policies and
  practices worldwide.

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Resource Allocation Framework

• What will it provide?
• Varied levels and types of support to countries
  based on assessments of country capacity,
  policies and practices.

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Resource Allocation Framework

• Context
• GEF mission related to the global environment
• GEF relations with conventions
• Strategic planning framework of the GEF Business
  Plan
• Institutional structure of the GEF.

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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
• Persistent Organic Pollutants (POPs)
• Land degradation
• 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
  FAO, UNIDO, IFAD, the Regional Development Banks
  (or by some partnership among these
  organizations)
• managed by Government agencies, regional
  development banks, UN agencies, NGOs and
  bilateral cooperation agencies, private sector
  groups, educational institutions

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• DISCUSSION SESSION