GEF Policies and Processes in GEF 4 Subregional

GEF Policies and Processes in GEF 4 Sub-regional Workshop for GEF Focal Points Europe and the CIS 7 -8 March 2007, Istanbul

Introduction I. New Vision for the GEF II. Evolving Policies and Processes III. Role of Countries

I. New Vision for the GEF § § § Strategic Innovative Equitable Accessible Focused

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

GEF will be Strategic (continued) § Promote programmatic approach • Move away from project driven approach § Develop and apply indicators of outcomes and impacts

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

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

GEF will be Accessible § Engage in direct and transparent dialogue with countries to ensure that new policies and procedures are understood § Enhance GEF’s corporate image and public communications § Improve data management system and website

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

II. Evolving Policies and Processes § Resource Allocation Framework (RAF) § Project Cycle § Focal Area Strategies § Small Grants Programme (SGP)

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

Resource Allocation Framework (continued) § Provides predictability and transparency to countries § Applies to Biodiversity and Climate Change focal areas in GEF 4

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

Allocations under the RAF (continued) § Initial Allocations are for the 4 -year period of GEF 4 § Only 50% of Allocation can be used for approvals in first 2 years of GEF 4 § Allocations will be adjusted after 2 years if country performance and global benefits change

Group Allocations § Countries in Group collectively access group allocation § Average GEF 4 allocation for countries in Group • Biodiversity $1. 6 million • Climate Change $1. 3 million

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

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 Implementing Agency for further development

Managing Pipeline of Projects under Preparation § GEF’s 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

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

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.

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 /GEFFocal. Area. Strategies. html § Focal Points welcome to provide feedback to on-going work channeled through the Council Member in their respective constituencies

Redesigned Project Cycle § Interim Project Steps § CEO approval “decision points” § Project Submission requirements § New Project Preparation Templates • Project Identification Form (PIF) • Project Preparation Grant (PPG)

1. Countries / Agencies Identify project concepts Agencies submit Project Identification Form (PIF) 2. GEFSec approves PIF 9. Project closure and final independent Evaluation 8. Countries/Agencies implement project PROJECT CYCLE (Interim) 3. Countries have option to request Project Preparation Grant (PPG) Request 4. Countries prepare project in partnership with Agency. 7. CEO endorsement of final project document 6. GEFSec Appraisal and Council Approval of work program 5. Countries/Agencies Submit Project Executive Summary (PES) and proposal for work program approval

CEO Approval “Decision Points” “Decision points” apply to full-sized projects that go through complete project cycle: 1. Approval of Project Identification Form (PIF) 2. Approval of Project Preparation Grant (PPG) 3. Approval of Project Executive Summary (PES): Work Program Inclusion for Council Approval. 4. Endorsement of Project Document

Summary of Project Submission Requirements * ** PIF PPG Project Documents Enabling Activities a a* a Medium Size Projects a a Full Size Projects a a a*** Only NCSAs can apply for PPG Project Document and Project Executive Summary for Medium Size Project are submitted at the same time and do not require Council approval. *** Project Document for Full Size Project is submitted together with Project Executive Summary and require Council approval.

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.

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

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.

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

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

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

Thank you