The GEF Overview and Update GEF Expanded Constituency

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– The GEF – Overview and Update GEF Expanded Constituency Workshop 12 -14 March

– The GEF – Overview and Update GEF Expanded Constituency Workshop 12 -14 March 2013 Dakar, Senegal

History of the GEF 1991 $1 billion pilot program in the WB 1992 At

History of the GEF 1991 $1 billion pilot program in the WB 1992 At the Rio Earth Summit, negotiations started to restructure the GEF out of the WB 2013 1994 Instrument for the Establishment of the Restructured GEF serves as financial mechanism for: CBD UNFCCC Stockholm Conv. on POPs UNCCD Mercury (NEW) Initial partners: WB, UNDP, UNEP Also, although not linked formally to the Montreal Protocol, the GEF supports implementation in transition economies. World’s largest public funder of projects and programs to benefit the global environment

GEF Trust Fund Institutional Framework Guidance GEF Assembly Operations STAP GEF Council Countries: Council

GEF Trust Fund Institutional Framework Guidance GEF Assembly Operations STAP GEF Council Countries: Council Members / Constituencies • • • Conventions CBD UNFCCC Stockholm (POPs) UNCCD Montreal Protocol Mercury Evaluation Office Action GEF Trustee GEF Secretariat GEF Agencies • UNDP • UNEP • WB • ADB • Af. DB • EBRD • FAO • Ia. DB • IFAD • UNIDO Projects Countries: • GEF OFPs / PFPs • Convention FPs • Other Gov’t Agencies • NGOs / CSOs • Private Sector

Responsibility of GEF Agencies (1 of 2) Implementing Agency – Project Oversight – Ensure

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

Responsibility of GEF Agencies (2 of 2) Executing Agency – Project Management – Deliver

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

System for Transparent Allocation of Resources (STAR) (1 of 2) ü Biodiversity, Climate Change,

System for Transparent Allocation of Resources (STAR) (1 of 2) ü Biodiversity, Climate Change, and Land Degradation ü All countries have individual allocations ü Minimum allocations: $2 M in CC $1. 5 M in BD $0. 5 M in LD ü Flexibility for smaller overall allocations ($7 M)

System for Transparent Allocation of Resources (STAR) (2 of 2) Programs without Allocations: •

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 capacity development • Country Support Programme • Regional & Global Projects & Programs • Small Grants Programme • Private Sector Engagement

GEF-5 STAR Allocations GEF-5 Replenishment US$4. 25 Bn STAR Envelopes (M US$) PIFs cleared

GEF-5 STAR Allocations GEF-5 Replenishment US$4. 25 Bn STAR Envelopes (M US$) PIFs cleared Allocation by CEO awaiting Utilized approval (M (M US$) Country CC BD LD Total Flexible Burkina Faso 1. 50 3. 23 5. 10 9. 83 0 6. 02 No Cape Verde 3. 52 2. 00 1. 48 7. 00 0 0 Yes Chad 1. 91 2. 20 2. 72 6. 83 0 6. 07 Yes Guinée-Bissau 1. 50 2. 00 1. 10 4. 60 0 0 Yes Mali 1. 96 3. 54 4. 04 9. 54 0 5. 6 No Mauritania 2. 05 2. 00 2. 87 6. 92 0 6. 37 Yes Niger 1. 50 2. 00 3. 38 6. 88 0 6. 54 Yes Senegal 1. 80 2. 41 4. 92 9. 13 0 5. 00 No The Gambie 1. 50 2. 00 4. 57 8. 07 0 0 No

GEF-5 Project Cycle (1 of 4) ü PIF submitted on a rolling basis ü

GEF-5 Project Cycle (1 of 4) ü PIF submitted on a rolling basis ü 18 months preparation for FSP: Council approval/ CEO Endorsement ü 12 months preparation for MSP: only if PPG requested PIF approval/project document approval

GEF Project Cycle (2 of 4) For FSPs Council approval of Work Program -

GEF Project Cycle (2 of 4) For FSPs Council approval of Work Program - PIFs cleared by the CEO Project implementation continues to completion - terminal evaluation and financial closure CEO endorsement of project GEF Agency approval of project – Implementation starts

GEF Project Cycle (3 of 4) Specific Project Cycle Steps MSPs and EAs: Approved

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

GEF Project Cycle (4 of 4) Streamlining Measures 1. 2. 3. 4. 5. PPG

GEF Project Cycle (4 of 4) Streamlining Measures 1. 2. 3. 4. 5. 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 6. Umbrella projects for EAs approved by Council – No separate endorsement for individual projects.

Harmonization Oct 2012: WB Harmonization Pilot discussion starts with the WB Objective To reduce

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 1)No Parallel Process for Decision Making 2)No GEF Review Sheets 3)No GEF-specific Project Templates 4)New business standard: from a 10 to a 5 -day response

Other Funds – LDCF, SCCF, NPIF, AF Additional Trust Funds Managed by the GEF

Other Funds – LDCF, SCCF, NPIF, AF Additional Trust Funds Managed by the GEF Least Developed Countries Fund (LDCF) Special Climate Change Fund (SCCF) Secretariat Services Provided by the GEF Adaptation Fund (AF) Nagoya Protocol Implementation Fund (NPIF)

LDCF & SCCF LDCF SCCF • Available to all developing • Established to address

LDCF & SCCF LDCF SCCF • Available to all developing • Established to address the countries, parties to UNFCCC special needs of LDCs under UNFCCC • Established to support Adaptation and Technology • Only existing Fund mandated Transfer activities, short and to finance the preparation and long-term implementation of NAPAs – 49 NAPAs funded already and 84 LDCF projects approved – LDCF resources now amount to USD 540 M. – 41 adaptation projects approved, 6 for technology transfer – SCCF resources now amount to USD 242 M.

NPIF A separate trust fund created and managed by the GEF – Established in

NPIF A separate trust fund created and managed by the GEF – Established in Feb 2011 – Funds are additional to STAR allocations 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

Adaptation Fund (1 of 3) A separate trust fund – – – Managed by

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. 7 M

Adaptation Fund (2 of 3) Governance – AF Board - The AF Board is

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 3 x 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

Adaptation Fund (3 of 3) Access Modalities • National Implementing Entities (NIE) – Direct

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 19 th Board meeting • Pipeline established National / Regional Implementing Entities • AF offers Project Formulation Grants

Green Climate Fund (GCF) (1 of 2) • UNFCCC: An operating entity of the

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

Green Climate Fund (GCF) (2 of 2) Governance – GCF Board – The GCF

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 gender balance – 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

Broadening the GEF Partnership • GEF Council May 2011: – Approval of a pilot

Broadening the GEF Partnership • GEF Council May 2011: – Approval of a pilot to accredit up to 10 new institutions to serve as GEF Project Agencies – At least 5 national institutions with size and regional balance – Eligibility: national institutions, regional organizations, CSOs/NGOs, UN specialized agencies and programs, other int’l organizations

Public Private Partnerships in GEF-5 (1 of 3) GEF-5 Private Sector Strategy: 3 Modalities

Public Private Partnerships in GEF-5 (1 of 3) GEF-5 Private Sector Strategy: 3 Modalities 1. Establish Public-Private Partnership (PPP) Programs with multilateral development banks (MDBs) to support investments using non-grant instruments 2. Encourage countries to use STAR allocation grants for projects with private sector investments using non-grant instruments $ 30 M available now (very positive) 3. Support SME competitions to facilitate technology transfer and entrepreneurship

Public Private Partnerships in GEF-5 (2 of 3) Non-Grant Instrument • Under the GEF

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

Public Private Partnerships in GEF-5 (3 of 3) PPPs – Current Status • The

Public Private Partnerships in GEF-5 (3 of 3) PPPs – Current Status • The GEF June Work Program included two new PPPs – $20 Million with Af. DB 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

New GEF Fee Policy Start Date • The Council requested the Secretariat to begin

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

GEF-6 Replenishment (1 of 3) Replenishment: process in which donor countries, every 4 years,

GEF-6 Replenishment (1 of 3) Replenishment: process in which donor countries, every 4 years, voluntarily pledge to provide resources to fund the GEF operations. Previous Replenishments

GEF-6 Replenishment (2 of 3) Composition • GEF Trustee (Chair) • GEF CEO (Co-Chair)

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

GEF-6 Replenishment (3 of 3) Process: Timetable • • April 2013 (Paris) Sept. 2013

GEF-6 Replenishment (3 of 3) Process: Timetable • • April 2013 (Paris) Sept. 2013 (TBD) Nov. 2013 (Washington) Feb. 2014 (TBD) Core Documents • Documents – Strategic Positioning – Programming – Policy • GEF 2020 Strategy • OPS 5 (GEFEO)

CEO Vision Statement Time for Transformational Change – The role of the GEF The

CEO Vision Statement Time for Transformational Change – The role of the GEF The GEF is uniquely positioned to 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: v. Collective leadership and effective communication, v. Promoting country ownership, v. Resolute focus on achieving results, a lean and efficient organization

GEF 2020 A long-term strategy for the GEF Context The global environment is in

GEF 2020 A long-term strategy for the GEF Context The global environment is in crisis Key Questions for the GEF Transformational change is needed 1) What is the GEF operating context today and what are the trends that should drive its focus? 2) What are the areas/activities that the GEF is in the best position to support? 3) How can the GEF maximize its potential as catalyst for sustainable change at scale? 4) Which actions can the GEF take in the short, medium and long-term to implement the vision?

GEF Online Resources Website – www. The. GEF. org – – – PMIS –

GEF Online Resources Website – www. The. GEF. org – – – PMIS – Username and Password Council Member List – Pre-PIF Tracking Tool Focal Point List – Project Information: Country Profiles • Where to find PIFs, PFD, PIRs Country Fact Sheets Country Support Programme Documents & Publications Social Media • Council Documents – facebook. com/thegef 1 • Work Programs – twitter. com/thegef • Program Management Bulletin – youtube. com/gefsecretariat • Publications/Videos – Templates – PIF, EAs

Thank you for your attention! Questions? The Global Environment Facility 1818 H Street, NW,

Thank you for your attention! Questions? The Global Environment Facility 1818 H Street, NW, Mail Stop P 4 -400 - Washington, DC 20433 USA Tel: (202) 473 -0508 Fax: (202) 522 -3240/3245 www. thegef. org / secretariat@thegef. org