Key GEF Policies and Related Guidelines & Initiatives

1. Key GEF Policies and Related Guidelines & Initiatives Training for GEF Project Agencies: Introduction to the GEF Washington, DC October 23, 2014

2. Presentation Overview • Introduction to GEF Governance Documents • Where Key GEF Policies and Guidelines can be found • Presentation of Key GEF Policiesand related Guidelines & Initiatives

3. Foundational & Governance Documents GEF Instrument – GEF’s “Charter” • Not a legal institution; an agreement between 3 “Implementing Agencies” (IAs) (UNDP, UNEP, WB) • Establishes Purpose, Participation & Eligibility, Governance & Structure, etc. • Amendment requires agreement of Assembly & 3 Implementing Agencies MOUs with Conventions • Govern the relationship between the GEF and 5 Conventions for which GEF serves as a/the financial mechanism. Council & Assembly Rules of Procedure http://www.thegef.org/gef/council_rules_procedure http://www.thegef.org/gef/node/1688

4. Governance Documents (cont’d) Scientific and Technical Advisory Panel • Established by GEF by Instrument; Governed by Council-approved Terms of Reference (last amended in 2012) GEF Evaluation Office • Originally established by Council; now included in Instrument. • Governed by Monitoring and Evaluation Policy Agency MOUs and Financial Procedures Agreements LDCF & SCCF Trust Funds • Established through UNFCCC COP & GEF Council Decisions. • Governance - GEF Council meets as “LDCF/SCCF Council.” Nagoya Protocol Implementation Fund (NPIF) • Established by GEF Council; governed by GEF Council.

5. GEF Policies & Guidelines • Policies (sometimes “Operational Policies”) are approved by GEF Council. Contain mandatory statements or principles. • Since 2011, final “GEF Policies” (as approved by Council) posted to GEF website. Each Policy given a number that is distinct from Council Documents. Posted to: http://www.thegef.org/gef/policies_procedures • For policies prior to 2011, need to look at both (a) the relevant Council Decision (in the Summary of the Chairs) + (b) relevant Council Documents. • Guidelines: Approved by GEF CEO. Contain information to help explain or implement a policy. Often posted as Council “Information Documents.” • All GEF Policies and Guidelines apply to new GEF Project Agencies as they do to the original 10 GEF Agencies (unless differences are stated in Policy – e.g. Agency Fee Policy.) • All GEF Trust Fund Policies and Guidelines also apply to LDCF/SCCF projects unless the LDCF/SCCF Council has decided otherwise.

6. Environmental and Social Safeguards • The Policy (PL/SD/03) establishes eight Minimum Standards that all GEF Partner Agencies are required to meet. Some standards may be found not to apply to a given agency in light of its “agreed or expected comparative advantage in the GEF, based on…the type of projects it normally implements.” • Accredited GEF Project Agencies have been assessed as meeting the standards (except where a standard was found to be “inapplicable”), including with regard to implementation capacity. • Policy self-enforced at the Agency through each Agency’s system for “Accountability and Grievances.” • “The GEF Secretariat will not conduct a project-by-project review of the application of the minimum safeguard standards.” (Guideline GN/SD/O3, paragraph 8, taken from Council Document GEF/C.41/10/Rev.1) http://www.thegef.org/gef/content/environmental-and-social-safeguards

7. Information Disclosure • GEF Instrument, Para. 5: “GEF operational policies…. with respect to GEF-financed projects shall provide for full disclosure of all non-confidential information.” • Information disclosure practices contained in GEF Practices on Disclosure of Information, Council Document GEF/C.41/Inf.03. http://www.thegef.org/gef/sites/thegef.org/files/documents/C.41.Inf_.03_GEF_Practices_on%20Disclosure_of_Information.pdf • All Council & replenishment documents disclosed- unless contain confidential information. • Includes all project documents - PIFs, CEO endorsement request & full project proposal - and GEFSEC review sheet & STAP Screen. • GEF also relies on Agency information disclosure/ access to information policies (including those required under GEF Safeguards Policy). • World Bank Access to Information Policy applies to GEF Secretariat.

8. Public Involvement

9. Policies Related to CSO and Stakeholder Involvement • Public Involvement in GEF-financed Projects (Public Involvement Policy) (PL/SD/01) Retrofitted to GEF Policy format and posted as GEF Policy PL/SD/01 • Policy on Gender Mainstreaming (PL/SD/02) • Policy on Agency Minimum Standards on Environmental and Social Safeguards (PL/SD/03) • Guidelines for Engagement with Indigenous Peoples • GEF Monitoring and Evaluation Policy • Guidelines for the Implementation of the Public Involvement Policy (2014) (Council Document GEF/C.47/Inf.06)

10. Public Involvement Policy Policy: Public Involvement in GEF Projects, GEF/PL/SD/01 http://www.thegef.org/gef/content/public-involvement-policy • Approved by GEF Council in April 1996, based on paragraph 5 of the GEF Instrument: “GEF operational policies…. with respect to GEF-financed projects shall provide for consultation with, and participation as appropriate of major groups and local communities throughout the project cycle.” • Effective public involvement is critical to the success of GEF-financed projects, with emphasis on local participation. • Public involvement comprises three related and often overlapping processes: (a) information dissemination; (b) consultation; and (c) stakeholder participation.

11. Public Involvement Policy (Cont’d) • Policy includes five principles and related requirements that all GEF Partner Agencies are required to follow. • Applies to all GEF focal areas, programs, and projects; • Spells out the rationale, terms and principles for public involvement • Solidifies operational requirement for stakeholder involvement and partnership in the design, implementation, and evaluation of GEF-financed activities • Based on this policy, GEF Partner Agencies must describe (in PIF and CEO endorsement) how they have ensured public involvement in project design and will continue to do so during implementation.

12. The Rationale for Public Involvement in GEF-financed Projects Public involvement improves the performance and impact of projects by: • Enhancing recipient country ownership of, and accountability for, project outcomes • Addressing the social and economic needs of affected people • Building partnerships among project executing agencies and stakeholders • Making use of skills, experiences, and knowledge, specifically of non-governmental organizations (NGOs), community and local groups, and the private sector in the design, implementation and evaluation of project activities.

13. Public Involvement Guidelines: Overview • Information Dissemination • Consultation for Setting Priorities • Consultation for Project/Program Design and Implementation • Reporting, Monitoring and Evaluation

14. Action Plan for Implementing Public Involvement Policy and Guidelines • Information Dissemination • Design of programs and projects • Knowledge Management • Monitoring • Capacity Development • Policy and Guidelines • Conflict Resolution

15. Gender Mainstreaming and Indigenous Peoples

16. Gender Mainstreaming Policy on Gender Mainstreaming (PL/SD/02) was adopted (2011) • GEF’s commitment to enhancing gender equality through GEF operations. • The Policy calls on the GEF Agencies to have policies, strategies, or action plans that meet the seven minimum standards: • Institutional capacity for gender mainstreaming • Consideration of gender elements in project design, implementation and review • Undertake project gender analysis • Measures to minimize/mitigate adverse gender impacts • Integration of gender sensitive activities • Monitoring and evaluation of gender mainstreaming progress • Inclusion of gender experts in projects

17. Gender Equality Action Plan • Concrete road map to implement the GEF Policy on Gender Mainstreaming that builds on the existing and planned gender strategies and plans of the GEF Agencies • Goal: to operationalize the mainstreaming of gender in GEF policy and programming to advance both the GEF’s goals for attaining GEBs and the goal of gender equality and women’s empowerment. • Initially serves during the GEF-6 period (FY15-18).

18. Key Elements 1. Project Cycle • Develop a Guideline on Mainstreaming Gender in GEF Project Cycle • Incorporate in Project Templates and Guidelines 2. Programming and Policies • Support gender responsive projects, based on country demand and GEF-6 Strategy • Mainstream gender in key GEF Strategy and Policy documents. 3. Knowledge Management • Enhance KM on gender equality, in line with new KM strategy (Knowledge products, webpage, etc) 4. Results Based Management • Strengthen GEF-wide accountability for gender mainstreaming by having Corporate and Focal Area level indicators and targets. 5. Capacity Development • Strengthen capacity at GEFSEC institution and staff levels, OFPs and partners at the country level

19. GEF-6 Core Gender Indicators • Percentage of projects that have conducted gender analysis during project preparation. • Percentage of projects that have incorporated gender responsive project results framework (e.g. gender responsive output, outcome, indicator, budget, etc). • Share of women and men as direct beneficiaries of project. • Share of convention related national reports incorporated gender dimensions (e.g. NBSAP, NAPA, TDA/SAP, etc.). • Percentage of monitoring and evaluation reports that incorporates gender equality/women’s empowerment issues and assess results/progress.

20. GEF Indigenous Peoples Policies and Strategies • GEF Public Involvement Policy (1996) • GEF Minimum Standards on Envi. & Social Safeguards, including Indigenous Peoples (2011) • GEF Principles and Guidelines for Engagement with Indigenous Peoples (2012) • GEF Focal Area Strategies and Results Framework • Incorporate strategies and indicators related to Indigenous Peoples • GEF Project Review Criteria • Clarify stakeholders participation, including indigenous peoples and gender groups, in project preparation and implementation.

21. Indigenous Peoples Safeguards Policy (PL/SD/03) include minimum standards on Indigenous Peoples • The GEF “adopts a standard of free, prior and informed consent (FPIC) for GEF-financed projects” in ILO Convention 169 signatory countries; and • Minimum Standard 4 on Indigenous Peoples. Main criteria and ten minimum requirements require GEF Agencies to “ensure that their projects are designed and implemented in such a way that fosters full respect for Indigenous Peoples’ and their members’ dignity, human rights, and cultural uniqueness. Principles and Guidelines for Engagement with Indigenous Peoples. • Consolidates and summarizes key principles for engaging Indigenous Peoples contained in the Public Involvement Policy (PL/SD/01) and Safeguards Policy and establishes additional guidance.

22. GEF IP Principles and Guidelines:Mechanisms for Implementation Indigenous Peoples Advisory Group GEF Indigenous Peoples Focal Point Enhanced Monitoring Systems Capacity building and Information exchange Strengthened Financial Arrangements

23. Agency Fee, Project Cancellation, Co-Financing, Incremental Cost

24. Agency Fee Policy Fee Policy For GEF Partner Agencies (GEF/PL/FI/04) • Sets fees for newly accredited GEF Project Agencies at 9%. • The fees for any PPGs will follow the same 9% rate. • New GEF Project Agencies will not be compensated for anyinvolvement in GEF “corporate activities” in which they may choose to become involved. • “Corporate activities” includes “policy support” (“development and revision of GEF policies, strategies, business plans, and guidelines”) and “support to evaluation office.”

25. Proposed Update on GEF Project Cancellation Policy • Proposed update contained in Council Document GEF/C.47/7, Improving the GEF Project Cycle. • Full-size projects that exceed maximum project preparation time-standards (e.g. 18 months) would be removed from pipeline. • The phased approach to implement the cancellation of projects includes: • After 12 months of PIF approval by Council, a notification will be sent to the Agency, OFP of the recipient country to alert the remaining 6 months for submission of project for CEO endorsement. • After 18 months, the Secretariat informs all relevant stakeholders on the cancellation of the project. • The Secretariat will consider exception to the above cancellation only on extraordinary events, and if agreed, will notify Council. • Cancelled projects maybe resubmitted within a year for consideration of CEO endorsement if resources are available.

26. Proposed Update on GEF Project Cancellation Policy (cont’d) • Programs: cancellation of child projects and unused program funding: • Program Framework Document (PFD) will contain an agreed deadline (PFD commitment deadline) before which all child projects need to be submitted for CEO endorsement. • Six months before the PFD commitment deadline, if there are still program funds awaiting submission of child projects for CEO endorsement, the Secretariat sends a notification to the Lead Agency notifying it of the upcoming cancellation of such program funds. • After the passing of the agreed PFD commitment deadline, the CEO notifies the relevant Lead Agency and the Trustee of the cancellation for the remaining program funds.

27. Co-financing Policy • Council approved a new Co-financingPolicyin May 2014, which has been posted as Policy FI/PL/01. This Policy • establishes the objectives for co-financing in GEF-financed projects; • Defines co-financing for GEF-financed projects and programs; and • Provides rules/requirements on co-financing for GEF-financed projects and programs. • Applies to GEF Trust Fund and the Nagoya Protocol Implementation Fund (GEF-financed projects) financed projects and programs but not to LDCF or SCCF financed projects. • Council Document that proposed the Policy to the Council (Document GEF/C.20/6/Rev.1, Co-financing) contains helpful background and guidance on how it will be implemented.

28. Co-financing(cont’d) • Objective: “to attain adequate levels of co-financing as a means to: • enhance the effectiveness and sustainability of the GEF in achieving global environmental benefits; • strengthen partnerships with recipient country governments, multilateral and bilateral financing entities, the private sector, and civil society.” • Introduction notes “an ambition for the overall GEF portfolio to reach a co-financing ratio of at least 6:1, with expectations for greater co-financing in upper-middle income countries that are not SIDs.” • This is a portfolio ambition, not project-by-project. • GEF Secretariat “will not impose minimum thresholds and/or specific co-financing sources in the review of individual projects or work programs.”

29. Co-financing(cont’d) • Definition: “resources that are additional to the GEF grant1 and that are provided by the GEF Partner Agency itself and/or by other non-GEF sources that support the implementation of the GEF-financed project and the achievement of its objectives.” (1) GEF financing (e.g. the GEF grants) is determined on the basis of the agreed incremental cost principle. • Co-financing is required for all GEF full-size and medium-size projects and programmatic approaches (PAs). Optional for enabling activities. • PIFs & PAs must list indicative co-financing for work program inclusion. • For CEO endorsement, Agencies must confirm co-financing and provide evidence. • Agencies must list co-financing by source and type. • SecretariatreviewsproposalsforconsistencywithPolicy.

30. Co-financing(cont’d) • Council DocumentGEF/C.20/6/Rev.1 also notes thattheSecretariatwill “continue to review project co-financing as part of its assessment of whether the project is supported by an adequate financing package in light of the needs of the project.” (Paragraph 16) • GEF Secretariatalsoto monitor portfolio co-financing and report to Council through Annual Monitoring Review. • The data included in AMR is taken from PIFs. • Agecies to report on materialized co-financing during implementation and project closure(per GEF monitoring requirements.) • Evaluation Office not mentioned, but expected to evaluate co-financing through Overall Performance Studies. • See link below for more information: http://www.thegef.org/gef/policy/co-financing

31. Incremental/Additional Cost Determine environmental/adaptation problem, threat, or barrier, & the “business-as-usual” scenario Identify the global environmental benefits (GEBs)/adaptation benefits and fit with GEF priorities within GEF focal area strategies and priorities; Develop the results framework of the intervention; Provide the incremental/additional reasoning and GEF’s role; and Negotiate the role of Co-financing. • GEF funds the “agreed incremental" costs of agreed global environmental benefits (GEBs). • For LDCF/SCCF, it is the “additional adaptation costs”. • Costs in reference to an agreed baseline or “business as usual” scenario or project w/o GEBs or adaptation measures. • Previously relied on complex calculation of incremental costs. • Since 2007, approach based on five-step incremental reasoning approach. Operational Guidelines for the Application of the Incremental Cost Principle (http://www.thegef.org/gef/node/435)

32. Non-Grant Instruments

33. Non-Grant Instrument Pilot and Policy GEF’s experience to datesuggests that non-grant instruments can make an important contribution to the achievement of the GEF’s objectives. They have helped deliver innovative projects and catalytic partnerships. GEF-6 Policy Recommendations: expand the use of non-grant instruments, in view of the contributions these can make to leverage capital from private sector, to long-term financial sustainability through their potential for generating reflows, as well as the usefulness of assessing the demand for non-grant instruments for the public sector in GEF recipient countries. Updated Operational Policies and Guidance for the Use of Non-Grant Instruments, to be approved by the GEF Council in Oct 2014

34. GEF’s experience with Non-Grant Instruments • Significant experience with the use of non-grant instruments – risk mitigation, equity and debt instruments – in a diverse set of project types from a variety of FAs • Since the GEF’s inception, a total of 86 projects have been recorded as having utilized a “non-grant” instrument, totaling $715 million of GEF financing (about 6% of the GEF’s total programmed amount) • Co-financing ratio of these projects has trended high over time, and is well above co-financing levels of GEF grant programming • The largest share of projects has been in the CCM focal area (80% of the funds). 7projects have been in the BD. • Debt instruments and risk mitigation productsare the most frequently used non-grant instruments (71 % of the funds)

35. GEF-6 NON-GRANT PILOT • will play a key role in supporting the GEF’s efforts to leverage significant capital from the private sectorthrough the use of innovative and flexible financial instruments. • will expand the range of tools available to the GEF and allow the GEF to assess the demand and applicability of GEF non-grant instruments for public sector recipients. • By demonstrating and validating successful models for the use of non-grant instruments, the GEF can help catalyze large-scale changes through broader adoption and generate experiences which may also be useful for other international environmental funding mechanisms such as the Green Climate Fund. • by focusing the Pilot on non-grant instruments that have the potential to generate reflows, the Pilot can make a contribution to the GEF Trust Fund’s financial sustainability.

36. NGI Pilot: Implementation • A set-aside of $110 million for the Non-Grant Pilot. • The maximum amount of funding for each project is approximately $15 million. • Proposals must be submitted by one of the GEF Agencies on behalf of the potential project proponent. Interested parties are encouraged to contact the relevant GEF Partner Agency focal point • Only proposals using non-grant instruments with a potential for reflows to the GEF Trust Fund will be funded under the Pilot. • Consistent with the Policy on Non-Grant Instruments, a broad and flexible range of debt, equity and guarantee instruments will be supported under the Pilot. For projects/programs with public sector recipients, instruments include concessional loans and guarantee instruments; an emphasis on concessional loans is expected.

37. NGI Pilot Implementation – Selection criteria • Project proposals are eligible as long as they contribute GEBs as per GEF’s strategic programming under GEF-6. • The Pilot will seek to fund a diversity of recipient countries, regions, and Focal Areas. Proposals for both full-sized projects and medium-sized projects will be considered. • The Pilot will support capacity building, technical assistance, and advisory services only if they are included as part of the overall investment using the non-grant instrument and if the overall investment has potential for reflow to the GEF Trust Fund.

38. Implementation – Selection criteria Following elements are especially encouraged: • demonstrate innovative application of financial mechanisms and partnerships that may be broadly adopted and can be scaled-up; • demonstrate use of non-grant instruments in areas other than CC; • deliver innovative engagement with the private sector and innovative business models; • deliver high levels of co-financing.

39. Implementation - Financing Terms • For projects with private sector, the GEF Partner Agency will negotiate an appropriate lending rate or return on investment that is consistent with the Agency’s standard practices; ensures a minimum level of concessionality; avoids displacing other finance; and catalyzes other investments. The maximum maturity for private sector loans is twenty years; the exit date for equity investments will be negotiated case by case.

40. Implementation - Financing Terms For projects/programs with loans to public sector recipients, the Pilot will use differentiated terms: softer concessional terms will be offered to LDCs and SIDS, while harder concessional terms will be offered to other countries as follows:

41. Implementation - Financing Terms • Consistent with MDB standard lending practice, the GEF Agencies will not seek any guarantee or security for lending to sovereign governments under the Pilot. If a GEF loan under the Pilot is made to a sub-national entity, the beneficiary country will be required to guarantee the loan if the GEF Partner Agency requires such guarantees for sub-sovereign lending. • In case of the use of guarantee instruments for public sector entities, the reflow schedule and fees will be negotiated on a case-by-case basis by the GEF Partner Agency. There will be no requirement for sovereign government indemnity for any guarantee product

42. Implementation – application Schedule: • It is anticipated that funds under the Pilot could be allocated rapidly—the Pilot aspires to be fully programed by the end of the calendar year 2015. This will facilitate early compilation of lessons learned that might be useful for GEF-7 and for other interested parties. • The first opportunity for FSPs will open in Nov 2014 . Agencies are encouraged to submit projects/programs in time for consideration by Council in the June 2015 WP. The second opportunity for FSPs will open in July 2015. • Medium-sized projects can be submitted for CEO consideration under the Pilot on a rolling basis, consistent with regular processing of medium-sized projects

43. Communication and Visibility

44. GEF Communication and Visibility Policy • Policy: Proposal for Enhancing Visibility of the GEF, Council Document GEF/C.40/08. http://www.thegef.org/gef/node/295 • Objectives • Ensure that GEF and its funding is visible & recognized. • Promote GEF as global leader on financing environmental projects in the developing world • Improve how GEF Agencies and partners communicate and present GEF-funded activities to donors and other stakeholders • GEF often not recognized or cited enough in partners’ documents and activities • Keep a strong brand identity • Support a consistent visual identity and image

45. Communication and Visibility Guidelines • Policy includes GEF Communication and Visibility Guidelines, which all GEF Partner Agencies must follow. (Included in GEFSEC-Agency MOUs). • Guidelines include basic rules and specific requirements on: GEF logo and ensuring GEF visibility in press releases, conferences; site visits; publications; electronic communications; display panels & commemorative plaques; banners; vehicles, supplies, equipment, promotional materials, hand photographs and audiovisual productions. • Contractual agreements between Agencies and executing entities must reflect the role of GEF funding & require adherence with GEF Communication and Visibility Guidelines.

46. Guidelines for External Actions funded by the GEF • The GEF strongly encourages Partner Agencies to publicize their GEF-financed Projects as such. • In preparation of outreach material, contact a Communications Officer at the GEF Secretariat; include Project Manager at GEF Secretariat in all communications • Documents and publications should contain the GEF logo and phrase on cover page: “This project/program is funded by the Global Environment Facility” • All communication material produced, including high resolution pictures and video, should also be made available to the GEF Secretariat in electronic form • GEF Partner Agencies (e.g. implementation level) and executing agencies should link to GEF website from their pages

47. Guidelines for External Actions funded by the GEF • Additional specific guidelines available for: • Press releases • Press conferences • Press visits • Visits by government officials • Leaflets, brochures, newsletters • Electronic communication • Display panels • Commemorative plaques • Vehicles, supplies and equipment • Promotional items • Photographs and audiovisual productions

48. GEF Policy & Procedures Website For further information, please consult: For GEF Policies and Strategies http://www.thegef.org/gef/policies For key GEF Policy and Guideline Documents: http://www.thegef.org/gef/policies_procedures

49. Key Contacts on Policies and Guidelines • Operations & Business Strategy Team Leader: Mr. Ramesh Ramankutty; rramankutty@thegef.org • General Policy Issues & Safeguards: Mr. Andrew Velthaus; avelthaus@thegef.org & Ms. Seo-Jeong Yoon; syoon@thegef.org • Accreditation: Ms. Yasemin Biro; ybiro@thegef.org & Ms. Seo-Jeong Yoon; syoon@thegef.org • Operations & Project Cycle: Ms. Lily Hale; Lhale@thegef.org • Gender & Indigenous Peoples: Ms. Yoko Watanabe; ywatanabe@thegef.org • Public Involvement Policy & CSOs: Ms. Pilar Barrera; pbarrera@thegef.org • Non-Grant Instrument Policy: Mr. David Rodgers, drodgers@thegef.org • Visibility Policy and External Relations: Ms. PatriziaCocca, pcocca@thegef.org

50. . Thank you for your attention.