Financing for Sustainable Development: United Nations Environment Programme

1. Financing for Sustainable Development: United Nations Environment Programme A Partner In The Global Environment Facility (GEF) Mr. Xuemin Shao UNEP Office in Beijing United Nations Environment Programme 8 September 2005 UNEP-Tongji Leadership Programme on Environment for Sustainable Development

2. History of the GEF: its establishment • Established - 1991: 3 year pilot project within WB with a capital of US $1.3 billion between UNEP, UNDP and WB • GEF - new and additional resources to meet the incremental costs of achieving global benefit. Financial mechanism of UNFCCC, CBD and Stockholm Convention and finances for implementing the CCD • Restructured in 1994 - combination of the Bretton Woods model and the UN with a capital of US$ 2.1billion • 1998 - Second replenishment for US$2.75 billion • 2002 - Third replenishment for US$3 billion UNEP-Tongji Leadership Programme on Environment for Sustainable Development

3. Structure of the GEF • GEF Assembly: overall policy direction; first held in april 1998 in New Delhi, second in Beijing in October 2002, third in 2006 • GEF Council: 32 Council members (representing constituencies); development, approval and evaluation of policies and programmes of GEF; meets twice yearly • GEF Secretariat: Coordinator • GEF Implementing Agencies (UNDP, UNEP, World Bank): development/implementation of projects with Executing Agencies • STAP: scientific and technical advice UNEP-Tongji Leadership Programme on Environment for Sustainable Development

4. The Global Environment Facility • Partnership between Implementing Agencies: UNDP, UNEP and the World Bank • Funding additional to regular development assistance and limited to incremental costs of actions to achieve global environmental benefits in six focal areas: • Biodiversity • Climate Change • International Waters • Protection of the Ozone Layer • POPs • Land Degradation UNEP-Tongji Leadership Programme on Environment for Sustainable Development

5. Role of STAP The Role of STAPStrategic Adviceto the GEF, instrumental in shaping GEF policy and programme, including advice on: - sustainable use of biodiversity; - biodiversity conservation in production forests.- Maintains Roster of Experts to the GEF;- Selective Reviews of GEF projects;- Engagement of the Wider Scientific Community.Support to the STAP- UNEP provides the Secretariat to the STAP UNEP-Tongji Leadership Programme on Environment for Sustainable Development

6. GEF Programming • Via the GEF Implementing Agencies through: • Enabling Activities • National capacity building: full financing, typically $200,000 to 500,000 • Projects within 15 Operational Programmes • Full size projects • GEF co-financing upwards of US $1,000,000 • Medium-sized projects (MSP) • GEF co-financing up to US $1,000,000 • supported by project development facility (PDF) UNEP-Tongji Leadership Programme on Environment for Sustainable Development

7. UNEP - GEF Focus • Promote regional and multi-country cooperation to achieve global environmental benefits (transboundary diagnostic analyses and cooperative mechanisms/action) • Advance knowledge for environmental decision-making through scientific and technical analyses, including environmental assessments and targeted research • Develop and demonstrate technologies, methodologies and tools for improved environmental management • Capacity building for environmental management (emphasis in GEF3; UNEP enhanced mandate at global, regional and national level) UNEP-Tongji Leadership Programme on Environment for Sustainable Development

8. GEF Operational Programmes Biodiversity - ECOSYSTEM APPROACH • OP 1 Arid & semi-arid ecosystems • OP 2 Coastal, marine, freshwater ecosystems • OP 3 Forest ecosystems • OP 4 Mountain ecosystems • OP 13 Agrobiodiversity • ……………..OP on Integrated Ecosystem Management UNEP-Tongji Leadership Programme on Environment for Sustainable Development

9. GEF Operational Programmes Climate Change • OP 5 Removing barriers to energy conservation, energy efficiency • OP 6 Promoting adoption of renewable energy • OP 7 Reducing long-term costs of low GHG-emitting energy technologies • OP 11 Promoting environmentally sustainable Transport BARRIER REMOVAL UNEP-Tongji Leadership Programme on Environment for Sustainable Development

10. GEF Operational Programmes International Waters - TRANSBOUNDARY • OP 8 Water-bodies • OP 9 Integrated Land and Water Management • OP 10 Contaminants UNEP-Tongji Leadership Programme on Environment for Sustainable Development

11. GEF Operational Programmes Multi-Focal • OP 12 Integrated Ecosystem Management Land Degradation • New OP 15 Sustainable Land Management POPs New OP#14 UNEP-Tongji Leadership Programme on Environment for Sustainable Development

12. GEF strategic priorities UNEP-Tongji Leadership Programme on Environment for Sustainable Development

13. Operating principles Projects: • Country-driven (national partners) • Partnerships • Co-financing (GEF funds incremental cost of achieving global environmental benefit) Consistent with: • GEF Operational Strategy • GEF Operational Programmes (eg OP on Conservation and Sustainable use of Biological Diversity Important to Agriculture • Strategic Priorities of the GEF in Phase III UNEP-Tongji Leadership Programme on Environment for Sustainable Development

14. Basic Project Cycle Project impacts continue after completion of GEF funding Develop project concept GEF review for eligibility and pipeline entry Final evaluation Secure project development funding option Implement, monitor and evaluate project Prepare project proposal GEF Council review for ‘CEO endorsement’ GEF review for ‘Work Program’ inclusion GEF Council approval Appraise project proposal UNEP-Tongji Leadership Programme on Environment for Sustainable Development

15. UNEP-GEF Portfolio • Focal Area GEF Total • ($m) ($m) • Biodiversity 83.0 174.2 • Biosafety 43.4 59.3 • Climate Change 71.0 111.5 • International Waters 101.6 212.2 • Land Degradation 22.7 47.4 • Ozone 5.2 5.9 • POPs 42.2 63.8 • Multifocal 22.7 42.7 • Total 391.8 745.1 UNEP-Tongji Leadership Programme on Environment for Sustainable Development

16. Over 140 countries participate in UNEP GEF Project Activities UNEP-Tongji Leadership Programme on Environment for Sustainable Development

17. UNEP-GEF Portfolio • Fiscal Year GEF funding • (US $ million) • FY 92 9.5 • FY 93 9.4 • FY 94 2.8 • FY 95 5.3 • FY 96 1.6 • FY 97 17.8 • FY 98 36.1 • FY 99 19.7 • FY 00 22.9 • FY 01 93.0 • FY02 47.3 • FY03 67.3 • FY04 82.2 • TOTAL 414.9 UNEP-Tongji Leadership Programme on Environment for Sustainable Development

18. Takeaways • Challenges ahead: • Competitive environment with operational agencies • Emphasis at national level versus regional and global level • Cofinancing challenge • Allocation of GEF resources to countries based on performance • Impact-oriented; UNEP-Tongji Leadership Programme on Environment for Sustainable Development