GEF Awareness Briefing

1. GEF Awareness Briefing

2. Structure of this presentation • Global Environmental Issues; GEF focal areas,Conventions and Linkages • The GEF history, governance, structure, operational procedures and concepts • Project cycle information and examples • Summary and Discussion

3. The Global Environmental Focal Areas of the GEF • Biodiversity • Climate Change • International Waters • Ozone Depletion (only countries in transition) • And Land Degradation as it relates to the above focal areas.

4. 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) • The GEF collaborates closely with other treaties and agreements to reach common goals (International Waters, POPs, CCD, Montreal Protocol)

5. Biodiversity • 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.

6. Convention on Biological Diversity (CBD) • Objectives of the Convention • Conservation • Sustainable use • Fair and equitable sharing of benefits • Financial Mechanism • GEF is the financial mechanism of the Convention

7. 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

8. UN Framework Convention on Climate Change requires: • Developing country states (non-Annex I Countries) to prepare National Reports: • on their greenhouse gas emissions • their national climate policies • and their vulnerability to climate change • As the financial mechanism, the GEF provides funding for preparation of these reports. • The Convention is also the source of guidance for GEF funding of climate projects.

9. Climate Change Convention and Kyoto Protocol • Protocol (1997) sets GHG emission reduction targets for industrialized countries and defines flexible instruments, emission credit trading, joint implementation, and the Clean Development Mechanism (CDM)

10. 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 • Transport Corridors

11. 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

12. Land Degradation Worldwide phenomenon • Degradation of land in arid, semi-arid, and dry sub-humid areas. In dry lands, soil quality, freshwater supplies, vegetation, and crops are all easily damaged. • 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.

13. Land Degradation (LD) & GEF’s Role • Support country driven activities that prevent/ control land degradation through its interface with the GEF’s Focal Areas. • Addresses LD as part of national sustainable development plan • Complements, rather than substitutes other financing available • Possible if project design is from the bottom up (local needs as well as conservation)

14. Linkages • The environment is interconnected through all levels • Local, national, regional, global • Country projects funded by the GEF need to focus on preserving the integrity of the global environment, since all levels of the environment are interconnected • Country projects funded by the GEF need also to improve environmental conditions and sustainability at the local, national, and regional levels Global Regional Local

15. Linkages • All the Focal Areas are linked: • Climate change affects biological diversity • Biological diversity affects land degradation and climate change • International waters affects biological diversity and climate change • Land degradation is linked to the other focal areas

16. Global Environment Facility: Timeline • GEF Pilot Phase • 1991 - 1994 • $1 Billion US Dollars • Replenishment: • 1995 - 1998 • $2.2 Billion US Dollars • 1999 - 2001 • $2.8 Billion US Dollars • World Bank is the Trustee of the GEF Trust Fund

17. 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

18. 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

19. “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 1) Establish the baseline 2) Determine cost of GEF alternative 3) Incremental cost (project budget) = GEF alternative -- cost of baseline

20. Baseline and alternative funding

21. GEF Portfolio (June 1999) in millions of US dollars Total GEF $ 2,444.22 Total Co-Financing $ 7,065.51 TOTAL $ 9,509.73

22. GEF Governance Structure CONVENTIONS COUNCIL ASSEMBLY 32 Members : All 166 Provide Guidance on Policy & Programme Issues 18 Recipient Members 14 Donor • 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. operations, and amendments to the GEF Instrument. 7

23. GEF Operational Framework GEF Assembly GEF Council GEF Secretariat STAP UNDP UNEP World Bank Projects

24. GEF Implementing Agencies:Your Partners to Help Develop and Implement Projects UNEP: global/ regional and trans-boundary projects, support STAP UNDP: technical assistance / capacity building projects World Bank: investment projects

25. Executing Agencies with shared responsibility for GEF Project Cycle Management • African Development Bank • Asian Development Bank • European Bank for Reconstruction and Development • Inter-American Development Bank

26. Projects can also be executed by: • Government Agencies • UN Specialized Agencies • Non-Governmental Organizations • Bilateral Development Cooperation Agencies • Others from the private sector/institutes

27. GEF Funding Categories • Full-size projects ($1 million and up) • Medium-sized projects (up to $1 million) • Financing can be available for preparing projects • Small Grants Programme (up to $50,000) • Enabling activities • Project Development Funds (PDF-A up to $25,000 PDF-B up to 350,000; PDF-C up to $1 million)

28. 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

29. Basic Project Cycle Project impacts continue after completion of GEF funding Develop project concept Present concept to an Implementing Agency Monitor and evaluate Option to pursue project development financing Implement Project Develop project brief and/or project document Present project document to Council

30. The GEF Programmatic Approach Purpose Provide phased and sustained support for the implementation of a multi-year program that better integrates global environmental objectives into national strategies and plans.

31. The Programmatic Approach emphasizes • Translating national strategies into concrete action plans • Strengthened in-country policy, legal, and institutional arrangements • Agreed goals, milestones, and indicators for each phase • Sequenced disbursements based on identified milestones • A learning and adaptive management system

32. The Country Programming Framework depends upon: • A high level political commitment • Well advanced national biodiversity strategies or plans for biodiversity, energy, international waters, with clear priorities • Country commitment towards the key objectives and priorities • Willingness to work across sectoral ministries and agencies • Cooperation, collaboration, and joint programming with the implementing agencies and other partners towards the common objectives

33. Project Examples

34. 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 • Land degradation as it relates to these focal areas • GEF Projects address the global environment within the framework of country priorities.

35. GEF Briefing Summary GEF projects are: • approved by a Governing Council • implemented by UNDP, UNEP, the World Bank and RDBs or by some partnership among these organizations) and they are • executed by Government agencies, regional development banks, UN agencies, NGOs and bilateral cooperation agencies, private sector groups, educational institutions

36. GEF BriefingDiscussion Session