1. The GEF and the Private Sector IUCN, November 3 2009, Washington D.C GEF Assembly, Punta del Este, Uruguay May 24, 2010

2. Private Sector Data Analysis for GEF Projects  Data analysis of all GEF projects with private co- financing was conducted in early 2010  436 private sector projects out of a total of 2403 projects  $5.97 billion of identified co-financing for private projects compared to $38.74 billion of total identified co-financing  Private projects had somewhat better co-financing ratio (4.8x compared to 4.44x for overall portfolio)

3. Private Sector Co-financing Sources for GEF Projects

4. Private Projects: Co-Financing by Focal Area Percentage of Total Co-financing Average Co-Financing Ratio BIODIVERSITY 17%2.82 CLIMATE CHANGE 73%5.77 LAND DEGRADATION Less than 1%2.56 POPs 3%1.85 INTERNATIONAL WATERS 7%4.32

5. The GEF Earth Fund  Pilot Public-Private Partnership Initiative approved by GEF Council in June 2007, with $50 million of funding allocation  Launched by GEF and IFC in December 2007 with $50 million of GEF funding and $10 million from IFC  IFC manages a substantial Earth Fund Platform ($30 million from GEF plus $10 million from IFC)  Four additional Platforms have been approved by Council to fully allocate the remainder of the $50 million

6. The IFC Earth Fund Platform  The first Earth Fund Platform, approved by Council in May 2008  Initial capitalization of $30M from the GEF Earth Fund and $10M from the IFC  Objective to leverage GEF and other funding to transform markets in the climate change and biodiversity focal areas through:  Testing, development and establishment of new technologies, financial structures and business models  Scale-up of successfully tested initiatives  GEF Sec has observer status on the relevant IFC Investment Review Committee (IRC)

7. UNEP Platform “Global Market Transformation for Efficient Lighting”  Approved by Council June 2009  $5M from the GEF Earth Fund and $15M private co-financing commitments from Osram and Philips  Objective to speed up the transformation of the market for efficient lighting technologies in developing countries through:  Global policy dialogue for the phase-out of inefficient lighting and the widespread adoption of energy-efficient lighting products  Establishing a Center of Excellence for certification and harmonization of quality and performance-based standards  Support for country programs (policy toolkit, TA for program development)

8. IBRD/Conservation International “Conservation Agreement Private Partnership Platform”  Approved by Council in August 2009  $5M from the GEF Earth Fund, $5M contribution by CI and $10M private co-financing  Objective to catalyze private sector participation in conservation of biodiversity and provision of ecosystem services through :  Streamlining product sourcing agreements between companies and communities  Developing conservation partnerships at community level  Loan finance to SMEs to ensure increased participation in product and service supply chains that benefit conservation and development

9. UNEP/Rainforest Alliance “Greening the Cocoa Industry”  Approved by Council in April 2010  $5M from the GEF Earth Fund, $15M contribution by Mars, Kraft and other participants in the cocoa value chain  Objective to incentivize improved production and business practices in major cocoa producing countries and cocoa companies through :  Widespread adoption of the Sustainable Agriculture Standard in 750,000 hectares of cocoa farms  Providing farmers with access to quality training, extension and relevant support services  Implementation of a global Rainforest Alliance certification program for cocoa that includes biodiversity standards

10. IDB/The Nature Conservancy “Public-Private Funding Mechanisms for Watershed Protection”  Approved by Council in April 2010  $5M from the GEF Earth Fund, at least $15M cash co-financing  Objective to deploy public-private funding mechanisms (“Water Funds”) as sustainable long-term instruments to promote private sector participation in the conservation of freshwater ecosystems and biodiversity of global importance:  Establish at least 5 Water Funds across Latin America and the Caribbean  Secure increased private and public sector funding to pay for water and biodiversity related services  Incorporate endowment funds for long-term sustainability

11. Looking Forward  GEF-5 Replenishment process completed May 2010  $80 million for Earth Fund (private sector outreach) in GEF-5  Review of the pilot phase of the Earth Fund currently underway by the GEF Evaluation Office (GEFEO)  Updated private sector strategy and business plan to be finalized  Feedback strongly encouraged to inform the private sector strategy

12. Some Tentative Questions for Today’s Discussion  How can the GEF work more effectively with MDBs and other parties to promote private sector engagement?  What protections are appropriate to ensure that private sector actors are not unduly enriched by infusions of donor money on concessional terms?  How can GEF client countries and Agencies make better use of strategic partnerships with the private sector to promote the attainment of global environmental benefits?