Paris December 10-13, 2007 Sustainable Tourism Financing workshop GEF Presentation

Mission of the GEF Provide Grants for the Incremental Costs of achieving Global Environmental Benefits in support of sustainable development in 6 focal areas: Biological Diversity Climate Change International Waters Land Degradation Ozone Layer Depletion Persistent Organic Pollutants (POPs)

Convention Guidance 1. Convention Guidance Incremental Costs 2. Incremental Costs Cost-Effectiveness 3. Cost-Effectiveness Country Ownership 4. Country Ownership Flexibility and Learning 5. Flexibility and Learning Transparency 6. Transparency Public Involvement 7. Public Involvement Eligible Countries 8. Eligible Countries Catalytic Role and Leverage 9. Catalytic Role and Leverage Monitoring and Evaluation 10. Monitoring and Evaluation Operational Principles

CBD UNFCC POPS CCD GEF SECRETARIAT COUNCIL DONORS Multilateral Fund of Montreal Protocol WB ADB UNIDO FAO IAs / EAs UNEP EBRD IFAD IDB AfDB UNDP NGOs International Waters GEF Organizational Chart Private Sector EO STAP CEO / CHAIRMAN ASSEMBLY

 Operational with pilot phase in 1991  The Financial Mechanism for: UNFCCC; UNCBD; Stockholm Convention  A Financial Mechanism for: UNCCD  Collaborates with other treaties and agreements to reach common goals (International Waters, Montreal Protocol)

 39 Donor Countries: U.S %, Japan 22.20%, Germany 16.66%, France 10.96%, UK 10.93%  Up to 2007, GEF has disbursed about $7.4 Billion and leveraged over $28 Billion in co- financing to over 160 developing countries  GEF-4 Replenishment (4yr): $3.13 Billion GEF Funding

Cumulative Historical Allocation through August 2006

Cumulative Historical Allocation through December 2007

1. Biodiversity FA through BD Strategic Objective 1: Catalyze sustainability of protected area systems – component BD Strategic Objective 2: Mainstream Biodiversity in production land/sea-scapes and sectors - project GEF Funding of Tourism Projects to Countries through Agencies 2. International Waters FA through Strategic Program 1: Restoring and sustaining coastal and marine fish stocks and associated BD - component 3. Climate Change FA through Strategic Objective 8: Support pilot and demonstration projects for adaptation to climate change: SCCF – component small project 4. Small Grants Program 5. GEF Public Private Partnership Initiative

GEF Tourism Projects Examples CountryProject NameFocal Area GEF Agency Project Type Approval / Endorsement MozambiqueTransfrontier Conservation Areas and Sustainable Tourism Development Project BDWBFSP2004 IndonesiaKomodo National Park Collaborative Management Initiative BDWB/IFCFSP2001 Regional (Senegal, Nigeria, Ghana, Kenya, Mozambique, Seychelles, Tanzania, Cameroon, Gambia Demonstrating and Capturing Best Practices and Technologies for the Reduction of Land-sourced Impacts Resulting from Coastal Tourism IWUNEPFSP2006 Regional (Belize, Ecuador)Mainstreaming Biodiversity Conservation into Tourism through the Development and Dissemination of Best Practices BDUNEPMSP2005 Regional (Czech Republic, Hungary, Poland) Conservation and Sustainable Use of Biodiversity through Sound Tourism Development in Biosphere Reserves in Central and Eastern Europe BDUNEPMSP2005 Regional (Bolivia, Costa Rica, Mexico, Peru, Belize, Ecuador, El Salvador, Panama, Paraguay) EcoEnterprises FundBDWB/IFCMSP2002

CountryProject TitleAgencyProject Type StatusDate EcuadorPromoting Biodiversity Conservation through the Implementation of the National Ecotourism Strategy (NES) UNDPFSPPending2006 FijiAdaptation to Climate Change in the Tourism sector in Fiji Islands UNEPMSPPDF A2006 GlobalIntegrating Biodiversity Considerations into the Tourism Sector: Creating an Enabling Environment for Sustainable Tourism Policy Development UNEPMSPPDF A1999 GuatemalaPromoting Eco-Tourism in Guatemala to Strengthen the National Protected Areas Network UNDPFSPPDF A2005 MaldivesImplementing Tourism Adaptation to Climate Change UNDPMSPPDF A2006 PanamaMainstreaming Biodiversity Conservation into the Tourism and Fisheries Sectors Operating in the Archipelagos of Panama UNDPFSPPDF A2005 Regional (Namibia, South Africa, Zambia) Open Africa North South Tourism Corridor (OANSTC) WBMSPPDF A2006 MontenegroMontenegro Tourism Development - under Investment Fund for the Mediterranean Sea LME Partnership WBFSPPending2005 SerbiaProtected Area Financing through TourismUNDPMSPPending2006 Tourism Proposals Submitted to GEF

GEF Public Private Partnership (PPP) Initiative A strategic investment program with the private sector in competitive environmental technological and financial solutions and scaling up the use of pilot instruments to benefit developing countries and produce global environmental benefits

PPP Key Elements  Funds platforms to provide systemic approaches to address specific environmental challenges  Governance of the PPP parallels GEF structure and will include a PPP Board and Platform Steering Committees consisting of representatives from the private sector, foundation NGO, GEFSEC and GEF Agencies  The Trustee stands ready to establish a GEF PPP Trust Fund to receive a GEF $50 million allocation as well as funding from multilateral and bilateral aid, the private sector, foundations, and NGOs

Organizational Structure of the PPP Financial Product Development Inducement Prizes Biofuels Platform Clean Energy Finance Platform 1. Membrane Bioreactors Wastewater Treatment Prize 2. Wastewater Treatment System Guarantees 3. Coastal ecosystem PES with Tourism Industry Grants for product development of: 1. Energy efficiency equity funds 2. Insurance for renewable energy infrastructure risks 3. Etc. 1.Prize for second generation liquid biofuels 2.Biofuels demonstration projects 3.Etc. Tools Projects Coastal Water Treatment Platform PPP Platforms

Two Initial Tools for Engagement Developed in Partnership with Private Sector Financial Product Development Inducement Prizes

Financial Product Development  High development costs are barrier for creation of new financial products for developing countries  Financial Institutions in North interested in developing new products to investment in clean energy in the South  Energy efficiency  Renewable Energy  PPP will provide grants to share incremental costs of financial product development in GEF priority areas  Financing vehicles to provide needed capital to projects, e.g., private equity funds or consumer lending products  Insurance vehicles to manage project risks e.g., specialized products to mitigate commercial development risks of renewable energy infrastructure in developing countries

Inducement Prizes  Lack of capital and incentives for innovative technological solutions for environmental challenges of developing countries  Develop strict peer-reviewed rules for a needed solution  Offer public prizes and investment capital to attract globally diverse competitors  Prize media attracts capital and bring public awareness to a global problem  Competition can result in multiple viable competitors and a new market  Demonstration projects support feasibility and dissemination of the new technology in developing countries

Inducement Prize Examples 2004: The Ansari X PRIZE revolutionized personal space flight Inspired 26 teams from seven nations Generated public awareness through over 5 Billion media impressions Stimulated regulatory reform Ignited the personal spaceflight revolution Created a $1B industry in less than two years

Criteria for Engagement & Financing with the Private Sector  Incremental & additional – beyond regular business and current activities  Catalytic and self-sustaining  Driven and Substantially co-financed by the private sector  Supports GEF focal area strategies and meet all GEF project criteria  Open to all private sector actors

Thank you