System for a Transparent Allocation of Resources - STAR GEF Expanded Constituency Workshop 27 - 29 September 2011 Honiara, Solomon Islands

Introduction Moving from GEF4 to GEF5 GEF Council requested reforms in resource allocation framework (RAF) GEF evaluation office, through the consultations with recipient countries, provided useful comments This presentation describes the new rules and operational procedures corresponding to the new resource allocation system, STAR

Outline of the presentation What is new from GEF-4 RAF to GEF-5 STAR Overall allocations of the GEF-5 Operational procedures of the STAR

What is new in the GEF-5 STAR?

New allocation areas and countries GEF-4 RAF GEF-5 STAR Biodiversity and Climate Change Individual and group allocations LDC and SIDS in group Biodiversity, Climate Change, and Land Degradation All countries have individual allocations No group allocations AREAS ALLOCATIONS

New rules GEF-4 RAF GEF-5 STAR 10% for BD and 15% for CC No 50% rule, Set-aside 10% 10% for BD and LD, 11% for CC $2 M in CC, $1.5 M in BD, and $0.5 M in LD Flexibility for small countries ($7 M rule) Set-aside 20% Caps Floors Others

Programs not in the STAR International Waters Persistent Organic Pollutants and Sound Chemicals Management Corporate budgets Country Support Programme Regional and global projects/programs Small Grants Programme Earth Fund (private sector)

Distribution of GEF-5 Resources $ Million

GEF-5 STAR Allocations GEF-4 RAF GEF-5 STAR $3.1 Billion Replenishment   GEF-4 RAF GEF-5 STAR $3.1 Billion Replenishment $4.25 Billion Initial Allocations STAR Envelopes (M$) Countries CC BD LD Total Flexible Cook Islands Group 2.00 2.14 0.50 4.64 Yes Fiji 5.10 4.56 0.59 7.15 No Indonesia 16.30 41.40 29.67 54.17 4.07 87.91 Kiribati 1.69 0.56 4.25 Marshall Islands 2.02 4.52 Nauru 1.50 4.00 Niue 1.05 4.55 Palau 1.92 4.42 Papua New Guinea 12.50 13.32 1.17 16.49 Philippines 6.60 21.30 8.83 25.96 1.04 35.83 Samoa 2.43 0.93 5.36 Solomon Islands 3.60 0.65 6.25 Timor Leste 0.90 4.40 Tonga 1.59 0.75 4.34 Tuvalu 4.09 Vanuatu 2.55 0.89 5.44

STAR Operational Procedures (1) Projects will be approved on a first-come first-served basis. In the event of project cancellation before the last six months of the GEF-5 (31 December 2013), resources will remain available to the country to be used in the same focal area. In the event of project cancellation after the last six months of the GEF-5 (1 January 2014), resources may be used in the same focal area or in others, at the discretion of the CEO and with the approval of the Council.

STAR Operational Procedures (2) Countries classified as “flexible” may use the full value of their allocation freely, without the need to respect the specific focal area amounts. Endorsement letters must refer to current STAR allocations in each relevant focal area, including preparation costs (PPG) and Agency fees A revised letter of endorsement is required if an amount over 5% of the original is requested during the CEO endorsement period

STAR Operational Procedures (3) For “flexible” countries, reference must be made to the total amount and to the individual amount for each focal area. The Secretariats of the relevant conventions must be informed of “flexible” cases in the endorsement letter. For the May 2011 and June 2012 Council meetings, reports on the implementation experience of the STAR will be provided. For the June 2013 meeting, the Council will discuss an assessment of STAR design and implementation prepared by the Office of Evaluation (OE), in addition to a report on progress in the development of indicators.

Next steps Implement the STAR For more detailed questions, please contact GEF Secretariat