GEF-PAS: A Possible Approach and Program John E. Hay World Bank Consultant

Outline of Presentation Key Challenges Guiding Principles Building Blocks Programmatic Approaches A Possible Approach for the Pacific A Possible Program for the Pacific Next Steps

Key Challenges Balancing and optimizing amongst: –community- and national-focused actions –country drivenness –regional coordination –delivery of national development and global environmental benefits Ensuring GEF modalities are more reflective of national and regional circumstances Pursuing an integrated, programmatic approach rather than a focal area and project-based approach Emphasizing on the ground implementation rather than planning and assessments Ensuring countries have the absorptive capacity required to undertake activities in an efficient and effective manner Overcoming the limited co-financing opportunities for environment-related projects in the Pacific

Guiding Principles a. Fundamental Country driven - address national priorities for sustainable development  Commitment to consensus building through consultations Supportive of and consistent with regional strategies – e.g. Pacific Plan and Micronesia Challenge Deliver significant environmental benefits – global, national and regional Ensure equitable access to GEF assistance – amongst PICs, and relative to comparable regions Multiple players - Governments, private sector and civil society, development assistance partners..

Guiding Principles b. Desirable but Debatable Nationally executed – with regional cooperation to maximize synergies and economies of scale Programmatic approach - both nationally and regionally Integrated across all GEF Focal Areas as well as other themes related to national and regional priorities Include cross-cutting initiatives such as capacity building, enabling activities and supporting civil society and the private sector to undertake relevant activities All partners commit to coordinate their activities and work cooperatively, collaboratively and constructively GEF Agencies will assist the countries in ways that reflect their comparative advantage

Building Blocks Outcomes Global Environmental Benefits Sustainable National Development Enabling Activities Regional Activities National Projects SME Program Capacity Building Small Grants Program Protecting International Waters Preventing Land Degradation Themes Conserving Biodiversity Slowing Climate Change Sound Management of Chemicals Adapting to Climate Change Regional Execution National Community Sub-regional

Benefits of a Programmatic Approach Opportunity to include Pacific Territories in regional activities Interaction with GEF is at a more strategic level; Resource flow from GEF is stable, phased, and predictable; Increased opportunity to mobilize co-financing, nationally and from a multiplicity of sources (including the private sector); Reduced in transaction costs - key GEF review criteria (e.g. program and policy conformity, incremental cost and public involvement policy) would be addressed in a more streamlined way; Improved opportunities for strengthening the enabling environment and general cross-cutting support, including capacity building; Improved opportunities for horizontal and vertical integration of environmental concerns into decision making Improved scope for catalyzing action, replication and innovation; and Improved opportunity for donor co-ordination towards a more focused, priority set of interventions.

Programmatic Approach: Some Examples Strategic Investment Program for Sustainable Land Management in Africa $150 million GEF grant program, with over $1 billion committed co-financing. Black Sea Danube Partnership $95 million GEF funding Mediterranean Sea Large Marine Ecosystem Partnership $104 million GEF grant - total budget expected to exceed $250 million China Sustainable Land Management Partnership

A Possible Program

A Possible Vision GEF-Pacific Alliance for Sustainability A comprehensive, regionally-coordinated and nationally- executed strategic investment program that:  Reflects country priorities for achieving national sustainable development goals;  Provides significant global environment benefits;  Uses a program framework under a regional partnership with strong and involved national level activities that are anchored in and led by the PICs;  Enables PIC institutions to catalyze and reinforce country level engagement and investments, generating greater impact on the ground across all the GEF Focal Areas;  Improved the potential for sustainability;  Improves cost-effectiveness in a region where the average costs for investments are perceived as being high.

A Possible Programmatic Approach Enabling Activities Regional Activities ProgramPartnership Regional OutcomesExecutionActivities Strategic Investment Program GEF-PAS Global Environmental Benefits National Projects Sustainable National Development SME Program Capacity Building Small Grants Program National Regional National Community

A Possible Programmatic Approach (cont.) National/Regional Priorities GEF Priorities and Programs Focal Area Strategies Capacity Dev. Init. Country Support Prog. Enabling Activities Small Grants Program SME. Program. Development MarketPlace GEF- PAS Strategic Investment Program GEF Eligible National Activities Regional Strategies and Initiatives

Coordination through……Consultation

Coordination Through…Cooperation

Coordination Through…..Advice & Advocacy

A Possible Approach to Program Preparation Project Implementation Framework and Project Preparation Grant ENDORSEMENT BY GEF CEO APROVAL BY GEF COUNCIL Preparation of Individual Projects Overseen by GEF Agency with Comparative Advantage UMBRELLA WORK PROGRAM DOCUMENT (with individual PIFs) Individual Projects Approved (by GEF CEO) PHASED IMPLEMENTATION CONSULTATIONS

Key Steps Agree on scope and structure of GEF-PAS Prepare roadmap (includes process, specific steps, activities and performance indicators) Agree on timelines and milestones Allocate roles and responsibilities, ensuring country drivenness Harmonize national/regional priorities into a program Follow up meeting in Bali Finalise and endorse GEF-PAS prog. document Finalise and sign off on PIFs Submission to GEFSec by end of February, 2008

Conclusions Balance and optimize national, regional and global needs and capabilities Provide equitable, efficient and effective access to GEF resources Programmatic approach that integrates across all GEF Focal Areas and with national/regional needs and priorities National execution with regional cooperation and coordination to maximize synergies Strengthen the enabling environment, including national capabilities in environmental management

SIP- Sustainable Land Management - Africa $150 million grant program, with 1-to-4 leveraging ratio - over US$1 billion committed co-financing. Two year consultation process led by the New Partnership for Africa’s Development, bringing together six agencies under one umbrella Programs, not projects - allows individual countries to : –focus their strategies on a clear set of priority issues for the global environment – but VERY top down –build and capture synergies –apply a common set of tracking tools to monitor progress.

Black Sea Danube Partnership A $95 million initiative funded by the GEF and aimed at addressing the root causes of Black Sea/Danube environmental degradation. Partnership established with the cooperation of the World Bank, UNDP, UNEP and other multilateral and bilateral financiers and basin countries. Elements of the Partnership are two UNDP Regional Projects and the WB Investment Fund: –The Danube Regional Project (DRB): Strengthening the Implementation Capacities for Nutrient Reduction and Transboundary Cooperation in the Danube River Basin –The Black Sea Ecosystems Recovery Project (BSERP): Control of eutrophication, hazardous substances and related measures for rehabilitating the Black Sea ecosystem –World Bank Investment Fund for Nutrient Reduction in the Black Sea/Danube Basin

Mediterranean Sea Large Marine Ecosystem Partnership $104 million GEF grant - total budget, including co- financing, expected to exceed $250 million Countries the need for a more coordinated and innovative approach to the implementation of two Strategic Action Plans (SAP-BIO and SAP-MED) that accelerates on-the-ground implementation of priority actions and removes the institutional, financial and technical barriers to investments The two components assist countries in a collaborative manner: –Regional Component: Implementation of agreed actions for the protection of the environmental resources of the Mediterranean Sea and its coastal areas (US$ 19 million GEF grant, under preparation –Investment Fund for the Mediterranean Sea Large Marine Ecosystem Partnership

China Sustainable Land Management Partnership Mainstream land management issues, including policy reforms, into sustainable development priorities Adopt integrated and sustainable land management practices as part of national development programs Promote synergies across the environment and other sectors of the economy Enhance predictability in financial resources, both from the GEF and co-financing sources Reduce transaction costs by streamlining and harmonizing project cycle procedures Strengthen the enabling environment for sustainable land management