Overview and Update on the GEF Turkey GEF National Dialogue, June 2006, Ankara

Origin of the GEF ■Mechanism for financing “incremental costs” of new “global environment” actions by developing countries ■Linked to negotiation and based on philosophy of Convention on Biological Diversity and U.N. Framework Convention on Climate Change ■Initially focused on biodiversity, climate change and shared (“international”) water bodies ■Recently extended to land degradation and POPs

GEF Institutional Framework STAP GEF Assembly GEF Council GEF Secretariat Implementing Agencies 1. UNDP 2. UNEP 3. World Bank Executing Agencies 1. ADF 2. AFDB 3. EBRD 4. FAO 5. IADB 6. IFAD 7. UNIDO Projects Office of M&E

Financial History of the GEF ■GEF Pilot Phase – $1 Billion US Dollars ■Replenishments – $2.2 Billion US Dollars – $2.8 Billion US Dollars – $2.9 Billion US Dollars – – $3.0 Billion US Dollars World Bank is the Trustee of the GEF Trust Fund

New Directions During GEF 3 ■New Focal Areas- –Land Degradation –POPs ■Independent Office of Evaluation ■Biosafety ■Co-Financing ■RAF

New Directions during GEF 3 (continued) ■Expanded Opportunities for Executing Agencies ■Enhanced Support for GEF Focal Points (CSP and CM Support) ■Review of Project Cycle ■Climate Change Funds –LDC Fund –SCCF Fund –Adaptation Fund ■Small Medium Size Projects (SMSPs) –Development Marketplace ■Strategic Approach to Capacity Building ■Strengthen partnership with private sector –Move toward market-based approaches

GEF FOCAL AREAS And STRATEGIC PRIORITIES

“Focal Areas” of the GEF ■Biodiversity ■Climate Change ■International Waters ■Ozone Depletion (only countries in transition) ■Land Degradation ■Persistent Organic Pollutants – POPs

GEF links to the Global Environmental Conventions ■GEF is the designated “financial mechanism” for the –Convention on Biological Diversity (CBD) –Convention on Climate Change (UNFCCC) –POPs Convention ■The GEF is a designated mechanism for the –Convention on Combating Desertification (UNCCD) ■The GEF collaborates closely with other treaties and agreements to reach common goals (International Waters, Montreal Protocol)

Convention on Biological Diversity (CBD) ■Objectives of the Convention –Conservation –Sustainable use –Fair and equitable sharing of benefits In relation to genetic resources ■Financial Mechanism –GEF is the financial mechanism of the Convention

GEF-4 Strategic Priorities: BIOLOGICAL DIVERSITY ■Catalyze sustainability of protected areas system at national levels ■Mainstream biodiversity conservation in production landscapes and sectors ■Build capacity for the implementation of the Cartagena Protocol on Biosafety ■Generate, disseminate and promote the uptake of good practices for addressing current and emerging issues in biodiversity

UN Framework Convention on Climate Change (UNFCCC) ■Requires developing countries (non-Annex I) to prepare National Reports on their: –greenhouse gas emissions –climate change mitigation plans –vulnerability to climate change ■GEF is its financial mechanism - finances convention reports and voluntary national projects ■Provides strategic guidance for GEF funding of climate change projects.

GEF-4 Strategic Priorities: CLIMATE CHANGE ■Promote energy-efficient buildings and appliances ■Promote industrial energy efficiency ■Promote retrofitting of existing power plants ■Promote grid electricity from renewable resources ■Promote renewable energy for rural energy services ■Support the deployment of new, low GHG-emitting energy technologies ■Facilitate sustainable mobility in urban areas ■Pilot a strategic approach to adaptation

GEF and Adaptation Operationalization of the new funds (LDCF, SCCF, AF) GEF Assistance to Address Adaptation GEF Trust Fund Strategic Priority Piloting an Operational Approach to Adaptation (SPA) Least Developed Country Fund (LDCF) (implementation of NAPAs) NO GLOBAL BENEFITS Special Climate Change Fund (SCCF) Top priority to Adaptation NO GLOBAL BENEFITS Adaptation Fund (AF) (2% of the share of the proceeds of the CDM) NO GLOBAL BENEFITS

International Waters ■Defined as oceans and fresh water basins whose boundaries are shared by more than one country ■GEF is not a financial mechanism for any international waters conventions. However it helps implement Regional Seas Conventions, UNCLOS, and other maritime conventions

GEF-4 Strategic Priorities: INTERNATIONAL WATERS ■Catalyze implementation of agreed reforms and stress-reduction investments on-the-ground to address transboundary water concerns ■Expand foundational capacity-building to a limited number of transboundary systems through integrated approaches and targeted learning for the IW portfolio ■Undertake innovative demonstrations to addressing key program gaps in IW (groundwater, IWRM, SIDS, persistent toxic substances (PTS))

Persistent Organic Pollutants (POPs) ■Characteristics and Effects of POPs –Persistent: ability to resist degradation –Bio-accumulate –Potential for long range transport (air, water, migratory species) –Health damage, e.g. disrupt endocrine systems, suppresses immune systems, induce reproductive and developmental changes

POPs Convention ■Objectives: –Stop production and use of 3 pesticides: Aldrin, Endrin Toxaphene –Phase-out production and use of 5 others, e.g., DDT, dieldrin –Stop production and use of PCBs –Minimize by-products of chemical processes and incineration e.g., dioxins, furans ■GEF is interim financial mechanism

GEF-4 Strategic Priorities: POPS  NIP program and dissemination of best practices  Strengthen capacity for NIP implementation  Partnering in investments for NIP implementation  Partnering in demonstration of innovative technologies and practices for POPs reduction

Convention to Combat Desertification (UNCCD) ■Promote sustainable land management (SLM) and ecosystem stability, functions, services ■Development capacity for SLM and mainstream into national development ■Innovative, indigenous, investments to improve ecosystem integrity ■GEF is a (not the) financial mechanism

GEF-4 Strategic Priorities: LAND DEGRADATION ■Foster system-wide change and remove policy, institutional, technical, capacity and financial barriers to sustainable land management (SLM) ■Demonstrate and upscale successful SLM practices for the control and prevention of desertification and deforestation ■Generate and disseminate knowledge addressing current and emerging issues in SLM ■Demonstrate cross focal area synergies and integrated ecosystem approaches to watershed-based SLM

Total GEF$6, Total Co-Financing$20, TOTAL$26, Current GEF Portfolio (in millions of US dollars, January 2006)

GENERAL ELIGIBILITY CRITERIA GEF FUNDING CATEGORIES GEF PROJECT CYCLE

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

Co-Financing Policy ■Key principle of GEF funding: GEF is a co- financier ■Resources that are committed by the GEF Agency, or other non- GEF sources which are essential for meeting GEF project objectives ■Helps to build country ownership, sustainability and to leverage other donor resources

GEF Funding Categories ■Full-size projects (over $1 million) ■Medium-sized projects (up to $1 million) ■Project Development (preparation) Funds (PDF) –PDF-A up to $25,000 (up to $50,000 for MSPs) –PDF-B up to 350,000 –PDF-C up to $1 million ■Development Marketplace – Funding Mechanism ■Enabling activities (various sizes) ■Small Grants Programme (up to $50,000/project)

GEF Small Grants Program (SGP) ■Provides direct funding to NGOs for up to a maximum of US $50,000/project ■Operates in a decentralized and flexible manner by establishing a country program ■Led by a National Steering Committee; majority of members from civil society ■Committee responsible for designing national SGP strategy and approving individual grants ■Day to day management by National Coordinator

Development Marketplace New Funding Mechanism ■Competitive grant program funding innovative, small-scale development projects ■Partnership between GEF and World Bank Development Marketplace ■Funds small scale grants (up to $200,000) for environmental projects in expedited manner ■Opportunity to compete for funds to pursue innovative ideas in GEF Focal Areas ■Increased outreach to governments and civil society at national and local level ■Focal Point Endorsement Required

GEF Strategic Approach to Capacity Building ■Self assessment of capacity building needs (NCSAs) ■Support more capacity building within GEF projects ■Support targeted capacity building projects ■Country specific programs for addressing capacity building needs in LDCs and SIDS

Scientific and Technical Advisory Panel (STAP) ■What is STAP? –The Scientific and Technical Advisory Panel to GEF –Provides independent advice to advise GEF on scientific & technical aspects of programs & policies ■Who are STAP? –15 members from developed and developing countries with expertise in various GEF focal areas –Serve for 2 years, except Chair and Vice-Chair who serve for 4 years –Appointed by UNEP Executive Director, in consultation with GEF CEO, UNDP Administrator, and World Bank President

Develop project concept Prepare project proposal Secure project development funding option GEF review for eligibility and pipeline entry; OFP endorsement GEF Council review and approval for ‘Work Program’ inclusion ‘CEO endorsement’ Implement, monitor and evaluate project Final evaluation Project impacts continue after completion of GEF funding Basic Project Cycle

GEF Executing Agencies with Expanded Opportinities ■"Executing Agencies" contribute to the management and execution of GEF Projects. ■The GEF Council has expanded opportunities for seven organizations to contribute to the implementation of GEF projects. ■The seven organizations are: –The African Development Bank (AfDB) –The Asian Development Bank (ADB) –The European Bank for Reconstruction and Development (EBRD) –The Inter-American Development Bank (IDB) –The International Fund for Agricultural Development (IFAD) –The UN Food and Agriculture Organization (FAO) –The UN Industrial Development Organization (UNIDO)

DISCUSSION SESSION