1. GEF and Environmental & Conservation Funds Presentation for the Workshop on “Management of Environmental Funds for the Financial Sustainability of Biodiversity Conservation” Peru, 9-11 May 2007 Yoko Watanabe Program Manager, Biodiversity GEF Secretariat

2. Topics History GEF Involvement in Conservation Funds. GEF’s Approach on Conservation Funds What we do and don’t fund. Future GEF’s focus under GEF-4 Replenishment

3. GEF’s Involvement in Conservation Fund Largest supporter for Conservation Funds (most of them trust funds). More than $160M towards LAC funds. Invested in more than 60 trust funds. Many in LAC, and increasing in Africa. Over 340 PAs benefited (more than 1/3 of all PAs GEF supported).

4. Accomplishments Supporting PA management (new and expansion) and provide resource security. Generating and managing financial resources. Enabling civil society participation. Increase the level of scientific research. Increase public awareness.

5. Evaluation on GEF’s work on Conservation Fund Evaluation conducted in 1999 (GEF Evaluation Report # 1-99 Experience with Conservation Trust Funds) May need for an updated study/review to compile lesson learned since then.

6. Related Documents GEF materials on trust funds and sustainable financial arrangement: GEF Evaluation Report # 1-99 Experience with Conservation Trust Funds (1999) GEF Lesson Notes: No.5 When is Conservation Best Served by a Trust Fund? (Jan 1999) No. 6 Building Strategic Focus in a Conservation Trust Fund (Feb 1999) No. 7 The Mexican Nature Conservation Fund (April 1999) GEF Monitoring and Evaluation Working Paper 11, Review of Financial Arrangements in GEF-supported Biodiversity Projects (June 2003) GEF Finance on Conservation Trust Funds: A Checklist (July 2006)

7. GEF’s General Approach to Conservation Trust Fund The GEF provides finance to, subject to GEF strategies and policies: All types of new and existing conservation trust funds (endowment funds, sinking funds, and revolving funds). All levels of conservation trust funds (global, regional, national, sub-national, and site specific trust funds)

8. GEF’s General Approach to Conservation Trust Fund (cont’) All types of cost associated to establish and manage a conservation trust fund (capitalization of trust fund, technical assistance and capacity building, and operating/administrative and maintenance costs) Projects which conservation trust fund is: 1) one component of a larger GEF project: or 2) a stand-alone GEF project.

9. GEF’s Practices for Capitalization of Endowment Fund The GEF funds are used for: Catalyzing Sustainability of Protected Area Systems (not for larger landscape): Development of national protected areas system (not for individual site). Global significance of the biodiversity in the protected areas (not for every PA).

10. GEF’s Practices for Capitalization of Endowment Fund (cont’) Program, capacity building, and operating/administrative costs (about 10- 12% of the income): At least one to one match of cofinance (many require more): Appropriate scale and cost- effectiveness (utilize existing institution):

11. GEF-4 (FY 2006-2010): New way of doing business Resource Allocation Framework Each country plans and identify priority GEF projects based on national and GEF strategic priorities. Focal Area Strategy and Programs More focused topics and issues agreed by the GEF Council. New Project Cycle Efficient project cycle that allows concept to implementation within average 22 months.

12. - GEF’s Biodiversity Program’s approach under GEF-4 (Draft) - Strategic Objectives - To be finalized at the June 2007 GEF Council.  Catalyzing Sustainability of Protected Area Systems 2.Mainstreaming Biodiversity in Production Landscapes/Seascapes and Sectors 3.Safeguarding Biodiversity (Biosafety and Invasive Alien Species) 4.Capacity Building on Access and Benefit Sharing

13. Objective 1: Catalyzing Sustainability of Protected Area Systems Largest supporter for PAs globally. Invested in 1432 PAs, covering close to 300 million hectares. Provided over $1.2 billion to fund PAs, with $ 3.2 billion cofinance. Investment on PAs will continue to be the main focus for the GEF biodiversity program (50% of the GEF Biodiversity budget – approx. $450M for the next 4 years)

14. Shift from supporting individual PAs to System of PA  Until 2003, GEF focused on building capacity and improving management of individual PAs.  Increased emphasis on:  Capacity building for long-term sustainability  Representativeness within PA systems  Establishment of comprehensive network of PAs

15. Focus of the PA Systems Program  Sustainable financing of protected areas system.  Increasing representation of effectively managing marine protected area networks in national PA system.  Strengthening terrestrial PA networks.  Cross-cutting capacity building support.

16. 1.Sustainable financing of protected areas system (Draft) Appropriate policies and laws to enable PAs to manage the entire revenue stream. Business plan that include diverse funding sources. Capacity building of responsible agencies. Full recognition of the support to PA mgmt made by communities in and around the PA.

17. Examples of Tools and Revenue Mechanisms Conservation Trust Fund Payment for Ecosystem Services Easement Debt-for-nature swap, Policy reform and incentives to engage private sector and other stakeholders. Other mechanisms.

18. Objective 2: Mainstreaming Biodiversity in Production Landscapes/Seascapes and Sectors Strengthening the policy and regulatory framework (e.g. agriculture, fisheries, forestry, etc), Fostering markets for ecosystem goods and services (e.g. PES, certification, etc).

19. Conclusion GEF continues to work on environmental funds as a key focus of the biodiversity program. A more focused, strategic and results oriented approach. Emphasis on partnership, particularly private sector.

20. Gracias!