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Arrangements for the Management of the Adaptation Fund: Global Environment Facility (GEF)

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Title: Arrangements for the Management of the Adaptation Fund: Global Environment Facility (GEF)


1
Arrangements for the Management of the Adaptation
Fund Global Environment Facility (GEF)
2
Outline
  • History
  • Structure
  • Principles
  • Trustee Operations
  • Evaluation
  • GEF Support to Adaptation
  • Stage 1 Stage 2 Adaptation
  • Beyond Stage 2
  • SPA
  • SCCF
  • LDCF
  • GEFs Role as Manager of Adaptation Fund

3
History
  • Pilot Phase 1991-1994 (750m)
  • Negotiations for Restructured GEF
  • GEF Instrument
  • GEF 1 1994-1998 ( 2.0 billion)
  • GEF 2 1998-2002 (2.75 billion)
  • GEF 3 2002-2006 (3.0 billion)

4
GEF A Network Organization
IAs/EAs
ADB
AfDB
EBRD
Evaluation Office
CBD
ASSEMBLY COUNCIL CEO/CHAIRMAN GEF SECRETRIAT
UNDP
UNFCCC
UNEP
NGOs
POPS
W.B.
CCD
FAO
Multilateral Fund of Montreal Protocol
IDB
STAP
IFAD
International Waters
UNIDO
5
Operational Principles
  1. As Financial Mechanism of UNFCCC, CBD, ODS,
    priority is implementing Guidance of COPs
  2. Funding to meet agreed incremental costs of
    global environmental benefits
  3. Cost-effectiveness
  4. Country-drivenness
  1. Maintain Flexibility
  2. Full disclosure of information
  3. Stakeholder Consultation
  4. Eligibility (9a 9b)
  5. Catalytic roleleveraging resources
  6. Regular and open Monitoring and Evaluation

6
GEF Trustee Operations
  • World Bank serves as Trustee of GEF Trust Fund,
    LDCF and SCCF
  • WB manages more than 800 Trust Funds
  • Each fund managed separately
  • Responsibilities
  • Maintenance of distinct, appropriate records,
    including independent annual audits
  • Disbursement of monies from funds
  • Investment of liquid assets in funds
  • Preparation of financial reports
  • Regular reporting to the Council

7
GEF Trustee Operations (cont)
  • WB Trustee Office has developed accounting,
    control systems reporting infrastructure
    resulting in considerable economies of scale and
    cost savings
  • Services provided are compensated at actual costs
    which are minimal
  • In addition, draw upon experience of WB Treasury
    operations in trading on financial markets

8
GEFs Office of Evaluation (1)
  • Office of Evaluation (originally office of
    Monitoring Evaluation, renamed and made
    independent, 2005)
  • Undertakes Climate Change Program Study (2000
    2004) as input to independent evaluations
  • Sets standards and policy for project and
    portfolio monitoring
  • Monitoring Evaluation Requirements
  • All projects must supply log-frame, allocate
    responsibilities for annual monitoring,
    independent mid-term and final evaluation, and
    set aside budget for ME
  • Monitoring report (APR PPR) must be made
    available on an annual basis

9
Independent Evaluation (1)
  • Prior to replenishment, GEF undergoes Independent
    Evaluation
  • Undertakes Climate Change Program Study (2000
    2004) as input to independent evaluations
  • OPS1 (1997)
  • Effectively created new institutional
    arrangements
  • Relatively successful in leveraging resources
  • Had implemented guidance of conventions with
    respect to GEFs own mandate and funding
    limitations
  • OPS2 (2001)
  • GEF achieved significant results
  • GEF had responded to guidance from conventions,
    but required more frank dialogue exchange of
    ideas
  • OPS3 (2005)
  • GEF is a network organization, which is
    appropriate
  • GEF has effectively performed its role as
    financial mechanism responding to COP
    guidance--coordination has improved
  • GEF is a more stable and effective institution in
    2005 than it was in 2001

10
GEF Response to UNFCCC Guidance on Adaptation
  • COP I Guidance Stage I Adaptation through
    Enabling Activities (11/CP.1)
  • VA Assessments part of enabling activities
  • From 1995 to 2005, over 160m allocated to EAs
    in nearly 140 countries
  • VA one of components of EAs--optional
  • Over half of countries included some element of
    VA
  • Up to 40m from EAs devoted to VA assessments

11
Stage II Adaptation Planning Studies
  • COP 4 in 1998, Guidance provided to support Stage
    II activities (2/CP.4)
  • Further round of adaptation projects
  • CPACC-Caribbean Planning for Adaptation (GEF
    6.8m)
  • PICCAPPacific Islands CC Assistance Program (GEF
    3.44m)
  • MACCMainstreaming Adaptation to CC in Caribbean
    (GEF 5.98m Total 9.64m)
  • Cap Bldg for Stage II Adaptation to CC in C
    America, Mexico, Cuba (GEF 3.64m, Total 4.90m)
  • Assessment of Impacts Adaptation to CC (global,
    UNEPGEF 8.23, Total 12.46m)
  • Took Steps to further understanding of countrys
    adaptation needs and logical next steps

12
Beyond Stage II Toward Implementationthe SPA
  • GEF should support inter alia establishment of
    pilot or demo projects to show how adaptation
    planning and assessment can be practically
    translated into projects providing real benefits
    (5/CP.7)
  • GEF created new strategic priority in CC Focal
    Area entitled Piloting an Operational Approach
    to Adaptation (SPA)
  • Set aside 50m to be used for concrete adaptation
    projects in focal areas in which GEF works
  • Close to 30m of projects have already been
    approved

13
SPA Projects
  • Approved SPA Projects
  • Kiribati Adaptation Program (WB, GEF 2.07m
    Total 6.69m)
  • Colombia National Adaptation Pilot (WB, GEF
    6.07m Total 17.5m)
  • Pilot Adaptation Measures in Dominica, St Lucia
    and St. Vincent Grenadines (WB, GEF 2.61m,
    Total 6.4m)
  • Lake Balaton Vulnerability, Early Warning
    Adaptation Strategy, Hungary (UNDP, GEF 1.13,
    Total 4.07)
  • Integrating VA to CC into Sustainable Devt in
    Southern Eastern Africa (UNEP, 1m Total 2.25
    m)
  • Recently Recommended SPA Projects
  • Community-Based Adaptation (UNDP, GEF 5m Total
    10m)
  • Responding to Shoreline Change in West Africa
    (UNDP, GEF 4.0m Total 7.5m)
  • Coastal Zone restoration and Sust. mgt in
    Post-tsunami Sri Lanka (IFAD, GEF 4mLD
    1.9mSPA, total 15m)
  • Pipeline
  • Coping w/ Drought in Eastern Africa (4 MSPs)
  • Sustainable Land Mgt in Zambezi Valley (MSP)

14
Beyond Stage II the Special Climate Change Fund
  • In Marrakech, COP7 established the special
    climate change fund to finance, inter alia,
    activities in adaptation and transfer of
    technologies (Decision 7.CP7) and requested GEF
    to manage it
  • GEF Prepared a programming paper and hosted a
    donors meeting
  • Defines additional costs imposed on country not
    incremental cost for global environmental
    benefits
  • Proposed sliding scale as a simplified procedure
    to estimate eligible additional costs
  • Donors contributed 31m to initial endowment in
    September 2004

15
SCCF Open for Operations in September 2005
  • Separate Pipeline Operation for SCCF
  • Approved
  • Tanzania Pangani River Basin (UNDP, GEF 1m,
    Total 2.57m)
  • Pipeline (GEF total estimated at 31m)
  • Adaptation to CC thru Effective Water Governance
    in Ecuador (UNDP)
  • Piloting CC Adaptation to Protect Human Health
    Barbados, Fiji, Uzbekistan Jordan (UNDP)
  • Pilot CC Adaptation measures in Andean Region
    (WB)
  • Pacific Islands Adaptation to Climate Change
    Project (PACC) (UNDP)
  • India Climate-resilience Development and
    Adaptation (UNDP, SCCF)

16
Least Developed Countries Fund (LDCF) (1)
  • In Marrakech, COP7 created LDC fund to support
    NAPAs (Decision 7/CP.7) and requested GEF to
    manage it
  • GEF established LDCF
  • Consulted with LEG, Feb/Mar 2002
  • Developed Guidelines for funding NAPAs
  • Two donor meetings were held
  • Stockholm, 2002
  • Paris, 2004
  • Raised 40.5m for LDCF
  • Support NAPA Preparation in 44 countries
  • LDCF still contains 29.2m for NAPA
    Implementation

17
LDCF Implementation
  • Process
  • COP11 Decision on NAPA Implementation (Decision
    -/CP.11)
  • Consultative workshop held in Dhaka, Bangladesh
    April 4-6, 2006
  • Reached agreement on Programming paper
  • Donors meeting held in Copenhagen, April 28, 2006
  • Innovations in Programming
  • Streamlined project cycle (approvals on a rolling
    basis, 4 Council member objections required to
    halt project)
  • Additional cost approach for funding costs
    imposed on LDCs
  • Full-cost funding for instances where case is
    proven
  • No need to demonstrate global environmental
    benefits

18
Adaptation Fund
  • In Marrakech, COP 7 created Adaptation Fund
    (Decision 10/CP.7) and requested GEF to make
    arrangements to manage fund
  • GEF Council and World Bank Board accepted the
    request to establish the Adaptation Fund,
    including conversion of CERs
  • GEF Secretariat, Trustees Office and UNFCCC
    Secretariat had begun discussions on Adaptation
    Fund arrangements
  • Summarized in GEF Report to COP 11

19
GEFs Strengths in Managing Adaptation Fund
  • GEFs governance is transparent, universal and
    responds directly to Guidance from Convention
    bodies
  • GEF has demonstrated flexibility in responding to
    guidance and new programming challenges
  • GEF already manages three different sources of
    adaptation funding
  • Structured Learning
  • Administrative Simplification Savings

20
GEFs Strengths in Managing Adaptation Fund
  • GEFs Administrative Structure provides a sound
    foundation for AF
  • Trustees office to manage
  • Pre-existing structures results in savings
  • Experience with Treasury operations bring
    established experience in financial markets
  • GEF is a network organization with capacity to
    support the global environment and sustainable
    development
  • Council Constituencies represent all countries
  • Three IAs UNDP, UNEP, World Bank
  • Seven EAs IFAD, FAO, UNIDO, ADB, AfDB, EBRD,
    IDB
  • Other executing agencies can be utilized as
    appropriate
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