Introduction

The relationship between the Conference of Parties (COP) to the UNFCCC and the Global Environment Facility (GEF) Council was agreed in a memorandum of understanding (MOU) contained in decision 12/CP.2 and decision 12/CP.3.  As outlined in the MOU and pursuant to Article 11.1 of the Convention,  the COP provides regular guidance to the GEF, as an entity entrusted with the Financial Mechanism of the Convention, on policies, programme priorities and eligibility criteria for funding.  The MOU also stipulated that the GEF reports annually to the COP. In order to meet the requirement of the GEF's accountability to the COP, the annual report of the GEF will cover all GEF-financed activities carried out in implementing the Convention, whether such activities are carried out by the GEF Implementing Agencies, by the GEF Secretariat or by executing agencies implementing GEF-financed projects. 

The MOU further stipulated that the GEF report should include specific information on how it has applied the guidance and decisions of the COP in its work related to the Convention. This report should be of a substantive nature and incorporate the programme of GEF activities in the areas covered by the Convention and an analysis of how the GEF, in its operations related to the Convention, has implemented the policies, programme priorities and eligibility criteria established by the COP. In particular, a synthesis of the different projects under implementation and a listing of the projects approved by the Council in the climate change focal area as well as a financial report with an indication of the financial resources required for those projects should be included. The Council should also report on its monitoring and evaluation activities concerning projects in the climate change focal area.

At COP 21, the COP adopted a number of decisions with relevance for the GEF.

Guidance provided in decision 1/CP.21, Adoption of the Paris Agreement

The COP decided that the GCF and the GEF, the entities entrusted with the operation of the Financial Mechanism of the Convention, as well as the Least Developed Countries Fund and the Special Climate Change Fund, administered by the GEF, shall serve the Agreement. The COP also decided that the guidance to the entities entrusted with the operations of the Financial Mechanism of the Convention in relevant decisions of the COP, including those agreed before adoption of the Agreement, shall apply mutatis mutandis.

Article 9 of the Agreement also states that the institutions serving this Agreement, including the operating entities of the Financial Mechanism of the Convention, shall aim to ensure efficient access to financial resources through simplified approval procedures and enhanced readiness support for developing country Parties, in particular for the least developed countries and small island developing States, in the context of their national climate strategies and plans.

Decision 1/CP.21 also includes guidance on provision of support for the preparation and communication of the intended nationally determined contributions of Parties that may need such support, support for the least developed countries and other developing country Parties for the formulation of national adaptation plans, coordination and delivery of resources to support country-driven strategies through simplified and efficient application and approval procedures, and through continued readiness support to developing country Parties, and participation of the operating entities of the Financial Mechanism of the Convention in technical expert meetings (on mitigation).

The COP further recognized the importance of adequate and predictable financial resources, including for result-based payments, as appropriate, for the implementation of policy approaches and positive incentives for reducing emissions from deforestation and forest degradation, and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks; as well as alternative policy approaches, such as joint mitigation and adaptation approaches for the integral and sustainable management of forests; while reaffirming the importance of non-carbon benefits associated with such approaches; encouraging the coordination of support from, inter alia, public and private, bilateral and multilateral sources, such as GCF, and alternative sources in accordance with relevant decisions by COP.

The COP also decided to establish a Capacity-building Initiative for Transparency in order to build institutional and technical capacity, both pre- and post-2020, which will support developing country Parties, upon request, in meeting enhanced transparency requirements as defined in Article 13 of the Agreement in a timely manner. The COP urged and requested the GEF to make arrangements to support the establishment and operation of the Capacity-building Initiative for Transparency as a priority reporting-related need, including through voluntary contributions to support developing countries in the sixth replenishment of the GEF and future replenishment cycles, to complement existing support under the GEF. The COP also requested that the GEF, as an operating entity of the financial mechanism include in its annual report to the COP the progress of work in the design, development and implementation of the Capacity-building Initiative for Transparency starting in 2016.

Guidance provided in decision 8/CP.21: Report of the Global Environment Facility to the Conference of the Parties and guidance to the Global Environment Facility

The COP invited the GEF to continue to provide finance for sustainable forest management and activities referred to in decision 1/CP.16, paragraph 70, also taking into account decision 9/CP.19, paragraph 8, and decision 16/CP.21 as appropriate.

Moreover, the COP encouraged the GEF to include the conclusions of the review of the Least Developed Countries Fund in its report to COP 22. Furthermore, the COP requested the GEF to carry out a technical review of the programme priorities of the Least Developed Countries Fund.

COP 21 also urged the GEF to work with all its agencies and recipient countries to ensure that these countries can take full advantage of the expanded network of agencies.

The COP welcomed the exploration of innovative non-grant instruments by the GEF and encouraged the GEF to work with its agencies, recipient countries and the private sector to submit proposals.

Furthermore, the COP encouraged the GEF to continue providing support to developing country Parties in preparing their intended nationally determined contributions and requested the GEF to consider how to support developing country Parties in formulating policies, strategies, programmes and projects to implement activities that advance priorities identified in their respective intended nationally determined contributions in a manner consistent with the operational policies and guidelines of the GEF, starting in 2016.

Additionally, COP 21 encouraged the GEF and the GCF to further articulate and build on the complementarity of their policies and programmes within the Financial Mechanism of the Convention.

Additional guidance to the GCF was provided in the following decisions:

Decisions by the COP:

Decision 13/CP.21: Linkages between the Technology Mechanism and the Financial Mechanism of the Convention;

Decision 14/CP.21: Capacity-building under the Convention;

Decision 15/CP.21: Terms of reference for the intermediate review of the Doha work programme on Article 6 of the Convention;

Decision 16/CP.21: Alternative policy approaches, such as joint mitigation and adaptation approaches for the integral and sustainable management of forests;

Decision 19/CP.21: Extension of the mandate of the Least Developed Countries Expert Group.

Recommendations by the Subsidiary Body for Implementation (SBI 43):

Agenda item 4(c) Provision of financial and technical support

Agenda item 10(b) Development and transfer of technologies and implementation of the Technology Mechanism Poznan strategic programme on technology transfer.