Global Environment Facility (GEF)

Global Environment Facility

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 (PDF) decision 12/CP.2 and (PDF) 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.

pdf-icon COP 21 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 Paris 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 Paris Agreement, shall apply mutatis mutandis.

pdf-icon Article 9 of the Paris Agreement 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.

Recent Developments

At COP 22, the COP adopted a number of decisions with relevance for the GEF.

Guidance provided in decision 11/CP.22: Report of the Global Environment Facility to the COP and guidance to the Global Environment Facility

The COP emphasized the need for the GEF to consider lessons learned from past replenishment periods and to take into account the entry into force of the Paris Agreement in its deliberations on the strategy for the seventh replenishment of the GEF Trust Fund in order to continue to increase the effectiveness of its operations. It encouraged the GEF to continue to track, review and report on the sustainability of project outcomes from the Least Developed Countries Fund and the Special Climate Change Fund and to continue its efforts to encourage countries to align, as appropriate, their GEF programming with priorities as identified in their nationally determined contributions, where they exist, during the seventh replenishment, and to continue to promote synergies across its focal areas.

The COP welcomed:

The decisions of the Council of the GEF to establish the Trust Fund for the Capacity-building Initiative for Transparency and to approve the Capacity-building Initiative for Transparency programming directions, and to ensure that the support for the Capacity-building Initiative for Transparency will be included in the seventh replenishment, to complement existing support under the GEF, in accordance with decision 1/CP.21, paragraph 86;
The conclusions of the “Program evaluation of the Least Developed Countries Fund” by the GEF’s Independent Evaluation Office;
The initial assessment of the accreditation pilot and notes its conclusions;
The successful roll-out of the non-grant instrument pilot and encourages further expansion of the pilot with a view to increasing the leverage and impact of GEF financing;

The COP requested the GEF, as an operating entity of the Financial Mechanism of the Convention to:

Continue to assist developing countries, in particular the least developed countries and small island developing States, in accessing resources in an efficient manner, in its seventh replenishment programming.
Ensure, as appropriate, that its policies and procedures related to the consideration and review of funding proposals be duly followed in an efficient manner.
Continue its efforts, as appropriate and as needed, to minimize the potential consequences of the projected shortfall as outlined in the decision for its support to developing countries, aiming to fulfil the relevant programming directions of the sixth replenishment of the GEF.
Continue providing in its annual reports, inter alia, information on the establishment and operation of the Capacity-building Initiative for Transparency, including its programming and implementation modalities, on the voluntary contributions pledged and provided, and on the implementation of decision 9/CP.18.
Continue exploring with recipient countries and with the Climate Technology Centre and Network ways to support climate technology related projects through country allocations of the sixth replenishment of the GEF.
Take into consideration climate risks in all its programmes and operations, as appropriate, keeping in mind lessons learned and best practices.
Continue to enhance capacity development in the least developed countries for the development of project proposals with a focus on identifying potential funding sources, both national and international, and enhancing long-term domestic institutional capacities as the operating entity of the Financial Mechanism of the Convention entrusted with the operation of the Least Developed Countries Fund.
Continue streamlining project approval processes and providing enhanced support, in light of the entry into force of the Paris Agreement, including enabling activities, to developing country Parties, including the least developed countries and small island developing States, as appropriate, in the context of national climate strategies and plans.