Introduction

The relationship between the Conference of Parties (COP) to the UNFCCC and the 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 Global Environment Facility (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 Conference of Parties. 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, 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.

The COP, at its 17th session, adopted a decision on additional guidance to the GEF ( decision -/CP.17). In its decision, the COP requested the GEF to continue to work to further simplify its procedures and improve the effectiveness and efficiency of the process through which non-Annex I Parties receive funding and to enhance the transparency of the project review process throughout the project cycle. Additionally, the COP requested to clarify the concept of additional costs as applied to different types of adaptation projects under the Least Developed Countries Fund (LDCF) and the Special Climate Change Fund (SCCF) which seek to respond to climate change risks, and to continue to provide financial resources to developing countries for strengthening existing and, where needed, establishing national and regional systematic observation and monitoring networks under the LDCF and the SCCF.

The COP invited the GEF, in the context of technology needs assessments, to continue to provide financial support to other non-Annex I Parties as appropriate to conduct or update their technology needs assessments, noting the availability of the updated Handbook for Conducting Technology Needs Assessments for Climate Change. Additionally, it requested the GEF, in its regular report to the COP, to include information on the steps it has taken to implement the guidance provided .

Updated 21 December 2011