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.
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.
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.
At COP 22, the COP adopted a number of decisions with relevance for the GEF.
Guidance provided in decision
-/CP.22: Report of the Global Environment Facility to the COP and guidance to the Global Environment
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,
- 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
- 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.
Additional guidance to the GEF was provided in the following decisions:
Decisions by the COP:
-/CP.22: Enhancing climate technology development and transfer through the Technology Mechanism;
-/CP.22: Linkages between the Technology Mechanism and the Financial Mechanism of the Convention;
-/CP.22: Paris Committee on Capacity-building;
Conclusions by the Subsidiary Body for Implementation 45:
Agenda Item 4(c):
Provision of financial and technical support;
Agenda Item 12(c):
Poznan strategic programme on technology transfer;
Agenda Item 14(c):
Capacity-building in developing countries: Paris Committee on Capacity-building.