Introduction: What is the Global Environment Facility (GEF) GEF Programming Incremental Reasoning FAO and the GEF

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1 Introduction: What is the Global Environment Facility (GEF) GEF Programming Incremental Reasoning FAO and the GEF GEF Training 2017

2 Global Environment Facility (GEF) Partnership of 18 agencies UN agencies, IFIs, national entities and international NGOs & 183 countries. Includes network of CSOs and private sector partners Independent evaluation office & scientific & technical advisory panel Unique Financial Mechanism for 5 International Environmental Agreements (IEA) Donors pledge money to support IEA. GEF operates on four year funding tranches; GEF-6, 6 th 4-year phase. Provided $14.5 billion in grants and leveraging $75.4 billion in co-financing for almost 4,000 projects in 167 countries Innovator and Catalyst seeks to leverage small money to achieve big things (incremental reasoning, cofinancing)

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4 GEF Agencies Coopetition

5 How GEF Works Every four years GEF develops a new programme with new priorities. GEF-1 GEF-2 GEF-3 GEF-4 GEF-5 GEF Most of the main areas of work for the GEF are linked to IEA priorities. Much of the GEF funding is allocated to countries through the GEF s STAR. In order to access GEF funding, eligible countries must work with one or more GEF Agencies to develop projects and programmes. Incremental Reasoning & Co-financing are key

6 GEF Trust Fund, Hosted Funds & Links to Conventions CC Adaptation Funds Least Developed Countries Fund (LDCF) Special CC Fund (SCCF) GEF Trust Fund Focal Areas CCM LD BD Chem IW SFM CBIT Trust Fund Capacity Building Initiative for Transparency Nagoya Protocol ABS Trust Fund GEF A financial mechanism for multiple International Environmental Conventions UNFCCC UNCCD CBD Minimata & Stockholm

7 Donors $ CC Adaptation Funds Least Developed Countries Fund (LDCF) Special CC Fund (SCCF) GEF Trust Fund Focal Areas CCM LD BD Chem IW SFM Nagoya Protocol ABS Trust Fund CBIT Trust Fund Capacity Building Initiative for Transparency Country Allocations Managed Globally

8 System of Transparent Allocation of Resources - STAR GEF-6 STAR (USD millions): Focal Area Full Star Actual Set Aside Climate Change 1, Biodiversity 1,296 1, Land Degradation Total GEF6 STAR 2,987 2, Wide range of country allocations: China 194 El Salvador 6

9 GEF-6 Allocation Overall GEF-6 STAR 2,338 + Chemicals Focal Area 554 International Waters Focal Area Sustainable Forest Management Integrated Approach Pilot Non Grant Instrument Conventions costs, GEF Corporate costs 335 Total: USD M 4,433

10 US Dollars in Billion $7.0 GEF Replenishment since 1991 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $ GEF-1 GEF-2 GEF-3 GEF-4 GEF-5 GEF-6 GEF-7? GEF Replenishment Cycle

11 GEF Programming

12 Key points of GEF 2020 Strategy Support transformational change; achieve impacts on broad scale Focus on the key drivers of environmental degradation Support broad coalitions of stakeholders to deliver integrated, innovative, scalable work Ensure actions are resilient Ensure GEF is a champion of the global environment.

13 GEF 6 ( ) Delivery Architecture Focal Area Centered Single Project Delivery BD LD CC Chem IW SFM 45 different programmes to choose from Global Environmental Benefits in BD, IW, CC, LD and Chemicals

14 GEF-6: Multi-Focal Area Projects and Programmes CC mitigation BD Biodiversity Land Degradation Int l Waters LD Integrated Approach (IA) CCM Chemicals/ POPs CC Adaptation SFM Example: Integrated approach programs (IAPs) in GEF-6: Sustainable Cities Deforestation out of Commodity Supply Fostering Sustainability and Resilience for Food Security in Sub-Saharan Africa

15 Limitations with GEF s Traditional Architecture Thematic & financial fragmentation GEF 6 has 45 programmes to choose from; GEF7 aims to halve this. Satisfactory individual project performance but fragmented & limited systemlevel impact Money is small 65 countries have USD 10 M or less in STAR Partnership not equipped to engage/open up to private sector Does not mobilize diverse enough coalitions of actors Doesn t use Agency comparative advantages sufficiently

16 GEF-7: Making the Case for a Different Approach Defining moment in future of planet and human well being Global Environmental Commons stretched to breaking point Planetary boundaries breached Biodiversity still lost at high rates Land use change driven by agriculture expansion, declining forest cover Climate / atmospheric CO2 concentrations Unsustainable trajectory of economic systems

17 GEF-7: Making the Case for a Different Approach Four Economic Systems Need Radical Transformation Food System: population; dietary changes global food demand by 70% in 2050 Energy System: 68% of emissions now and 30% in demand by 2040 Cities: By 2050 home to 2/3 global population Global production / consumption system: current Take-Make-Waste model = 4x more waste

18 Global Response Agenda 2030 and the SDGs universally agreed Historic Paris CC agreement to reduce emissions & build resilience Private sector ramping up involvement -- Sustainability initiatives, internet driven demand for collaborative platforms Environmental issues dominate private sector risk perception Private sector key to SDGs - Business case for sustainability growing stronger Examples of Food Systems Business Opportunities Improved small holder farms (USD B) Sustainable aquaculture (USD B) Forest Ecosystem Services (USD B) Restoring Degraded Lands (USD B)

19 GEF7 Program Delivery Model: More Focused & Impactful What can GEF do? Be more effective, responsive and agile More relevant to the SDGs Concentrate resources to achieve highest impact Harness synergies: Unique mandate across 5 MEA; CBD, UNFCCC, UNCCD, Minimata & Stockholm Maximize engagement w/ broader range of actors critical to systems change Manage for impact, greater accountability sharper results architecture

20 GEF-7: More relevant to Sustainable Development Goals + = Reconnecting World Development with Global Commons

21 Emerging GEF7 Programming Architecture Impact Programs 60% Focal Areas 40% Global Environmental Benefits in BD, IW, CC, LD and Chemicals

22 GEF7 Integrated Impact Programs (IP) Transforming Energy Systems Agriculture Commodities Supply Chains Food Systems Inclusive Conservation Sustainable Cities Amazon Sustainable Landscapes Environmental Security Wildlife for Sustainable Development Healthy Oceans for Sustainable Fisheries Landscape Restoration Green Finance Green Infrastructure Natural Capital Circular Economy Integrated National Planning for MEAs and SDGs

23 Mapping IP Across Traditional Focal Areas of the GEF

24 How does the GEF Think? Incremental Reasoning 24

25 The Heart of the Matter Incremental Reasoning Baseline Situation Why is GEF needed to make it better in terms of GEB? What is the baseline situation with respect to your project idea?

26 Incremental / Additional? Baseline Situation/Project And then GEF Incremental Funding with the baseline serving as the cofinancing

27 Incremental Reasoning Current Practice - Illegal logging - Overgrazing - Focus on Plantations GEF Alternative - Sustainable Forest Management Practices - + BD, SLM Global Benefits - Improved SFM on 2 million ha - Populations of species

28 GEF Project Cycle

29 Summary of FAO-GEF Project Cycle Guidelines (July 2016) FAO-GEF FAO STANDARD Phase I: Identification 1. Project Idea 2. Short Project Proposal (FPMIS module) 3. Project Identification Form (PIF) 4. Concept Note (FPMIS module) 5. Project Preparation Grant (PPG) document Phase II: Formulation 6. Project preparation inception workshop 7. Results framework/project design validation work shop 8. Project document, CEO Endorsement Request, GEF Tracking Tools, Co-financing letters, draft Project Agreement 9. ESM Unit clearance for moderate and high risk projects 10. Technical clearance of ProDoc Phase III: Appraisal and Approval 11. Other feasibility clearances 12. Submission of draft project document to the Government for comments 13. Submission of draft final project package to GEF Secretariat for 14. Submission to PPRC for review technical review 15. Integration of GEF Secretariat technical comments 16. Integration of PPRC comments 17. GEF CEO Endorsement 18. TC ADG Approval 19. Project Agreement for signature by Governments (GCP, DEX)/ Execution Agreement for signature (OPIM) Phase IV: Implementation and Monitoring 20. Project Inception report 21. Monitoring Plan 22. Progress reports 23. Project Implementation Reviews (PIR) Phase V: Evaluation 24. Mid-term review/evaluation Report 25. Final Evaluation Phase VI: Closure 26. Terminal Report

30 History of FAO in GEF 1992: FAO started executing GEF projects with indirect access 2000: FAO is granted direct access for projects in the Persistent Organic Pollutants (POPs) Focal Area 2006: Direct access in all Focal Areas. Portfolio has grown from 1 direct access POPs project (USD 3.5 M) in June 2007 to

31 Strong Link - FAO s & GEF s Work Sustainable Inappropriate Agricultural Practices Restorative Major Threat of GEB THREATS Global Environmental Benefits

32 GEFs Priority Areas Highly Relevant to FAO s GEF Focal Areas CC mitigation Biodiversity Int l Waters c cc Land Degradation Chemicals/ POPs CC Adaptation SFM

33 FAO GEF Portfolio (US$): Rapid Growth

34 FAO-GEF Portfolio- By GEF Focal Area

35 FAO-GEF Portfolio- Regional Distribution

36 FAO-GEF Unit TCI-Deputy Director GEF Focal Point, FAO 1 D1 Senior Coordinator, GEF Unit 1 P5 Finance Support 1 P3 1 P2 level Asia-Pacific Team Current staffing: 1 P4 1 P3 level 1 P2 Africa MENA Team Current staffing: 1 P4 2 P3 2 P2 level Latin America E Europe/C Asia Team Current staffing: 1 P4 1 P3 3 P1/P2 level Monitoring & Evaluation Portfolio & Knowledge Management 1 P4; 1 PSA Administrative & Project Cycle Support (2 GS; 1 PSA) Senior Portfolio & Policy Adviser / Quality Enhancement (P5 vacant)

37 Thank you 38