Transcript Arrangements for the Management of the Adaptation Fund: Global Environment Facility (GEF) UNFCCC Workshop on the Adaptation Fund 3 May 2006 Edmonton, Alberta Canada G L O B.

Arrangements for the
Management of the
Adaptation Fund: Global
Environment Facility (GEF)
UNFCCC Workshop on the Adaptation Fund
3 May 2006
Edmonton, Alberta
Canada
G L O B A L E N V I R O N M E N T F A C I L I T Y - www.thegef.org
Outline
• History
• Stage 1 & Stage 2
Adaptation
• Structure
• Beyond Stage 2
• Principles
• SPA
• Trustee Operations
• SCCF
• Evaluation
• LDCF
• GEF Support to
• GEF’s Strengths
Adaptation
for Managing
Adaptation Fund
G L O B A L E N V I R O N M E N T F A C I L I T Y - www.thegef.org
History
• Pilot Phase: 1991-1994 ($750m)
• Negotiations for Restructured GEF
• GEF Instrument
• GEF 1: 1994-1998 ($ 2.0 billion)
• GEF 2: 1998-2002 ($2.75 billion)
• GEF 3: 2002-2006 ($3.0 billion)
G L O B A L E N V I R O N M E N T F A C I L I T Y - www.thegef.org
GEF: A Network Organization
IAs/EAs
ADB
AfDB
Evaluation
Office
CBD
UNFCCC
EBRD
UNDP
ASSEMBLY
NGO’s
POPS
COUNCIL
CCD
CEO/CHAIRMAN
GEF SECRETRIAT
UNEP
W.B.
FAO
Montreal
Protocol
STAP
IDB
IFAD
International
Waters
UNIDO
G L O B A L E N V I R O N M E N T F A C I L I T Y - www.thegef.org
Operational Principles
1. In context of
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3.
4.
UNFCCC, CBD, ODS,
& POPS, priority is
implementing
Guidance of COP’s
Funding to meet
agreed incremental
costs of global
environmental
benefits
Cost-effectiveness
Country-drivenness
5. Maintain Flexibility
6. Full disclosure of
information
7. Stakeholder
Consultation
8. Eligibility (9a & 9b)
9. Catalytic role—
leveraging resources
10. Regular and open
Monitoring and
Evaluation
G L O B A L E N V I R O N M E N T F A C I L I T Y - www.thegef.org
GEF Trustee Operations
• World Bank serves as Trustee of GEF Trust Fund, and the
Trust Funds for the LDCF and the SCCF
• WB manages more than 800 Trust Funds
• Each fund managed separately
• Responsibilities
• Maintenance of distinct, appropriate records, including
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accounting and financial transaction records
Management of donor contributions
Execution of Commitments and Disbursements of trust fund
resources
Monitoring and management of ‘commitment authority’, i.e.,
funding availability
Investment of liquid assets in funds and other cash
management functions
Preparation of financial reports and coordination of
independent annual audits
Regular reporting to the Council and donors
G L O B A L E N V I R O N M E N T F A C I L I T Y - www.thegef.org
GEF Trustee Operations
(cont)
• WB Trustee Office has developed
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accounting, control systems & reporting
infrastructure resulting in considerable
economies of scale and cost savings
Services provided are compensated at
actual costs which are minimal
In addition, draw upon experience of WB
Treasury operations in trading on financial
markets
G L O B A L E N V I R O N M E N T F A C I L I T Y - www.thegef.org
GEF’s Office of Evaluation
• Office of Evaluation (originally office of
Monitoring & Evaluation, renamed and made
independent, 2005)
• Undertakes Climate Change Program Study (2000 &
2004) as input to independent evaluations
• Sets standards and policy for project and portfolio
monitoring
• Monitoring & Evaluation Requirements
• All projects must supply log-frame, allocate
responsibilities for annual monitoring, independent
mid-term and final evaluation, and set aside budget for
M&E
• Monitoring report (APR; PPR) must be made available
on an annual basis
G L O B A L E N V I R O N M E N T F A C I L I T Y - www.thegef.org
Independent Evaluations of
the GEF
• Prior to replenishment, GEF undergoes Independent
Evaluation
• Undertakes Climate Change Program Study (2000 & 2004) as
input to independent evaluations
• OPS1 (1997)
• Effectively created new institutional arrangements
• Relatively successful in leveraging resources
• Had implemented guidance of conventions with respect to GEF’s
own mandate and funding limitations
• OPS2 (2001)
• GEF achieved significant results
• GEF had responded to guidance from conventions, but required
more frank dialogue & exchange of ideas
• OPS3 (2005)
• GEF is a network organization, which is appropriate
• GEF has effectively performed its role as financial mechanism
responding to COP guidance--coordination has improved
• GEF is a more stable and effective institution in 2005 than it was
in 2001
G L O B A L E N V I R O N M E N T F A C I L I T Y - www.thegef.org
GEF Response to UNFCCC
Guidance on Adaptation
• COP I Guidance: Stage I Adaptation
through Enabling Activities
(11/CP.1)
• V&A Assessments part of enabling activities
• From 1995 to 2005, over $160m allocated to
EA’s in nearly 140 countries
• V&A one of components of EA’s--optional
• Over half of countries included some element
of V&A
• Up to $40m from EA’s devoted to V&A
assessments
G L O B A L E N V I R O N M E N T F A C I L I T Y - www.thegef.org
Stage II Adaptation: Planning
Studies
• COP 4 in 1998, Guidance provided to
support Stage II activities
(2/CP.4)
• Further round of adaptation projects
• CPACC-Caribbean Planning for Adaptation (GEF $6.8m)*
• PICCAP—Pacific Islands CC Assistance Program (GEF
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$3.44m)*
MACC—Mainstreaming Adaptation to CC in Caribbean
(GEF $5.98m; Total $9.64m)
Cap Bldg for Stage II Adaptation to CC in C America,
Mexico, Cuba (GEF $3.64m, Total $4.90m)
Assessment of Impacts & Adaptation to CC (global,
UNEP—GEF $8.23, Total $12.46m)
• Took Steps to further understanding of country’s
adaptation needs and logical next steps
G L O B A L E N V I R O N M E N T F A C I L I T Y - www.thegef.org
Beyond Stage II: Toward
Implementation—the SPA
• GEF should support inter alia establishment of
pilot or demo projects to show how adaptation
planning and assessment can be practically
translated into projects providing real benefits
(5/CP.7)
• GEF created new strategic priority in CC Focal
Area entitled “Piloting an Operational Approach
to Adaptation (SPA)”
• Set aside $50m to be used for concrete adaptation
projects in focal areas in which GEF works
• Close to $30m of projects have already been approved
G L O B A L E N V I R O N M E N T F A C I L I T Y - www.thegef.org
SPA Projects
• Approved SPA Projects
• Kiribati Adaptation Program (WB, GEF $2.07m; Total $6.69m)
• Colombia National Adaptation Pilot (WB, GEF $6.07m; Total
17.5m)
• Pilot Adaptation Measures in Dominica, St Lucia and St.
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Vincent & Grenadines (WB, GEF $2.61m, Total $6.4m)
Lake Balaton Vulnerability, Early Warning & Adaptation
Strategy, Hungary (UNDP, GEF $1.13, Total $4.07)
Integrating V&A to CC into Sustainable Dev’t in Southern &
Eastern Africa (UNEP, $1m; Total $2.25 m)
• Recently Recommended SPA Projects
• Community-Based Adaptation (UNDP, GEF $5m; Total $10m)
• Responding to Shoreline Change in West Africa (UNDP, GEF
$4.0m; Total $7.5m)
• Coastal Zone restoration and Sust. mgt in Post-tsunami Sri
Lanka (IFAD, GEF $4mLD + 1.9mSPA, total $15m)
• Pipeline
• Coping w/ Drought in Eastern Africa (4 MSPs)
• Sustainable Land Mgt in Zambezi Valley (MSP)
G L O B A L E N V I R O N M E N T F A C I L I T Y - www.thegef.org
Beyond Stage II: the Special
Climate Change Fund
• In Marrakech, COP7 established the
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special climate change fund to finance,
inter alia, activities in adaptation and
transfer of technologies (Decision 7.CP7) and
requested GEF to manage it
GEF Prepared a programming paper and
hosted a donor’s meeting
• Defines “additional costs” imposed on country not
incremental cost for global environmental benefits
• Proposed sliding scale as a simplified procedure to
estimate eligible additional costs
• Donor’s contributed $31m to initial
endowment in September 2004
G L O B A L E N V I R O N M E N T F A C I L I T Y - www.thegef.org
SCCF: Open for Operations in
September 2005
• Separate Pipeline Operation for SCCF
• Approved:
• Tanzania: Pangani River Basin (UNDP, GEF $1m, Total
$2.57m)
• Pipeline (GEF total estimated at $31m) :
• Adaptation to CC thru Effective Water Governance in
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Ecuador (UNDP)
Piloting CC Adaptation to Protect Human Health
Barbados, Fiji, Uzbekistan & Jordan (UNDP)
Pilot CC Adaptation measures in Andean Region (WB)
Pacific Islands Adaptation to Climate Change Project
(PACC) (UNDP)
India: Climate-resilience Development and Adaptation
(UNDP, SCCF)
G L O B A L E N V I R O N M E N T F A C I L I T Y - www.thegef.org
Least Developed Countries
Fund (LDCF) (1)
• In Marrakech, COP7 created LDC fund to
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support NAPA’s (Decision 7/CP.7) and
requested GEF to manage it
GEF established LDCF
• Consulted with LEG, Feb/Mar 2002
• Developed Guidelines for funding NAPA’s
• Two donor meetings were held
• Stockholm, 2002
• Paris, 2004
• Raised $40.5m for LDCF
• Support NAPA Preparation in 44 countries
• LDCF still contains $29.2m for NAPA Implementation
G L O B A L E N V I R O N M E N T F A C I L I T Y - www.thegef.org
LDCF Implementation
• Process
• COP11 Decision on NAPA
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Implementation (Decision
-/CP.11)
Consultative workshop
held in Dhaka,
Bangladesh April 4-6,
2006
Reached agreement on
Programming paper
Donor’s meeting held in
Copenhagen, April 28,
2006
• New Pledges: $44.6m
• Total Available: $74m
• Programming Innovations
• Streamlined project
cycle
• Review/approvals on
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rolling basis
4 Council member
objections to halt project
Projects up to $2m will
be circulated on “no
objection” basis
• Additional cost
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approach for funding
costs imposed on LDC’s
Full-cost funding for
instances where case
is proven
No need to
demonstrate global
environmental benefits
G L O B A L E N V I R O N M E N T F A C I L I T Y - www.thegef.org
Adaptation Fund
• In Marrakech, COP 7 created Adaptation
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Fund (Decision 10/CP.7) and requested GEF to
make arrangements to manage fund
GEF Council and World Bank Board
accepted the request to establish the
Adaptation Fund, including conversion of
CER’s
GEF Secretariat, Trustee’s Office and
UNFCCC Secretariat had begun
discussions on Adaptation Fund
arrangements
Summarized in GEF Report to COP 11
G L O B A L E N V I R O N M E N T F A C I L I T Y - www.thegef.org
GEF’s Strengths for Managing
Adaptation Fund
• GEF’s governance is transparent,
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universal and responds directly to
Guidance from Convention bodies
GEF has demonstrated flexibility in
responding to guidance and new
programming challenges
GEF already manages three different
sources of adaptation funding
• Structured Learning
• Administrative Simplification & Savings
G L O B A L E N V I R O N M E N T F A C I L I T Y - www.thegef.org
GEF’s Strengths for Managing
Adaptation Fund
• GEF’s Administrative Structure provides a sound
foundation for AF
• Trustee’s office to manage
• Pre-existing structures results in savings
• Experience with Treasury operations bring established
experience in financial markets
• GEF is a network organization with capacity to
support the global environment and sustainable
development
• Council Constituencies represent all countries
• Three IA’s: UNDP, UNEP, & World Bank
• Seven EA’s: IFAD, FAO, UNIDO, ADB, AfDB, EBRD, & IDB
• Other executing agencies can be utilized as appropriate
G L O B A L E N V I R O N M E N T F A C I L I T Y - www.thegef.org
Thank you
G L O B A L E N V I R O N M E N T F A C I L I T Y - www.thegef.org