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GEF Resource Programming An Update - GEF

VIEWS: 4 PAGES: 18

									       GEF Resource Allocation


Operations and Business Strategy Team

                   Washington, 28 April 2009




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

•   Review of GEF4 RAF
•   Methodology of GEF4
•   Rules in GEF4
•   Major issues in GEF4




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
            Review of current RAF
• RAF is the system approved by the GEF
  Council in September 2005 to allocate
  GEF resources to achieve objectives:
  • Maximize the benefit of GEF resources on
      global environmental improvements
   • Promote country performance in sound
      environmental policies and practices
   • Allocate GEF funds to countries in a
      transparent and cost-effective manner

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
              Rules of Allocation

   GEF Benefits Index (GBI)
    • measure the potential of each country to
      generate global environmental benefits in
      a particular focal area
 GEF Performance Index (GPI)
    • measure each country’s capacity, policies
      and practices relevant to a successful
      implementation of GEF programs and
      projects

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
  Areas of influence of STAR & RAF
   Focal Areas Covered           Focal Areas to be covered
         In GEF4                          in GEF5


                                 Climate Change
   Climate change               Biodiversity
                                 Land Degradation
   Biodiversity                 International Waters
                                 POPS
                                 Ozone Depletion


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
   Construction of GBIBD under RAF
                             GEF BENEFITS INDEX
                              Biodiversity (GBIBD)



               Terrestrial                             Marine



    Species                    Ecoregion                Species
 Representation              Representation          Representation




  Threatened                  Threatened
   Species                    Ecoregions




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
     Construction of GBICC under RAF



   GEF 4
   Score of
GEF Benefits
  Index CC
                =        Fixed Baseline
                         GHG Emissions             Carbon Intensity
                                                    Adjustment Factor
                             in 2000
   (GBICC)




  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 Performance Index (GPI)




    GEF                                Environment
                      Project           Policy and          Broad
Performance
   Index
               =     Portfolio    +     Institution   +   Framework


                    Weight: 10%        Weight: 70%         Weight: 20%




   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
     Country Score, Share and Allocation


Score for focal area = (GBI 0.8 x GPI 1.0 )
 for each Country

Share = (Country Score / Sum of Country
 Scores)

 Country Initial Allocation = (Share x
 Funding available in GEF 4)
 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
             GBI and GPI in RAF Modeling

Global Environmental Priorities
   GEF Benefits Index (GBI)
         - A database

                                    Model simulation     Allocation results

 Country Level Performance
                                               Revise
GEF Performance Index (GPI)
                                               and run
        - A database
                                          No
                                  Results consistent?
                                         Yes

                                        Stop

   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
   Using RAF to Allocate GEF4 Resource
            Focal Area Envelope for GEF4
                (e.g. Biodiversity $1,000 million)




5% Global & Regional                 90% Country & Group allocations
5% Small Grants Program &                Allocated with modeling
   Cross-cutting Capacity                 Adjusted for maximum
       Building                         and minimum allocations



                                         15% to             75% to
                                         group            Individual
                                         allocation       allocations
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
     Allocations to Individual Countries and the Group

                                                 Country Amount
                                       Ceiling   Country1      Max $$
                                                 Country2      Max $$
       GBI
(GEF Benefits Index)                             Country3      Max $$




                          Allocation
                                                 Country61      Mid $
                                                                 $$
                          Modeling               Country62     based
                                                                 $$
                                                 Country63
                                                                 on
                                                                 $$
                                                               scores

                                                 Country 148    $$
          GPI                                    Country 149   Min $$
                                                                $$
(GEF Performance Index)                 Floor    Country 150     $$
   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
    “50% Rule” of RAF Implementation

• Initial allocation for four year period of GEF4

• Only 50% of allocation can be utilized in first 2
  years. Remainder provided for informational
  purposes.

• Reallocation after 2 years based on reapplication
  of RAF formula with updated GBI and GPI



   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
           Unutilized allocations


   • At the end of Year 2, carried over to
      final 2 years of replenishment period

   • At the end of replenishment period
      returned to GEF Trust 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
          Key Comments by GEF EO
• Indices reflect best available information today,
     with gaps needing to be addressed, over time
•    No effective incentives to improve performance
•    Limited access for group allocation countries
•    Ceilings and floors are not effective
•    Implementation rules (50%, 75% etc) are too
     complex for flexible use of resources
• RAF is too complex for the GEF partnership


    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
      Key Suggestions by GEF EO
• Steps to improve RAF design / indices for GEF-5

  1.Improve global benefit indices and their weights
  2.Increase weight of the environmental portfolio
    performance
  3.Give allocations to all group allocation countries
  4.Reconsider ceilings, floors and 50% rule
  5.Recognize trans-boundary global environmental
    problems
  6.Expand RAF to an integrated allocation for all focal
    areas


  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
       RAF is Changing to STAR

•   Methodology and modeling
•   Indicators and Indexes
•   Rules of allocation
•   Allocation areas
•   Presentation of results
•   For more details, see the presentation
    slides of STAR.

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
                          Thanks
                             Contact:
                      Christopher F. Briggs
                      CBriggs@theGEF.org

                              and/or

                           Ming Yang
                       myang@theGEF.org




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

								
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