I. Overview of the GEF Vertical Fund in UNDP The Global Environment Facility The Global Environment Facility (GEF) was established in October 1991 to assist countries in protecting the global environment and to promote environmentally-sound sustainable development. Since it began the GEF has provided USD 11.5 billion in grant support to over 165 countries through over 3,215 projects. The GEF administers four trust funds, the Global Environment Facility Trust Fund (GEF); Least Developed Countries Trust Fund (LDCF); Special Climate Change Trust Fund (SCCF); the Nagoya Protocol Implementation Fund (NPIF), and provides secretariat services, on an interim basis, for the Adaptation Fund. 4
The GEF serves as the financial mechanism for the Convention on Biological Diversity; the UN Framework Convention on Climate Change; the Stockholm Convention on Persistent Organic Pollutants; the UN Convention to Combat Desertification; and the recent Minamata Convention on Mercury.
Although not linked formally to the Montreal Protocol on Substances that Deplete the Ozone Layer, the GEF supports the implementation of the Protocol in countries with economies in transition. The GEF also finances work to help countries collectively manage their transboundary surface water basins, groundwater basins, and coastal and marine systems in order to share the benefits from them. For a country to be eligible to receive GEF funding it must qualify as a developing country for assistance from the UN system or the World Bank and be party to the appropriate multilateral environmental agreement. The primary eligibility requirements are set out in Article 9 of the GEF Instrument 5. The GEF is a partnership and a global network. As outlined in Figure 1, the GEF governance and management structure consists of the GEF Assembly, the GEF Council, the GEF Secretariat, the GEF Independent Evaluation Office, the Scientific Technical Advisor Panel (STAP), and 10 GEF Agencies6.
UNDP as a GEF Agency Countries choose to work with UNDP to access GEF grant funds in order to address inter-linked environment and development challenges outlined in UNDP country programme documents and United Nations Development Assistance Frameworks (UNDAFs), which in turn are aligned with the vision of UNDP’s Strategic Plan. National entities directly implement GEF-financed projects – typically national government agencies or departments – or, on occasion, a non-governmental organisation, another UN agency or a regional organisation may implement the project. GEF Agencies received a fee7 to provide ‘project cycle management services’ for each GEF-financed project and for undertaking portfolio-wide ‘corporate services’. The services provided are mandated by the GEF Council and are outlined in Table 1.
See www.thegef.org
4
See www.thegef.org
5
In 2014 this was raised to 12. Please see www.thegef.org for further information.
6
In 2013, the GEF fee was reduced from 10% of the GEF grant to 9.5% for projects under USD 10 million and 9% for projects over USD 10 million.
7
4
2013 Annual Performance Report of UNDP-supported GEF-financed projects