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GEF-5 System for Transparent Allocation of Resources

GEF-5 System for Transparent Allocation of Resources. SUB-REGIONAL WORKSHOP FOR GEF FOCAL POINTS IN ASIA HANOI, VIETNAM MARCH 10-12, 2010. Development of the System for Transparent Allocation of Resources. GEF-4 RAF adopted September 2005;

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GEF-5 System for Transparent Allocation of Resources

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  1. GEF-5 System for Transparent Allocation of Resources SUB-REGIONAL WORKSHOP FOR GEF FOCAL POINTS IN ASIA HANOI, VIETNAM MARCH 10-12, 2010

  2. Development of the System for Transparent Allocation of Resources • GEF-4 RAF adopted September 2005; • GEF-4 replenishment recommendation to develop GEF-wide RAF to be implemented by 2010, “if feasible”; • Mid-term review, November 2008; • Progress report on indicators, Nov 2008; • First draft of “Scenarios and Options” paper discussed, March 2009, by ad hoc Council committee; • Revised “Scenarios and options” paper discussed at June 2009 Council meeting.

  3. Development of the System for Transparent Allocation of Resources • October 2009 ad hoc Council committee meeting in Paris advanced the development of the STAR • All main elements of the STAR approved by Council in November 2009

  4. The Resource Allocation Framework under GEF-4 • Applies to Biodiversity (BD) and Climate Change (CC); • 10% set-aside; • Large number of countries in the “group” with no individual allocation; • 10% cap for BD; 15% cap for CC; • Mid-term review made a number of recommendations relative to structure of the RAF and implementation issues.

  5. Elements of the new STAR agreed by Nov 2009 Council Meeting • International Waters and Persistent Organic Pollutants should remain outside the scope of the STAR; • Elimination of the “50%” rule for accessing resources in future; • Elimination of group allocations in future; • Continue to apply caps, and to apply floors to allocations; • Flexibility in programming for small allocations; • Revised Global Benefits Indices (GBIs) for BD and other focal areas; • Revised Global Performance Index (GPI).

  6. Access to STAR Country Allocations To receive an individual allocation, a country should: • be a Party to the relevant Convention; • meet Convention eligibility criteria, as decided by each COP; • have had at least one national project over the past 5 years in any focal area – or have only become eligible for GEF support during the past 5 years; • not be a member of the EU (due to the practical impossibility to define increment over baseline for projects). The amount “set aside” from the allocations can be used for newly eligible countries.

  7. Rules under STAR • Increased flexibility for use of small allocations under a threshold, whilst “protecting” at least 90% of biodiversity resources. (Around 50 countries to benefit). • Level of focal area “set asides”. 15-20% for supporting costs of:- Enabling activities;- Incentives to regional projects;- Global projects. • Focal areas and programs outside the STAR would include:- IW, POPs, ODS, sound chemicals management;- Agency fees, and corporate budget;- NDI, CSP (sub-regionals), national voluntary portfolio identification exercises;- SGP, Earth Fund • Ceilings: CC: 11%; BD, LD: 10%, Floors: CC: $2m; BD: $1.5m; LD: $0.5m

  8. GEF Global Performance Index – GPI • GPI is composed as for GEF-4 but with following difference: • Project Portfolio Performance Index (PPI) based only on GEF projects: PPI = 0.4 x PIR (Project Implementation Report) + 0.6 x TER (Terminal Evaluation Review) • Increased weight of PPI:GPI GEF-5 = 0.20 x PPI + 0.65 x CEPIA (Country Env. Policy & Institutional Assessment) + 0.15 BFI (Broad Framework Index) (in GEF-4, GPI was 0.1 x PPI + 0.7 x CEPIA + 0.2 BFI) • Decreased weight of ‘country environmental policy and institutional assessment ’ and ‘broad framework indicator’.

  9. Per capita GDP-based Index - GDPI • New additional index in STAR included to take into account capacity and vulnerability of countries: GDPI = Nominal GDP-0.04 • An LDC at the lower end of the range of Nominal GDP would receive a 12% higher allocation. • A country at the higher end of the Nominal GDP would receive a 6% lower allocation.

  10. GEF Benefits Indices - GBIs • Indices developed in collaboration with the STAP. • BD: based on 2008 updated GBI. Increased weight of marine relative to terrestrial in response to, inter alia, mid-term review. • CC: includes a 5% component related to forest cover and deforestation. • LD: takes into account the land area affected; proportion of drylands; and proportion of rural population.

  11. Combining Indices for STAR • In GEF-4, GBI and GPI indices were combined in an equation: Country Score = GBI1.0 x GPI0.8 • In GEF-5, the three indices are combined as follows: Country Score = GBI1.0 x GPI0.8 x GDP-0.04

  12. Next Steps • Finalize Replenishment at the March Meeting • Countries individual envelopes identified and communicated • Simples rules to manage STAR for Focal Points and GEF Secretariat • Endorsement of STAR at GEF Assembly

  13. Simulations for illustrative purposes pending agreement on replenishment

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