Key GEF Policies and Related Guidelines & Initiatives

Training for GEF Project Agencies: Introduction to the GEF

Washington, DCMay, 2015

GEF Policies & Guidelines• Policies (sometimes “Operational Policies”) are approved by GEF Council.

Contain mandatory statements or principles.• Since 2011, final “GEF Policies” (as approved by Council) posted to GEF

website. Each Policy given a number that is distinct from Council Documents. Posted to: https://www.thegef.org/gef/policies_guidelines

• For policies prior to 2011, need to look at both (a) the relevant Council Decision (in the Summary of the Chairs) + (b) relevant Council Documents.

• Guidelines: Approved by GEF CEO. Contain information to help explain or implement a policy. Often posted as Council “Information Documents.”

• All GEF Policies and Guidelines apply to new GEF Project Agencies as they do to the original 10 GEF Agencies (unless differences are stated in Policy – e.g. Agency Fee Policy.)

• All GEF Trust Fund Policies and Guidelines also apply to LDCF/SCCF projects unless the LDCF/SCCF Council has decided otherwise.

Co-financing & Incremental Cost

Co-financing Policy• Council approved a new Co-financing Policy in May 2014, which has

been posted as Policy FI/PL/01. This Policy establishes the objectives for co-financing in GEF-financed projects; Defines co-financing for GEF-financed projects and programs; and Provides rules/requirements on co-financing for GEF-financed

projects and programs.

• Applies to GEF Trust Fund and the Nagoya Protocol Implementation Fund (GEF-financed projects) financed projects and programs but not to LDCF or SCCF financed projects.

• Council Document that proposed the Policy to the Council (Document GEF/C.20/6/Rev.1, Co-financing) contains helpful background and guidance on how it will be implemented.

Co-financing (cont’d)

• Objective: “to attain adequate levels of co-financing as a means to: enhance the effectiveness and sustainability of the GEF in achieving

global environmental benefits; strengthen partnerships with recipient country governments,

multilateral and bilateral financing entities, the private sector, and civil society.”

• Introduction notes “an ambition for the overall GEF portfolio to reach a co-financing ratio of at least 6:1, with expectations for greater co-financing in upper-middle income countries that are not SIDs.” This is a portfolio ambition, not project-by-project. GEF Secretariat “will not impose minimum thresholds and/or specific

co-financing sources in the review of individual projects or work programs.”

Co-financing (cont’d)

• Definition: “resources that are additional to the GEF grant1 and that are provided by the GEF Partner Agency itself and/or by other non-GEF sources that support the implementation of the GEF-financed project and the achievement of its objectives.”

(1) GEF financing (e.g. the GEF grants) is determined on the basis of the agreed incremental cost principle.

• Co-financing is required for all GEF full-size and medium-size projects and programmatic approaches (PAs). Optional for enabling activities. PIFs & PAs must list indicative co-financing for work program

inclusion. For CEO endorsement, Agencies must confirm co-financing and

provide evidence. Agencies must list co-financing by source and type. Secretariat reviews proposals for consistency with Policy.

Co-financing (cont’d)

• Council Document GEF/C.20/6/Rev.1 also notes that the Secretariat will “continue to review project co-financing as part of its assessment of whether the project is supported by an adequate financing package in light of the needs of the project.” (Paragraph 16)

• GEF Secretariat also to monitor portfolio co-financing and report to Council through Annual Monitoring Review. The data included in AMR is taken from PIFs.

• Agecies to report on materialized co-financing during implementation and project closure (per GEF monitoring requirements.)

• Evaluation Office not mentioned, but expected to evaluate co-financing through Overall Performance Studies.

• See link below for more information:http://www.thegef.org/gef/policy/co-financing

Incremental/Additional Cost

• GEF funds the “agreed incremental" costs of agreed global environmental benefits (GEBs).

• For LDCF/SCCF, it is the “additional adaptation costs”.

• Costs in reference to an agreed baseline or “business as usual” scenario or project w/o GEBs or adaptation measures.

• Previously relied on complex calculation of incremental costs.

• Since 2007, approach based on five-step incremental reasoning approach.

• Determine environmental/adaptation problem, threat, or barrier, & the “business-as-usual” scenario

• Identify the global environmental benefits (GEBs)/adaptation benefits and fit with GEF priorities within GEF focal area strategies and priorities;

• Develop the results framework of the intervention;

• Provide the incremental/additional reasoning and GEF’s role; and

• Negotiate the role of Co-financing.

Operational Guidelines for the Application of the Incremental Cost Principle (http://www.thegef.org/gef/node/435)

Communication and Visibility

GEF Communication and Visibility Policy

• Policy: Proposal for Enhancing Visibility of the GEF, Council Document GEF/C.40/08. http://www.thegef.org/gef/node/295

• Objectives• Ensure that GEF and its funding is visible & recognized. • Promote GEF as global leader on financing environmental projects in

the developing world• Improve how GEF Agencies and partners communicate and present

GEF-funded activities to donors and other stakeholders• GEF often not recognized or cited enough in partners’ documents and

activities • Keep a strong brand identity• Support a consistent visual identity and image

• Policy includes GEF Communication and Visibility Guidelines, which all GEF Partner Agencies must follow. (Included in GEFSEC-Agency MOUs).

• Guidelines include basic rules and specific requirements on: GEF logo and ensuring GEF visibility in press releases, conferences; site visits; publications; electronic communications; display panels & commemorative plaques; banners; vehicles, supplies, equipment, promotional materials, hand photographs and audiovisual productions.

• Contractual agreements between Agencies and executing entities must reflect the role of GEF funding & require adherence with GEF Communication and Visibility Guidelines.

Communication and Visibility Guidelines

Guidelines for External Actions funded by the GEF

The GEF strongly encourages Partner Agencies to publicize their GEF-financed Projects as such.

1. In preparation of outreach material, contact a Communications Officer at the GEF Secretariat; include Project Manager at GEF Secretariat in all communications

2. Documents and publications should contain the GEF logo and phrase on cover page: “This project/program is funded by the Global Environment Facility”

3. All communication material produced, including high resolution pictures and video, should also be made available to the GEF Secretariat in electronic form

4. GEF Partner Agencies (e.g. implementation level) and executing agencies should link to GEF website from their pages

• Additional specific guidelines available for: – Press releases– Press conferences– Press visits– Visits by government officials– Leaflets, brochures, newsletters– Electronic communication– Display panels– Commemorative plaques– Vehicles, supplies and equipment – Promotional items – Photographs and audiovisual productions

Guidelines for External Actions funded by the GEF

GEF Policies & Guidelines• Policies (sometimes “Operational Policies”) are approved by GEF Council.

Contain mandatory statements or principles.• Since 2011, final “GEF Policies” (as approved by Council) posted to GEF

website. Each Policy given a number that is distinct from Council Documents. Posted to: https://www.thegef.org/gef/policies_guidelines

• For policies prior to 2011, need to look at both (a) the relevant Council Decision (in the Summary of the Chairs) + (b) relevant Council Documents.

• Guidelines: Approved by GEF CEO. Contain information to help explain or implement a policy. Often posted as Council “Information Documents.”

• All GEF Policies and Guidelines apply to new GEF Project Agencies as they do to the original 10 GEF Agencies (unless differences are stated in Policy – e.g. Agency Fee Policy.)

• All GEF Trust Fund Policies and Guidelines also apply to LDCF/SCCF projects unless the LDCF/SCCF Council has decided otherwise.

Environmental and Social Safeguards• The Policy (PL/SD/03) establishes eight Minimum Standards that all GEF

Partner Agencies are required to meet. Some standards may be found not to apply to a given agency in light of its “agreed or expected comparative advantage in the GEF, based on…the type of projects it normally implements.”

• Accredited GEF Project Agencies have been assessed as meeting the standards (except where a standard was found to be “inapplicable”), including with regard to implementation capacity.

• Policy self-enforced at the Agency through each Agency’s system for “Accountability and Grievances.”

• “The GEF Secretariat will not conduct a project-by-project review of the application of the minimum safeguard standards.” (Guideline GN/SD/O3, paragraph 8, taken from Council Document GEF/C.41/10/Rev.1) http://www.thegef.org/gef/content/environmental-and-social-safeguards

Information Disclosure• GEF Instrument, Para. 5: “GEF operational policies…. with respect to

GEF-financed projects shall provide for full disclosure of all non-confidential information.”

• Information disclosure practices contained in GEF Practices on Disclosure of Information, Council Document GEF/C.41/Inf.03. http://www.thegef.org/gef/sites/thegef.org/files/documents/C.41.Inf_.03_GEF_Practices_on%20Disclosure_of_Information.pdf

• All Council & replenishment documents disclosed- unless contain confidential information.

• Includes all project documents - PIFs, CEO endorsement request & full project proposal - and GEFSEC review sheet & STAP Screen.

• GEF also relies on Agency information disclosure/ access to information policies (including those required under GEF Safeguards Policy).

• World Bank Access to Information Policy applies to GEF Secretariat.

Non-Grant Instruments

GEF’s experience to date suggests that non-grant instruments can make an important contribution to the achievement of the GEF’s objectives. They have helped deliver innovative projects and catalytic partnerships.

GEF-6 Policy Recommendations: expand the use of non-grant instruments, in view of the contributions these can make to leverage capital from private sector, to long-term financial sustainability through their potential for generating reflows, as well as the usefulness of assessing the demand for non-grant instruments for the public sector in GEF recipient countries.

Updated Operational Policies and Guidance for the Use of Non-Grant Instruments, to be approved by the GEF Council in Oct 2014

Non-Grant Instrument Pilot and Policy

Significant experience with the use of non-grant instruments – risk mitigation, equity and debt instruments – in a diverse set of project types from a variety of FAs

Since the GEF’s inception, a total of 86 projects have been recorded as having utilized a “non-grant” instrument, totaling $715 million of GEF financing (about 6% of the GEF’s total programmed amount)

Co-financing ratio of these projects has trended high over time, and is well above co-financing levels of GEF grant programming

The largest share of projects has been in the CCM focal area (80% of the funds). 7 projects have been in the BD.

Debt instruments and risk mitigation products are the most frequently used non-grant instruments (71 % of the funds)

GEF’s experience with Non-Grant Instruments

• will play a key role in supporting the GEF’s efforts to leverage significant capital from the private sector through the use of innovative and flexible financial instruments.

• will expand the range of tools available to the GEF and allow the GEF to assess the demand and applicability of GEF non-grant instruments for public sector recipients.

• By demonstrating and validating successful models for the use of non-grant instruments, the GEF can help catalyze large-scale changes through broader adoption and generate experiences which may also be useful for other international environmental funding mechanisms such as the Green Climate Fund.

• by focusing the Pilot on non-grant instruments that have the potential to generate reflows, the Pilot can make a contribution to the GEF Trust Fund’s financial sustainability.

GEF-6 NON-GRANT PILOT

NGI Pilot: Implementation

A set-aside of $110 million for the Non-Grant Pilot.

The maximum amount of funding for each project is approximately $15 million.

Proposals must be submitted by one of the GEF Agencies on behalf of the potential project proponent. Interested parties are encouraged to contact the relevant GEF Partner Agency focal point

Only proposals using non-grant instruments with a potential for reflows to the GEF Trust Fund will be funded under the Pilot.

Consistent with the Policy on Non-Grant Instruments, a broad and flexible range of debt, equity and guarantee instruments will be supported under the Pilot. For projects/programs with public sector recipients, instruments include concessional loans and guarantee instruments; an emphasis on concessional loans is expected.

NGI Pilot Implementation – Selection criteria

Project proposals are eligible as long as they contribute GEBs as per GEF’s strategic programming under GEF-6.

The Pilot will seek to fund a diversity of recipient countries, regions, and Focal Areas. Proposals for both full-sized projects and medium-sized projects will be considered.

The Pilot will support capacity building, technical assistance, and advisory services only if they are included as part of the overall investment using the non-grant instrument and if the overall investment has potential for reflow to the GEF Trust Fund.

Following elements are especially encouraged:

• demonstrate innovative application of financial mechanisms and partnerships that may be broadly adopted and can be scaled-up;

• demonstrate use of non-grant instruments in areas other than CC;

• deliver innovative engagement with the private sector and innovative business models;

• deliver high levels of co-financing.

Implementation – Selection criteria

• For projects with private sector, the GEF Partner Agency will negotiate an appropriate lending rate or return on investment that is consistent with the Agency’s standard practices; ensures a minimum level of concessionality; avoids displacing other finance; and catalyzes other investments. The maximum maturity for private sector loans is twenty years; the exit date for equity investments will be negotiated case by case.

Implementation - Financing Terms

For projects/programs with loans to public sector recipients, the Pilot will use differentiated terms: softer concessional terms will be offered to LDCs and SIDS, while harder concessional terms will be offered to other countries as follows:

Implementation - Financing Terms

GEF concessional loans under the Pilot

Maturity (Years)

Grace Period (Years)

Annual Principal Repayment Years 11-20 (% of initial principal)

Annual Principal Repayment Years 21-40 (% of initial principal)

Interest

To LDC and SIDS

40 10 2% 4% 0.25%

To Other Recipient Countries

20 10 10% NA 0.75%

• Consistent with MDB standard lending practice, the GEF Agencies will not seek any guarantee or security for lending to sovereign governments under the Pilot. If a GEF loan under the Pilot is made to a sub-national entity, the beneficiary country will be required to guarantee the loan if the GEF Partner Agency requires such guarantees for sub-sovereign lending.

• In case of the use of guarantee instruments for public sector entities, the reflow schedule and fees will be negotiated on a case-by-case basis by the GEF Partner Agency. There will be no requirement for sovereign government indemnity for any guarantee product

Implementation - Financing Terms

Schedule: • It is anticipated that funds under the Pilot could be allocated rapidly

—the Pilot aspires to be fully programed by the end of the calendar year 2015. This will facilitate early compilation of lessons learned that might be useful for GEF-7 and for other interested parties.

• The first opportunity for FSPs will open in Nov 2014 . Agencies are encouraged to submit projects/programs in time for consideration by Council in the June 2015 WP. The second opportunity for FSPs will open in July 2015.

• Medium-sized projects can be submitted for CEO consideration under the Pilot on a rolling basis, consistent with regular processing of medium-sized projects

Implementation – application

Gender Mainstreaming and Indigenous Peoples

Gender MainstreamingPolicy on Gender Mainstreaming (PL/SD/02) was adopted (2011)• GEF’s commitment to enhancing gender equality through GEF

operations.• The Policy calls on the GEF Agencies to have policies, strategies, or

action plans that meet the seven minimum standards:1)Institutional capacity for gender mainstreaming2)Consideration of gender elements in project design,

implementation and review3)Undertake project gender analysis4)Measures to minimize/mitigate adverse gender impacts5)Integration of gender sensitive activities6)Monitoring and evaluation of gender mainstreaming progress7)Inclusion of gender experts in projects

Gender Equality Action Plan

• Concrete road map to implement the GEF Policy on Gender Mainstreaming that builds on the existing and planned gender strategies and plans of the GEF Agencies

• Goal: to operationalize the mainstreaming of gender in GEF policy and programming to advance both the GEF’s goals for attaining GEBs and the goal of gender equality and women’s empowerment.

• Initially serves during the GEF-6 period (FY15-18).

1. Project Cycle• Develop a Guideline on Mainstreaming Gender in GEF Project Cycle• Incorporate in Project Templates and Guidelines

2. Programming and Policies• Support gender responsive projects, based on country demand and GEF-6

Strategy• Mainstream gender in key GEF Strategy and Policy documents.

3. Knowledge Management• Enhance KM on gender equality, in line with new KM strategy (Knowledge

products, webpage, etc)4. Results Based Management

• Strengthen GEF-wide accountability for gender mainstreaming by having Corporate and Focal Area level indicators and targets.

5. Capacity Development• Strengthen capacity at GEFSEC institution and staff levels, OFPs and partners at

the country level

Key Elements

1. Percentage of projects that have conducted gender analysis during project preparation.

2. Percentage of projects that have incorporated gender responsive project results framework (e.g. gender responsive output, outcome, indicator, budget, etc).

3. Share of women and men as direct beneficiaries of project. 4. Share of convention related national reports incorporated

gender dimensions (e.g. NBSAP, NAPA, TDA/SAP, etc.).5. Percentage of monitoring and evaluation reports that

incorporates gender equality/women’s empowerment issues and assess results/progress.

GEF-6 Core Gender Indicators

GEF Indigenous Peoples Policies and Strategies

GEF Focal Area Strategies and Results Framework - Incorporate strategies and indicators

related to Indigenous Peoples

GEF Project Review Criteria- Clarify stakeholders participation, including

indigenous peoples and gender groups, in project preparation and implementation.

GEF Public Involvement Policy (1996) GEF Minimum Standards on Envi. & Social

Safeguards, including Indigenous Peoples (2011)

GEF Principles and Guidelines for Engagement with Indigenous Peoples (2012)

Indigenous PeoplesSafeguards Policy (PL/SD/03) include minimum standards on Indigenous Peoples

• The GEF “adopts a standard of free, prior and informed consent (FPIC) for GEF-financed projects” in ILO Convention 169 signatory countries; and

• Minimum Standard 4 on Indigenous Peoples. Main criteria and ten minimum requirements require GEF Agencies to “ensure that their projects are designed and implemented in such a way that fosters full respect for Indigenous Peoples’ and their members’ dignity, human rights, and cultural uniqueness.

Principles and Guidelines for Engagement with Indigenous Peoples. • Consolidates and summarizes key principles for engaging Indigenous

Peoples contained in the Public Involvement Policy (PL/SD/01) and Safeguards Policy and establishes additional guidance.

GEF IP Principles and Guidelines:Mechanisms for Implementation

GEF Indigenous Peoples Focal

Point

Indigenous Peoples

Advisory Group

Capacity building and Information

exchange

Strengthened Financial

Arrangements

Enhanced Monitoring

Systems

Public Involvement

GEF Policies Related to CSO and other stakeholders involvement

The Public involvement in GEF-financed projects (1996) the GEF Guidelines for Engagement with Indigenous Peoples; the Policy on Agency Minimum Standards on Environmental

and Social Safeguards; the Policy on Gender Mainstreaming and the GEF Monitoring and Evaluation Policy Guidelines for the Implementation of the Public Involvement

Policy (2014)

Public Involvement Policy

Policy: Public Involvement in GEF Projects, GEF/PL/SD/01

http://www.thegef.org/gef/content/public-involvement-policy

• Effective public involvement is critical to the success of GEF-financed projects, with emphasis on local participation.

• Public involvement comprises three related and often overlapping processes: (a) information dissemination; (b) consultation; and (c) stakeholder participation.

Public Involvement Policy Principles

1. Social, Environmental and Financial Sustainability

2. Country Responsibility (government and GEF Agencies)

3. Flexibility4. Broad-based and

sustainable5. Transparency

The Rationale for Public Involvement in GEF-financed Projects

• Enhancing recipient country ownership of, and accountability for, project outcomes

• Addressing the social and economic needs of affected people

• Building partnerships among project executing agencies and stakeholders

• Making use of skills, experiences, and knowledge in the design, implementation and evaluation of project activities.

Guidelines

These Guidelines aim to provide further detail on steps to achieve and implement the principles stipulated in the Public Involvement Policy

Information Dissemination Consultation for Setting Priorities Consultation for Project/Program Design and

Implementation Reporting, Monitoring and Evaluation Conflict Resolution

Guidelines

Information DisseminationAction Responsible

Relevant documents and information related to GEF programs and projects become publicly available on the GEF’s website in a timely manner.

GEF Secretariat

Information meetings, ND. NPFE. NSC

OFPs

GEF workshops, ECWs GEF Secretariat

Update of A-Z GEF Secretariat

Webinars GEF Secretariat

Consultation – Setting PrioritiesMechanism – Action Responsible

NPFE – CSO rep OFP

National Dialogue OFP

Other consultation meetings OFP - GEF Partner Agencies

Consultation – Participation- Programs and Projects

Mechanism – Action Responsible

Consult on project and program ideas OFP

Documentation of affected stakeholders GEF Partner Agencies

Meaningful consultations with stakeholders

GEF Partner Agencies

FPIC GEF Partner Agencies

Identification of Needs GEF Partner Agencies

Identification of Partners GEF Partner Agencies

Review of Proposed Activities – stakeholder engagement plan

GEF Partner Agencies

Reporting, Monitoring and Evaluation

Mechanism – Action Responsible

Mid-Term Evaluation and Terminal Evaluation of each project account for participation of CSOs and other stakeholders

GEF Partner Agencies

Seek partnership opportunities with relevant CSOs in the monitoring and evaluation of projects and programs

GEF Partner Agencies – OFPs

Continued input from affected stakeholders and communities regarding progress

GEF Partner Agencies – OFPs

Reporting, Monitoring and Evaluation (cont’d)

Mechanism – Action Responsible

The Annual Monitoring Review (AMR), will contain a section on the analysis of the participation of CSOs and other stakeholders

GEF Secretariat

Terminal Evaluations will include, where applicable, a section on the degree and manner of involvement of civil society organizations and other stakeholders

GEF Partner Agencies

Sub-study on public participation in GEF projects and programs as part of the Overall Performance Study (OPS) in every GEF cycle

Independent Evaluation Office

Conflict ResolutionMechanism – Action Responsible

GEF Conflict Resolution Commissioner and the GEF Secretariat Civil Society Operations Officer are available to receive any complaints brought forward by CSOs and other stakeholders that are not satisfactorily resolved at the local level, country, or GEF Partner Agency level.

GEF Secretariat

Report annually, through the Annual Monitoring Review (AMR), on cases that have been presented to their respective resolution systems and on how they have been addressed

GEF Partner Agencies

Action Plan

Information DisseminationDesign of programs and projectsKnowledge ManagementMonitoringCapacity DevelopmentPolicy and GuidelinesConflict Resolution

Working Group

Discuss : - ways to promote full and effective realization of the new GEF Guidelines for the Implementation of the Public Involvement Policy and - assess the need to update the 1996 PolicyDeveloping and Developed Countries Government, CSO Network, GEF Agencies

Questions?

Thank you for your attention

For more information please contact Ms. Pilar Barrera ReyThe Global Environment Facility

pbarrera@thegef.orgwww.thegef.org / gefcivilsociety@thegef.org

Key Contacts on Policies and Guidelines

• GEF Policies & Guidelines Website: https://www.thegef.org/gef/policies_guidelines

• General Policy Issues, Safeguards: Mr. Andrew Velthaus; avelthaus@thegef.org & Ms. Seo-Jeong Yoon; syoon@thegef.org

• Project Cycle, Project Cancellation, Agency Fees, : Ms. Lily Hale; Lhale@thegef.org

• Gender & Indigenous Peoples: Ms. Yoko Watanabe; ywatanabe@thegef.org

• Public Involvement Policy & CSOs: Ms. Pilar Barrera; pbarrera@thegef.org

• Non-Grant Instrument Policy: Mr. David Rodgers, drodgers@thegef.org