The GEF and the Private Sector IUCN, November 3 2009, Washington D.C GEF Assembly, Punta del Este, Uruguay May 24, 2010.
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Presentation on theme: "The GEF and the Private Sector IUCN, November 3 2009, Washington D.C GEF Assembly, Punta del Este, Uruguay May 24, 2010."— Presentation transcript:
The GEF and the Private Sector IUCN, November 3 2009, Washington D.C GEF Assembly, Punta del Este, Uruguay May 24, 2010
Private Sector Data Analysis for GEF Projects Data analysis of all GEF projects with private co- financing was conducted in early 2010 436 private sector projects out of a total of 2403 projects $5.97 billion of identified co-financing for private projects compared to $38.74 billion of total identified co-financing Private projects had somewhat better co-financing ratio (4.8x compared to 4.44x for overall portfolio)
Private Sector Co-financing Sources for GEF Projects
Private Projects: Co-Financing by Focal Area Percentage of Total Co-financing Average Co-Financing Ratio BIODIVERSITY 17%2.82 CLIMATE CHANGE 73%5.77 LAND DEGRADATION Less than 1%2.56 POPs 3%1.85 INTERNATIONAL WATERS 7%4.32
The GEF Earth Fund Pilot Public-Private Partnership Initiative approved by GEF Council in June 2007, with $50 million of funding allocation Launched by GEF and IFC in December 2007 with $50 million of GEF funding and $10 million from IFC IFC manages a substantial Earth Fund Platform ($30 million from GEF plus $10 million from IFC) Four additional Platforms have been approved by Council to fully allocate the remainder of the $50 million
The IFC Earth Fund Platform The first Earth Fund Platform, approved by Council in May 2008 Initial capitalization of $30M from the GEF Earth Fund and $10M from the IFC Objective to leverage GEF and other funding to transform markets in the climate change and biodiversity focal areas through: Testing, development and establishment of new technologies, financial structures and business models Scale-up of successfully tested initiatives GEF Sec has observer status on the relevant IFC Investment Review Committee (IRC)
UNEP Platform “Global Market Transformation for Efficient Lighting” Approved by Council June 2009 $5M from the GEF Earth Fund and $15M private co-financing commitments from Osram and Philips Objective to speed up the transformation of the market for efficient lighting technologies in developing countries through: Global policy dialogue for the phase-out of inefficient lighting and the widespread adoption of energy-efficient lighting products Establishing a Center of Excellence for certification and harmonization of quality and performance-based standards Support for country programs (policy toolkit, TA for program development)
IBRD/Conservation International “Conservation Agreement Private Partnership Platform” Approved by Council in August 2009 $5M from the GEF Earth Fund, $5M contribution by CI and $10M private co-financing Objective to catalyze private sector participation in conservation of biodiversity and provision of ecosystem services through : Streamlining product sourcing agreements between companies and communities Developing conservation partnerships at community level Loan finance to SMEs to ensure increased participation in product and service supply chains that benefit conservation and development
UNEP/Rainforest Alliance “Greening the Cocoa Industry” Approved by Council in April 2010 $5M from the GEF Earth Fund, $15M contribution by Mars, Kraft and other participants in the cocoa value chain Objective to incentivize improved production and business practices in major cocoa producing countries and cocoa companies through : Widespread adoption of the Sustainable Agriculture Standard in 750,000 hectares of cocoa farms Providing farmers with access to quality training, extension and relevant support services Implementation of a global Rainforest Alliance certification program for cocoa that includes biodiversity standards
IDB/The Nature Conservancy “Public-Private Funding Mechanisms for Watershed Protection” Approved by Council in April 2010 $5M from the GEF Earth Fund, at least $15M cash co-financing Objective to deploy public-private funding mechanisms (“Water Funds”) as sustainable long-term instruments to promote private sector participation in the conservation of freshwater ecosystems and biodiversity of global importance: Establish at least 5 Water Funds across Latin America and the Caribbean Secure increased private and public sector funding to pay for water and biodiversity related services Incorporate endowment funds for long-term sustainability
Looking Forward GEF-5 Replenishment process completed May 2010 $80 million for Earth Fund (private sector outreach) in GEF-5 Review of the pilot phase of the Earth Fund currently underway by the GEF Evaluation Office (GEFEO) Updated private sector strategy and business plan to be finalized Feedback strongly encouraged to inform the private sector strategy
Some Tentative Questions for Today’s Discussion How can the GEF work more effectively with MDBs and other parties to promote private sector engagement? What protections are appropriate to ensure that private sector actors are not unduly enriched by infusions of donor money on concessional terms? How can GEF client countries and Agencies make better use of strategic partnerships with the private sector to promote the attainment of global environmental benefits?