1. Kiran Pandey Global Environment Facility Secretariat kpandey@theGEF.org Resource Allocation at the Global Environment Facility

2. Background Background GEF GEF Proposed Resource allocation Framework Proposed Resource allocation Framework Indicators and Scores Indicators and Scores Lessons Learned Lessons Learned

3. Finance projects in developing countries Finance projects in developing countries Generate global environmental benefits Generate global environmental benefitsBackground: Global Environment Facility  Climate Change  Biodiversity  Ozone Depletion,  Land degradation,  International Waters,  Persistent Organic Pollutants

4. Proposed Resource Allocation Framework Increase Transparency Allocations Increase Transparency Allocations Methodology Yes Methodology Yes Data and Indicators Target Countries with better Performance Target Countries with better Performance Increase expected returns Increase expected returns

5. GEF Allocations under the RAF Develop Country Scores based on Develop Country Scores based on Country Performance Country Performance Country Potential Benefits for each focal area Country Potential Benefits for each focal area Allocations proportional to scores Allocations proportional to scores pool resources for low scoring countries pool resources for low scoring countries ceilings and floors for equity ceilings and floors for equity

6. Criteria for indicators 1. Technically relevant for objectives 2. Comprehensive coverage of countries 3. Low development and implementation cost 4. Simple to understand. 5. Publicly Available.

7. GEF Performance Index (GPI) GEF Performance Index (GPI)BroadFrameworkIndicator(CPIA)Environmental Sector SectorPolicy(CPIA)PortfolioPerformance(PPI) ++=

8. Climate Change Benefits GEF Benefits Index CC BaselineGHGEmissionsCarbonIntensityAdjustmentFactor X = Carbon Intensity Adjustment Factor = 1990 GHG Emissions / 1990 GDP 2000 GHG Emissions / 2000 GDP

9. Biodiversity Benefits New GEF developed Indicator (GBI BIO) New GEF developed Indicator (GBI BIO)  Developed from best available data in consultation with experts with support from World Bank National Index aggregated from subnational data. National Index aggregated from subnational data. Characterizes benefits potential at subnational ecoregion level Characterizes benefits potential at subnational ecoregion level

10. GEF BENEFITS INDEX Terrestrial Species Representation Threatened Species Ecoregion Representation Threatened Ecoregions Marine Species

11. Lessons Learned Difficult to find good indicators Difficult to find good indicators Environmental Stress often used to measure performance Environmental Stress often used to measure performance Few direct measures of Policy and Institution available (exception CPIA at the World Bank) Few direct measures of Policy and Institution available (exception CPIA at the World Bank) Public Disclosure of indicators/methodology Public Disclosure of indicators/methodology Increases buy in by countries Increases buy in by countries Increases difficulty of developing or finding indicators Increases difficulty of developing or finding indicators

12. Additional Information on the RAF www.thegef.org/Operational Policies/ Resource_Allocation_Framework.html

13. Climate Change Countries/GroupsIndicative Allocations ($ millions) Share of Resources (%) Individual Allocations for 33 countries Country 1 82.0 75 Country 3 64.3. 64.1. 6.5. 6.0 Country 34 5.3 Country 32 4.9 TOTAL – Individual allocations33 countries615.9 Group I (countries with Indicative Allocations between $2-4.5 million dollars in the country allocation phase) 29 Countries85.810 Group II (countries with Indicative Allocations between $1-2 million dollars in the country allocation phase) 105 Countries118.314 TOTAL – Climate Change168 Countries820.0

14. Question Proposed Weight 1. Adequacy of Environmental Prioritization 2. Cross-sectoral Coordination for Environmental Management 3. Quality and Effectiveness of Environmental Assessment System 4. Environmental Public Information and Participation 5. Effectiveness of Policy, Implementation, and Enforcement for Ecosystem and biodiversity Management 6. Effectiveness of Policy, Implementation, and Enforcement for Freshwater Resources 7. Effectiveness of Policy, Implementation, and Enforcement for Marine & Coastal Resources 8. Effectiveness of Policy, Implementation, and Enforcement for Air Pollution 9. Quality of Public Administration 10. Quality of Budgetary and Financial Management 11. Transparency, Accountability, and Corruption in Public Sector Enabling Environment for GEF Project Success