Fourth Overall Performance Study Interim Report June 21, 2009

Interim report: overview The GEF in a changing world The catalytic nature of the GEF Progress toward Impact: from Hypothesis to Evidence Programming Resources: the Challenge of Addressing Global and Transboundary Issues at the National Level Toward Efficiency and Cost-Effectiveness The GEF as a learning organization The Nature of the GEF: at a Crossroads?

Interaction with NGOs and CSOs Active engagement with NGOs and CSOs mainly through sub-regional consultations Last one to take place with CSO and NGO representatives in Accra July 9-10 Representatives selected in collaboration with NGO Network and SGP But also: NGO and CSO reports Issues that were raised consistently: Access of CSOs to GEF funding is becoming increasingly difficult Effects of the RAF? GEF could better incorporate sustainable development needs of local communities Lack of transparency in national operational focal point mechanism Involvement in monitoring & evaluation at project level GEF not well known Insufficient attention to capturing and disseminating lessons Need to strengthen the NGO network

The GEF in a changing world Climate Change is more rapid than expected; cost for mitigation and adaptation very high International public funding for environment and related issues has gone down since 1997 – new funds not yet visible on the ground GEF funding has gone down as percentage of overall ODA Fragmentation and lack of coordination in international environmental governance structure International financial crisis is complicating factor

Catalytic nature of GEF Three categories approach: “Foundational” and enabling activities focus on policy, regulatory frameworks, and national priority setting and relevant capacity; Medium-size and full-size projects and the Small Grants Programme focus on demonstration, capacity development, innovation, and market barrier removal Full-size projects with high rates of cofunding, catalyzing investments or implementing a new strategic approach at a national level.

Progress toward Impact Solid progress toward impact in all three categories Climate Change: Approximately 60 percent of the projects reviewed already show impacts at project termination through reduced and avoided GHG emissions. Biodiversity: 10-15 of projects show impact – but impact takes years to achieve – and 60% of projects are progressing toward impact International Waters: Solid achievements, especially in threat reduction Ozone Depleting Substances: Production stopped; use slowly re-emerging due to illegal trade Other focal areas: no impact yet

Ability to deliver? Perception is linked to the preparatory phase Reform processes have not yet led to visible improvements at the country level The final report of OPS4 will aim to provide insight in causes and possible solutions While further improvements in the programming phase are necessary, the final report will also look at whether the current funding levels of the GEF are sufficient for the kind of support that the GEF is supposed to make available according to guidance of the conventions and its catalytic and incremental role Current evidence suggests that funding levels are not adequate.

According to guidance? GEF support continues to be in line with guidance from the conventions, where applicable, as noted in OPS3 No evidence that the increasing emphasis on national programming in the GEF leads to reduced attention for global environmental issues Through becoming signatories to a convention, countries are required to bring their national policies in line with convention obligations. Evidence so far suggests that countries have used GEF support to introduce new policies and to support the requisite environmental legislation and regulatory frameworks.

Three issues Tackling transboundary problems in the context of national programming will be a challenge for GEF-5 GEF as learning organization has many advantages, but needs to improve learning across agencies and countries Evaluative evidence so far suggests that the GEF needs to solve the tension in its network relationships to become a smooth and efficient operator, especially in identifying project ideas, programming of national support, and appraisal and approval.

Governance On the governance of the GEF the final OPS4 report will contain an assessment of the current structure and the role of its various components On the replenishment process, current best practice in several recent replenishments has been to involve recipient countries as members of the process The 15th replenishment of the International Development Association included nine borrower country members The interim report recommends that recipient countries of the GEF should be included in the replenishment process

Suggestions, comments, issues, questions? OPS4@thegef.org THANKS