GEF Training for New Agencies 1 November 2013 Washington D.C. The System for Transparent Allocation of Resources (STAR) Sonja S. Teelucksingh

Outline Background The Workings of the STAR model An Example Calculation A Short Quiz

Background The STAR is the current mechanism by which GEF resources are allocated to three focal areas – Biodiversity, Climate Change, and Land Degradation The Resource Allocation Framework (RAF) was adopted for GEF-4; The STAR updated the RAF and was implemented for GEF-5; implementation began in July 2010 When the STAR model is applied, this yields allocation amounts for countries for each of these focal areas

Objectives STAR aims to allocate scarce GEF resources within and among focal areas in order to: maximise impact on the global environment promote sound environmental policies and practices meet convention requirements match country driven priorities

Calculating STAR Allocations 1 Determine Available Focal Area Funds 2 Calculate Country Scores 3 Calculate Preliminary Country Allocations 4 Adjust for Floors and Ceilings 5 Obtain Final Allocations 6 Determine post-allocation Flexibilities

Available Focal Area Funds

Calculating STAR Allocations 1 Determine Available Focal Area Funds 2 Calculate Country Scores 3 Calculate Preliminary Country Allocations 4 Adjust for Floors and Ceilings 5 Obtain Final Allocations 6 Determine post-allocation Flexibilities

The Main Indices Global Benefits Index: measures a countrys relative share of GEF potential benefits that can be generated by a fixed amount of resource input into a focal area Country Performance Index: measures a countrys performance and capacity to deliver potential global environmental benefits GDP Index: designed to increase allocation of countries with a low GDP per capita

COUNTRY SCORE Global Benefits Index BiodiversityClimate Change Land Degradation Country Performance Index GDP Index The Country Score Country Score = GBI 0.8 CPI 1.0 GDP -0.04

Calculating STAR Allocations 1 Determine Available Focal Area Funds 2 Calculate Country Scores 3 Calculate Preliminary Country Allocations 4 Adjust for Floors and Ceilings 5 Obtain Final Allocations 6 Determine post-allocation Flexibilities

Preliminary Country Allocations Country Share = Country Score / Sum of Country Scores for all eligible countries Preliminary Allocation = Country Share * Focal Area Resources (less 20% set- asides

Calculating STAR Allocations 1 Determine Available Focal Area Funds 2 Calculate Country Scores 3 Calculate Preliminary Country Allocations 4 Adjust for Floors and Ceilings 5 Obtain Final Allocations 6 Determine post-allocation Flexibilities

Floors and Ceilings Focal Area Floor (US Mn) Ceiling Percentages Ceilings (US Mn) Climate Change 211%149.6 Biodiversity1.510%121 Land Degradation 0.510%40.5

Calculating STAR Allocations 1 Determine Available Focal Area Funds 2 Calculate Country Scores 3 Calculate Preliminary Country Allocations 4 Adjust for Floors and Ceilings 5 Obtain Final Allocations 6 Determine post-allocation Flexibilities

Final Allocations Adjustments for floors and ceilings means there is a surplus or deficit relative to the preliminary allocation This is then allocated among countries using the country scores Process iterates until the full amount has been allocated among countries

Calculating STAR Allocations 1 Determine Available Focal Area Funds 2 Calculate Country Scores 3 Calculate Preliminary Country Allocations 4 Adjust for Floors and Ceilings 5 Obtain Final Allocations 6 Determine post-allocation Flexibilities

Flexibilities and Marginal Adjustments Flexibilities relate to the utilization(not allocation) of GEF resources Countries are allowed to adjust their focal area allocations (but not their total envelope) according to different rules Total Allocation XAllowed Marginal Adjustment X 7 millionunlimited 7 < X 20 million < X 100 million1 million X > 100 million2 million

Example Calculation: Trinidad and Tobago BIODIVERSITYCLIMATE CHANGELAND DEGRADATION GBI CPI3.62 GDPI COUNTRY SCORE (GBI 0.8 CPI 1.0 GDP ) SUM OF COUNTRY SCORES COUNTRY SHARE FOCAL AREA ALLOCATION PRELIMINARY COUNTRY ALLOCATION FINAL COUNTRY ALLOCATION TOTAL ALLOCATION = 6.92 MILLION (FULLY FLEXIBLE COUNTRY)

Question 1 Given the following values, calculate the Country Scores for Country A for each of the three focal areas. BIODIVERSITY CLIMATE CHANGE LAND DEGRADATION GBI CPI3.60 GDPI COUNTRY SCORE???

Question 2 Country B has the following STAR allocations: Biodiversity = 10 million Climate Change = 6 million Land Degradation = 6 million (a)Does this country have full flexibility in the use of its resources? Why, or why not? (b) Is this country allowed any marginal adjustment across focal areas? If so, how much?

Question 3 During the STAR model simulations, Country C has preliminary allocations as follows: Comment on these values. (hint – floors!) BIODIVERSITY CLIMATE CHANGE LAND DEGRADATION PRELIMINARY ALLOCATIONS 110.7

Thank You Sonja S. Teelucksingh