en gef.c.50.10 gef business plan and corporate …...budget for fy17, takes note of the business...

GEF/C.50/10May17,2016

50thGEFCouncilMeetingJune07–09,2016Washington,D.C.AgendaItem16

GEFBUSINESSPLANANDCORPORATEBUDGETFORFY17

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RECOMMENDEDCOUNCILDECISION

TheCouncil,havingrevieweddocumentGEF/C.50/10,GEFBusinessPlanandCorporateBudgetforFY17,takesnoteofthebusinessplan,andapprovesaFY17corporatebudgetfromtheGEFTrustFundof$25.586million,comprisedof:

(a) $19.979millionfortheGEFSecretariat,

(b) $2.620millionforSTAP,and

(c) $2.987millionfortheTrustee,

TheCouncilalsoapprovesatotalFY17administrativebudgetfortheNagoyaProtocolImplementationFund(NPIF)of$31,000,comprisedofthefollowingallocationsfromtheNPIFtocovertheSecretariat’sandTrustee’sexpensesforNPIFadministrationandimplementation:

(a) $20,000fortheGEFSecretariat;and

(b) $11,000fortheTrustee

TheCouncilrequeststheSecretariat,inconsultationwithSTAPandtheTrustee,topresentacombinedFY18corporatebudgetandbusinessplanfordiscussionatits2017springmeeting.

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EXECUTIVESUMMARY

1. ThisdocumentpresentstheupdateoftheGEFBusinessPlanforGEF-6andFY17budgetrequesttocoverexpensesofthreeofthecentralGEFentitiesfortheiractivitiesundertheGEFTrustFund:theSecretariat;theScientificandTechnicalAdvisoryPanel(STAP);andtheTrustee.ItalsoincludesbudgetrequestsfortheSecretariatandTrusteefortheiractivitiesundertheNagoyaProtocolImplementationFund(NPIF).1

2. ThedocumentfirstsetsoutthecombinedFY17corporatebudgetrequest,andtheexplanationssupportingthisrequest.ThetotalFY17budgetrequestfromtheGEFTrustFundforthethreeGEFentitiesamountsto$25.586million.AssetoutinTable1inthetext,thisiscomprisedof:

1. Secretariat:$19.979million

2. STAP:$2.620million;and

3. Trustee:$2.987million.

3. Thebudgetrequestsectionalsoincludestheadministrativebudgetrequestof$31,000tocovertheexpensesoftheSecretariatandtheTrusteefortheadministrationandimplementationoftheNagoyaProtocolImplementationFundduringFY17:2(i)$20,000fortheSecretariat;and(ii)$11,000fortheTrustee.

4. ThedocumentthensetsoutthesecondannualupdateoftheGEFBusinessPlan.ThisupdatedescribeskeyprioritiesandtasksthattheentitiesoftheGEFnetworkwillundertakeduringFY17,forwhichthebudgetrequestresourcesareneededandwillbeused.AcoreemphasisoftheSecretariat,asreflectedintheBusinessPlan,continuestobetoacteffectivelyandefficientlywithitspartnersandstakeholderstofullydeliverGEF-6,inlinewiththestrategicdirections,priorities,andpoliciesadoptedandapprovedbyCouncil,andthemandateanduniqueassetsoftheGEF.

5. ThedocumentalsoreportsontheuseofGEFresourcesandkeyaccomplishmentsinFY16oftheGEFSecretariat,STAPandtheTrustee.ThisincludesmultipleactionssupportedbytheSecretariattoprogramresourcesandtoimplementtherecommendationsfromtheGEF-6replenishmentnegotiations.

1Beginninglastfiscalyear,thebudgetrequestoftheIndependentEvaluationOffice(IEO)ispresentedseparatelyfromthoseoftheotherthreeGEFentities.PleaserefertoGEF/ME/C.48/01,Four-YearWorkProgramandBudgetoftheGEFIndependentEvaluationOffice,fordetails.TheFY17budgetfortheLDCFandSCCFTrustFundsalsoarepresented separately to the LDCF/SCCF Council. In addition, during this Council meeting the Secretariat ispresenting a separate paper to Council seeking approval of a new small Trust Fund to support projects toimplementtheCapacityBuildingInitiativeforTransparency(CBIT)thatwaspartofthe2015ParisAgreementonClimate Change. See Council Document Establishment of a New Trust Fund for Capacity-building Initiative forTransparency,GEF.C.50/05.Thistopicisnotaddressedinthepresentdocument.2ResourcesarerequestedfromtheNagoyaProtocolImplementationFund.

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TABLEOFCONTENTS

ExecutiveSummary........................................................................................................................iiFY17GEFTrustFundCorporateBudgetRequest...........................................................................1SecretariatFY17BudgetRequest,Activities,andOutputs.............................................................2SecretariatFY17BudgetRequest.................................................................................................2

STAPFY17BudgetRequest,Activities,andOutputs......................................................................4MaximizingSTAPvaluetotheGEF..........................................................................................4

FY17STAPBudgetRequest..........................................................................................................5TrusteeFY17BudgetRequest,Activities,andOutputs..................................................................6TrusteeFY17GEFTrustFundBudgetRequest.............................................................................7

FY17NagoyaProtocolImplementationFundBudgetRequest,ActivitiesandOutputs.................8SecretariatNPIFActivitiesinFY16...............................................................................................9SecretariatNPIFActivitiesandBudgetforFY17..........................................................................9TrusteeNPIFActivitiesandBudgetforFY17................................................................................9

BusinessPlanofGEFSecretariat..................................................................................................10PoliciesandPriorityInitiatives...................................................................................................11

Results-basedManagement(RBM).......................................................................................11KnowledgeManagement(KM).............................................................................................11EnhancingGenderMainstreaming........................................................................................12Revampedtechnologyplatform............................................................................................13

CountryandStakeholderEngagementandPartnership............................................................14CivilSocietyandIndigenousPeoplesEngagement...............................................................14EnhancingEngagementwiththePrivateSector...................................................................15

StrategicandEffectiveResourceProgramming.........................................................................15ProgrammingActivities.........................................................................................................15EfficiencyoftheProjectCycle...............................................................................................17EngaginginGlobalPolicyDiscussions...................................................................................17GEFSecretariatOrganization................................................................................................18

Annex1:SpecialInitiatives..........................................................................................................19Annex2:STAPPublicationsandDocuments,GEF-5toPresent..................................................21Annex3:Trustee--FY16ReviewofActivitiesandAchievements...............................................24

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FY17GEFTRUSTFUNDCORPORATEBUDGETREQUEST

1. ThisdocumentpresentstheGEFcorporatebudgetrequestforFY17,whichisthesecondofthefouryearGEF-6budgetperiod.TheGEFcorporatebudgetfinancestheadministrativecostsofthreeofthecentralentitiesoftheGEF–theSecretariat,STAP,andtheTrustee-undertheGEFTrustFund(thebudgetfortheIEOispresentedseparately).

2. AsshowninTable1below,$25.586millionisrequestedfromGEFTrustFundforFY17budget.Thisconsistsofthefollowing:

(a) Acorebudgetrequestof$19.979millionbytheGEFSecretariat,whichisanincreaseof$148,000or0.8percentfromtheFY16approvedbudget

(b) Acorebudgetrequestof$2.620millionbySTAP,whichisanincreaseof$80,000or3.1percentfromtheFY16approvedbudget

(c) Acorebudgetrequestof$2.987millionbytheTrustee,whichisadecreaseof$50,000or1.6percentfromtheFY16approvedbudget

(d) Noadditionalrequestfor“SpecialInitiatives”(seeAnnex1)

3. AsnotedintheBusinessPlanandBudgetpaperpresentedtoCouncillastyear,itwasagreedundertheGEF-6replenishmentnegotiationthatthebudgetaryenvelopefortheGEFTrustFundfortheSecretariat,STAPandtheTrusteewillbe$106millionforfouryears(FY16-19).3InpresentingFY17budgetrequest,theSecretariat,STAPandtheTrusteeensurethattheoverallbudgetremainswithintheagreedfouryearbudgetaryenvelope.

Table1:GEFTrustFundCorporateBudgetProjectionsforFY16-FY19($Million)

GEFEntitiesFY16

ApprovedBudget

FY16EstimatedExpenses

FY17Projection

FY18Projection

FY19Projection

FY16-19TOTAL

SecretariatCoreBudget 19.831 19.539 19.979 20.288 20.823 80.630

RefundfromFY15* (0.532)

(0.532) 19.007 80.098SecretariatSpecialInitiative 0.000 0.000 0.000 1.825 0.000 1.825SecretariatTotal 19.831 19.007 19.979 22.113 20.823 81.923STAPTotal 2.540 2.540 2.620 2.698 2.753 10.611TrusteeCoreBudget 3.037 3.008 2.987 3.483 3.638 13.115TrusteeSpecialInitiative 0.000 0.000 0.000 0.351 0.000 0.351TrusteeTotal 3.037 3.008 2.987 3.834 3.638 13.466TotalCorporateBudget 25.408 24.555 25.586 28.645 27.213 106.000*Reflectsarefundof$0.532mfromhostinstitution(WorldBank)duetoadjustmentdownwardinIndirectRatechargeonGEFforofficeandITexpensesduringFY15

3GEFBusinessPlanandCorporateBudgetforFY16,GEF/C.48.05,paragraph26andTable1,reflectingtheagreedallocationsintheSummaryofNegotiationsoftheSixthReplenishmentoftheGEFTrustFund,Table1,GEF/C.46/07/Rev.01.

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SECRETARIATFY17BUDGETREQUEST,ACTIVITIES,ANDOUTPUTS

SecretariatFY17BudgetRequest

4. FortheSecretariat,animportantfeatureofitsbudgetplanninginGEF-6isthesequencingtoimplementkeyGEF-6prioritiesandreforms.AsexplainedintheBudgetdocumentpresentedtoCouncillastyear,theFY16budgetincrease(thispastfiscalyear)wasneededtokick-startimplementationoftheseCouncil-agreedpriorities.4

5. MovingintothesecondyearoftheGEF-6budgetcycle(FY17),andinlinewiththeprojectionspresentedtoCouncillastyear,theSecretariatproposestostayatamoresteady-statetrendforthisupcomingyear,FY17.Specifically,theSecretariatisrequestingacoreFY17budgetof$19.979million,comparedtotheFY16estimatedexpenseof$19.539million(seeTable2,below).

6. ThisFY17Secretariatbudgetrequest,indicatedinTable2,is0.8%increaseintheapprovedbudgetofFY16,anditremainsatthesamelevelforFY17asprojectedintheBusinessPlanandBudgetdocumentpresentedtoCouncillastyear(GEF/C.48.05).ThebudgetisrequestedtosupportthecoreworkandkeyactionsoftheSecretariattodeliverGEF-6assetoutintheBusinessPlan,includinginrespecttopoliciesandprioritiesinitiatives,countryandstakeholderengagementandpartnership,andstrategicandeffectiveprogrammingofresourcestoprogramsandprojects.

7. Table2alsoshowsthattheSecretariatestimatesanearlyfulluseofbudgetedfundsinFY16,namelyestimated$19.539millionagainstapproved$19.831million(99%).5Thisreflects,amongotherthings,theuseofFY16resourcestokickofftheimplementationofCouncil-agreedpriorityactionsforGEF-6.InthecaseofRBM,KMandGender,theSecretariathasreinforceditsstaffcapacityandengagedinaseriesofactivitiestokick-startimplementationofagreedactionplansandinitiatives.TheSecretariatalsohasembarkedonitsoverallITupgrade,andhasmadegoodprogressonupdatingitsexternalwebsite,internalintranet,ProjectManagementInformationSystem(PMIS)andotherfeatures.TheactionsandprogressontheseitemsinFY16isdescribedinmoredetailintheBusinessPlanpresentedlaterinthisdocument.6

4Theprioritiesincluded:(1)implementtheRBMandGenderEqualityActionPlans,theproposedapproachonKM,andnewprivatesectorinitiatives,inresponsetorequestsbyCouncil;and(2)upgradetheSecretariat’sInformationTechnologysystemstosupportthesepriorityinitiativesandGEFprogrammingwork.5TheestimatedactualforFY16inTable2reflectstheamountofresourcesused,at$19.539million.Thisis99%oftheapprovedFY16budget.TheTablealsonotesthatarefundfromtheWorldBankhasbeenapplied,whichbringsthenetestimatedactualexpensesto$19.007million.6TheSecretariatalsohasupdateditsinternalbudgettrackingsysteminFY16tofullyalignwiththeseandotherGEF-6priorities.Theupdatedsystemhelpsustobettertrackexpensesinthesepriorityitems(andothers),bothintermsoffixedandvariablecosts.

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8. TheFY16approvedbudgetalsocontainedasmallallocationof$50,000inordertocoverthepotentialrelocationoftheofficesoftheSecretariatandIEOduetoplannedmajorconstructiononthepreviousGEF’sbuildingfacilities(thatrendersitunusableforaperiodofsome18months).ThisOfficere-locationhastakenplaceinasatisfactorymannerandwithintheGEFbudgetenvelope.Infact,inthisstart-upyearunderthenewleasetheSecretariat(alongwiththeco-locatedIndependentEvaluationOfficeandSecretariatoftheAdaptationFund)receivedarebateofthreemonthsinrent(fromitsnewlessor)asanincentivetomakethemove.ThisisonereasonthattheestimatedactualexpensesintheOfficelineitemis$1.722millionandmuchlowerthantheapproved$2.080million.7

9. TheFY16estimatedexpensesinTable2alsoreflectsarefundof$0.532millionfromthehostinstitution,theWorldBank,duetoanadjustmentdownwardinindirectratechargebytheWorldBankforofficeandITexpensesduringFY15.

10. WithintheoverallFY17request,thespecificlineitemsindicatedinTable2areupdatedtoreflectthelatesttrendsandanticipatedneeds.OnebigchangefromtheFY16estimatedis

7Inaddition,certaincapitalcostsassociatedwiththephysicalofficemovearespreadintosubsequentyearsonadvicefromGSDandaccordingtothegenerallyacceptedaccountingprinciples.

Staff Costs 15.197 15.233 15.177 Salaries and Benefits 13.247 13.169 13.170 Travel 1.850 1.964 1.907 Training 0.100 0.100 0.100 Consultant Costs 0.700 0.702 0.700 Council Costs 0.721 0.721 0.721 Cross Support from World Bank 0.123 0.123 0.557 External Outreach, Publications, Media, and Web 0.950 0.982 1.000

General Operations Costs 2.140 1.780 1.824 Office, Equipment, Supplies, Communications & Internal Computing

2.080 1.722 1.764

Representation and Hospitality 0.060 0.057 0.060 TOTAL 19.831 19.539 19.979 Refund from FY15* (0.532) Grand total 19.831 19.007 19.979 * Reflects a refund of $0.532m from host institution (World Bank) due to adjustment downward in Indirect Rate charge on GEF for office and IT expenses during FY15

Table 2: FY17 GEF Secretariat Core Budget Request ($ million)

Expense Category

FY16 Approved

Budget

FY16Estimated Expenses

FY17 Requested

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thatthelineitemonCrossSupportfromtheWorldBankhasincreasedby$0.434million,duetothefactthatinformationtechnology(IT)staffsupportfromtheWorldBankisnowaccountedforunderthislineitem.ThelineitemonSalariesandBenefits,correspondingly,isreducedbythisamount.

11. ThelineitemonOfficeandEquipmentinTable2islessthantheFY16approvedbudget.ThisadjustedfigurereflectsactualnewleasecostsandthelatestcostsforITsupportfromthehostinstitution,theWorldBank.Forotheritems,theFY17requestreflectsnochangefromtheFY16Councilapprovedbudgetlastyear.Thisincludestraining,consultants,Councilcosts,andrepresentationandhospitality,astrendsandanticipatedneedshaveconfirmedprojectionstodate.

12. Insum,theFY17requestisrequiredtomeetcorebusinessneedsandstaywithinthefouryearbudgetenvelopeof$80.098millionofthe$106millionoverallbudgetenvelopeagreedduringreplenishment.

STAPFY17BUDGETREQUEST,ACTIVITIES,ANDOUTPUTS

MaximizingSTAPvaluetotheGEF

13. InthewakeoftheadoptionoftheParisAgreementonClimateChangeandthe2030AgendaforSustainableDevelopment,newopportunitieshaveemergedfortheGEFtodesignandimplementactionsthatarecognizantofourrapidlychangingworld.STAPwillsupporttheGEFtoembracetheseopportunitiesandstrengthenitsconcertedactionsontheenvironmentandhumanwell-being.STAPwillcontinue,therefore,togreatlyamplifytheintegrativenatureofitsworkbyaddressingcommondriversofenvironmentaldegradation–apillaroftheGEF’s2020strategy.Throughitsworkonthescienceofintegratedapproaches,STAPwillfocuson“howto”achievetransformationalchangeatabroaderscale,drawingonglobalassessmentsandmulti-stakeholderplatforms.ThisworkwillcontributetoidentifyingsolutionsformeetingtheGEF’sactionsonsustainability,andinparticularonplanningforresilienceinGEFPrograms.Additionally,STAPwillcontinueworkingontheIntegratedApproachPilotprogramsbyfollowing-uponthemetricsandindicatorsthatassessprogressonenvironmentalsustainabilityanddevelopment.

14. TheSTAPbudgetrequestreflectsthestrategicsupportexpectedofSTAPtotheGEFwhileatthesametimerecognizingtheneedforbudgetconstraint.

15. SpecificactivitiesproposedinFY17andbeyondinclude:

(a) Screening:TheSTAPscreeningfunctionwillbemorestrategicatportfoliolevel,withanintegratedapproachtoscreeningoffullsizedprojectsfocusingonmulti-focalinitiativesofaparticularlychallengingandinnovativenature(GEF/C.46/Inf.01),andinitiatereviewsatmid-termandprojectconclusiontoevaluatetheimpact;

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(b) Scienceofintegratedapproaches:ThisactivityaimstoprovidesupportindefiningthefuturedirectionoftheGEFwithregardtotheSustainableDevelopmentGoalsandParisAgreement,andalsoinpreparationoftheGEF’sGlobalCommonsConference.

(c) KnowledgeManagementandRBM:STAPwillhelpreshapetheRBMandKnowledgeManagementfunctionsacrossfocalareas,refineindicatorstoincludeoutcomesandimpact,minedatafromthecurrentrepositoryofcompletedorongoingprojectstodeveloplessonslearnedandbestpractices,ensurethatdataandinformationassetsgeneratedbynewprojectsareavailableforfutureanalysis,andadvancetheuseofresearchandscientificmethodsinsupportoftheintegratedapproachpilotsandacrosstheGEFProgram(GEF/R.6/21,pg.5).

(d) Mercury:STAPwilldevelopadviceonappropriatetechnologiestoeliminateand/orminimizetheuseofmercuryacrosssectors.

(e) GreenChemistry:TheGEFisinterestedinexploringnewapproachesintheareaofgreenchemistryduringtheGEF-6period,consideringtherelevanceoftheissueofgreenchemistryforchemicalsandwaste,namelythroughremovalofhazardoussubstancesfromtheproductionandconsumptionchain,whilstseekingoutand/ornotingmultiplebenefitsfromgreaterenvironmentallyfriendlytechnologiesinotherfocalareassuchasclimatechange,biodiversityandinternationalwatersinthechemicalsdomain.

(f) EnvironmentalSecurity:STAPwilltargetadviceontheroleofenvironmentallysustainabledevelopment,security,andstabilitytosupportthedeliveryofIAPsaswellasGEBoutcomes.

(g) Metrics/Tools:WorkcloselywiththeEvaluationOfficeandotherpartnerstoimprovemetricsforsuccess,screeningtools,andindicators(GEF/STAP/C.43/Inf.02;GEF/C.41/Inf.18);

(h) Outreach:ImprovedirectSTAPengagementwiththeGEFCouncilandefficienciesinresourceusewithintheGEFPartnership,inpartthroughhostingofSTAPPanelMeetingsconcurrentwiththeGEFCouncilMeetingsandexploringmechanismstoraisetheengagementofSTAPwithscientificbodiesinrecipientcountries.Develophigherimpactandmorevisiblereportsandworkshopsonkeyintegrativetopics.

16. TheseactivitieswillimproveGEFprojectimpacttoday,assistindesigningmoreeffectivemulti-focalprojects,andexploreprospectivenewprogramareasbeyondGEF-6

FY17STAPBudgetRequest

17. STAP’sexpectedFY16expendituresandrequestedFY17corporatebudgetaresummarizedinthetablebelow.STAPworkprogramactivitiesforFY16havebeen

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implementedwithintheapprovedbudget.STAPwishestostressthatFY16expendituresareestimatesatthistime,duetothedifferingGEFandUNEPfiscalyears.

Table3:FY17STAPBudgetRequest($million)

STAP--Secretariat FY16 FY16 FY17

Approved Estimated Budget

Budget Expenditures Request

StaffCosts 1.283 1.283 1.212

SalariesandBenefits 1.170 1.170 1.097

Travel 0.107 0.107 0.110

Training 0.006 0.006 0.005

ConsultantCosts 0.325 0.325 0.378

Fees(long-term) 0.250 0.250 0.283

Travel 0.075 0.075 0.095

GeneralOperationsCosts 0.253 0.253 0.286

OfficeSpace,Equipment,andSupplies 0.125 0.125 0.158

CommunicationsandInternalComputing 0.041 0.041 0.041

CorporateServices 0.085 0.085 0.085

RepresentationandHospitality 0.002 0.002 0.002

SUB-TOTAL 1.861 1.861 1.876

STAP--PanelMember Honoraria&Logistical/SecretarialSupport 0.300 0.300 0.315

MOUswithExpertInstitutions 0.100 0.100 0.135

STAPMeetings 0.240 0.240 0.247

STAPPublications 0.039 0.039 0.047

SUB-TOTAL 0.679 0.679 0.744

TOTAL 2.540 2.540 2.620TRUSTEEFY17BUDGETREQUEST,ACTIVITIES,ANDOUTPUTS

18. TheWorldBankasTrusteeprovidesarangeofservices,broadlydefinedintheInstrument,inthefollowingcategories:financialandriskmanagement;investmentandcashflowmanagement;managementofGEFpartnerrelationshipsandtransactions;accountingandreporting;legalservices;commitmentanddisbursementoftrustfundresources;systemsinfrastructureandmaintenance;andresourcemobilization.

19. AccordingtoAnnexBoftheInstrumentfortheEstablishmentoftheRestructuredGlobalEnvironmentFacility(inparagraph8),the“reasonableexpensesincurredbytheTrusteefortheadministrationoftheFundandforexpensesincurredinadministrativelysupportingtheSecretariat”arereimbursedannually,onthebasisofestimatedcost,subjecttoend-of-year

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adjustment.AtitsJune2007meeting,theGEFCouncilapprovedthemethodologyforreimbursementoftheTrustee’scostsandexpensesasfollows:TheTrusteepresentsitsprojectedbudgetforthecomingfiscalyearbasedontheexpectedworkprogramandassociatedstaffcostsandexpenses,andreceivesanallocationfromtheGEFtrustfund;attheendofeachfiscalyear,theTrusteereportstheactualstaffcostsandexpensesincurredtotheCouncil,andreconcilesthisamountagainsttheallocationprovided.

20. InJune2015,Councilapprovedacorebudgetestimateof$3.04millionforFY16tocoverTrustee’sservicesandthecostofexternalauditoftheGEFTrustFund.TheTrusteeestimatesthatexpensesforFY16areexpectedtobe$3million,reflectingadecreaseof$28,950comparedtotheapprovedbudget.Thedecreasewasonaccountofthedecreasesininvestmentmanagementcostsasaresultofthelowerthanexpectedlevelofliquidity(fundbalance)inGEF,andaccountingandreportingcosts.

TrusteeFY17GEFTrustFundBudgetRequest

21. Inadditiontostandardtrusteeservices,theFY17workprogramwillincludethefollowingitems:

(a) ImplementationoftheGEF-6replenishmentresolution,includingworkingwithdonorstofacilitatedepositofInstrumentsofCommitment,ensuringcompliancewithreplenishmentresolutionpolicies;

(b) On-goingnegotiationstoreviseandupdatetheFPAwiththeexistingGEFAgencies;

(c) EnsureAgency’scomplianceundertheFPAincludingperiodicfinancialreportsrelatedtoGEFfinancedactivitiesimplementedbytheAgencies;

(d) AdministrativesupporttotheGEFSecretariatinimplementingpoliciesapprovedbytheCouncil;

(e) InitialcoordinationandpreparationforGEF-7.

22. TheTrustee’sbudgetestimateforFY17amountsto$2.99millionasshowninTable4below.Thisrepresentsadecreaseof$20,300fromtheFY16estimatedactuals.Thedecreaseismainlyonaccountofefficiencygainsinaccountingandreportingservices.

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Table4:ProposedTrusteeBudgetforGEFTrustFundFY17($million)

GEFEntitiesandBudgetItems

FY16ApprovedBudget

FY16EstimatedExpenses

FY17BudgetRequest

StandardServices

FinancialManagementandRelationshipManagement 1.259 1.265 1.278InvestmentManagement/a 1.341 1.304 1.304AccountingandReporting 0.173 0.173 0.123LegalServices 0.144 0.145 0.162Sub-total,StandardServices 2.917 2.887 2.867

Audit

ExternalAuditofTrustFund 0.120 0.121 0.120

TotalCoreBudget 3.037 3.008 2.987

SpecialInitiatives - - -

TotalCosts,includingSpecialInitiatives 3.037 3.008 2.987 FY17NAGOYAPROTOCOLIMPLEMENTATIONFUNDBUDGETREQUEST,ACTIVITIESANDOUTPUTS

23. TheGEFSecretariatandTrusteerequestatotalof$31,000fromtheNPIFtosupporttheirrespectiveactivitiestoadministerthetrustfund.TheseparatebudgetrequestsandtherelatedbackgroundandjustificationsarepresentedinTable5below.

Table5:FY17NPIFBudgetRequest

(inUSD)

GEFEntitiesandBudgetItemsFY16Approved

BudgetFY16Estimated

Expenses

FY17BudgetRequest

Secretariat-NPIFAdministrativeBudget 20,000 20,000 20,000

TrusteeNPIFBudget 19,000 17,800 11,000

Total–NPIFBudgetRequests 39,000 37,800 31,000

24. SincetheinceptionoftheNPIFinthesummerof2011,theGEFCEOhasapprovedatotalof13NPIFprojectproposals,totaling$15.1million(includingAgencyfee)andleveraging$32.4millioninco-financing.Theseprojectshavebenefitedatotalof52countriesinsupportofNagoyaProtocolratificationandhaveincluded:10country-basedprojects(inArgentina,

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Bhutan,Cameroon,Colombia,CookIslands,CostaRica,Fiji,Gabon,KenyaandPanama),tworegionalprojects(oneinCentralAfrica,forthe10memberstatesoftheCentralAfricanForestCommission(COMIFAC),andanotherinthePacificregion,forthe12membercountriesoftheSecretariatofthePacificRegionalEnvironmentProgramme(SPREP),andoneglobalproject(in21differentcountries).

SecretariatNPIFActivitiesinFY16

25. The46thGEFCouncilinMay2014tooknoteoftheGEFSecretariat’sgoodprogressinmanagingtheNPIF.ItdecidedtoextendtheoperationoftheNPIFtoDecember31,2020foroperationalreasonstoallowcontinuedprojectpreparationandimplementationofprojectsforwhichaProjectIdentificationForm(PIF)hadalreadybeenapproved.ConsistentwiththeGEFCouncildecisionontheNPIFfromMay2011,theCouncilhasnotapprovednewPIFsundertheNPIFsinceJune30,2014.

26. DuringFY16,theSecretariatstaffhaveworkedcloselywithandprovidednecessaryguidancetotheGEFAgenciesoncontinuedpreparationofthePIF-approvedprojects.All13projectsfundedbytheNPIFhavebeenCEOendorsedtodate.

SecretariatNPIFActivitiesandBudgetforFY17

27. TheGEFSecretariatwillcontinuetoworkwiththeGEFAgenciesonfinalapprovalofPIF-approvedprojects,portfoliomonitoringandreporting,andothernecessaryoversightfunctions.TheGEFwillalsocontinuetoreportontheprojects’progressandresultstotheGEFCouncil,totheCBDCOP13,andtotheCOPservingastheMeetingofthePartiestotheNagoyaProtocolonAccessandBenefitSharing.Tocovertheseminimumfunctions,andasreflectedinTable6below,theGEFSecretariatrequestsanadministrativebudgetof$20,000,allofwhichwillcoverstaffcosts.

Table6:GEFSecretariatFY17NPIFBudgetRequest (inUSD)

ExpenseCategoryFY16

ApprovedBudget

FY16EstimatedExpenses

FY17BudgetRequest

StaffCosts(Salaries&Benefits) 20,000 20,000 20,000

Total 20,000 20,000 20,000

TrusteeNPIFActivitiesandBudgetforFY17

28. AsagreedwithNPIFdonorsundertherelevantTrustAdministrationAgreements,theTrusteereceivesanannualadministrativefeetocoverthereasonableactualexpensesincurredbytheTrusteeincarryingoutitsfunctionfortheNPIF.

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29. ThecoreelementsoftheTrustee’sworkprograminFY17include:(i)financialandinvestmentmanagementofresources,(ii)commitmentsandtransferstotheAgencies,(iii)infrastructureandsystemssupport,and(iv)accountingandreportingforthefinancialandoperationalactivitiesoftheNPIF.Table7belowshowsthebreakdownoftheTrusteefeebyservicesprovidedtotheNPIF

30. TocoveritsexpensesforFY17,theTrusteerequestsabudgetof$11,000aspresentedinTable7below.Thisrepresentsanoveralldecreaseof$6,800comparedtotheFY16estimatedactualcostof$17,800.ItisanticipatedthatFY17requirementsforTrusteeserviceswillbereducedcomparedtoFY16levels

Table7:TrusteeFY17NPIFBudgetRequest

BUSINESSPLANOFGEFSECRETARIAT

31. ThissectionfocusesontheBusinessPlanoftheGEFSecretariat,andfollowstheseparatesectiononthebudgetrequestforFY17(above).ThediscussionprovidesanupdateoftheGEFBusinessPlanoftheSecretariatpresentedtoCouncilatits46thmeetinginMay2014,whichreflectedtheprioritiesagreeduponforGEF-6andactionstoimplementthosepriorities.8AstheGEFisnowenteringintothethirdyearsincetheReplenishment,thediscussionupdatesonprogressandkeyareasoffocusfortheBusinessPlanforFY17,andprovidesadditionaldetailandinformationtoexplainthebasisandneedforthebudgetaryresourcesrequestedabove.

8ThepolicyrecommendationsandprogrammingprioritiesestablishedfortheGEF-6Replenishment,whichareincludedintheSummaryofNegotiationsoftheSixthReplenishmentoftheGEFTrustFund(CouncilDocumentGEF/C.46/07).TheActionPlanforimplementingtheGEF-6PolicyRecommendationsisattachedasAnnex1.

Trustee Services FY 16 ApprovedFY 16 Expected

ActualFY 17 Proposed

Budget

Investment Management a/ 5,000 3,400 3,000

Accounting and Reporting 4,000 4,000 2,000

Legal Services 5,000 5,100 3,000

Total Costs 19,000 17,800 11,000

a/ Investment Management fees are calculated based on a cost of 3.5 basis points against the average annual balance of the portfolio.

FY 17(in USD)

3,000 Financial Management and Relationship Management 5,000 5,300

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32. TheBusinessPlanalsoreflectskeyelementsoftheLong-TermStrategyfortheGEF(GEF2020),9includingintegratedapproaches,supportforinnovativeandscalableinterventionsfocusedonthedriversofenvironmentaldegradation,enhancingcountryownership,mobilizingstakeholdersforsolutions,andputtingafocusonresultsandefficiency.AcorecontinuingemphasisoftheSecretariatistoworkwithpartnersandstakeholderstofullydeliverGEF-6.Inaddition,andasnotedfurtherbelow,theSecretariatwillbeginstepsinthisupcomingyeartohelpprepareforGEF-7replenishmentdiscussions.

PoliciesandPriorityInitiatives

33. TheSecretariatwillcontinuetofocuseffortsontheeffectiveandefficientimplementationofseveralpolicyandpriorityinitiativesestablishedforGEF-6,inconsultationwiththeAgencies,Conventions,IEO,STAPandotherstakeholders,andinlinewithprioritiesanddecisionssetbyCouncil.

Results-basedManagement(RBM)

34. InrespecttoRBM,theSecretariat,inpartnershipwiththeAgencies,theConventionsandothers,iscontinuingtoimplementthefivekeyactionssetoutintheProgressReportpresentedtoCouncilatits48thSession(seeGEF/C.48/Inf.07,ProgressReportontheImplementationoftheResults-basedManagementActionPlan).

35. ImplementationoftheRBMActionPlanhasacceleratedsinceSeptember2015,whenanewRBMspecialistwasbroughtonboardtospearheadtheeffort.Inparticular,therehasbeensignificantprogresson:forminganupdatedcorporatescorecardtoenhancetrackingofprogresstowardresults;updatingtheAnnualMonitoringReport(AMR)tofocusonkeyindicatorsandalignwithGEF6prioritiesandtheGEF2020Strategy;anddiscussingwiththeIndependentEvaluationOfficeaboutanevaluationofRBM.TheSecretariatalsoisengagedcloselyintheITupgradewithintheSecretariat(notedbelow)toensurethatthenewplatformsupportsRBMpriorityneeds,andworkingtohelpensureafocusonassessingrelevantresultsinallaspectsofGEFoperations,policyandreporting(e.g.,reportstoConventions).

36. LookingaheadtoFY17,priorityattentionwillbeputonbringingtheactionsnotedabovetocompletion,andcontinuingtostrengthena“results-based”culturewithinthepartnership.AmoredetaileddescriptionofprogressandnextstepsissetoutintheCouncildocumentprovidinganupdateontheCorporateScorecardandimplementationoftheRBMactionplan(GEF.C.50.03).

KnowledgeManagement(KM)

37. InrespecttoKM,theSecretariat,workingwiththeAgenciesandotherstakeholders,ispursuingtwomainobjectives:first,toinformglobal,regionalandnationalpolicydialogueson

9SeeLong-TermStrategyfortheGEF–GEF2020.

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optionsandapproachestoreversethecourseofenvironmentaldegradation;andsecond,toimprovetheimpactofGEF-supportedprojectsandprograms.10

38. TheSecretariathasundertakenanumberofinitialactionstotheseends.Theseinclude:(1)settingupanewKMteamintheGEFSecretariat;(2)establishinganinter-agencyKMAdvisoryGroup(AG)tosupporttheGEFKMagenda;(3)undertakinganinternalGEFSECstaffsurveyonKMaswellascountrylevelsurveysonKMneeds/preferencesofrecipientcountries,takingadvantageofextendedconstituencyworkshops(ECW);(4)conductingaKMAuditandaknowledgeassetanalysisacrossthePartnership,andpreparingadetailedKMimplementationRoadMapthatbuildsontheinitialKMactions;and(5)undertakingapilotexercisetoextractlessonslearnedfromterminalevaluationsofcompletedGEFmulti-focalareaprojectsforintegrationintoPMIS.

39. SeveralotheractionshavebeeninitiatedandwillcontinueintoFY17.Theseinclude:(1)engagingwiththeupgradeforITtoensureKMsupporttools(suchasthepilot"KALEOAsktheGEFExpert"on-linetool)arepartofthefuturevisionandimplementation,withthe"open-access"approachtoinformationfullyembedded;(2)incorporatinglessons/knowledgecaptureandsharingtoECWsandorganizingGEFKnowledgeDaysattheECWstoenablelearningfromGEFprojectsontheground;and(3)engagingontheRBMactionplanimplementationtoensurestrongsynergyandsupportintheseactions.AmoredetaileddescriptionofprogressandnextstepissetoutintheCouncilinformationdocumentonKnowledgeManagementProgressReport(GEF.C.50.Inf.06).

EnhancingGenderMainstreaming

40. TheGEFiscommittedtostrengtheningitsgendermainstreamingeffortsandcontributingtogenderequalityandwomen’sempowermentthroughitsoperationsinGEF-6.TheSecretariatisworkingasamatterofprioritytoimplementtheGenderEqualityActionPlan,(GEAP)withsupportfromaseniorgenderexpertanditsrecentlycreatedGenderandSocialIssuesteam.BuildingontheActionPlan,theGEFcreatedagenderpartnershipplatformin2015forpartnerstoshareknowledgeandcollaborateonimplementingtheActionPlan.TheGEFGenderPartnershipnowengagesgenderfocalpointsfromallGEF’s18Agencies,MEASecretariats,andotherpartners.Together,withthePartnership,theSecretariatisfocusingonthefollowingactions:

(a) DevelopmentoftheGEFoperationalguidelinestomainstream,offeringpracticalframeworkforGEFAgencies,staffandotherpartnerstosystematicallyandconsistentlyaddressgenderaspectsacrosstheGEFprojectcycle;

(b) Strengtheningtheresults-basedmonitoring(RBM)frameworkforgendermainstreamingacrossthecorporateandGEFfocalarealevels,includingdesignofagendermarker/categorizationsystemtobettermonitorandreportonprogressandresults;

10SeeGEF/C.48/07,GEFKnowledgeManagementApproachPaper.

13

(c) AdvancingtheknowledgebaseandcommunicationongenderasrelatedtoGEFprogramandprojectportfolio,revampingGEF’sgenderwebpagetocreateamoreinteractiveinterfacetoshowcasebestpractices,andeventsandtoolsrelevanttoGEFworkongenderandtheenvironment;

(d) DevelopmentandimplementationofaGEFSECstaffcapacitydevelopmentplanbasedonthegendercapacitystaffassessmentthatwasconductedattheGEFSECin2015,andawarenessraisingtrainingmodulestosupportcapacitydevelopmentofGEFOperationalFocalpointsandotherlocalpartners.

41. AmoredetaileddescriptionofprogressandnextstepsissetoutintheCouncildocumentwiththeGEAPProgressReport(GEF.C.50.Inf.07).

Revampedtechnologyplatform

41. AsindicatedtoCouncillastyear,theSecretariatistakingseveralstepstorevampitstechnologyplatforminsupportofitspriorityworkactivities,inresponsetotherecommendationsfromtheReplenishment.Keyactionsincludethefollowing:

(a) DocumentandProjectLifecycleManagement.TheSecretariathasmadesignificantprogressthisyearinre-toolingtheGEFProjectManagementInformationSystem(PMIS)toamoreupdatedanduser-friendlytechnologyplatform.Theupgradeofthiscoreoperationalsystemisongoing,andwillalignwithup-to-datepoliciesandguidancefromCouncilontheprojectcycle,andenableeasieraccessandmoreefficientinformationflowamongonproject-cycleactionsthroughoutthepartnership.

(b) CommunicationandStakeholderEngagement.TheSecretariathasundertakenseveralsteps:(i)amajorupgradeofitsexternalwebsitewithanew,modern,lookandfeel,enhancedsearchfunction,resourcemapping,livedatafromtheprojectdatabaseandresponsivedesign,whilealigningthecontentwithup-to-datepolicies,strategicdirectionsandguidancefromCouncil;(ii)anewGEFintranettoenhanceinternalcommunicationsandknowledgesharingamongGEFstaff;and(iii)improvedsocialmediachannelsandonlinecommunicationmaterial(includingmultimediaande-publications)tostrengthentheengagementwithpartnersandkeystakeholders,andpromoteGEFworkwiththegeneralpublic.

(c) EventManagement.TheSecretariatisenhancingitsEventManagement(includingCouncilmeetings,ExpandedConstituencyWorkshops(ECWs),ConstituencyMeetings,Assembly)andClientRelationshipManagement(CRM)systems,whichisbasedontheWorldBank’sMicrosoftDynamicsCRMplatform.ThisactionshouldbecompletedinFY2017,andwillprovidetheGEFwithahighlyaccessiblesystemtomanagepartnerrelationships.

(d) DataAnalytics.InsupportofitsworkonRBMandKMinparticular,theSecretariatisexploringtheuseofadvanceddataanalyticmethodstomore

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efficientlyextractandutilizeinformationandlessonsfromtheGEFworkportfolio.TheRBMteam,forexample,isusingtheseadvancedmethodstoinformthe2016AnnualPortfolioMonitoringandResultsReport,futurestrategicdirectionofdatacollection,anddatauseinGEF7.TheKMteamissimilarlyapplyingtheupdatedtoolstoinventoryandshareinformationamongGEFpartneragencies.

CountryandStakeholderEngagementandPartnership

CivilSocietyandIndigenousPeoplesEngagement

42. TheSecretariatanditspartnersrecognizethepositiveandcrucialrolesplayedbyCivilSocietyOrganizations(CSOs),includingindigenouspeoples,insafeguardingtheglobalenvironmentandcontributingtotheworkoftheGEF.Insupportofthisengagement,theSecretariatdevelopedinFY15newGEFGuidelinestobetterimplementtheGEF’sPublicInvolvementPolicy.Theseguidelinesincludeguidanceandanactionplan,andtheSecretariatisworkingactivelywithstakeholdersandpartnerstotranslatethisintoreality.

43. Aspartofthiswork,theSecretariatinpartnershipwithcivilsociety,agencies,anumberofOFPsandmembersofCouncil,andtheGEFIEO,hassetupaWorkingGroup(WG)toconsiderwaystosupporttheimplementationofthenewGuidelinesand,ifneeded,recommendanupdatetotheGEFpolicy.TheWGhasmetinadvanceofbothofthelasttwoCouncilmeetings,andviavideoconferencethreetimesthisfiscalyear.

44. Toassistthiseffort,theSecretariatreviewedthepolicies,guidelines,andpracticesoftheGEFPartnerAgencies,andrecommendaconcreteactionplantoenhancetheimplementationandclarityofthepolicy.TheWGisplanningtoprovideareportandrecommendationstoCouncilatthemeetingeitherinFall2016orSpring2017.

45. TheSecretariatwillalsocontinueandstrengthenitsengagementwithIndigenousPeoplesinitsprojectsandoperations.TheGEFIndigenousPeoplesAdvisoryGroup(IPAG),consistingofmembersofIndigenousPeoples,IndigenousPeoplesexpert,GEFAgency,andGEFSecretariatrepresentatives,willcontinuetoplayakeyroleinimplementingtheGEFPrinciplesandGuidelinesontheEngagementwithIndigenousPeoples(2012).TheGEFSecretariat,togetherwiththeIPAG,hasparticipatedinthe14thUnitedNationsPermanentForumonIndigenousIssuesinApril2015andmadeanofficialjointstatementwiththeWorldBankGrouponitsprogressinengagingwithIndigenousPeoplesforGEFprojects.TheSecretariatwillcontinuethisparticipationandengagementgoingforward.

46. TheGEFandpartnershavealsoorganizedasideeventattheUNPFIIandhighlightedoneofthekeyIndigenousPeoplesledprojectsinBrazilonsustainableforestmanagementinindigenousterritories.The4thMeetingoftheIPAGwasheldbacktobackwiththeGEFCouncilinJune2015,whichdiscussedfinancialwindows,knowledgeproducts,andoutreachrelatedtoGEFprojectsthatinvolveIndigenousPeoples.TheIPAGmembershavealsoactively

15

participatedintheCSOConsultationMeetingattheGEFCouncil,andprovidedconstructiveinputstorelatedGEF’swork.

47. TheSecretariatalsoiscontinuingitsworkintheCountrySupportProgram(CSP)toconveneregionalmeetingsandactivitiestobuildawarenessandadvanceimplementationofnewstrategicdirections,priorities,andprogrammingactivitiesforGEF-6.TheseincludeseveralExpandedConstituencyWorkshops(ECWs),andNationalDialogues.Eachyear,theSecretariatupdatesandtheformatandcontentoftheworkshopstobuilduponpastactivitiesandmakethemmoreparticipativeandengaginginordertomaximizetheirrelevanceandeffectiveness.

EnhancingEngagementwiththePrivateSector

48. TheGEFhastakenseveralstepstobettermainstreamprivatesectorengagementinitsprojectsandprogramsduringGEF-6,includingintheGEFfocalareasandthroughtheIAPsandprojectsaccessingtheNon-grantsInstrument(NGI)Pilotwindow.GEFPartnerAgenciescontinuetoofferprojectproposalswithstrongprivatesectorengagementacrossallfocalareas,andareworkingactivelywithinvolvedgovernmentsandotherpartnersandstakeholders,includingtheprivatesector,toimplementtheIAPs.

49. FortheCommoditiesIAP,forexample,therehasbeenanextensiveoutreachtomultipleactorswithinthesustainableforestrysectorandalongtheentiresupplychain,includingprivatesectorcompanies.TheimplementationmodalitiesoftheNGIPilotalsoincludemultiplecommunicationandoutreachchannelstoattractprojectproposalsfrompublicandprivatesectorrecipientsthroughGEFPartnerAgencies,andtherehasbeenstrongprogressinprogramming.

50. TheSecretariatandthePartnerAgenciesalsoaresupportinganumberofenergyefficiencyacceleratorprogramswithasignificantrolefortheprivatesector,includingtheEnergyEfficientEquipmentandAppliancesAccelerator(suchasfans,lightingandmotors,withUNEP);theEnergyEfficiencyFinancingFacility(helpinglocalbanksinChina,India,andBrazil,withEBRD);theGlobalFuelEconomyInitiative(forfuelefficientlightdutyvehicle,withUNEP);andtheInternationalLightingEfficiencyFacility(LEDstreetlighting,withWorldBank).Withover$5millionindirectinvestment,GEFpartnersareabletoleverageatleast$500millioninco-financing.GEF’sprivatesectorengagementwillcontinuetofocusoncuttingedgeinnovationandrisk-taking,buildingonexperienceandlessonslearned.

StrategicandEffectiveResourceProgramming

ProgrammingActivities

51. TheGEFprogrammingworkputsemphasisonsupportingprojectsandprogramsthatalignwithGEFprogrammingstrategies,addressthedriversofenvironmentalloss,ignitenewandinnovativeapproachestoachievingglobalenvironmentalbenefits,andprovideopportunitiestoscale-upbenefits.Throughenhancedengagementwiththeprivatesectorand

16

otherstakeholders,theGEFwillcontinuetopursueopportunitiesforcutting-edgepracticesandtechnologiestoaccelerateachievementofGlobalEnvironmentalBenefits(GEBs).

52. Asweapproachthemid-pointofGEF-6,andiftheJune2016WorkProgramisapprovedinitsentirety,resourceprogrammingwillreachapproximately47%ofthereplenishmenttargetforfocalareasandprograms.ThisinessencereflectsthefactthatGEFandagenciesarebeingabletoprogramvirtuallyallresourcesmadeavailablebyGEFdonorsthroughtheTrustee.11TheSecretariatwillcontinueitsprogrammingactivitiesintoFY17andgoingforwardasacorepartofitsbusinessplanandresponsibilities.

53. Inthiscontext,theSecretariatwillcontinuetosupportcoreGEFworkinsupportingtheConventionsforwhichGEFisafinancialmechanism,andmaintainingcloseengagementwithotherrelatedintergovernmentalarrangementsandbodies.Theyear2015wasalandmarkyearfortheglobalenvironment,withvariousmultilateralenvironmentalagreements(MEAs)reachingkeynegotiationmilestones.

54. Amongthese,theGEFisworkingasamatterofhighprioritytosupportimplementationofthenewcommitmentsandprioritiesonclimatechangecontainedintheParisAgreementandrelateddecisions,inlinewiththeGEF’sroleandmandateinthiswork.ThelastGEFWorkProgramandtheproposedWorkProgramforthecurrentCouncilmeetingincludeseveralpriorityprojectstoaddressclimatechange,includingthosethatsupportcountriestoaddresstheircontributionsashighlightedintheirIntendedNationallyDeterminedContributions(INDCs).TheGEFalsoisworkingtocarryoutitsnewresponsibilitytohelpcountriesbuildcapacityfortransparencyofactionandofsupport,throughtheestablishmentandoperationoftheCapacity-buildingInitiativeforTransparency(CBIT).TheSecretariatiscontinuingdiscussionswiththeGreenClimateFund(GCF)andotherclimatefundstofosterandhelpensurecomplementarityandeffectivenessinclimatechangefinancinggoingforward.

55. TheGEFalsoisworkingactivelywithinitsmandatetofacilitatetheprocessandprovidesupporttoprogramsandprojectsthataddressthegoalsofotherConventionsinacountry-drivenmanner.TheGEFSecretariatparticipatedinkeymeetings,including:theUNConventiontoCombatDesertification(UNCCD)COP12inAnkara,Turkey,inOctober2015;theUNFCCCCOP21inParis,FranceinDecember2015;theseventhsessionoftheIntergovernmentalNegotiatingCommitteeonMercury(INC7)inDeadSea,Jordan,inFebruary2016.Inthesemeetings,PartiesacknowledgedthesupportprovidedbytheGEF,re-affirmedGEF’srole,andalsoprovidedguidancethatarticulatedemergingareasofGEF’sengagement.FY17isacrucialperiodwherecountriesaremovingintoimplementationoftheConventionsandrelatedagreements.GEF’sroleisdescribedindetailintheseparateCouncilDocument(GEF.C.50.09, 11WithrespecttotheIntegratedApproachPilots(IAPs),forexample,programdesignhasprogressedsteadilysinceCouncilapprovalofthethreeIAPs:FoodSecurityinSub-SaharanAfrica,TakingDeforestationoutofCommoditySupplyChains,andSustainableCities.TheleadagenciesareworkingactivelywithinvolvedgovernmentsandotherpartnersandstakeholderstodevelopchildprojectsandestablishinstitutionalframeworksforimplementationoftheseIAPprograms.ThedesignphasefortheIAPsisamajorsteptowarddeliveringmoreimpactfulintegratedfinancepackages

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RelationswithConventionsandOtherInternationalInstruments),whichsetsoutGEF’sactionsinsupportoftheseagreementsanditsresponsetoguidanceofPartiestotheConventions.

EfficiencyoftheProjectCycle

56. TheSecretariatandtheAgenciesareimplementingtheefficiencymeasuresfortheprojectcycleidentifiedanddevelopedinrecentyears,includingthenewCancellationPolicyofOctober201412toenhancepredictabilityandreinforceincentivestospeedupprojectpreparation,andtheCouncilapprovedExpeditingthePreparationoftheStockofDelayedProjectsinJune2015,(GEF/C.48/04)toaddresstheexistingstockofGEF-4andGEF-5overdueprojects.

57. PursuanttothesedecisionsoftheCouncil,theSecretariathasbeen,andwillbe,inclosetouchwithAgenciesandrecipientgovernmentstosupportandfacilitateefficientprocessingofprojects,andtoinformthemaheadoftimeofcancellationdatesincaseofalackofmovementforward.TheSecretariatwillcontinueimplementingtheCancellationPolicybyfollowingthestepsincludedintheabovementionedCouncilDocumentsaimingtoencouragebothcountriesandAgenciestosubmitontimetheirprojectsforCEOEndorsement/Approvalasappropriate.

EngaginginGlobalPolicyDiscussions

58. TheGEFaimstotakepartinshapingglobalpolicydialogues,buildingonitsaccumulatedknowledge,itsconveningpower,anditsmandateacrossarangeofenvironmentaldomains.ThisrequiresastrongoutreachandcommunicationstrategythathelpsbringmessagesandknowledgefromwithintheGEFtotherightforaattherighttime.Therewillbeanumberofopportunitiesinthisregardinthecomingyear.

59. Aspartofarenewedstrategiccommunicationsapproachfocusedon“doinglessbetter”andworkingmoreeffectivelywithpartners,intheupcomingmonths,theGEFisplanningseveralactivitiestosupportdialogueonglobalenvironmentalissues,andtohelpprepareforupcomingGEF-7replenishmentdiscussions.ThisincludescommunicationandoutreachactivitiesfortheGEF’s25thanniversary,acelebratorypublicationwithcontributionsfromparticipantcountries,donorsandpartners,thelaunchofthenewGEFwebsite,enhancedonlineandsocialmedia,aswellastargetedcommunicationsonemergingpriorityissuesliketheglobalenvironmentalcommons,sustainablecities,foodsecurity,oceans,water,landandforestsandforkeyeventssuchasUNFCCCCOP22inMarrakeshandUNCBDCOP13inCancun.13

12AmendedbyCouncilinOctober2014,thisPolicy(CancellationofProjects)hasbeenpostedtotheGEF’swebpageat:https://www.thegef.org/gef/policies_guidelines/project_cancellation.13DuringFY16,theGEFwaspresentandmadededicatedoutreacheffortsatnumerousglobalmeetingsandevents,includingGEF-relevantCOPs(inFY16:UNCCDCOP12,UNFCCCCOP21,andMinamataINC7),andotherhigh-profileevents,forexampletheThirdInternationalConferenceonFinancingforDevelopmentinAddis,theSustainableDevelopmentGoalsinNewYork,theWorldEconomicForuminDavos,ClimateAction2016inWashingtonDCandtheUNEnvironmentAssembly(UNEA-2)inNairobi.

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ThroughitsKMefforts,theGEFintendstoachievegreaterinformationexchangeandcommunicationaboutkeyglobalenvironmentalchallengesandpotentialsolutions,inlightoftheexperienceandlessonslearnedthroughitswork.

60. TheGEFalsofollowedcloselythedevelopmentofthepost-2015developmentagenda,notablytheSustainableDevelopmentGoals(SDGs)adoptedinNewYorkinlate2015,andisinapositiontocontributetotheimplementationofkeyelementsoftheSDGs.TheGEFwillstayapprisedofthedevelopmentsonSDGindicators,andwillcontinuetocooperatewithpartnerstoarticulatehowtheGEFsupportcouldenablecountriestoaddressMEAgoalsandobjectivesinsynergywiththeSDGs.

GEFSecretariatOrganization

61. BytheendofFY16,theSecretariatcompletedreorganizingitsinternalstructuretoensurefullalignmentwithnewstrategicdirectionsandkeyprioritiesofGEF-6,andtoenhanceefficiencyandeffectivenessofdelivery.Akeyobjectiveofthereorganizationhasbeentomoveawayfroma“silo-based”programingmodeltowardamoreintegratedandregion-orientedmodel,andtostrengthenGEFSEC’spolicyandpartnershipcapabilities.

62. TheSecretariatisnowworkingunderthenewstructure,consistingoftwomainunits,eachheadedbyaDirector:aProgramingunitresponsibleinteraliaforworkprogramdevelopmentandrelationswiththeConventionSecretariatsandothermultilateralagreements,andaPolicyandPartnershipunitresponsibleforpolicyandpartnershipactivitiesincludinggenderandsocialissues,RBMandKM,countryandstakeholderpartnershipsandassociatedinformationtechnologyneeds.ThenewSecretariatstructurealsoincludesanenhancedteamandcapacityoneffectivecommunicationsandoutreachinsupportofthedeliveryofGEF-6prioritiesandstrategicobjectives.

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ANNEX1:SPECIALINITIATIVES

1. ThediscussionbelowreportsonactivitiesconductedinFY16underSpecialInitiativesapprovedbyCouncilinpreviousyears,someofwhichwereapprovedseveralyearsago.Table8providesasummaryoftheoriginallyapprovedamountintheSpecialInitiativeaccount,estimatedFY16expensesintherespectiveaccounts,whereincurred,andtheavailablebalanceremainingundertheseinitiativesthroughend-March2016.ThetextwhichfollowsprovidesadditionalinformationontheestablishmentandpurposeofeachSpecialInitiative,andontheamountoffunds(ifany)usedinFY16forthepurposesindicated.

Table9:SpecialInitiatives

SpecialInitiativeNameOriginallyApprovedAmount

EstimatedFY16Expenses

EstimatedAvailableBalancefor

FY17

Rio+20SpecialInitiative $210,000 $19,382 $91,257PerformanceBasedAllocationSystem $1,356,000 - $222,229GEFManagementInformationSystem $700,000 $65,765 $397,994ResultsBasedManagement $408,000 - $13,233GEFFifthAssembly $2,118,528 - $265,359

Total $4,792,528 $85,147 $990,072

Rio+20–SpecialInitiative

2. InMay2011,theGEFCouncilapproved$210,000tosupportactivitiesbytheGEFSecretariatrelatedtotheGEF’sparticipationintheRio+20SummitheldinRiodeJaneiroinJune2012,includingrelatedpublications.SinceJune2012,theSecretariathasusedfundingfromthisspecialinitiativetosupportfollow-onworkfromtheRio+20Conference,includingstafftraveltomeetingsrelatingtotheSDGsandpost-2015sustainabledevelopmentagenda.DuringFY16,$19,382weredrawnfromthisaccountfortheseactivities.

PerformanceBasedAllocationSystem

3. BetweenFY04andFY07,theGEFCouncilapprovedatotalof$1,356,000tosupporteitherthedevelopmentofaperformance-basedallocationsystem(whichdevelopedintotheRAF)ortorefinetheRAF,includingitspotentialapplicationtootherfocalareas.AsindicatedtoCouncilinitsBusinessPlanandBudgetdocumentlastyear,May2015(GEF/C.48/05),theSecretariatisdrawingontheavailablebalanceofthisSpecialInitiativetosupportitsoverallITupgrade,asdescribedintheBusinessPlan,aspartoffurtherimprovementstoperformance-basedapproachestoallocationofresourcesandprogramming.NoresourcesweredrawnfromthisaccountinFY16.

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ManagementInformationSystem

4. InNovember2005,theCouncilapproved$700,000todevelopamanagementinformationsystemtoenabletheGEFanditspartnerstoimproveeffectivenessacrossallareasofGEFbusinessoperations. AsindicatedtoCouncilinitsBusinessPlanandBudgetdocumentlastyear,May2015(GEF/C.48/05),theSecretariatisdrawingontheavailablebalanceofthisSpecialInitiativetohelpimplementtheactionsmentionedinthemainpapertoupgradetheGEF’sITplatform,togetherwithresourcesfromthepreviousinitiativeandthecorebudget.DuringFY16,$65,765weredrawnfromthisaccounttosupporttheupgradeoftheGEFexternalwebsite.

Results-basedManagement

5. InJune2006(FY2007budget)andJune2009(FY2010budget),theGEFCouncilapprovedtwospecialinitiativestofurtherstrengthentheGEF’scapacityforRBMandlearningthroughspecificactivitiesandstudies.AsindicatedtoCouncilinitsBusinessPlanandBudgetdocumentlastyear,May2015(GEF/C.48/05),theSecretariatisdrawingonthisaccounttosupportfurtherstrengtheningofRBM.NoresourcesweredrawnfromthisaccountinFY16.

GEFFifthAssembly

6. InJune2013,theCouncilapproved$750,000tosupportinitialworkonplanningtheFifthAssembly,tobeheldinCancun,MexicoinMay2014.BasedonCouncilDocumentGEF/C.45/7,NoteontheOrganizationoftheFifthGEFAssembly,whichincludedadetailedbudgetproposal,theCouncilapprovedanadditional$1,368,528,resultinginatotalbudgetof$2,118,528milliontosupporttheorganizationoftheAssembly.Thesecostssupported,amongotherthings,travelcostsforrepresentativesfromGEFrecipientcountries,15travelforGEFSecretariatstaff,hospitality,translationandinterpretation,websitedevelopment,exhibitioncosts,communicationsandgeneraloperations.NoresourcesweredrawnfromthisaccountinFY16.

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ANNEX2:STAPPUBLICATIONSANDDOCUMENTS,GEF-5TOPRESENT

STAP2010.ProgrammingApproachforUtilizationoftheResourcesSet-AsideOutsidetheSTAR.GlobalEnvironmentFacility,Washington,DC.GEFID:GEF/C.39/Inf.10

STAP2010.TheEvidenceBaseforCommunityForestManagementasaMechanismforSupplyingGlobalEnvironmentalBenefitsandImprovingLocalWelfare.ASTAPadvisorydocument.GlobalEnvironmentFacility,Washington,DC.GEFID:GEF/C.39/Inf.14

STAP2010.EnvironmentalCertificationandtheGlobalEnvironmentalFacility:ASTAPadvisorydocument.GlobalEnvironmentFacility,Washington,DC.GEFID:GEF/C.39/Inf.15

InstituteforTransportationandDevelopmentPolicy(PreparedonbehalfofSTAP)2010ManualforCalculatingGreenhouseGasBenefitsofGlobalEnvironmentalFacilityTransportationProjects.GlobalEnvironmentFacility,Washington,DC.GEFID:GEF/C.39/Inf.16

STAP2010.AdvancingSustainableLow-CarbonTransportthroughtheGEF.ASTAPadvisorydocument.GlobalEnvironmentFacility,Washington,DC.GEFID:GEF/C.39/Inf.17

STAP2010.EnhancingResiliencetoReduceClimateRisks:ScientificRationalefortheSustainedDeliveryofGlobalEnvironmentalBenefitsinGEFFocalAreas.GlobalEnvironmentFacility,Washington,DC.GEFID:GEF/C.39/Inf.18

STAP2010.RecommendationsoftheGEF-STAPCross-FocalAreaWorkshop:ApproachestoAddressCarbonBenefitsinthecontextofMultipleGlobalEnvironmentalBenefitsinImplementingtheSFM/REDD+PrograminGEF-5.GlobalEnvironmentFacility,Washington,DC.GEFID:GEF/C.39/Inf.19

STAP2011.MarineDebris:DefiningaGlobalEnvironmentalChallenge.GlobalEnvironmentFacility,Washington,DC.GEFID:GEF/C.40/Inf.14

STAP2011.HypoxiaandNutrientReductionintheCoastalZone.GlobalEnvironmentFacility,Washington,DC.GEFID:GEF/C.40/Inf.15/Rev.1

STAP2011.SelectionofPersistentOrganicPollutantDisposalTechnologyfortheGlobalEnvironmentFacility.GlobalEnvironmentFacility,Washington,DC.GEFID:GEF/C.40/Inf.16

STAP2011.ReviewofToolsandMethodstoIncreaseClimateResilienceofGEFProjectandPrograms.GlobalEnvironmentFacility,Washington,DC.GEFID:GEF/C.41.Inf.16

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STAP2011.BiodiversityandEcosystemsPolicyBrieftoInformtheUnitedNationsConferenceonSustainableDevelopment(Rio+20).GlobalEnvironmentFacility,Washington,DC.GEFID:GEF.C41.Inf.17

STAP2011.EnvironmentalProjectDesignintheGEF:DesigningProjectstoCreateEvidenceandCatalyzeInvestmentstoSecureGlobalEnvironmentalBenefits.GlobalEnvironmentFacility,Washington,DC.GEFID:GEF.C.41.Inf.18

STAP2012.ResearchwithintheGEF:ProposalsforRevisingtheTargetedResearchModality.GlobalEnvironmentFacility,Washington,DC.GEFID:GEF/STAP/C.43/Inf.02

STAP2012.ClimateChange:ScientificAssessmentfortheGEF.GlobalEnvironmentFacility,Washington,DC.GEFID:GEF/STAP/C.43/inf.03

SecretariatoftheConventiononBiologicalDiversityandSTAP2012.ImpactsofMarineDebrisonBiodiversity:CurrentStatusandPotentialSolutions.TechnicalSeriesNo.67.Montreal,Canada.GEFID:GEF/STAP/C.43/Inf.04

SecretariatoftheConventionofBiologicalDiversityandSTAP2012.MarineSpatialPlanningintheContextoftheConventionofBiologicalDiversity.TechnicalSeriesNo.68.Montreal,Canada.GEFID:GEF/STAP/C.43/Inf.05

STAP2012.GEFGuidanceonEmergingChemicalsManagementIssuesinDevelopingCountriesandCountrieswithEconomiesinTransition.ASTAPAdvisoryDocument.GlobalEnvironmentFacility,Washington,DC.Retrievedfrom:<http://www.stapgef.org/emerging-chemicals-management-issues-in-developing-countries-and-countries-with-economies-in-transition/>

STAP2012.RevisedMethodologyforCalculatingGreenhouseGasBenefitsofGEFEnergyEfficiencyProjects(Version1.0).GlobalEnvironmentFacility,Washington,DC.Retrievedfrom:<http://www.stapgef.org/revised-methodology-for-calculating-green-house-gas-benefits-of-gef-energy-efficiency-projects-version-1-0/>

Govers,G.,Merckx,R.,VanOost,K.andvanWesemael,B.2013.ManagingSoilOrganicCarbonforGlobalBenefits:ASTAPTechnicalReport.GlobalEnvironmentFacility,Washington,DC.Retrievedfrom:<http://www.stapgef.org/managing-soil-organic-carbon-for-global-benefits/>

STAP2013.EnhancingtheGEF’scontributiontoSustainableDevelopment.GlobalEnvironmentFacility,Washington,DC.GEFID:GEF/R.6/Inf.03

Yengoh,G.,Dent,D.,Olsson,L.,Tengberg,A.andTucker,C.2014.TheuseoftheNormalizedDifferenceVegetationIndex(NDVI)toassesslanddegradationatmultiplescales:areviewof

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ANNEX3:TRUSTEE--FY16REVIEWOFACTIVITIESANDACHIEVEMENTS

1. TheWorldBankasTrusteeprovidesarangeofservices,broadlydefinedintheInstrument,inthefollowingcategories:financialandriskmanagement;investmentandcashflowmanagement;managementofGEFpartnerrelationshipsandtransactions;accountingandreporting;legalservices;commitmentanddisbursementoftrustfundresources;systemsinfrastructureandmaintenance;andresourcemobilization.

2. Inadditiontotheseservices,additionalactivitiessupportedbytheTrusteeinFY16included:implementationoftheGEF-6Replenishmentresolution,includingworkingwithdonorstofacilitatedepositofInstrumentsofCommitment,addressingdonorinquiriesregardingGEF-6cashoutlays,creditsanddiscounts;enhancementstotheinternalcontrolrelatedtothepreparationoffinancialstatements;workwiththeSecretariatonpolicyinitiatives,implementationofseveralCouncilapprovedpoliciesinthecontextofstreamliningprocedures;negotiationofFinancialProceduresAgreements(FPA)withthenewGEFAgencies;andrevisionstoFPAwiththeexistingGEFAgencies.

FY16Projectedvs.EstimatedActual

3. Basedonthefirstnine-monthperiodendedMarch31,2016andprojectionsfortheremainingthreemonths,theestimatedactualexpenditureforFY16forTrusteeservicesis$3million,reflectingadecreaseof$28,950comparedtotheapprovedbudget.ThedecreasewasmainlyduetolowerinvestmentmanagementcostsresultingfromlowerthananticipatedliquidityintheGEFTrustFundinFY16.

4. LiquiditylevelsareinfluencedbydonorcontributionsandcashdrawdownbyAgencies.Investmentmanagementcostisavariablecostthatiscalculatedbasedon3.5basispointsagainsttheaverageannualbalanceoftheTrustFund.ThenetcashinflowsduringFY16resultedindecreasedliquidityoftheGEFfromaprojectedaverageof$3.41billionto$3.39billion,therebydecreasinginvestmentmanagementcosts.

FY15Actualexpenses

5. TheactualamountofTrusteeexpensesincurredforFY15was$3.04millionincludingthecostofaudit.ThisisconsistentwiththeexpectedactualexpenditurethatwasreportedintheCouncilmeetinginJune2015.