This document discusses GHG accounting methods and requirements for GEF projects. It notes that GEF supports countries in meeting UNFCCC obligations and requires projects to describe baselines and incremental impacts. GEF requires reliable estimates of direct and indirect GHG reductions from relevant programs and projects. Approved methodologies exist for estimating reductions from transportation, energy efficiency, and renewable energy projects, with methodologies being developed for urban and LULUCF projects. Projects with climate change, land degradation, or sustainable forest management funding must estimate GHG reductions using accepted methodologies. GEF seeks multiple benefits from projects and accepts standard GHG accounting methods used by implementing agencies.

1. Ulrich Apel – GEF Secretariat
International Workshop
Rome, 10-12 Nov 2014
GHG accounting methods &
requirements for GEF projects

2. General Remarks
• GEF supports countries fulfilling convention obligations and is a/the
financing mechanism of the UNFCCC, UNCCD, and other conventions.
• GEF funding is incremental/additional. Requirements include (1)
project baseline description (what will happen if GEF does not finance the
project) and (2) incremental reasoning (what will happen if the GEF does
finance the project).
• For GEF it is essential to have reliable information on the GHG emission
reductions of the (relevant) programs/projects it supports, including:
(i) assessment of direct GHG emissions reductions during project implementation
and at completion,
(ii) estimation of indirect GHG emission reduction (for some projects).
• GEF works through implementing agencies and its GHG accounting
requirements are based on / harmonized with requirements of agencies as
far as possible.

3. Biodiversity
Land
Degradation
Climate
Change
Chemicals
International
Waters
Sustainable
Forest
Management
Sustainable
Cities
Food
Security
Forests
Focal /
Multi-focal
Area
Strategy
Delivery
Selected
SD Themes
Integrated
Approach Pilots  Commodities  Partnership
for SS-Africa
 Cities

4. Projects with Climate Change Mitigation
(CC-M) Funding
• Has in place required GHG accounting methodologies for the estimation of
direct ex-ante GHG emissions reduction impact for projects in the
following sectors:
- transportation:
http://www.thegef.org/gef/GEF_C39_Inf.16_Manual_Greenhouse_Gas_Benefits
- energy efficiency and renewable energy:
http://www.thegef.org/gef/node/313 and http://www.stapgef.org/revised-
methodology-for-calculating-greenhouse-gas-benefits-of-gef-energy-efficiency-
projects-version-1-0/
• Is developing a GHG accounting methodology for projects in the urban
sector, and one for LULUCF projects.
– For LULUCF projects, the current requirement for emission or removal factors
(tCO2eq per ha per year), is to use IPCC defaults or country specific factors based
on area targets.

5. CC-M projects (cont.)
• Agencies must estimate GHG emission reductions for CCM projects ex-
ante using widely accepted methodologies for GHG emission reduction
calculations. Requirements include (1) project baseline description (what
will happen if GEF does not finance the project) and (2) incremental
reasoning (what will happen if the GEF does finance the project).
• Calculations need to clarify the assumptions used and update, as
necessary, values of parameters such as emission factors, capacity factors,
and timescales.
• All GHG accounting methodologies required by GEF are currently being
evaluated on how they can be improved consistent with guidance of the
UNFCCC.
• GEF partnership strives to identify and promote the use of existing meta-
datasets that provide readily available, standardized information for the
estimation of GHG mitigation impacts.

6. Projects with Land Degradation Focal
Area (LDFA) funding
• Projects include SLM activities in production landscapes.
Depending on project design, avoided GHG emissions and
carbon sequestration might be targeted by the project.
• If so, these targets must be estimated at CEO endorsement
stage and reported through the LDFA Tracking Tool.
• The estimate must be based on widely accepted
methodologies to be noted in the project document.
• The GEF recommends using tools and methodologies of the
Carbon Benefits Project, a GEF financed UNEP project:
http://carbonbenefitsproject-compa.colostate.edu/

7. Projects with Sustainable Forest
Management (SFM) Program Funding
• SFM projects involve funding from at least two of the LD,
CC-M, and BD focal areas and are thus based on LDFA
and LULUCF requirements.
• SFM projects support countries in REDD+ phases 1 and 2.
• All SFM projects require carbon estimates at concept
stage (PIF stage) based on tier one (IPCC default values)
methodologies. Depending on the project focus, higher
precision of estimates might be required (tier two).
• GEF recommends using existing and widely accepted
tools such as FAO EX-ACT.

8. Concluding Remarks
• In its projects, GEF is increasingly looking for multiple
benefits. GHG emission reduction is only one of these
benefits. This is especially important in the case of SLM and
SFM projects.
• GEF has specific requirements for projects in specific sectors
(transport, energy, urban) but in general is accepting standard
GHG accounting and monitoring methodologies and
implementing agencies’ methods.
• GEF is open to robust low cost methods that effectively
enable planning, monitoring, and evaluating GHG emission
reduction impacts.