The document discusses several GEF policies that were approved or updated during the GEF-6 period, including the GEF Programmatic Approach, Project Cancellation Policy, Co-financing Policy, Non-Grant Instrument Policy, Gender Mainstreaming Policy, and Public Involvement Policy. It provides details on the objectives and key aspects of each policy, such as establishing a program framework document and commitment deadline for the programmatic approach, the phased cancellation of projects that are delayed, and defining co-financing for GEF projects. It also describes the GEF-6 Non-Grant Instrument Pilot that aims to leverage private capital and test non-grant instruments for public sectors.

1. GEF-6 Policies
IFAD and FAO Learning Event
on GEF
Rome, Italy
December 10-12, 2014

2. 2
Overview
Background: GEF Policies are usually submitted to Council for approval via Council
papers but do not capture discussions/views of Council during the meeting.
GEF Policy Framework:
In GEF-6: Types and Hierarchy of Policy and Procedure Framework was established
Policy: A statement of principles or values approved by the GEF Council that mandates or
constrains activities undertaken to achieve the institutional goals of the GEF Secretariat. A
Policy’s legal power is higher than that of procedures and guidelines.
Procedures: A set of instructions or process that must be followed to adhere to a particular
Policy or to accomplish an operational function or a specific task. Procedures are approved by
the GEF CEO with the responsibility for the relevant Policy or relevant operational area or
subject matter.
Guideline: Additional information to help explain or implement a particular policy. Guidelines
are approved by the CEO or by Team Leaders with responsibility of the relevant Policy or
relevant operational area or subject matter. Guidelines have the lowest power in the strata of
Policies, Procedures and Guidelines.

3. 3
Overview…………(2)
1. GEF Programmatic Approach, 47th Council Meeting
2. Update on Project Cancellation Policy,
47th Council Meeting
3. Co-financing Policy, 46th Council Meeting
4. Non-Grant Instrument, 47th Council Meeting
5. Policy on Gender Mainstreaming, 47th Council
Meeting
6. Public Involvement Policy, 7th Council Meeting

4. 4
Programmatic Approach
 Key document = a Program Framework Document (PFD) submitted in a
work program for Council approval;
 Program can be single-Agency or multi-Agency; single focal area or
mutli-focal area, single trust fund or multi-trust fund;
 For multi-Agency program, a Lead Agency will be identified to manage
the program in all related administrative matters;
 Extensive upstream consultation among relevant stakeholders;
 Key Features in a PFD:
• Discuss program objectives;
• Describe all child project contributions to the program objective;
• Establish a program commitment deadline.

5. 5
Project Cancellation Policy
Objectives:
 to improve the GEF’s operational efficiency, particularly in the amount of
time it takes to prepare and deliver projects;
 to ensure that GEF-financed projects remain relevant to the objectives and
priorities of the GEF and recipient countries.
Using Phased approach to implement the policy:
• After 12 months of Council approval of PIF, a notification will be sent to the
Agency and OFP of the recipient country to alert them of the remaining 6 months
for submission of project for CEO endorsement;
• After 18 months, the Secretariat informs all relevant stakeholders on the
cancellation of the project.
• The Secretariat will consider exception to the above cancellation only on
extraordinary events, and if agreed, will notify Council.
• Cancelled projects maybe resubmitted within a year for consideration of CEO
endorsement if resources are available.

6. 6
Project Cancellation Policy……..(2)
Cancellation of child projects under a program and unused program
amount:
• All child projects should be submitted for CEO endorsement by
the program commitment deadline.
• Six months before the program commitment deadline, if there
are still program funds of child projects not yet CEO endorsed,
the Secretariat sends a notification to the Lead Agency notifying
it of the upcoming cancellation of such program funds.
• After the passing of the program commitment deadline, the CEO
notifies the relevant Lead Agency and the Trustee of the
cancellation for the remaining program funds.

7. 7
GEF Co-financing Policy
• Approved by Council in May 2014, which has been posted as Policy FI/PL/01.
This Policy:
 establishes the objectives for co-financing in GEF-financed projects;
 Defines co-financing for GEF-financed projects and programs; and
 Provides rules/requirements on co-financing for GEF-financed projects and
programs.
• Applies to GEF Trust Fund and the Nagoya Protocol Implementation Fund
(GEF-financed projects) financed projects and programs but not to LDCF or
SCCF financed projects.
• Council Document that proposed the Policy to the Council (Document
GEF/C.20/6/Rev.1, Co-financing) contains helpful background and guidance
on how it will be implemented.

8. 8
GEF Co-financing Policy……..(2)
• Objective: “to attain adequate levels of co-financing as a means to:
 enhance the effectiveness and sustainability of the GEF in
achieving global environmental benefits;
 strengthen partnerships with recipient country governments,
multilateral and bilateral financing entities, the private sector, and
civil society.”
• Includes “an ambition for the overall GEF portfolio to reach a co-financing
ratio of at least 6:1, with expectations for greater co-financing
in upper-middle income countries that are not SIDs.”
 This is a portfolio ambition, not project-by-project.
 GEF Secretariat “will not impose minimum thresholds and/or
specific co-financing sources in the review of individual projects or
work programs.”

9. 9
GEF Co-financing Policy……..(3)
• Definition: “resources that are additional to the GEF grant1 and that are
provided by the GEF Partner Agency itself and/or by other non-GEF sources
that support the implementation of the GEF-financed project and the
achievement of its objectives.”
• Co-financing is required for all GEF full-sized and medium-sized projects
and programmatic approaches (PAs). Optional for enabling activities.
 PIFs & PAs must list indicative co-financing for work program
inclusion.
 For CEO endorsement, Agencies must confirm co-financing and
provide evidence.
 Agencies must list co-financing by source and type.
 Secretariat reviews proposals for consistency with Policy.
____________
1 GEF financing (e.g. the GEF grants) is determined on the basis of the agreed incremental cost
principle.

10. 10
GEF Co-financing Policy……..(4)
Council Document GEF/C.20/6/Rev.1 also notes that the Secretariat
will “continue to review project co-financing as part of its assessment
of whether the project is supported by an adequate financing package
in light of the needs of the project.” (Paragraph 16)
• GEF Secretariat will also monitor portfolio co-financing and report
to Council through Annual Monitoring Review (AMR).
• Agencies to report on materialized co-financing during
implementation and project closure (per GEF PIR and TER-Terminal
Evaluation Report)
• Evaluation Office may evaluate co-financing through Overall
Performance Studies.
Link to the paper: http://www.thegef.org/gef/policy/co-financing

11. 11
Non-Grant Instrument
GEF’s experience to date suggests that non-grant instruments
can make an important contribution to the achievement of the
GEF’s objectives. They have helped deliver innovative projects
and catalytic partnerships.
GEF-6 Policy Recommendations: expand the use of non-grant
instruments, in view of the contributions these can make to
leverage capital from private sector, to long-term financial
sustainability through their potential for generating reflows, as
well as the usefulness of assessing the demand for non-grant
instruments for the public sector in GEF recipient countries.

12. 12
Non-Grant Instrument…………(2)
• Since the GEF’s inception, a total of 86 projects have been recorded
as having utilized a “non-grant” instrument, totaling $715 million of
GEF financing (about 6% of the GEF’s total programmed amount);
• Co-financing ratio of these projects has trended high over time,
and is well above co-financing levels of GEF grant programming;
• The largest share of projects has been in the CCM focal area (80%
of the funds). 7 projects have been in the BD;
• Debt instruments and risk mitigation products are the most
frequently used non-grant instruments (71 % of the funds)

13. 13
GEF-6 Non-Grant Pilot
• will play a key role in supporting the GEF’s efforts to leverage significant
capital from the private sector through the use of innovative and flexible
financial instruments.
• will expand the range of tools available to the GEF and allow the GEF to
assess the demand and applicability of GEF non-grant instruments for
public sector recipients.
• By demonstrating and validating successful models for the use of non-grant
instruments, the GEF can help catalyze large-scale changes through
broader adoption and generate experiences which may also be useful for
other international environmental funding mechanisms such as the Green
Climate Fund.
• by focusing the Pilot on non-grant instruments that have the potential to
generate reflows, the Pilot can make a contribution to the GEF Trust
Fund’s financial sustainability.

14. 14
NGI Pilot: Implementation
• A set-aside of $110 million for the Non-Grant Pilot.
• The maximum amount of funding for each project is approximately $15
million.
• Proposals must be submitted by one of the GEF Partner Agencies on
behalf of the potential project proponent. Interested parties are
encouraged to contact the relevant GEF Partner Agency focal point.
• Only proposals using non-grant instruments with a potential for
reflows to the GEF Trust Fund will be funded under the Pilot.
• Consistent with the Policy on Non-Grant Instruments, a broad and
flexible range of debt, equity and guarantee instruments will be
supported under the Pilot. For projects/programs with public sector
recipients, instruments include concessional loans and guarantee
instruments; an emphasis on concessional loans is expected.

15. 15
NGI Pilot Implementation – Selection Criteria
• Project proposals are eligible as long as they contribute GEBs as per
GEF’s strategic programming under GEF-6.
• The Pilot will seek to fund a diversity of recipient countries,
regions, and Focal Areas. Proposals for both full-sized projects and
medium-sized projects will be considered.
• The Pilot will support capacity building, technical assistance, and
advisory services only if they are included as part of the overall
investment using the non-grant instrument and if the overall
investment has potential for reflow to the GEF Trust Fund.

16. 16
Implementation – Selection Criteria
Following elements are especially encouraged:
• demonstrate innovative application of financial
mechanisms and partnerships that may be broadly adopted
and can be scaled-up;
• demonstrate use of non-grant instruments in areas other
than CC;
• deliver innovative engagement with the private sector and
innovative business models;
• deliver high levels of co-financing.

17. 17
Implementation – Financing Terms……(1)
• For projects with private sector, the GEF Partner Agency
will negotiate an appropriate lending rate or return on
investment that is consistent with the Agency’s standard
practices;
• Ensures a minimum level of concessionality;
• Avoids displacing other finance;
• Catalyzes other investments;
• The maximum maturity for private sector loans is twenty
years; the exit date for equity investments will be negotiated
case by case.

18. 18
Implementation – Financing Terms……(2)
For projects/programs with loans to public sector recipients, the Pilot will
use differentiated terms: softer concessional terms will be offered to LDCs
and SIDS, while harder concessional terms will be offered to other countries
as follows:
GEF
concessional
loans under
the Pilot
Maturity
(Years)
Grace
Period
(Years)
Annual Principal
Repayment Years
11-20
(% of initial
principal)
Annual
Principal
Repayment
Years 21-40
(% of initial
principal)
Interest
To LDCs
and SIDS
40 10 2% 4% 0.25%
To Other
Recipient
Countries
20 10 10% NA 0.75%

19. 19
Implementation – Financing Terms ………..(3)
• Consistent with MDB standard lending practice, the GEF Agencies
will not seek any guarantee or security for lending to sovereign
governments under the Pilot. If a GEF loan under the Pilot is made
to a sub-national entity, the beneficiary country will be required to
guarantee the loan if the GEF Partner Agency requires such
guarantees for sub-sovereign lending.
• In case of the use of guarantee instruments for public sector entities,
the reflow schedule and fees will be negotiated on a case-by-case
basis by the GEF Partner Agency. There will be no requirement for
sovereign government indemnity for any guarantee product

20. 20
Implementation - Application
Schedule:
• It is anticipated that funds under the Pilot could be allocated rapidly --
the Pilot aspires to be fully programed by the end of the calendar year
2015. This will facilitate early compilation of lessons learned that
might be useful for GEF-7 and for other interested parties.
• The first opportunity for FSPs will open in Nov 2014 . Agencies are
encouraged to submit projects/programs in time for consideration by
Council in the June 2015 WP. The second opportunity for FSPs will
open in July 2015.
• Medium-sized projects can be submitted for CEO consideration under
the Pilot on a rolling basis, consistent with regular processing of
medium-sized projects.

21. 21
Gender Mainstreaming
Policy on Gender Mainstreaming (PL/SD/02) was adopted in 2011
• GEF’s commitment to enhancing gender equality through GEF operations.
• The Policy calls on the GEF Agencies to have policies, strategies, or action
plans that meet the seven minimum standards:
1) Institutional capacity for gender mainstreaming
2) Consideration of gender elements in project design,
implementation and review
3) Undertake project gender analysis
4) Measures to minimize/mitigate adverse gender impacts
5) Integration of gender sensitive activities
6) Monitoring and evaluation of gender mainstreaming progress
7) Inclusion of gender experts in projects

22. 22
Gender Equality Action Plan
To operationalize the Policy on Gender Mainstreaming, a Gender
Equality Action Plan was approved by Council in the October 2014
meeting where the following was established:
• Concrete road map to implement the GEF Policy on Gender
Mainstreaming that builds on the existing and planned gender
strategies and plans of the GEF Agencies
• Goal: to operationalize the mainstreaming of gender in GEF policy
and programming to advance both the GEF’s goals for attaining
GEBs and the goal of gender equality and women’s empowerment.
• Initially serves during the GEF-6 period (FY15-18).

23. 23
Key Elements
1. Project Cycle
• Develop a Guideline on Mainstreaming Gender in GEF Project Cycle
• Incorporate in Project Templates and Guidelines
2. Programming and Policies
• Support gender responsive projects, based on country demand and GEF-6
Strategy
• Mainstream gender in key GEF Strategy and Policy documents.
3. Knowledge Management
• Enhance KM on gender equality, in line with new KM strategy (Knowledge
products, webpage, etc)
4. Results Based Management
• Strengthen GEF-wide accountability for gender mainstreaming by having
Corporate and Focal Area level indicators and targets.
5. Capacity Development
• Strengthen capacity at GEFSEC institution and staff levels, OFPs and partners
at the country level

24. 24
GEF-6 Core Gender Indicators
1. Percentage of projects that have conducted gender analysis during
project preparation.
2. Percentage of projects that have incorporated gender responsive
project results framework (e.g. gender responsive output, outcome,
indicator, budget, etc).
3. Share of women and men as direct beneficiaries of project.
4. Share of convention related national reports incorporated gender
dimensions (e.g. NBSAP, NAPA, TDA/SAP, etc.).
5. Percentage of monitoring and evaluation reports that incorporates
gender equality/women’s empowerment issues and assess
results/progress.

25. 25
Public Involvement Policy
Policy: Public Involvement in GEF Projects, GEF/PL/SD/01
http://www.thegef.org/gef/content/public-involvement-policy
• Approved by GEF Council in April 1996, based on paragraph 5 of the
GEF Instrument.
• Effective public involvement is critical to the success of GEF-financed
projects, with emphasis on local participation.
• Includes five principles and related requirements that all GEF Partner
Agencies are required to follow to ensure public involvement in the
design, implementation, and evaluation of GEF-financed projects.
• GEF Partner Agencies must describe (in PIF and CEO endorsement) how
they have ensured public involvement in project design and will continue
during implementation.

26. 26
The Rationale for Public Involvement in
GEF-financed Projects
Public involvement improves the performance and impact of projects by:
• Enhancing recipient country ownership of, and accountability for,
project outcomes
• Addressing the social and economic needs of affected people
• Building partnerships among project executing agencies and
stakeholders
• Making use of skills, experiences, and knowledge, specifically of
non-governmental organizations (NGOs), community and local
groups, and the private sector in the design, implementation and
evaluation of project activities.

27. 27
Public Involvement Guidelines: Overview
 Information Dissemination
 Consultation for Setting Priorities
 Consultation for Project/Program Design and
Implementation
 Reporting, Monitoring and Evaluation

28. 28
Action Plan for Implementing Public Involvement
Policy and Guidelines
 Information Dissemination
 Design of programs and projects
 Knowledge Management
 Monitoring
 Capacity Development
 Policy and Guidelines
 Conflict Resolution

29. 29
Related Council Paper Links
GEF website: www.thegef.org for all relevant project cycle papers
for more detailed policies and procedures.
GEF/C.38/05/Rev.1
Streamlining the Project Cycle and Refining the Programmatic Approach
GEF/C.39/Inf.03 GEF Project and Programmatic Approach Cycles
GEF/C.43/06 Streamlining of Project Cycle
GEF/C.47/07 Improving the GEF Project Cycle
GEF/C.46/09 Co-financing Policy, http://www.thegef.org/gef/policy/co-financing
For GEF Policies and Strategies, http://www.thegef.org/gef/policies
For key GEF Policy and Procedure Documents:
http://www.thegef.org/gef/policies_procedures

30. 30
.
Thank you for your attention!
Questions?
Lily Uy Hale (Lhale@thegef.org)
Sr. Operations Officer
Operations and Business Strategy, GEF
17