New resource allocation framework for the fifth replenishment of the GEF

Main expected impact for the land degradation focal area

The 36th meeting of the GEF Council convened in Washington on last 12 November has adopted the STAR (System for Transparent Allocation of Resources) which will replace the Resource Allocation Framework (RAF) implemented under the current GEF-4 replenishment. The STAR will be applied to the focal areas of biodiversity, climate change and land degradation and become operational in July 2010, after deliberations on the resources allocation of GEF-5 have been completed.

The relevant documentation on STAR that constituted the basis of deliberations by the last Council members are posted here, and can be summarized as follows:

Country allocations¹


Under the STAR, each individual country has access to an indicative allocation of resources for each of the focal areas listed above, while group allocations used in GEF 4 have been discontinued. In order for an eligible country to receive a STAR allocation, a country would need to meet the following three conditions:
1. Be a Party to the relevant convention and meet the eligibility criteria decided by the Conference of the Parties to the relevant convention (CBD, UNFCCC and UNCCD);
2. Not be a member of the European Union as of July 1st, 2010; and
3. Have had at least one national project in the past 5 years (in any focal area)

The decision adopted by the GEF Council will allow all GEF recipient countries to benefit from added predictability in the availability of resources in most focal areas. It is expected to increase flexibility and country-driveness in those countries where it has historically been most lacking - that is in the countries with a relatively small allocation.

Threshold


It was decided that a threshold of 90 % of total GEF allocation is guaranteed to be programmed under the biodiversity and climate change focal areas for which it was intended. In practical terms that means that any country that receives a sum total allocation for BD, CC, and LD that totals less than $6.5 M would be allowed to use its allocation within either of these three focal areas, if eligible. Around 50 countries are expected to benefit. These countries will be invited to inform the Conference of the Parties of the relevant convention(s) about the utilization of the GEF resources. The final flexibility threshold for GEF-5 will be set once the size of the replenishment is known, based on Council decision to protect at least 90% of biodiversity and climate change resources.

Floors


A minimum allocation (floor) for the LD focal area was decided upon which stipulates that $0.5 M is assigned to each eligible country for it to plan and implement. Contrary to the total amount allocated to each individual country, the floors are kept at the same levels for the simulations for all three replenishment scenarios;

Focal area set-asides

Following up from the recommendations made through the RAF mid-term review, a focal areas set-aside (FAS) for each focal area under the STAR is defined. The FAS would fall outside the national STAR allocations to the amount of 20% under all replenishment scenarios under consideration. This set-aside would be used to finance enabling activities and regional and global projects. Council is also considering the inclusion of a Sustainable Forest Management incentive program in the FAS. In addition it is envisaged that funding for countries that do not have acces to individual STAR resources or that become eligible after the start of GEF-5, be made available through FAS.

Enabling activities for the LD focal area

For enabling activities that are Convention obligations and amount of $150,000 will be made available under the LD focal area to support each country in reporting against the implementation of the 10-year strategic plan of the UNCCD.

1. For countries that are not eligible for a STAR allocation at the start of GEF-5 (i.e. have not yet acceded to/ratified the relevant convention) but become Parties during the course of GEF-5, it is proposed to allow the possibility of funding for such countries through the focal area set-asides until the next reallocation exercise