. Review of the effectiveness of the financial mechanism

Review of the effectiveness of the financial mechanism

The Conference of the Parties,

Recalling its decisions II/6 on financial resources and mechanism and III/7 on the review of the effectiveness of the financial mechanism,

Taking note of the synthesis report on the first review of the effectiveness of the financial mechanism, contained in document UNEP/CBD/COP/4/16,

Taking note also of the Statement of the First Assembly of the Global Environment Facility, held in New Delhi, India, from 1 to 3 April 1998, and the list of measures identified therein for the Global Environment Facility to improve its operational performance, and welcoming the second replenishment of the Global Environment Facility Trust Fund in the amount of US$2.75 billion for its four focal areas,

Taking note of the report on the activities of the Global Environment Facility contained in document UNEP/CBD/COP/4/15,

Recalling the provisions of the Memorandum of Understanding between the Conference of the Parties and the Council of the Global Environment Facility, in particular paragraph 7 therein concerning the significance of inter-secretariat cooperation,

Welcoming the efforts made to date by the Global Environment Facility to address the concerns of Parties on the responsiveness of the financial mechanism to the policy, strategy, programme priorities and eligibility criteria established by the Conference of the Parties,

Taking into account the views and concerns expressed by Parties about the difficulties encountered in carrying out the first review, in particular the inadequacy of the procedures; and the insufficient information provided as compared with that requested in decision III/7,

Recalling decision II/6, paragraph 2, which calls for the effectiveness of the financial mechanism to be reviewed every three years,

Recognizing concerns expressed by several Parties about the need for implementing agencies to improve the processing and delivery systems of the Global Environment Facility, and reaffirming paragraph 1 of decision III/5 in this regard,

Recognizing also that further improvements are needed in the effectiveness of the financial mechanism,

1. Determines to further improve the effectiveness of the financial mechanism;

2. Requests the Council of the Global Environment Facility to take the action identified in the annex to the present decision with a view to improving the effectiveness of the financial mechanism, and further requests the Global Environment Facility to report thereon to the Conference of the Parties at its fifth meeting;

3. Decides that the Conference of the Parties at its fifth meeting will determine terms of reference for the second review of the effectiveness of the financial mechanism;

4. Requests the Executive Secretary to advise the Parties on matters relating to recommendations for further guidance to the financial mechanism with respect to:

(a) The relationship of any draft guidance to previous guidance; and

(b) Any possible effects of that draft guidance on the implementation of previous guidance from the Conference of the Parties.

Annex

ACTION TO IMPROVE THE EFFECTIVENESS OF THE FINANCIAL MECHANISM

1. The Council of the Global Environment Facility should improve the effectiveness of the financial mechanism by:

(a) Further streamlining its project cycle with a view to making project preparation simpler, more transparent and more country-driven;

(b) Further simplifying and expediting procedures for approval and implementation, including disbursement, for GEF-funded projects;

(c) Developing policies and procedures that fully comply with the guidance from the Conference of the Parties in a straightforward and timely manner;

(d) Increasing support to priority actions identified in national plans and strategies of developing countries;

(e) Applying in a more flexible, pragmatic and transparent manner the incremental cost principle;

(f) Promoting genuine country ownership through greater involvement of participant countries in GEF-funded activities;

(g) Increasing its flexibility to respond to the thematic longer-term programme of work of the Convention on Biological Diversity, in accordance with the guidance of the Conference of the Parties;

(h) Promoting the catalytic role of the Global Environment Facility in mobilizing funding from other sources for GEF-funded activities;

(i) Including in its monitoring and evaluation activities the assessment of the compliance under its operational programmes with the policy, strategy, program priorities and eligibility criteria established by the Conference of the Parties;

(j) Promoting efforts to ensure that the implementing agencies fully comply with the policy, strategy, programme priorities and eligibility criteria of the Conference of the Parties in their support for country-driven activities funded by the Global Environment Facility; and

(k) Undertaking efforts to improve the efficiency, effectiveness and transparency of the process of cooperation and coordination between the implementing agencies with a view to improving the processing and delivery systems of the Global Environment Facility, and to avoid duplication and parallel processes.