While the Global Environment Facility (GEF) predates the 1992 Rio 'Earth' Summit, its importance as a financial mechanism grew after the Summit which was also attended by me representing the OIC countries. The UN Secretary-General Boutros Boutros-Ghali inaugurated the Rio 'Earth' Summit 1992 and underlined the need to develop a global blueprint for balancing economic development with environmental protection. The GEF's importance as a financial mechanism grew after the Summit.
The Rio Summit produced three major environmental conventions. These were the United Nations Framework Convention on Climate Change (UNFCCC), the Convention on Biological Diversity, and later in 1994, the Convention to Combat Desertification. The GEF also became the financial mechanism for these agreements, charged with mobilising and distributing funds to help countries implement them.
The Global Environment Facility was established in October 1991 under the chairmanship of Mohamed El-Ashry as a US Dollar1 billion pilot programme in the World Bank to enable developing countries to take action on environmental challenges and to promote sustainable development. The GEF would provide new and additional grants and concessional funding to cover the "incremental" or additional costs associated with transforming a project with national benefits into one with global environmental benefits.
In 1992, at the Rio Earth Summit, the GEF was restructured and established as a permanent, separate institution. The decision to make the GEF an independent organisation enhanced the involvement of developing countries in the decision-making process and in implementation of the projects. Since 1994, the World Bank has served as the Trustee of the GEF Trust Fund and provides administrative services.
As part of the restructuring, the GEF was entrusted to become the financial mechanism for both the UN Convention on Biological Diversity and the UN Framework Convention on Climate Change. In partnership with The Montreal Protocol on Substances that Deplete the Ozone Layer, the GEF started funding projects that enable the Russian Federation and nations in Eastern Europe and Central Asia to phase out their use of ozone-destroying chemicals.
GEF Agencies are the operational arm of the GEF. They work closely with project proponents-government agencies, civil society organisations, and other stakeholders-to design, develop and implement GEF-funded projects and programmes.
The United Nations Development Programme, the United Nations Environment Programme, and the World Bank were the three initial partners implementing GEF projects. Some of the other important agencies the GEF works with are -- Food and Agriculture Organisation (FAO), United Nations Industrial Development Organization (UNIDO), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), International Fund for Agricultural Development (IFAD) and International Union for Conservation of Nature (IUCN).
In 1998, the GEF Council decided to expand beyond the initial three implementing agencies, including the International Finance Corporation, to broaden its ability to enable innovating financing mechanisms and better leverage private sector investment. The GEF subsequently was also selected to serve as financial mechanism for three more international conventions: The Stockholm Convention on Persistent Organic Pollutants (2001), the United Nations Convention to Combat Desertification (2003), and the Minamata Convention on Mercury (2013).
The GEF work focuses on biodiversity, climate change (mitigation and adaptation), chemicals and waste, international waters, land degradation, and sustainable forest management.
Biodiversity appears to be under heavy threat. Reducing and preventing further biodiversity loss are considered among the most critical challenges to humankind. Of all the problems the world faces in managing "global goods," only the loss of biodiversity is viewed as irreversible.
Climate change from human-induced emissions of heat-trapping greenhouse gases (GHGs) is considered as a critical global issue, requiring substantial action. It is felt that these actions need to include investment to reduce emissions of greenhouse gases, and adaptation to climate changes including variability. The early impacts of climate change have already appeared, and scientists believe that further impacts are inevitable by the poorest people in developing countries. The GEF consequently supports projects in developing countries.
Climate change mitigation by reducing or avoiding greenhouse gas emissions through renewable energy; energy efficiency; sustainable transport; and management of land use, land-use change, and forestry are considered as important. In this context it is felt that developing countries aiming to become climate-resilient should try to promote immediate and longer-term adaptation measures in development policies, plans, programmes, projects, and actions.
Land degradation is also considered as a major threat to biodiversity, ecosystem stability, and society's ability to function. In this context the interconnectivity between ecosystems across scales and land degradation is triggering destructive processes that can have cascading effects across the entire biosphere. Loss of biomass through vegetation clearance and increased soil erosion can also produce greenhouse gases that contribute global warming and climate change. The GEF supports projects in reversing and preventing desertification, land degradation and in mitigating the effects of drought in affected areas in order to support poverty reduction and environmental sustainability.
Sustainable forest management by reducing emissions from deforestation and forest degradation is also a significant area of interest for GEF. Forest ecosystems are expected to play a key role in helping people in developing countries to adapt to the effects of climate change. The GEF supports projects in forest conservation (primarily protected areas and buffer zones), sustainable use of forests (forest production landscapes, sustainable forest management), and addressing forests and trees in the wider landscape.
The GEF Trust Fund operates through periodic "replenishment" cycles. Donor countries pledge new contributions every four years, which allows the GEF to finance programmes during the next funding period. For example, the GEF-9 cycle will cover the period from July 2026 to June 2030 and focus on scaling up environmental investments while mobilising private capital and strengthening country ownership of environmental policies.
The Global Environment Facility (GEF) has created Integrated Programmes. These are special programmes designed to address multiple environmental goals at the same time in a more coordinated and efficient way. For example, the Food Systems Integrated Programme does not fund separate projects for climate change, biodiversity, and land degradation. Instead, it combines them into one unified project, which helps achieve stronger and longer-lasting results while making better use of funding.
Global Biodiversity Framework Fund is also a relatively new component of the GEF family of funds. It was created to help countries implement the Kunming Montreal Global Biodiversity Framework, which was adopted in 2022 under the Convention on Biological Diversity.
The biodiversity framework sets ambitious targets for protecting nature by 2030. Its most prominent targets include the "30 by 30" target, which calls for protecting at least 30 per cent of the world's land and ocean areas by the end of the decade. The Framework also sets a 30 per cent target for the restoration of ecosystems and a target of mobilising 30 billion US Dollars in international financial flows to developing countries for biodiversity action.
The Global Biodiversity Framework Fund supports actions that help countries meet these targets.
It would also be pertinent at this juncture to refer to the Nagoya Protocol Implementation Fund which aims to support countries in implementing the Nagoya Protocol on Access and Benefit Sharing. This international agreement, part of the Convention on Biological Diversity, aims to make sure that the genetic resources of the planet are used fairly and equitably, with benefits shared with those who provide them. Genetic resources include plants, animals, and microorganisms that are used in research and commercial products such as medicines, cosmetics, and agricultural technologies. Historically, many developing countries have expressed concerns that companies and researchers benefit from these resources without sharing profits or knowledge.
The Nagoya Protocol fixes these issues by requiring users to get permission from the country providing the resources and also agree on how benefits (like money or knowledge) will be shared. The fund supports countries by helping them: create laws and rules for using genetic resources, improve monitoring systems and build skills among researchers and policymakers. Projects funded in this context are also aimed to support Indigenous peoples and local communities, who often hold traditional knowledge associated with biological resources. Protecting this knowledge and ensuring fair compensation has thereby become a key objective of the Nagoya framework.
Before concluding, one also needs to refer to the Least Developed Countries Fund which focuses on supporting climate adaptation in the world's most vulnerable nations. These countries often face severe environmental risks but lack the finances and systems to respond efficiently. This fund supports the preparation and implementation of the National Adaptation Programme of Action and National Adaptation Plans. These are country-specific strategies that identify the most urgent climate risks facing each country and outline measures to reduce vulnerability. Typical projects within this paradigm include the following-- strengthening climate-resilient agriculture, improving water management systems, Protecting coastal zones, and building early warning systems for extreme weather events. It may also be noted here that because many least developed countries face multiple environmental issues at once, the fund often supports integrated projects that address climate change alongside biodiversity conservation and land management.
Muhammad Zamir, a former Ambassador is an analyst specialised in foreign affairs, right to information and good governance.
