Distr.
GENERAL
CONVENTION ON BIOLOGICAL DIVERSITY
UNEP/CBD/COP/3/8
20 September 1996
ORIGINAL: ENGLISH [ADVANCE COPY]
CONFERENCE OF THE PARTIES TO THE
CONVENTION ON BIOLOGICAL DIVERSITY
Third meeting
Buenos Aires, Argentina
4 to 15 November 1996
Item 6.4 of the provisional agenda
1. MANDATE AND SCOPE
1. Article 21, paragraph 3, of the Convention states:
"The Conference of the Parties shall review the effectiveness
of the mechanism established under this Article, including the
criteria and guidelines referred to in paragraph 2 above, not
less than two years after the entry into force of this Convention
and thereafter on a regular basis. Based on such review, it shall
take appropriate action to improve the effectiveness of the mechanism
if necessary".
2. In response to a request that emerged from the
first meeting of the Conference of the Parties, the Secretariat
prepared document UNEP/CBD/COP/2/9, which sets out options for
both the timetable and the nature of the review.
3. The second meeting of the Conference of the Parties
decided that the first review would take place at its fourth meeting
in 1997, and that it would be carried out with the basic approach
described in document UNEP/CBD/COP/2/9. The Conference of the
Parties requested the Executive Secretary to develop further guidelines
for the review for the consideration of and decision by the Conference
of the Parties at its third meeting, taking into account comments
made by participants at its second meeting and/or provided by
the Parties in writing to the Secretariat no later than the end
of February 1996.
4. During the discussion of this item at the second
meeting of the Conference of the Parties, statements were made
by the representatives of eight countries, one speaking on behalf
of a regional economic integration organisation, and by the representative
of an international organisation. Eleven of the Parties provided
comments in writing to the Secretariat, which are contained in
document UNEP/CBD/COP/3/Inf.1.
5. This note was prepared in order to provide a basis
on which the Conference of the Parties can decide on the objectives,
scope, criteria and modalities for the review of the effectiveness
of the financial mechanism at its third meeting.
2. DISCUSSION
6. The basic approach for the review of the effectiveness
of the financial mechanism contained in Document UNEP/CBD/COP/2/9
sets out proposed objectives, scope, criteria and modalities of
the review. Taking into account the comments received by the Parties
and summarised in the paragraphs that follow, the Secretariat
has prepared the draft Procedures and Criteria for the Review
of the Effectiveness of the Financial Mechanism, which is set
out in the Annex to this note.
7. The Conference of the Parties is invited to review,
amend and adopt these procedures, and to take any additional decisions
necessary for laying the groundwork for the first review of the
effectiveness of the financial mechanism at its next meeting.
2.1 Objectives and Scope of the Review
8. UNEP/CBD/COP/2/9 suggests that the review have
a three-fold objective that assesses:
(a) the effectiveness of the financial mechanism
in providing financial resources;
(b) how the financial mechanism's activities conform
to the guidance of the Conference of the Parties; and
c) the impact that the activities funded have on
the realisation of the Convention's objectives.
9. While, as these objectives suggest, the focus
of the review will necessarily be on the biodiversity-related
activities of the GEF, the institutional structure operating the
financial mechanism on an interim basis, comments from several
of the Parties and the experience of the Secretariat suggest that
the review of the financial mechanism should encompass other sources
of biodiversity-related finance as well.
10. Discussions of this agenda item have revealed
a need and a desire to coordinate and rationalise the various
reviews of financial issues that are being planned and undertaken
both within and outside of the Convention's bodies.
11. Over the past two years, the Secretariat and
the Conference of the Parties have undertaken an annual review
of a number of issues related to financial resources and mechanisms.
12. The Secretariat and the Conference of the Parties
have undertaken a review of the report of the biodiversity-related
activities of the GEF and how of these activities conform to the
guidance of the Conference of the Parties.
13. The Secretariat and the Conference of the Parties
have undertaken a review of the availability of additional financial
resources for the implementation of the Convention that monitors
existing flows of financial resources and seeks to identify new
sources of support for the implementation of the Convention.
14. Furthermore, at its second meeting, the Conference
of the Parties requested that the Secretariat study characteristics
specific to biodiversity activities to allow the Conference of
the Parties to make suggestions to funding institutions on how
to make their activities in the area of biodiversity more supportive
of the Convention (UNEP/CBD/COP/3/7).
15. Since the second meeting of the Parties, the
GEF Council has decided to develop a GEF-wide monitoring and evaluation
system and has appointed a Senior Monitoring and Evaluation Coordinator.
A work program and budget for the program was reviewed at the
GEF Council Meeting in April 1996, and is expected to be adopted
at the GEF Council Meeting in October 1996.
16. In order to avoid unnecessary duplication between
these analyses and review procedures, it is important to ensure
that the COP's triennial reviews build upon its annual reviews
of the financial mechanism and resources and upon the work of
the GEF. The triennial reviews should provide a longer-term, comprehensive
analysis that focuses not merely on the conformity of the GEF's
activities with COP guidance, but also on whether such guidance
is itself practicable and effective in leading towards the realisation
of the Convention's objectives.
17. Particular emphasis should be placed on the need
to learn lessons and gain experience in the implementation of
COP guidance based on the outcome and impact of activities funded
by the financial mechanism.
18. In line with Article 21, paragraph 3, which provides
for the Conference of the Parties to take appropriate action to
improve the effectiveness of the financial mechanism, if necessary,
a number of Parties have suggested the review could produce concrete
guidance for improvements in, for example:
(a) the effectiveness of the guidance provided by
the Conference of the Parties;
(b) the appropriateness of the division of responsibilities
in the relationship between the Conference of the Parties and
the GEF; and
(c) the balance and distribution of the GEF's project
portfolio.
19. However, several of the Parties recognised that
data on the implementation, monitoring and evaluation of specific
GEF projects might be limited at the time that the first triennial
review is to be undertaken in 1997.
20. One Party suggested that the review include the
effect that the GEF's interim status may be having on the effectiveness
of the financial mechanism.
2.2 Content of the Review
21. A number of Parties sought to focus the process
of review by directing the Secretariat and the Conference of the
Parties towards specific sources of information. In particular,
it was felt appropriate that the review process draw upon:
(a) the GEF's report to the Conference of the Parties;
(b) GEF annual reports; and
(c) reports and information from the GEF's monitoring
and evaluation program.
22. One Party stressed the importance of the non-governmental
organisations that monitor the GEF's work as a source of intelligence
on the GEF.
23. Several Parties suggested that the experience
of related financial institutions, such as the Multilateral Fund
for the Montreal Protocol, could usefully inform the review process.
2.3 Review Criteria
24. Grouped into categories based on the review's
three-fold objectives, document UNEP/CBD/COP/2/9 provided a non-exhaustive
list of criteria for the review of the effectiveness of the financial
mechanism.
25. With regard to the effectiveness of the financial
mechanism in providing financial resources the Parties suggested
a number of additional criteria, including:
(a) the cost effectiveness of financed activities.
While no Party suggested a methodology for analysing the costs
and the benefits of a specific project, one Party suggested that
concepts of incremental costs and global benefits might play a
role in such calculations; and
(b) the ability of the GEF to leverage additional financial resources.
26. Several of the Parties suggested that assessments
of the amount of funding necessary for the implementation of the
Convention and discussions of burden-sharing among developed-country
Parties to the Convention should not form a part of the effectiveness
review, but should instead be taken up in the COP's general discussions.
27. With regard to the conformity of the GEF's activities
with the guidance of the Conference of the Parties, the Parties
stressed the importance of GEF's demonstrating transparency and
accountability in its operations, and that it fund projects that:
(a) promote capacity-building;
(b) increase public awareness; and
(c) are country-driven.
28. With regard to the impact of the activities funded
on the realisation of the Convention's objectives, it was suggested
that the review seek to ensure the financial mechanism took a
balanced approach to funding activities on the conservation and
sustainable use of biodiversity, and to the fair and equitable
sharing of benefits.
2.4 Modalities for Review
29. Document UNEP/CBD/COP/2/9 offered two options
in preparing for the modalities of the review:
(a) the Conference of the Parties could conduct its
own study based on the objectives and criteria for the review
of effectiveness adopted by it at its third meeting, drawing upon
information and analysis from the GEF and the GEF's monitoring
and evaluation program; or
(b) the Conference of the Parties could request the
GEF to include the objectives and criteria agreed to by the COP
in the GEF's monitoring and evaluation program. The Conference
of the Parties would then review the reports prepared by the GEF's
program.
30. Those Parties that did express a preference supported
option (a) on the basis that it would provide a greater degree
of accountability and transparency if the review were undertaken
by the COP as a body independent of the GEF process.
31. In response to option (b), several parties pointed
out the potential usefulness of the monitoring and evaluation
procedure adopted by the GEF and encouraged the Secretariat to
participate in the development of appropriate indicators for the
assessment of GEF projects.
3. CONCLUSIONS AND RECOMMENDATIONS
32. While the Convention provides that the Conference
of the Parties is responsible for the review of the effectiveness
of the financial mechanism, past experience and comments from
the Parties suggest that the Secretariat, and the work carried
out by the GEF itself, can play a vital role in laying the groundwork
for such a review.
33. The Conference of the Parties may wish to consider
requesting the Secretariat to:
(a) work with the GEF in suggesting criteria for
the GEF's monitoring and evaluation program; and
(b) prepare relevant background documentation for
the review of each of the three-fold objectives, according to
the criteria adopted by the Conference of the Parties at its third
meeting.
1. Objectives
1. In accordance with Article 21, paragraph 3, of
the Convention, to review and take appropriate action, if necessary
to improve:
(a) the effectiveness of the financial mechanism
in providing financial resources;
(b) the conformity of the activities of the Global
Environment Facility, as the institutional structure operating
the financial mechanism on an interim basis, with the guidance
of the Conference of the Parties; and
(c) the impact of the activities funded on the realisation
of the Convention's objectives.
2. Scope
2. In order to avoid the duplication of review activities,
and to ensure that relevant on-going reviews of biodiversity-related
activities inform the review of the Conference of the Parties
of the effectiveness of the financial mechanism, the review shall
take into account:
(a) annual reviews by the Conference of the Parties
on:
(i) the conformity of GEF-related activities with
the guidance of the Conference of the Parties; and
(ii) the availability of additional financial resources
for the implementation of the Convention;
(b) progress in the efforts by the Secretariat in
developing common methodologies and procedures for monitoring
the flow of financial resources in support of biodiversity-related
activities, and in assessing the effectiveness of these flows
in supporting the Convention's objectives; and
(c) the experience of the GEF's monitoring and evaluation
system.
3. Content
3. The review shall draw upon, inter alia,
the following relevant information:
(a) the GEF's Annual Report to the Conference of
the Parties on its biodiversity-related activities, the GEF annual
reports, and other relevant GEF policy and information documents;
(b) reports from the GEF's monitoring and evaluation
program;
(c) information available from the Commission on
Sustainable Development and the Organisation on Economic Cooperation
and Development, and relevant bilateral and multilateral funding
institutions; and
(d) information provided by non-governmental organisations,
where appropriate.
4. Criteria
4. Progress towards the implementation of the review's
objectives shall be assessed against the following, non-exhaustive
list of criteria:
(a) the effectiveness of the financial mechanism
in providing financial resources:
(i) the adequacy, predictability and timeliness of
financial resources;
(ii) the responsiveness and efficiency of the GEF's
project cycle;
(iii) the ability of the GEF to leverage additional
finance;
(iv) the sustainability of funded projects; and
(v) the application of programme-design principles
based on the special characteristics of biological diversity,
as noted in COP2/9 and further elaborated in COP 3/7;
(b) the conformity of the activities of the financial
mechanism with guidance of the Conference of the Parties, as contained
in Decisions I/2 and II/6, which include:
(i) the application of the eligibility criteria;
(ii) the application of programme priorities;
(iii) the urgent implementation of national strategies
and programmes for conservation and sustainable use, in a flexible
and expeditious manner;
(iv) exploring the possibility of promoting diverse
forms of public involvement;
(v) exploring the possibility of more effective collaboration
with all tiers of government and civil society;
(vi) exploring the feasibility of a programme of
grants for medium-sized projects; and
(vii) the implementation of the relevant provision
of the following decisions:
a. II/3 on the clearing house mechanism;
b. II/7 on consideration of Articles 6 and 8;
c. II/8 on the preliminary consideration of components
of biological diversity particularly under threat; and
d. II/17 on national reporting by the Parties;
(c) the impact of the activities funded, in light
of the guidance of the COP, on the realisation of the Convention's
objectives:
(i) the conservation of biological diversity;
(ii) the sustainable use of the components of biological
diversity;
(iii) the fair and equitable sharing of benefits;
and
(iv) the maintenance of an appropriate balance between
these objectives.
(d) any additional criteria that may arise from the
decisions of COP-3.
5. Procedures
5. There shall be prepared, in time for the review
by the Conference of the Parties at its fourth meeting, relevant
background documentation for the review of each of the three-fold
objectives, according to the above criteria.
6. The Conference of the Parties shall, if necessary,
take appropriate actions to improve the effectiveness of the financial
mechanism and/or the effectiveness of this review procedure.