March 9, 2015
The Global Environment Facility (GEF)


Multilateral Environmental Assistance
Organizational Structure
Many governments believe that environmental degradation
and climate change pose international and trans-boundary
International Agencies: The GEF partners with 14
risks to human populations, economies, and ecosystems that
international agencies that contribute to the development,
could result in a worsening of poverty, social tensions, and
management, and delivery of its projects. They include the
political stability. To confront these global challenges,
International Bank for Reconstruction and Development
countries have negotiated various international agreements
(the World Bank), U.N. Development Program, U.N.
to protect the environment, reduce pollution, conserve
Environment Program, Asian Development Bank, African
natural resources, and promote sustainable growth. While
Development Bank, Conservation International,
some observers call upon industrialized countries to take
Development Bank of Southern Africa, European Bank for
the lead in addressing these issues, there is recognition that
Reconstruction and Development, U.N. Food and
efforts are unlikely to be sufficient without similar
Agriculture Organization, Inter-American Development
measures being implemented in developing countries.
Bank, International Fund for Agricultural Development,
However, developing countries, which tend to be focused
International Union for Conservation of Nature, U.N.
on poverty reduction and economic growth, may not have
Industrial Development Organization, and World Wildlife
the financial resources, technological know-how, and/or
Fund.
institutional capacity to deploy such measures on their own.
Therefore, international development assistance has been a
International Conventions: The GEF is the primary fund
principal method for governments to support developing
administrator for four Rio (1992 Earth Summit)
country action on global environmental problems.
Conventions, including the Convention on Biological
Diversity, the U.N. Framework Convention on Climate
The United States and other industrialized countries have
Change, the Stockholm Convention on Persistent Organic
committed to providing financial assistance for
Pollutants, and the U.N. Convention to Combat
environmental initiatives through a variety of multilateral
Desertification, as well as the Minamata Convention on
agreements (e.g., the Montreal Protocol [1987], the U.N.
Mercury. The GEF also establishes operational guidance for
Framework Convention on Climate Change [1992], and the
ocean and ozone protection activities, the latter consistent
U.N. Convention to Combat Desertification [1994]).
with the Montreal Protocol on Substances That Deplete the
International financial assistance takes many forms, from
Ozone Layer.
fiscal transfers to market transactions, and includes official
development assistance, contributions to multilateral
Internal Organization: The GEF’s main decision-making
development banks and other international financial
body is the GEF Council, which is an independent board of
institutions, export credits, loan guarantees, insurance
governors responsible for developing, adopting, and
products, and foreign direct investment.
evaluating operational policies and programs. The council
is composed of 32 appointed members—16 from
The Global Environment Facility
developing countries, 14 from developed countries
(including the United States), and two from countries with
economies in transition. The council meets every six
The Global Environment Facility (GEF) is an independent
months. Formal voting goes before the GEF Assembly,
international financial institution that provides grants,
which is composed of representatives from all member
promotes cooperation, and fosters actions in developing
countries. The GEF Secretariat, based in Washington, DC,
countries to protect the global environment. Established in
services and reports to the council and the assembly and
1991, it unites 183 member governments and partners with
formulates the work program, oversees implementation, and
international institutions, nongovernmental organizations,
ensures that operational policies are followed.
and the private sector to assist developing countries with
environmental projects related to six areas: biodiversity,
Funding
climate change, chemicals, land degradation, international
waters, and forest management. Since its inception, the
The GEF is funded by contributions from member
GEF has allocated $13.5 billion—supplemented by more
governments. GEF funding is designed to provide grants to
than $65 billion in co-financing—for more than 3,900
cover the “incremental” costs associated with transforming
projects in over 165 countries. Information on GEF
a development project with national benefits into one with
activities, organization, policies, projects, and contributions
global environmental benefits (e.g., choosing wind
is available on its website, at http://www.thegef.org/gef/.
technology over coal technology meets the same national
development goal of power generation but may be more
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The Global Environment Facility (GEF)
costly, excluding long-term environmental externalities;
As Congress considers potential authorizations and/or
GEF grants aim to cover the difference or “increment”
appropriations for the GEF, it may have questions
between investing in a less costly, more polluting option or
concerning existing bilateral and multilateral programs that
a costlier, more environmentally sound option). In this way,
address international environmental issues. Some concerns
GEF funding is structured to “supplement” base project
may include the cost, purpose, direction, efficiency, and
funding and provide for the environmental components in
effectiveness of these programs, as well as the relationship
national development agendas.
between international development assistance for the
environment and the interests of industry, investors,
Replenishments: GEF member governments pledge money
humanitarian efforts, national security, and international
every four years through a process known as the GEF
leadership. For more discussion on the benefits and costs of
replenishment. The process of replenishment was designed
international environmental assistance, see CRS Report
to allow for program flexibility, strategic planning, and
R41845, The Global Climate Change Initiative (GCCI):
periodic performance evaluations. The original GEF pilot
Budget Authority and Request, FY2010-FY2016.
program of $1 billion has been replenished six times with
$2.01 billion in 1994, $2.67 billion in 1998, $2.93 billion in
Table 1. U.S. Contributions to GEF by Fiscal Year
2002, $3.13 billion in 2006, $4.34 billion in 2010, and
$4.43 billion in 2014.
Fiscal
Pledged
Contributed
Year
(USD millions)
(USD millions)
U.S. Commitments: The United States supported the
establishment of the GEF in 1991. While the United States
1994 $0
$30.0
did not provide direct funding to the pilot phase of the
1995 $107.5
$90.0
program (1991-1993), it has made commitments and
contributions to all six GEF replenishments. U.S.
1996 $107.5
$35.0
commitments to the various replenishment cycles have been
1997 $107.5
$35.0
$430 million in 1994, $430 million in 1998, $430 million in
2002, $320 million in 2006, $575 million in 2010, and $546
1998 $107.5
$47.5
million in 2014, for a total of $2.731 billion. U.S.
1999 $107.5
$167.5
commitments correspond to 13.3% of total commitments
during the history of the institution.
2000 $107.5
$35.8
2001 $107.5
$107.8
U.S. Contributions: Payments made by the U.S. Treasury
to the World Bank as trustee for the GEF have varied
2002 $107.5
$100.5
widely over the years, largely reflecting budget trends. For
FY2015, P.L. 113-235 was enacted in December 2014 with
2003 $107.5
$146.8
a budget authority of $136.563 million for the GEF. For
2004 $107.5
$138.4
FY2016, the Administration has requested $168.263
million, including $136.6 million for the second installment
2005 $107.5
$106.7
of the GEF-6 pledge and $31.7 for a portion of the GEF-5
2006 $107.5
$79.2
arrears. See Table 1 for a summary of U.S. commitments
and contributions to the GEF.
2007 $80.0
$79.2
2008 $80.0
$81.1
Arrears: For FY1994 through FY2014, direct payments by
the United States to the trustee of the GEF totaled close to
2009 $80.0
$80.0
$2 billion. As of the latest “Trustee Report,” furnished to
2010 $80.0
$86.5
the GEF in November 2014, the United States was $247.9
million in arrears of its pledged commitments. The United
2011 $143.8
$89.8
States is joined in arrears status by four other countries:
2012 $143.8
$119.8
Egypt ($0.8 million), Nigeria ($1.0 million), Spain ($22.4
million), and Brazil ($4.1 million).
2013 $143.8
$124.8
Issues for Congress
2014 $143.8
$143.8
2015 $136.6
$136.6
Congressional committees of jurisdiction over the GEF
include the U.S. House of Representatives Committees on
2016 $136.6 TBD
Foreign Affairs, Financial Services, and Appropriations and
Total $2,458.2
$2,061.8
the U.S. Senate Committees on Foreign Relations and
Appropriations. The GEF, as a part of U.S. multilateral
Source: CRS, from the U.S. Department of the Treasury.
assistance, is managed by the U.S. Department of the
Richard K. Lattanzio, rlattanzio@crs.loc.gov, 7-1754
Treasury and is funded through the Administration’s
Executive Budget, Function 150 account, for State, Foreign

Operations, and Related Programs.
IF10144
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