The Global Environment Facility (GEF)

The Global Environment Facility (GEF)

Updated October 2, 2019
The Global Environment Facility (GEF)
International Environmental Assistance
Organizational Structure
International Agencies: The GEF partners with 18
Many governments hold that environmental degradation
international agencies that contribute to the development,
and climate change pose international and trans-boundary
management, and delivery of its projects. They include the
risks to human populations, economies, and ecosystems. To
Asian Development Bank, African Development Bank,
confront these challenges, governments have negotiated
Development Bank of Latin America, Conservation
various international agreements to protect the
International, Development Bank of Southern Africa,
environment, reduce pollution, conserve natural resources,
European Bank for Reconstruction and Development,
and promote sustainable growth. While some observers call
Ministry of Environmental Protection of China, Food and
upon industrialized countries to take the lead in addressing
Agriculture Organization, Fundo Brasileiro para a
these issues, many recognize that efforts are unlikely to be
Biodiversidade, Inter-American Development Bank,
sufficient without similar measures being taken in lower-
International Fund for Agricultural Development,
income countries. However, lower-income countries, which
International Union for Conservation of Nature, United
tend to focus on poverty reduction and economic growth,
Nations Development Programme, United Nations
may not have the financial resources, technological know-
Environment Programme, United Nations Industrial
how, and/or institutional capacity to deploy
Development Organization, West African Development
environmentally protective measures on their own.
Bank, World Bank Group, and World Wildlife Fund.
Therefore, international financial assistance, or foreign aid,
has been a principal method for governments to support
International Conventions: The GEF is the primary fund
actions on global environmental problems in lower-income
administrator for four Rio (1992 Earth Summit)
countries. Often, this assistance can serve as a cost-effective
Conventions, including the Convention on Biological
strategy for donor countries to provide greater market
Diversity, the U.N. Framework Convention on Climate
access for domestic goods and services abroad and
Change, the Stockholm Convention on Persistent Organic
increased environmental benefits at home.
Pollutants, and the U.N. Convention to Combat
Desertification, as well as the Minamata Convention on
The United States and other industrialized countries have
Mercury. The GEF also establishes operational guidance for
committed to providing financial assistance for global
ocean and ozone protection activities, the latter consistent
environmental initiatives through a variety of multilateral
with the Montreal Protocol.
agreements, including the Montreal Protocol (1987), the
U.N. Framework Convention on Climate Change (1992),
Internal Organization: The GEF’s main decisionmaking
and the U.N. Convention to Combat Desertification (1994).
body is the GEF Council, which is an independent board of
International financial assistance takes many forms, from
governors responsible for developing, adopting, and
fiscal transfers to market transactions. It may include
evaluating operational policies and programs. The council
grants, loans, loan guarantees, export credits, insurance
is composed of 32 appointed members—16 from
products, and private sector investment. It may be
developing countries, 14 from developed countries
structured as official bilateral development assistance or as
(including the United States), and two from countries with
contributions to multilateral development banks and other
economies in transition. The council meets every six
international financial institutions.
months. Formal voting goes before the GEF Assembly,
which is composed of representatives from all member
The Global Environment Facility
countries. The GEF Secretariat, based in Washington, DC,
services and reports to the council and the assembly,
The Global Environment Facility (GEF) is an independent
formulates the work program, oversees implementation, and
international financial institution that provides grants,
ensures that operational policies are followed.
promotes cooperation, and fosters actions in developing
countries to protect the global environment. Established in
Information on GEF activities, policies, and projects is
1991, it unites 183 member governments and partners with
available on its website, at http://www.thegef.org/gef/.
international institutions, nongovernmental organizations,
and the private sector to assist developing countries with
Funding
environmental projects related to six areas: biodiversity,
The GEF is funded by contributions from member
climate change, chemicals, land degradation, international
governments. GEF funding is designed to provide grants to
waters, and forest management. Since its inception, the
cover the “incremental” costs associated with transforming
GEF has allocated $18 billion—supplemented by more than
a development project with national benefits into one with
$94 billion in co-financing—for more than 4,500 projects in
global environmental benefits. (For example, choosing
170 countries.
renewable technology over fossil fuel technology provides
for the same national development goal of power generation
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link to page 2 The Global Environment Facility (GEF)
but may be more costly, excluding long-term environmental
address international environmental issues. Some concerns
externalities. GEF grants aim to cover the difference or
may include the cost, purpose, direction, efficiency, and
“increment” between investing in a less costly, more
effectiveness of these programs, as well as the relationship
polluting option or a costlier, more environmentally sound
between international development assistance for the
option.) In this way, GEF funding is structured to
environment and the interests of industry, investors,
“supplement” base project funding and provide for the
humanitarian efforts, national security, and international
environmental components in national development
leadership. For more discussion on the benefits and costs of
agendas.
international environmental assistance, see CRS In Focus
IF10397, The Global Climate Change Initiative (GCCI):
Replenishments: GEF member governments pledge money
Budget Authority and Request, FY2010 - FY2018.
every four years through a process known as the GEF
replenishment. The process of replenishment was designed
Table 1. U.S. Contributions to GEF by Fiscal Year
to allow for program flexibility, strategic planning, and
periodic performance evaluations. The original GEF pilot
Fiscal
Pledged
Contributed
program of $1 billion has been replenished seven times
Year
(USD millions)
(USD millions)
with $2.01 billion in 1994, $2.67 billion in 1998, $2.93
1994
$0
$30.0
billion in 2002, $3.13 billion in 2006, $4.34 billion in 2010,
$4.43 billion in 2014, and $4.10 billion in 2018.
1995
$107.5
$90.0
U.S. Commitments: The United States supported the
1996
$107.5
$35.0
establishment of the GEF in 1991. While the United States
1997
$107.5
$35.0
did not provide direct funding to the pilot phase of the
program (1991-1993), it has made commitments and
1998
$107.5
$47.5
contributions to all six GEF replenishments. U.S.
1999
$107.5
$167.5
commitments to the various replenishment cycles have been
$430 million in 1994, $430 million in 1998, $430 million in
2000
$107.5
$35.8
2002, $320 million in 2006, $575 million in 2010, $546
2001
$107.5
$107.8
million in 2014, and $273 million in 2018, for a total of $3
billion. U.S. commitments correspond to 12.2% of total
2002
$107.5
$100.5
commitments during the history of the institution.
2003
$107.5
$146.8
U.S. Contributions: All U.S. funding is subject to annual
2004
$107.5
$138.4
congressional appropriations. Appropriations have varied
2005
$107.5
$106.7
over the years, largely reflecting budget trends. For FY1994
through FY2018, direct payments by the United States to
2006
$107.5
$79.2
the trustee of the GEF totaled over $2.6 billion. For
FY2019, P.L. 116-6 was enacted on February 15, 2019,
2007
$80.0
$79.2
with a budget authority of $139,575,000 for the GEF. For
2008
$80.0
$81.1
FY2020, the Trump Administration has requested no
additional funding, stating that “the Consolidated
2009
$80.0
$80.0
Appropriations Act, 2019 provides more than double the
2010
$80.0
$86.5
amount requested for FY2019.… This pledge level will
support important international environmental, toxic
2011
$143.8
$89.8
chemical, and biodiversity conservation activities through
2012
$143.8
$119.8
the GEF, while pursuing a more balanced share among
donor countries as we seek to advance shared priorities.”
2013
$143.8
$124.8
See Table 1 for a summary of U.S. commitments and
2014
$143.8
$143.8
contributions.
2015
$136.6
$136.6
Issues for Congress
2016
$136.6
$168.3
Congressional committees of jurisdiction over the GEF
2017
$136.6
$146.6
include the U.S. House of Representatives Committees on
Foreign Affairs, Financial Services, and Appropriations and
2018
$136.6
$139.6
the U.S. Senate Committees on Foreign Relations and
2019
$68.3
$139.6
Appropriations. The GEF, as a part of U.S. multilateral
assistance, is managed by the U.S. Department of the
2020
$68.3
TBD
Treasury and is funded through the Administration’s
Source: CRS, from the U.S. Department of the Treasury.
International Affairs Function 150 account for State,
Foreign Operations, and Related Programs.
Richard K. Lattanzio, Specialist in Environmental Policy
As Congress considers potential authorizations and/or
IF10144
appropriations for the GEF, it may have questions
concerning existing bilateral and multilateral programs that
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The Global Environment Facility (GEF)

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