GLOBAL ENVIRONMENT FACILITY (GEF)

GEF on the web: http://www.gefweb.org

The Global Environment Facility was established to forge international cooperation and finance actions to address four critical threats to the global environment: biodiversity loss, climate change, degradation of international waters, and ozone depletion. Related work to stem the pervasive problem of land degradation is also eligible for GEF funding. GEF has three ‘implementing agencies’ — the World Bank, the UN Environment Programme (UNEP) and the UN Development Programme (UNDP) with the World Bank being by far the strongest member of the GEF trinity.

Launched in 1991 as an experimental facility, GEF was restructured after the Earth Summit in Rio de Janeiro to serve the environmental interests of people in all parts of the world. The facility that emerged after restructuring was more strategic, effective, transparent, and participatory. In 1994, 34 nations pledged $2 billion in support of GEF's mission; in 1998, 36 nations pledged $2.75 billion to protect the global environment and promote sustainable development.

Developing countries could not push the ‘polluter pays’ and liability principles. GEF was set up in vague recognition of the fact that the world’s ecosystems are suffering due to lack of financial resource, not the South’s call for compensation for environ-mental damages caused by the North. GEF funds would come as aid, not compensation, demanded by the South since the 1980s, for compromising their own development to safeguard the larger part of the world’s remaining natural wealth.

Critics say, the GEF has failed so far to correct the balance of decision-making power between developing and industrialised countries, or involve local communities in its projects. It has been demanded that the GEF operate on principles where the North pays for their share of benefits from global common property like the atmosphere and oceans, also incorporting the environmental cost of internationally traded commodities.