RAF Frequently Asked Questions

What is the Resource Allocation Framework?

The Resource Allocation Framework (RAF) is a new system adopted by the GEF Council in September 2005 to allocate GEF resources to recipient countries based on global environmental priorities and country-level performance. The RAF is designed to increase the predictability and transparency in the way GEF allocates resources.

When is the RAF system being implemented?

The RAF began implementation with the start of the fourth replenishment period of the GEF (on or after July 1, 2006).

Will all GEF resources available in GEF4 be allocated under the RAF?

No. Initial implementation is limited to biodiversity and climate change projects. GEF resources for international waters, land degradation, persistent organic pollutants, and ozone depletion will continue to be allocated using the existing systems. Resource allocations for the small grants program and cross-cutting capacity development activities are also exempted from the RAF.

When will the RAF be used to allocate resources beyond the initial focal areas covered?

In September 2005, the GEF Council decided (1) to use the new RAF to allocate resources during GEF-4 for biodiversity and climate change projects only and (2) to examine the feasibility of developing the indicators necessary for extending the RAF to the other focal areas during the mid-term review of the RAF in 2008.

How does the RAF increase transparency and predictability?

The RAF increases transparency by specifying a well-defined and publicly disclosed method for allocating resources to countries. The RAF increases predictability by specifying at the beginning of each four-year replenishment period the resources each eligible country can expect from the GEF during the four years of the replenishment period, and how these initial allocations will be updated at the middle of the replenishment period.

What countries are eligible to receive GEF resources?

Eligibility for GEF resources is defined in the GEF instrument and is separately determined for each focal area. In all cases, a country has to be a party to the relevant international convention to be eligible for resources under a focal area. In addition, a country has to be either eligible based on the guidance of the convention or be a developing country that is eligible to borrow from the World Bank or for technical assistance from UNDP.

What is the total amount of money that will be allocated based on the RAF?

The distribution of resources across different focal areas during each GEF replenishment period is agreed to during negotiations for the replenishment. All of the resources agreed for climate change and biodiversity during GEF4 are allocated based on the RAF. The resources available for biodiversity and climate change in GEF4 are $1,000 million and $1,000 million respectively.

How are the allocations for an eligible country determined?

The indicative allocations for an eligible country are based on a formula subject to adjustments for a minimum allocation and a ceiling.

What is the formula used to determine allocations?

The formula combines two indices -- the GEF Benefits Index and the GEF Performance Index -- to determine the share of resources that each country is allocated. A country’s share increases with higher values of each index. The GEF Benefits Index measures the potential of a country to generate global environmental benefits while the GEF Performance Index measures a country’s capacity, policies and practices relevant to successful implementation of GEF programs and projects.

What is the greatest and least amount of money a country can expect from the GEF during the 4 years of GEF4?

Each eligible country can expect to receive a minimum allocation of $1 million each for biodiversity and climate change. Additional resources are available to each eligible country based on a formula. The total amount that a country receives cannot exceed ceiling amounts of 15% of the resources available to the GEF for climate change and 10% of the resources available to the GEF for biodiversity.

How can a country increase its allocations?

Adoption and implementation of policies and practices that lead to successful implementation of GEF projects is the quickest way to increase country allocations. Country allocations will also increase over the medium to long term through increases in a country’s potential to generate environmental benefits

Will the allocations be disclosed publicly?

Yes. The initial indicative allocations for all eligible countries for GEF4 were publicly disclosed in September 2006. They can be found in the RAF public disclosure document: English, French, Spanish. The initial allocations will be revised based on the formula after two years of RAF implementation.

What can the allocated resources be used for?

The allocated resources can only be used to pay for the incremental costs incurred by countries in generating global environmental benefits.

Are these resources entitlements?

Resources that are not used are not entitlements, but revert back to the GEF trust fund at the end of each replenishment period.

Does the RAF change the GEF project cycle?

The RAF does not change the GEF project cycle. The GEF is in the process of streamlining its project cycle as part of a larger set of policy and procedural reforms it is undertaking independent of the RAF. All projects whether under the RAF or outside it need to follow the GEF project cycle

Each country needs to work with a GEF Implementing/Executing agency to develop and prepare concepts for review, pipeline entry and work program inclusion. Knowing country allocations, however, enables each country to prioritize across projects. In addition, the RAF should allow each country to better integrate GEF projects into their normal development operational cycle on the basis of the expected GEF resources.

How does the RAF fit into each country’s development operational cycles?

Each country can better integrate GEF projects into their normal development operational cycle on the basis of the expected GEF resources.

How does the RAF affect a country’s ability to meet global environmental convention targets?

Each country can choose how its allocations are spent to meet the various country level targets of the environmental conventions. The RAF does not stipulate how a country will spend its allocations in a focal area as long as the supported project provides global environmental benefits.

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