Funding crisis may end the Global Environment Facility
31 May 2006
The Global Environment Facility (GEF) is in danger of collapse after signals from the US that it will halve its funding contribution.
The GEF was founded in 1991 and is the key multilateral mechanism for financing environmental protection in developing countries. The GEF facilitates developing country treaty commitments on climate change, international waters, biodiversity, ozone protection, land degradation and persistent toxic chemicals.
Replenishment of GEF's finances is decided every five years. The current round of negotiations are at a crucial stage ahead of a meeting in New York on 5 June, World Environment Day.
While Australia has been one of many valued donor countries to the GEF, the United States - which contributes about 20 percent of the GEF budget - has now indicated that it is likely to reduce its contribution by almost half.
"This would put the continued existence of this vital international development and environmental protection instrument in doubt," said WWF-Australia's International Programs Manager, Mark Otter.
GEF finances are structured on a burden-sharing arrangement which could see other countries scaling back their support if the US reduces its engagement.
The GEF would fall from a projected US$3.3 billion fund over five years to around US$1.5 billion.
WWF-Australia urges the Australian Government to take whatever measures are in its power to urge the United States Government not to reduce its support for the GEF.
If the United States halves its funding, Australia must take what action it can to prevent the invocation of the burden sharing arrangement.
The Australian Government must also work with other wealthy countries to ensure funds it has already budgeted for the GEF ($19.1 million in 2006-07) are directed to an alternative fund to ensure that there is an effective multilateral instrument to protect the world's environment.
"Australia has a global responsibility to do what it can to ensure that the GEF survives. It is also a developed country whose neighbours are almost entirely developing countries who receive a large part of their environmental funding from the GEF," Mr Otter said.
Find out more
Mark Otter, International Programs Manager, WWF-Australia
Mobile: 0438 652 696
Notes
GEF Funding: Since 1991, the GEF has provided $6.2 billion in grants and generated over $20 billion in co-financing from other sources to support over 1,800 projects that produce global environmental benefits in 140 developing countries and countries with economies in transition.
