Washington: The Global Environment Facility (GEF), co-founded by the World Bank Group, the United Nations Environment Programme, and the United Nations Development Programme, has been at the forefront of addressing critical environmental challenges for over 34 years. This partnership has played a key role in supporting developing countries in their pursuit of sustainable development.
According to World Bank, through this collaboration, the World Bank Group has facilitated significant investments in renewable energy, energy efficiency, sustainable transport, biodiversity conservation, and more. The GEF provides external financing that enables the World Bank Group to offer blended and flexible financing options, which often serve as the initial funding for larger projects. This approach not only de-risks investments but also attracts additional private investment, fostering climate and nature-focused solutions.
GEF financing has also contributed to job creation and improved livelihoods, aiding the world’s most vulnerable populations and landscapes. The GEF has approved over 870 projects in 146 countries, supported by nearly US$5.6 billion in funding. This funding has catalyzed approximately US$44 billion in additional investments, emphasizing the GEF’s role in enabling cleaner and greener economic growth.
The impacts of GEF investments are profound, with grants supporting renewable energy and energy efficiency projects, like China’s renewable energy transformation. Furthermore, new financing mechanisms for biodiversity conservation and sustainable land management have been developed, such as the Sahel and West Africa Program, which has leveraged over US$1 billion to enhance food security and climate resilience across 12 countries.
Innovative financial instruments, like the Wildlife Conservation Bond, showcase GEF’s pioneering use of blended finance. This bond funds conservation outcomes, such as increasing black rhino populations in South Africa. The bond’s success would result in investors receiving a success payment, highlighting a novel approach to conservation financing that involves capital market investors and allows for outcome-based funding.