Previous Year Question
With reference to Global Environment Facility, which of the following statements is/are correct?
It was established in 1991.
Only the developed countries are donors to it.
Select the correct answer from the code given below:
Only 2
Neither 1 nor 2
Both 1 and 2
Only 1
Correct Answer: D
Detailed Solution
Statement 1 is correct. The Global Environment Facility (GEF) was established in 1991 as a Pilot Financing Programme. Its objective was to provide financial and technical assistance to developing countries to address global environmental problems. The World Bank, United Nations Development Programme (UNDP), and United Nations Environment Programme (UNEP) played major roles in its initial establishment. In 1994, it underwent Restructuring and became a separate institutional arrangement, while the World Bank continued to serve as its Trustee. The GEF primarily supports projects related to biodiversity conservation, climate change, land degradation, international water resources, and pollution control.
Statement 2 is incorrect. Donors to the Global Environment Facility include both developed and developing countries, rather than developed countries alone. According to the GEF's official records, 40 countries have contributed to the GEF Trust Fund since its establishment. These include developed countries such as the United States, Japan, Germany, and France, along with developing countries such as India, China, Brazil, Bangladesh, South Africa, and Mexico. Financial resources received from donor countries are used to support projects generating global environmental benefits in developing countries and Economies in Transition.
The GEF has five major Focal Areas—Biodiversity, Climate Change, Land Degradation, International Waters, and Chemicals and Waste. It serves as a Financial Mechanism for international environmental agreements such as the Convention on Biological Diversity (CBD), United Nations Framework Convention on Climate Change (UNFCCC), United Nations Convention to Combat Desertification (UNCCD), Stockholm Convention, and Minamata Convention. Under these agreements, assistance is provided for projects related to forest and wildlife conservation, reduction of greenhouse gas emissions, ecological restoration, and control of hazardous chemicals.
The GEF Financing Mechanism is based on contributions from donor countries and periodic Replenishment of funds. Resources of the GEF Trust Fund are generally replenished every four years. The institution provides Grants and, under certain circumstances, Concessional Financing to eligible countries. Its major governing bodies include the Assembly, Council, and Secretariat. The 32-member GEF Council makes important decisions concerning projects and operational policies, while financial assistance is delivered through various Implementing Agencies. This arrangement helps developing countries fulfil their international commitments related to global environmental protection.