GEF Training for New Agencies 1 November 2013 Washington D.C. The System for Transparent Allocation of Resources (STAR) Sonja S. Teelucksingh.

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GEF Training for New Agencies 1 November 2013 Washington D.C. The System for Transparent Allocation of Resources (STAR) Sonja S. Teelucksingh Slide 2 Outline Background The Workings of the STAR model An Example Calculation A Short Quiz Slide 3 Background The STAR is the current mechanism by which GEF resources are allocated to three focal areas Biodiversity, Climate Change, and Land Degradation The Resource Allocation Framework (RAF) was adopted for GEF-4; The STAR updated the RAF and was implemented for GEF-5; implementation began in July 2010 When the STAR model is applied, this yields allocation amounts for countries for each of these focal areas Slide 4 Objectives STAR aims to allocate scarce GEF resources within and among focal areas in order to: maximise impact on the global environment promote sound environmental policies and practices meet convention requirements match country driven priorities Slide 5 Slide 6 Calculating STAR Allocations 1 Determine Available Focal Area Funds 2 Calculate Country Scores 3 Calculate Preliminary Country Allocations 4 Adjust for Floors and Ceilings 5 Obtain Final Allocations 6 Determine post-allocation Flexibilities Slide 7 Available Focal Area Funds Slide 8 Calculating STAR Allocations 1 Determine Available Focal Area Funds 2 Calculate Country Scores 3 Calculate Preliminary Country Allocations 4 Adjust for Floors and Ceilings 5 Obtain Final Allocations 6 Determine post-allocation Flexibilities Slide 9 The Main Indices Global Benefits Index: measures a countrys relative share of GEF potential benefits that can be generated by a fixed amount of resource input into a focal area Country Performance Index: measures a countrys performance and capacity to deliver potential global environmental benefits GDP Index: designed to increase allocation of countries with a low GDP per capita Slide 10 COUNTRY SCORE Global Benefits Index BiodiversityClimate Change Land Degradation Country Performance Index GDP Index The Country Score Country Score = GBI 0.8 CPI 1.0 GDP -0.04 Slide 11 Calculating STAR Allocations 1 Determine Available Focal Area Funds 2 Calculate Country Scores 3 Calculate Preliminary Country Allocations 4 Adjust for Floors and Ceilings 5 Obtain Final Allocations 6 Determine post-allocation Flexibilities Slide 12 Preliminary Country Allocations Country Share = Country Score / Sum of Country Scores for all eligible countries Preliminary Allocation = Country Share * Focal Area Resources (less 20% set- asides Slide 13 Calculating STAR Allocations 1 Determine Available Focal Area Funds 2 Calculate Country Scores 3 Calculate Preliminary Country Allocations 4 Adjust for Floors and Ceilings 5 Obtain Final Allocations 6 Determine post-allocation Flexibilities Slide 14 Floors and Ceilings Focal Area Floor (US Mn) Ceiling Percentages Ceilings (US Mn) Climate Change 211%149.6 Biodiversity1.510%121 Land Degradation 0.510%40.5 Slide 15 Calculating STAR Allocations 1 Determine Available Focal Area Funds 2 Calculate Country Scores 3 Calculate Preliminary Country Allocations 4 Adjust for Floors and Ceilings 5 Obtain Final Allocations 6 Determine post-allocation Flexibilities Slide 16 Final Allocations Adjustments for floors and ceilings means there is a surplus or deficit relative to the preliminary allocation This is then allocated among countries using the country scores Process iterates until the full amount has been allocated among countries Slide 17 Calculating STAR Allocations 1 Determine Available Focal Area Funds 2 Calculate Country Scores 3 Calculate Preliminary Country Allocations 4 Adjust for Floors and Ceilings 5 Obtain Final Allocations 6 Determine post-allocation Flexibilities Slide 18 Flexibilities and Marginal Adjustments Flexibilities relate to the utilization(not allocation) of GEF resources Countries are allowed to adjust their focal area allocations (but not their total envelope) according to different rules Total Allocation XAllowed Marginal Adjustment X 7 millionunlimited 7 < X 20 million200 000 20 < X 100 million1 million X > 100 million2 million Slide 19 Example Calculation: Trinidad and Tobago BIODIVERSITYCLIMATE CHANGELAND DEGRADATION GBI0.210.120.32 CPI3.62 GDPI17860.99 COUNTRY SCORE (GBI 0.8 CPI 1.0 GDP -0.04 ) 0.700.450.98 SUM OF COUNTRY SCORES239.68199.32255.40 COUNTRY SHARE0.002930.002250.0038 FOCAL AREA ALLOCATION 9681088324 PRELIMINARY COUNTRY ALLOCATION 2.842.451.23 FINAL COUNTRY ALLOCATION 2.742.941.24 TOTAL ALLOCATION = 6.92 MILLION (FULLY FLEXIBLE COUNTRY) Slide 20 Slide 21 Question 1 Given the following values, calculate the Country Scores for Country A for each of the three focal areas. BIODIVERSITY CLIMATE CHANGE LAND DEGRADATION GBI0.050.00070.28 CPI3.60 GDPI6018.87 COUNTRY SCORE??? Slide 22 Question 2 Country B has the following STAR allocations: Biodiversity = 10 million Climate Change = 6 million Land Degradation = 6 million (a)Does this country have full flexibility in the use of its resources? Why, or why not? (b) Is this country allowed any marginal adjustment across focal areas? If so, how much? Slide 23 Question 3 During the STAR model simulations, Country C has preliminary allocations as follows: Comment on these values. (hint floors!) BIODIVERSITY CLIMATE CHANGE LAND DEGRADATION PRELIMINARY ALLOCATIONS 110.7 Slide 24 Thank You Sonja S. Teelucksingh +1 202 458 84004 [email protected]