Focal Area and Cross Cutting Strategies Chemicals

GEF Training for New Agencies1 November 2013Washington D.C.The System for Transparent Allocation of Resources (STAR)

Sonja S. Teelucksingh1OutlineBackground

The Workings of the STAR model

An Example Calculation

A Short Quiz

2BackgroundThe 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

ObjectivesSTAR 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

Calculating STAR AllocationsAvailable Focal Area FundsCalculating STAR AllocationsThe Main IndicesGlobal 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 capitaThe Country ScoreCountry Score = GBI0.8 CPI 1.0 GDP-0.04Calculating STAR AllocationsPreliminary Country AllocationsCountry Share = Country Score / Sum of Country Scores for all eligible countries

Preliminary Allocation = Country Share * Focal Area Resources (less 20% set-asides

Calculating STAR AllocationsFloors and CeilingsFocal AreaFloor (US Mn)Ceiling PercentagesCeilings (US Mn)Climate Change211%149.6Biodiversity1.510%121Land Degradation0.510%40.5Calculating STAR AllocationsFinal AllocationsAdjustments 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 countriesCalculating STAR AllocationsFlexibilities and Marginal AdjustmentsFlexibilities relate to the utilization(not allocation) of GEF resourcesCountries are allowed to adjust their focal area allocations (but not their total envelope) according to different rules

Total Allocation XAllowed Marginal AdjustmentX 7 millionunlimited7 < X 20 million200 00020 < X 100 million1 millionX > 100 million2 millionExample Calculation: Trinidad and TobagoBIODIVERSITYCLIMATE CHANGELAND DEGRADATIONGBI0.210.120.32CPI3.62GDPI17860.99COUNTRY SCORE(GBI0.8 CPI 1.0 GDP-0.04)0.700.450.98SUM OF COUNTRY SCORES239.68199.32255.40COUNTRY SHARE0.002930.002250.0038FOCAL AREA ALLOCATION 968 1088324PRELIMINARY COUNTRY ALLOCATION2.842.451.23FINAL COUNTRY ALLOCATION2.742.941.24TOTAL ALLOCATION = 6.92 MILLION(FULLY FLEXIBLE COUNTRY)

Question 1Given the following values, calculate the Country Scores for Country A for each of the three focal areas.

BIODIVERSITYCLIMATE CHANGELAND DEGRADATIONGBI0.050.00070.28CPI3.60GDPI6018.87COUNTRY SCORE ???Question 2Country B has the following STAR allocations:Biodiversity = 10 millionClimate Change = 6 millionLand Degradation = 6 million

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?

Question 3During the STAR model simulations, Country C has preliminary allocations as follows:

Comment on these values. (hint floors!)BIODIVERSITYCLIMATE CHANGELAND DEGRADATIONPRELIMINARY ALLOCATIONS110.723Thank YouSonja S. Teelucksingh+1 202 458 84004steelucksingh@thegef.org