Press release issued by U.S. Department of the Treasury, Office of Public Affairs
Washington, DC
August 7, 2002
The Bush Administration today pledged a significant increase in funding for a fund to help developing countries mitigate environmental problems with potential global impact.
At replenishment talks that concluded today in Washington, the United States pledged $500 million over the next four years for the Global Environment Facility (GEF). The commitment is a 16% increase over its contribution to the previous replenishment. This in turn will help leverage about $2.2 billion in total new donor contributions.
The GEF, established in 1991, funds projects that promote clean and efficient energy use (including reduction of greenhouse gases), conserve biodiversity, clean up international waters and phase out ozone-depleting chemicals. New focal areas to be included in the upcoming replenishment period will help combat problems caused by persistent organic pollutants, which pose a particular threat in areas in the northern U.S., and fight land degradation with a focus on desertification and deforestation in some of the world's poorest countries. The United States is the largest contributor to GEF.
"President Bush wants to ensure that the Global Environmental Facility has the funding it needs to meet its program priorities and the policies in place to use those funds effectively," said John Taylor, Under Secretary of the Treasury. "This pledge, and the policy reforms and performance targets that have been agreed by donors, are vitally important steps forward in meeting these critical objectives."
The U.S. pledge includes $107.5 million per year for each of the four years of the replenishment period, plus another $70 million in the fourth year if the GEF meets a set of performance measurements agreed by donors. In addition, the Administration is requesting $70.3 million from Congress annually for the next three years to pay off U.S. arrears accumulated during he previous replenishment period.
During the replenishment negotiations, the Administration actively pursued measures to improve the effectiveness of GEF assistance, and reached agreement to establish a transparent performance-based allocation system that emphasizes country policies and institutional structures essential to effective assistance. Consensus was also reached on projecting and tracking measurable results, developing a private sector strategy, creating an independent monitoring and evaluation unit, and opening up competition for GEF projects.
[end]
