State Secretary Olav Kjørven

GEF 2nd Assembly - Norway

Beijing 16 October, 2002

Mr. President,

The Johannesburg Summit has brought the world community closer to a common understanding of the greatest challenges we face, and made it clearer than ever that the time has come for action. Meeting the Millennium Development Goals represents an enormous challenge. In order to make sound, long-term progress, these goals must be met while, and by, moving towards sustainability. For this we need, and we must use, the Global Environment Facility. The GEF can help the world make the required transitions to sustainability.

The Government of Norway believes the GEF is on the right track in this regard. The replenishment is providing a solid basis for moving ahead. Two new focal areas have been included. We welcome the new climate funds and particularly the least developed countries’ fund. We are pleased to contribute new and additional resources for this fund. We are also prepared to discuss with the GEF new co-financing opportunities related to the so-called WEHAB areas, to which Norway pledged significant fresh resources at the World Summit.

Mr. President,

The key test for GEF’s ability to live up to its name is, in our view, whether it can make significant progress as a multiplier of financial resources, both public and private. Co-financing and partnerships that can catalyze and multiply investments in the global environment must be a key priority. If not, this grand venture which the GEF is, may fail to meet our expectations over the next few years. I think the recent Overall Performance Study – a thorough report that we highly appreciate - brings this out very clearly.

In this regard, we welcome the expanded opportunities for the Regional Development Banks and other agencies. Norway takes it for granted that they will also play their part in mainstreaming GEF objectives and bringing in the private sector and civil society so that they, along with the implementing agencies, can be true multipliers for the global environment.

Given that demand for GEF funds now outstrips supply, I would like to stress the need for strategic planning and strict priority setting. Equally important, of course, is real country ownership. Countries must show that they are willing to integrate GEF objectives and programmes into national priorities and strategies, not least poverty reduction strategies.

We agree with the recommendation of the OPS that GEF should give particular support to countries with effective national policies that promote measures to stabilize the climate, stem the loss of biodiversity and phase out toxic chemicals.

Mr. President,

The links between poverty and land degradation are obvious. Since the latter has now become a new focal area, it will be essential for GEF to act in the closest possible understanding with host governments on how its resources can be put to meaningful use. Close coordination with other donor agencies in each country will also be imperative. This does not mean that we favour any dilution of the incremental cost principle.

We accept, however, that the incremental cost concept can at times be difficult to apply in practice, and support further clarification where necessary.

GEF will now also be providing substantial resources in support of the Convention on Persistent Organic Pollutants. An excellent early example is the African Stockpiles Programme. Norway attaches great importance to keeping the door open for measures to also phase out heavy metals like mercury and other dangerous substances.

We also hope to see continued GEF support for phasing out persistent toxic substances and for biodiversity and climate projects in North West Russia and the Arctic.

Mr. President,

The performance study points to necessary improvements internal to the GEF family in order better to tackle the challenges ahead, not least that of becoming a better multiplier. We are pleased to note that these are well under way. The increased independence and strengthening of the Monitoring and Evaluation Unit should help strengthen and ensure quality, learning and accountability.

Finally, Mr. President, this statement would not be complete without a tribute to Mr. Mohamed El-Ashry and the excellent way in which he has run the GEF ever since the beginning. Allow me to be a bit personal. I had the fortune of watching, at close range, the GEF come into being as I laboured under Mohamed as my principal boss at the World Bank in the early 1990s. I know that without his skilful leadership and ability to get people to agree on the best solutions, GEF today would be a far less significant player when it comes to tackling global environmental problems. Mohamed has set a very high standard. May his successor not be deterred by this standard, and may we all allow her or him to live up to it.

Thank you, Mr. President.