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Statement by Ad Melkert Associate Administrator United Nations Development Programme
to the THIRD ASSEMBLY OF THE GLOBAL ENVIRONMENT FACILITY
Cape Town, South Africa 29 August 2006


Mr. President, Excellencies, Ladies and Gentlemen.

It gives me great pleasure to address you here in South Africa - the first time that the GEF Assembly meets in Africa.

We meet at a critical time, indeed one year after Hurricane Katrina. Around the world we see an increase in natural and human disasters; in 9 out of 10 cases the poorest are hardest hit. Soil erosion, floods, droughts and pollution threaten the livelihoods of some 2.6 billion people.

Environmental assets provide livelihoods for many poor people. Quite simply, if we do not successfully arrest and reverse environmental degradation, the world stands at a roadblock to attaining the Millennium Development Goals. UNDP strongly believes that sound environmental management is key to poverty reduction and that environmental responsibility and economic benefits are not mutually exclusive.

The work of the Global Environment Facility is essential to these endeavours. Since its inception, the GEF has set the pattern for accelerating global action on the environment. As the international community we have a responsibility to ensure that the GEF-4 does not lose sight of the one objective for which globalisation is an absolute must: equitably preserving precious resources for future generations.

Allow me to highlight three areas of strategic importance for consideration at this GEF Assembly, which I believe will enable the GEF to be a catalyst for international cooperation in the global environment.

First, the GEF must be a catalyst for investment.   On the one hand by ensuring predictability of financing vis-à-vis the magnitude of task, and that the allocation of resources does not compromise the efforts made by the most vulnerable countries - especially Least Developed Countries and Small Island Developing States - to maintain and enhance their natural resource base and make progress towards sustainable development.   On the other hand by promoting greater private sector involvement and innovative sources of financing, beyond technical assistance. We need to develop new markets for ecosystem services like nutrient recycling, climate regulation and water purification and create financial incentives for sustainable development. UNDP is intensifying its focus to find new and innovative mechanisms to fund environmental work and to help build capacity of developing countries to benefit from the enormous untapped potential of environmental markets.

Second , the GEF must be a catalyst to promote international cooperation. strengthening global environmental governance, through existing institutions. The on-going UN Reform discussions have already rallied around a consensus that environment and sustainable development are one of the three pillars for a healthy international system. Consequently, all of the UN system will be called upon to contribute more forcefully to environmental sustainability goals. In this regard, over 90 percent of UNDP Country Offices are already assisting governments to design environmental policies and institutions that reduce poverty and strengthen governance. We will continue to work with partners, in particular UNEP, through our enhanced collaboration on the poverty-environment agenda, to bring about a stronger and more coherent UN system response. Let me add how excited I am with the clean public transport project that we will implement with South Africa. As a fan of both the environment and soccer I am ready to personally come and assess the results by the time of the World Cup final!

In a third area , the GEF must be a catalyst for the work of the major environmental conventions . UNDP is committed to advancing the goals of the major conventions and to supporting countries to reconcile global challenges with national priorities, translating multilateral agreements into actions and ultimately, meaningful change in the lives of ordinary people. While most developing countries have played little part in causing climate change, they are most affected, and least equipped to adapt to its impact on agriculture, food security, water availability and health and weather-related risks. We all need to do more to incorporate climate change adaptation into national policies and to enable local communities to cope with the realities of climate change. The Small Grants Programme, implemented by UNDP on behalf of the GEF, has demonstrated how we can protect the global environment through local action at the community level and should therefore remain a strong component of GEF's commitment.  

GEF partners are well placed to elevate the environmental challenge to the global agenda. Frankly, we should do better than we have done recently to capture the public's attention and thereby increase broad political commitment. Working with UNEP and the World Bank, and strengthening our coordination with GEF Executing Agencies, we are ready to make GEF-4 the catalyst for rallying recognition and resources to meet the sense of urgency for action and international cooperation in the environment that is required at all levels.

Let me end by saying that it is not often that Ministers of Finance put environment on the political agenda. I welcome Minister Trevor Manuel's personal efforts in elevating the environment in this regard. Finally I would like to warmly congratulate Ms. Monique Barbut on her appointment as GEF CEO and Chairperson and to assure her and all Assembly participants that UNDP can be counted on to be a driving force behind the success of GEF-4. We look forward to a productive Assembly meeting here in Cape Town.  

Thank you.



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