In earlier replenishment periods, the GEF lacked a formal mechanism for countries to set priorities before submitting project concepts, which led to delays, fragmented pipelines, and concerns about transparency. 

National Portfolio Formulation Exercises (NPFEs), launched in 2010, aimed to close this gap by helping countries define programming needs in a structured and inclusive way.

At the request of the Council, the IEO conducted a mid-term evaluation in 2013 covering 42 participating countries, of which 34 finalized national portfolio formulation documents and 24 received GEF funding support. Using portfolio reviews, surveys, and interviews, the evaluation assessed the relevance, effectiveness, and efficiency of NPFEs and their effect on project pipelines.

The evaluation finds that NPFEs clarify priorities, improve transparency, and strengthen coordination across ministries, civil society, and the private sector.

They also support programming under the System for Transparent Allocation of Resources (STAR), though uptake is limited and capacity constraints persist in least developed countries and small island states.

The report recommends continuing NPFEs, ensuring Secretariat-led implementation to avoid Agency bias, conducting them before replenishment cycles, and strengthening capacity-building support.