At a time when global environmental finance was still emerging, the GEF’s first overall performance study tested whether the restructured Facility could deliver on its mandate.

Commissioned by the GEF Council in 1996 and prepared for the 1998 Assembly in New Delhi, the evaluation drew on fieldwork in 10 countries, smaller studies in 6 others, and consultations with governments, agencies, nongovernmental organizations, and private stakeholders.

It finds that while the GEF mobilized significant cofinancing and established itself as a distinctive funder in its focal areas, the principle of “new and additional” resources remains unclear, leveraging—particularly from the private sector—has been limited, and financial sustainability of projects is a concern.

At the country level, weak Focal Point systems, limited awareness outside government circles, and reliance on foreign consultants constrained ownership, though projects influenced national policies and strategies. Institutionally, progress in mainstreaming environmental objectives within Implementing Agencies was slow, while project cycle delays, incremental cost methodologies, and governance constraints hindered efficiency.

The report recommends strengthening mainstreaming, clarifying additionality, improving Focal Point capacity, addressing sustainability risks, and enhancing outreach to secure greater impact.