Statement by H.E. Dr. M. Javad Zarif

Deputy Foreign Minister for International and Legal Affairs

of the Islamic Republic of Iran

before the First Assembly of the Global Environment Facility

New Delhi, April 2, 1998

 

 

In the name of God, the Compassionate, the Merciful

 

Mr. Chairman,

 

The emergence of a more propitious international environment following the collapse of the bi-polar world has provided the possibility for joint quest, on a global scale, for solutions to common problems facing humanity. Efforts towards setting standards of behavior in the post-Cold-War era -- based on the rule of law and common but differentiated responsibility of global actors -- has gained momentum and aroused unprecedented enthusiasm over the past several years. As the first in a series of high-level world conferences held since 1990 to address a wide range of pressing issues, the United Nations Conference on Environment and Development was indeed a timely response to the formidable challenges involved in this field.

 

The Rio Summit and its outcomes, in particular Agenda 21, raised great hopes at all levels and created a great momentum towards the realization of sustainable development. As clearly underlined by the international community in the course of the UNGASS last year, the state of the world environment continues to deteriorate.  In the words of President Khatami, addressing the recent Ministerial Meeting of the Regional Organization for the Protection of Marine Environment in the Persian Gulf area, “today, the threats posed to the human life by the polluted environment are greater than those of destructive wars.” And yet, the global response seems to fall far short of the mark. While elaboration of international legal instruments and agreements has been pursued with unparalleled vigor, fulfillment of commitments undertaken in Rio and within the framework of Agenda 21, including in the field of environment protection, are yet to be realized and translated into practical action. Effective and meaningful protection of the global environment does indeed require provision of adequate financial resources and transfer of environmentally sound technologies and corresponding know how, information and data to the developing countries. 

 

Within this general framework, the establishment and restructuring of the Global Environment Facility (GEF) can certainly be considered among the significant achievements of the international community in the field of joint efforts geared to the protection of environment. Although only 4 years old, it has a positive performance to its credit; a record to be cherished and preserved and, most certainly, to be further entrenched and strengthened.

 

Mr. Chairman,

 

The new GEF has been able to provide funding for projects in a large number of developing countries. Magnitude of the problem, however, calls for a more vigorous effort on a much larger scale. This first GEF Assembly provides us with a unique opportunity to discuss the policies and operations of GEF, its strengths and weaknesses, as well as possible ways and means to increase the effectiveness, quality, and efficiency of its activities. In this respect, I would like to bring the following points to the attention of this august gathering. In our view, their serious consideration by the Assembly is imperative for a stronger and more effective GEF.

 

Solid and timely replenishment of GEF, commensurate with  global environmental goals and based on national priorities must be ensured. Replenishment should not be linked to any other issue which may act, even inadvertently, as conditionality  in one form or another. In this respect, the major contributors must be urged to pay their arrears. 

 

A more focused policy and program, together with an institutionalized scrutiny of the scope of the activities of GEF-wide system, would render the Facility more practical and manageable. The thrust of the system must be to meet the requirements of operational  activities of GEF -- as mandated by the “GEF Instrument” -- rather than building a new “Center of Excellence.”  

 

In addition to the four focal areas assigned to the Facility, there are other areas which enjoy international dimension, and hence, fall within the purview of its activities. Therefore, consistent with its mandate, GEF could  and should  examine the need to increase the number of focal areas and operational programs to include, inter alia, desertification and aforestation.

 

The incremental cost is a key concept in GEF financing. Despite lengthy discussions on this subject in the past and the approval of a decision by the GEF Council, it still continues to be a complex and controversial issue. In our view,  supporting  projects with both domestic  and global environmental benefits would make the Facility more responsive to its mandate as well as to the real needs on the ground. Our collective efforts towards harmonizing GEF projects  with national sustainable development needs and priorities would accelerate the integration of environmental concerns into the national development policies and programs.  This would further contribute to the post-project sustainability of GEF-supported projects. Against this backdrop, a flexible approach to incremental costs that allows a balance between GEF objectives and  national priorities is recommendable. In other words, without prioritizing the concerns of one or the other, a balanced approach must constitute the frontispiece of GEF policies and operations.

 

The lengthy and complicated process of project cycle and approval continues to impede the access of recipient countries to GEF funding. Facilitated and simplified procedures are necessary to expedite this process. In this connection, any  conditionality which further complicate this process should be avoided.

 

The transfer of environmentally-sound technologies should constitute one of the main areas of focus and attention of the Facility.  However, a number of concerns have to be borne in mind. While sustainability of innovative or risky projects involving high-tech or state-of the-art  technologies needs to be carefully examined, it seems advisable for the Facility not to recommend or encourage resort to un-experimented technologies or those which might have adverse social and economic impact on the recipient countries. Technological approaches should, in any eventuality, be consistent with country-driven priorities. Moreover, recipient countries should be assisted, including through expansion of national capacity, in developing, manufacturing and maintaining technologies which would certainly help ensure long-term success of the efforts undertaken. Put in a nutshell, limited GEF resources should be provided to cost-effective programs and proved technologies with ensured effectiveness and efficiency.

 

To sum up, let me just catalogue the issues which we believe require our collective focused attention and concerted efforts of the Facility. Though not comprehensive, the list of issues includes: new and additional financial resources; transfer of environmentally-sound technologies;  expansion of the areas of GEF support; balance between local and global benefits of GEF-supported projects; mobilization of private funds as supplementary to GEF resources; ensuring financial sustainability of GEF projects; separation of GEF resources from allocations to development cooperation; strengthening of the role of UNEP; simplifying and shortening the procedures for GEF project cycle; adoption of a more flexible approach to the concept of incremental costs; effective participation of recipient countries in various stages of project development process as well as in the calculation of incremental costs; increased transparency in all GEF activities; a higher degree of consistency with the guidance of the COPs of Conventions; extension of support to the improvement of the existing technologies, such as fossil fuels technologies, as well as to the promotion of the use of cleaner sources of energy, such as natural gas.

   

Mr. Chairman,

 

In conclusion, let me express our most sincere gratitude and appreciation to the People and Government of India for their warm hospitality and excellent arrangements for this gathering and  wish every success for this Assembly in the pursuit of its noble objectives. I cannot close this statement without a word of our appreciation for the devotion, perseverance and valuable contribution of Dr. Mohammed El-Ashri, the distinguished Chief Executive Officer and Chairman of the Global Environment Facility.

 

Thank you very much, Mr. Chairman.