Africa

The GEF actively supports climate resilience and sustainable livelihoods in Zanzibar, with a specific focus on the seaweed farming sector, which is crucial for over 20,000 farmers—mostly women—in the region. Here a woman identified as Jazaa is pictured working as a seaweed farmer. She carefully attaches little seaweed seedlings to the rope that she will harvest after two months. Credit: Natalija Gormalova/Climate Visuals Countdown

By Umar Manzoor Shah
SRINAGAR, India, Apr 16 2026 (IPS)

The Global Environment Facility, widely known as the GEF, plays a central role in financing environmental protection across the world. It supports developing countries in tackling climate change, biodiversity loss, land degradation, pollution, and threats to ecosystems.

Since its establishment in the early 1990s, the GEF has grown as a multilateral environmental fund, supporting projects in more than 170 countries.

Over time, the GEF has evolved into what it calls a “family of funds”, each targeting a specific global environmental challenge while operating under a shared strategic framework.

This explainer looks at how the GEF funding works, the origins of its financing model, and the role of six major funds that channel resources toward global environmental goals.

While the GEF predates the 1992 Rio ‘Earth’ Summit, its importance as a financial mechanism grew after the summit. Here UN Secretary-General Boutros Boutros-Ghali opens the Rio Earth Summit in 1992, which aimed to develop a global blueprint for balancing economic development with environmental protection. Credit: Michos Tzavaras/UN Photo

Origins of the GEF Funding Model

The GEF was created in 1991, before the Rio ‘Earth’ Summit in 1992, which aimed to develop a global blueprint for balancing economic development with environmental protection; however, its importance grew after the summit.

The Rio Summit produced three major environmental conventions. These were the United Nations Framework Convention on Climate Change (UNFCCC), the Convention on Biological Diversity, and, later in 1994, the Convention to Combat Desertification. The GEF became the financial mechanism for these agreements, meaning it mobilises and distributes funds to help countries implement them.

Over the past 35 years, the GEF has expanded its mandate. Today it supports multiple conventions and environmental initiatives through a structured set of trust funds. This architecture allows the facility to coordinate funding across different environmental priorities while maintaining specialised programs for each global commitment.

The Global Environment Facility (GEF) is now focusing on solving environmental problems together instead of separately. It looks at climate change, biodiversity loss, and pollution as connected issues and works with governments, international groups, civil society, and businesses to address them.

The GEF Trust Fund was initially created to support multiple environmental agreements simultaneously. Over time, countries preferred more specific funding for their particular needs.

Because of these changes, the GEF now has different funds, each designed for different purposes and methods of giving money.

Some funds – like the Trust Fund, the Least Developed Countries Fund (LDCF), and part of the Special Climate Change Fund (SCCF) – use a system that helps countries know in advance how much funding they can expect.

The GEF Trust Fund

The Global Environment Facility Trust Fund is the main source of funds for the GEF. It provides grants to support environmental projects in developing countries.

The Trust Fund finances activities across several environmental areas.

These include

• Biodiversity conservation,
• Climate change mitigation,
• Land degradation control,
• International waters management, and
• Chemicals and waste reduction.

Countries receive funding through a system known as the System for Transparent Allocation of Resources, or STAR, which distributes funds based on their environmental needs and eligibility.

Projects funded by the Trust Fund often focus on creating global environmental benefits. These may include:

• Protecting endangered species,
• Restoring ecosystems,
• Reducing greenhouse gas emissions, and
• Improving pollution management systems.

The Trust Fund operates through periodic “replenishment” cycles. Donor countries pledge new contributions every four years, which allows the GEF to finance programs during the next funding period. For example, the GEF-9 cycle will cover the period from July 2026 to June 2030 and focus on scaling up environmental investments while mobilising private capital and strengthening country ownership of environmental policies.

The Global Environment Facility (GEF) has created Integrated Programs. These are special programs designed to address multiple environmental goals at the same time in a more coordinated and efficient way.

For example, the Food Systems Integrated Program does not fund separate projects for climate change, biodiversity, and land degradation. Instead, it combines them into one unified project, which helps achieve stronger and longer-lasting results while making better use of funding.

 

The GEF helps fund biodiversity across the globe, helping to create conditions to prevent the further endangerment of species like the Sumatran Orangutan (Pongo abelii). Credit: Thomas Gabernig/Unsplash

Global Biodiversity Framework Fund

The Global Biodiversity Framework Fund is a relatively new component of the GEF family of funds. It was created to help countries implement the Kunming Montreal Global Biodiversity Framework, which was adopted in 2022 under the Convention on Biological Diversity.

The biodiversity framework sets ambitious targets for protecting nature by 2030. Its most prominent targets include the “30 by 30” target, which calls for protecting at least 30 percent of the world’s land and ocean areas by the end of the decade.  The Framework also sets a 30 percent target for the restoration of ecosystems and a target of mobilising 30 billion dollars in international financial flows to developing countries for biodiversity action.

The Global Biodiversity Framework Fund supports actions that help countries meet these targets.

Actions that are supported include the following:

• Expanding protected areas,
• Restoring degraded ecosystems,
• Protecting endangered species, and
• Strengthening biodiversity monitoring.

Another important focus is the integration of biodiversity into economic planning. Many projects supported by this fund work with governments and businesses to match financial flows with biodiversity goals. This means reducing financial support for activities that damage the environment and encouraging more sustainable farming, forestry, and fishing practices.

By providing targeted financing for biodiversity commitments, the fund helps translate global agreements into practical actions at the national and local levels.

It is also important to highlight that the fund sets a target of providing at least 20% of its resources to support actions by Indigenous Peoples and local communities. This form of direct financing is unique for a multilateral environmental fund.  To date, this target has been exceeded and mechanisms such as the Green Climate Fund and the Tropical Forest Forever Facility are considering replicating this approach.

GEF-9 biodiversity investments will bring together four interconnected pathways:

• Scaling up financial flows to close the nature financing gap,
• Embedding environmental priorities in national development strategies,
• Mobilising private capital through blended finance, and
• Empowering Indigenous Peoples, local communities, and civil society as active conservation partners.

“A renewed emphasis on the Forest Biomes Integrated Program will continue directing investment into the landscapes most critical for achieving 30×30 – ensuring that GEF financing remains focused where the stakes are highest,” said Chizuru Aoki, the head of the GEF Conventions and Funds Division.

 

Medicinal and aromatic plant species, such as the baobab, are often exploited; however, the Nagoya Protocol on Access and Benefit Sharing aims to ensure fair use of the planet’s genetic resources and secure benefits for Indigenous knowledge holders. Credit Noah Grossenbacher/Unsplash

Nagoya Protocol Implementation Fund

The Nagoya Protocol Implementation Fund supports countries in implementing the Nagoya Protocol on Access and Benefit Sharing. This international agreement, part of the Convention on Biological Diversity, aims to make sure that the genetic resources of the planet are used fairly and equitably, with benefits shared with those who provide them.

Genetic resources include plants, animals, and microorganisms that are used in research and commercial products such as medicines, cosmetics, and agricultural technologies. Historically, many developing countries have expressed concerns that companies and researchers benefit from these resources without sharing profits or knowledge.

The Nagoya Protocol fixes these issues by requiring users to do the following:

• Get permission from the country providing the resources, and
• Agree on how benefits (like money or knowledge) will be shared.

The fund supports countries by helping them:

• Create laws and rules for using genetic resources,
• Improve monitoring systems, and
• Build skills among researchers and policymakers.

Projects funded also support Indigenous peoples and local communities, who often hold traditional knowledge associated with biological resources. Protecting this knowledge and ensuring fair compensation is a key objective of the Nagoya framework.

Least Developed Countries Fund

The Least Developed Countries Fund focuses on supporting climate adaptation in the world’s most vulnerable nations. These countries often face severe environmental risks but lack the finances and systems to respond efficiently.

The fund supports the preparation and implementation of National Adaptation Programs of Action and National Adaptation Plans. These are country-specific strategies that identify the most urgent climate risks facing each country and outline measures to reduce vulnerability.

Typical projects include the following:

• Strengthening climate-resilient agriculture,
• Improving water management systems,
• Protecting coastal zones, and
• Building early warning systems for extreme weather events.

Because many least developed countries face multiple environmental issues at once, the fund often supports integrated projects that address climate change alongside biodiversity conservation and land management.

This funding system makes sure that the poorest and most vulnerable countries get the help they need to deal with climate change, even though they did very little to cause it.

Villagers in Nyamisati, Rufiji District, wade through muddy tidal flats to plant mangrove seedlings—part of a grassroots effort to curb saline intrusion that has begun to poison nearby rice paddies as saltwater seeps underground. The initiative reflects growing local responses to environmental degradation driven by human activity along Tanzania’s coast. The GEF supports projects like these that help mitigate the impacts of climate change. Credit: Kizito Makoye/IPS

Special Climate Change Fund

The Special Climate Change Fund supports climate action in developing countries and works alongside the Least Developed Countries Fund.

While the Least Developed Countries Fund focuses on the poorest nations, this fund helps other developing countries that are also affected by climate change.

It supports projects that:

• Help countries prepare for climate impacts,
• Include climate planning in development and infrastructure,
• Improve water management and agriculture.
• Reduce disaster risks, and
• Promote environmentally friendly technologies.

The SCCF also, in some cases, supports mitigation efforts, particularly when they involve innovative technologies that reduce greenhouse gas emissions. By financing both adaptation and mitigation initiatives, the fund contributes to global efforts to stabilise the climate system.

Capacity Building Initiative for Transparency Trust Fund

The Capacity Building Initiative for Transparency Trust Fund supports countries in implementing transparency requirements under the Paris Agreement.

Under this agreement, countries must regularly report their greenhouse gas emissions and track their progress on climate goals. However, many developing countries do not have the tools or skills to do this properly.

This fund helps by supporting:

• Training for government officials,
• Creation of national emissions data systems, and
• Better monitoring and reporting methods.

Strong reporting systems are important because they:

• Help track climate progress,
• Build trust between countries, and
• Ensure countries meet their commitments.

The fund helps developing countries improve their climate reporting so they can fully take part in global climate efforts.

How the “family of funds” works together

One of the defining features of the GEF funding model is that each part speaks to the others.

Think of it like a team of funds working together, rather than separate, isolated programs.

These funds are coordinated so they can:

• Support the same project from different angles,
• Avoid duplication (no overlapping funding for the same purpose), and
• Align with global environmental agreements.

For example:

• A biodiversity project might use:
  • The main GEF Trust Fund
  • Plus the Global Biodiversity Framework Fund
• A climate adaptation project could combine:
  • Least Developed Countries Fund
  • Special Climate Change Fund

This ‘family’ structure improves:

• Coordination, so different funds work in sync,
• Efficiency, so funds work with less waste and duplication, and
• Flexibility, so projects can tap into multiple funding sources.

Environmental problems are interconnected. A single project (like forest conservation) can:

• Reduce carbon emissions,
• Protect biodiversity,
• Improve water systems, and
• Avoid land degradation.

Because of the integrated funding system, the GEF can support all these goals at once, rather than funding them separately.

The “family of funds” is a coordinated funding system that allows the GEF to:

• Combine resources;
• Support complex, multi-sector projects; and
• Maximise environmental impact

The Future of GEF Financing

As global environmental crises grow, so does the demand for money and resources to meet climate and biodiversity needs. International assessments suggest that hundreds of billions of dollars are needed each year.

The GEF aims to play a “catalytic” role in closing this gap – in short, the GEF acts as a “catalyst” or tool for using limited public funds to unlock much larger investments.

Its funding model mobilises additional resources from

• Governments,
• Development banks, and
• Private investors.

“In practical terms, the mechanisms being supported in GEF-9 include debt-for-nature and debt-for-climate swaps, green bonds, pooled investment vehicles, and outcome-based financing structures. Each of these can serve a different purpose depending on the context – but the common thread is that they allow the GEF to use its resources strategically to unlock much larger pools of capital from the private sector, multiplying the environmental impact that public funding alone could achieve,” Aoki said.

Note: This feature is published with the support of the GEF. IPS is solely responsible for the editorial content, and it does not necessarily reflect the views of the GEF.

IPS UN Bureau Report

 

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By Hippolyte Balima, Andresa Lagerborg and Evgenia Weaver
WASHINGTON DC, Apr 16 2026 (IPS)

War is again defining the global landscape. After decades of relative calm following the Cold War, the number of active conflicts has surged in recent years to levels not seen since the end of the Second World War.

Meanwhile, rising geopolitical tensions and heightened security concerns are prompting many governments to reassess their priorities and spend more on defense.

Beyond their devastating human toll, wars impose large and lasting economic costs, and pose difficult macroeconomic trade-offs, especially for those countries where the fighting is taking place.

Even without active conflicts, rising defense spending can raise economic vulnerabilities in the medium term. After the war, governments face the urgent post-conflict task of securing durable peace and sustaining recovery.

In an era of proliferating conflicts, our research in two analytical chapters of the latest World Economic Outlook highlights the deep and prolonged economic harm inflicted by war, which has particularly affected sub-Saharan Africa, Europe, and the Middle East.

We also show that rising defense spending—which can boost demand in the short term—imposes difficult budgetary trade offs that make good policy design and lasting peace more important than ever.

Economic losses

For countries where wars occur, economic activity drops sharply. On average, output in countries where fighting takes place falls by about 3 percent at the onset and continues falling for years, reaching cumulative losses of roughly 7 percent within five years.

Output losses from conflicts typically exceed those associated with financial crises or severe natural disasters. Economic scars also persist even a decade later.

Wars also tend to have significant spillover effects. Countries engaged in foreign conflicts may avoid large economic losses—partly because there is no physical destruction on their own soil.

Yet, neighboring economies or key trading partners with the country where the conflict is taking place will feel the shock. In the early years of a conflict, these countries often experience modest declines in output.

Major conflicts—those involving at least 1,000 battle-related deaths—force difficult trade-offs in economies where they occur. Government budgets deteriorate as spending shifts toward defense and debt increases, while output and tax collection collapse.

These countries may also face strains on their external balances. As imports contract sharply because of lower demand, exports decrease even more substantially, resulting in a temporary widening of the trade deficit.

Heightened uncertainty triggers capital outflows, with both foreign direct investment and portfolio flows declining. This forces wartime governments to rely more heavily on aid and, in some cases, remittances from citizens abroad to finance trade deficits.

Despite these measures, conflicts contribute to sustained exchange rate depreciation, reserve losses, and rising inflation, underscoring how widening external imbalances amplify macroeconomic stress during wartime. Prices tend to increase at a pace higher than most of central banks’ inflation targets, prompting monetary authorities to raise interest rates.

Taken together, our findings show that major conflicts impose substantial economic costs and difficult trade-offs on economies that experience conflicts within their borders, as well as hurting other countries. And these costs extend well beyond short-term disruption, with enduring consequences for both economic potential and human well-being.

Spending trade-offs

More frequent conflicts and rising geopolitical tensions have also prompted many countries to reassess their security priorities and increase defense spending. Others plan to do so. This situation presents policymakers with a crucial question about trade-offs involved with such a boost to spending.

Our analysis looks at episodes of large buildups in defense spending in 164 countries since the Second World War. We find that these booms typically last nearly three years and increase defense spending by 2.7 percentage points of gross domestic product.

That’s broadly similar to what is required by North Atlantic Treaty Organization (NATO) members to reach the 5 percent of GDP defense spending target by 2035.

Ramping up defense spending primarily acts as a positive demand shock, boosting private consumption and investment, especially in defense-related sectors. This can raise both economic output and prices in the short term, requiring close coordination with monetary policy to temper inflationary pressures.

Overall, the aggregate effects on output of scaling up defense spending are likely modest. Increases in defense spending typically translate almost one for one into higher economic output, rather than having a bigger multiplier effect on activity.

That said, the multiplier or ripple effects of such spending vary widely depending on how outlays are sustained, financed and allocated, and how much equipment is imported.

For instance, output gains are smaller and external balances deteriorate when the stimulus is partly spent to import foreign goods, which is especially the case for arms importers. By contrast, a buildup of defense spending that prioritizes public investment in equipment and infrastructure, together with less fragmented procurement and more common standards, would expand market size, support economies of scale, strengthen industrial capacity, limit import leakages, and support long-term productivity growth.

The choice of how to finance defense spending entails critical trade-offs. Defense spending booms are mostly deficit-financed in the near-term, while higher revenues play a larger role in later years of defense spending booms and when the defense spending buildup is expected to be permanent.

The reliance on deficit financing can stimulate the economy in the short term, but strain fiscal sustainability over the medium term, particularly in countries with limited room in government budgets.

Deficits worsen by about 2.6 percentage points of GDP, and public debt increases by about 7 percentage points within three years of the start of a boom (14 percentage points in wartime). The resulting increase in public debt can crowd out private investment and offset the initial expansionary effect of defense spending.

The buildup of fiscal vulnerabilities can be mitigated by durable financing arrangements, especially when the increase in defense spending is permanent. However, raising revenues come at the cost of reducing consumption and dampening the demand boost, while re-ordering budget priorities tends to come at the expense of government spending on social protection, health, and education.

Policies for recovery

Our analysis also shows that economic recoveries from war are often slow and uneven, and crucially depend on the durability of peace. When peace is sustained, output rebounds but often remains modest relative to wartime losses. By contrast, in fragile economies where conflict flares up again, recoveries frequently stall.

These modest recoveries are driven primarily by labor, as workers are reallocated from military to civilian activities and refugees gradually return, while capital stock and productivity remain subdued.

Early macroeconomic stabilization, decisive debt restructuring, and international support—including aid and capacity development—play a central role in restoring confidence and promoting recovery. Recovery efforts are most effective when complemented by domestic reforms to rebuild institutions and state capacity, promote inclusion and security, and address the lasting human costs of conflict, including lost learning, poorer health, and diminished economic opportunities.

Importantly, effective post-war recovery requires comprehensive and well-coordinated policy packages. Such an approach is far more effective than piecemeal measures. Policies that simultaneously reduce uncertainty and rebuild the capital stock can reinforce expectations, encourage capital inflows, and facilitate the return of displaced people.

Ultimately, successful post-war recovery lays the foundation for stability, renewed hope and improved livelihoods for communities affected by conflict.

This IMF blog is based on Ch. 2 of the April 2026 World Economic Outlook, “Defense Spending: Macroeconomic Consequences and Trade-Offs,” and Ch. 3, “The Macroeconomics of Conflicts and Recovery.” For more on fragile and conflict-affected states: How Fragile States Can Gain by Strengthening Institutions and Core Capacities.

IPS UN Bureau

 

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Abubakar Malami was seen as one of the most influential ministers under former President Muhammadu Buhari.

The question of who should be responsible for meeting the rapidly growing need and expenses for elderly care remains a contentious issue in many countries. Credit: Shutterstock.

By Joseph Chamie
PORTLAND, USA, Apr 15 2026 (IPS)

Who should be responsible for providing care and covering expenses for the elderly? Should it be governments, the elderly themselves, their families, a combination of the three, or a new societal arrangement?

As populations age and more elderly individuals live longer lives, there are relatively fewer workers and less tax revenue, causing governments to struggle with the challenge of providing care for the elderly. This struggle is particularly notable in the provision of nursing care and health services.

The challenge is mainly driven by the growing demand for care, workforce shortages, and rapidly rising costs. These issues are expected to become increasingly difficult to sustain in the upcoming years.

Furthermore, this challenge is complicated by age discrimination towards elderly individuals. This discrimination is increasingly prevalent and has a negative impact on older people’s physical and mental well-being. It is associated with earlier death, poorer physical and mental health, and slower recovery from disability in older age.

The proportion of the world’s population aged 65 years or older has doubled from 5% in 1950 to 10% today and is expected to reach 16% by 2050. Most of the world’s elderly are below the age of 75, with 41% in the age group 65 to 69 and 29% in the age group 70 to 74 (Figure 1).

Source: United Nations.

The increase in the proportion of elderly individuals is significantly greater in many countries. For example, in Japan, the proportion of elderly has increased six-fold since 1950. Similarly in Italy and China, the proportion of elderly has tripled since 1950. By 2050, it is projected that approximately one-third of the populations of Japan, Italy, and China will be elderly (Figure 2).

Source: United Nations.

In addition to population ageing, life expectancy at birth for the world’s population has increased from 46 years in 1950 to 74 years in 2026. It is projected that by 2070, the global life expectancy at birth will nearly reach 80 years, with many countries, such as France, Japan, Italy, Norway, Spain, Sweden, and Switzerland, expected to reach life expectancies at birth of around 90 years.

Elderly individuals in need of care are more likely to be women, 80-years-old and older, and live in single households. Many of them experience social isolation while living at home, which negatively impacts their mental and physical health. Additionally, these individuals typically have lower incomes than the country’s average.

The cost of providing care for elderly individuals varies drastically across countries. Costs for care are mainly driven by labor costs, healthcare infrastructure, and government subsidies.

Governments, especially those leaning towards political conservatism, are hesitant to cover the increasing expenses associated with care for the growing numbers of elderly. In the United States, for example, the president recently announced that it’s not possible for the federal government to fund Medicare, Medicaid, and child care costs. Instead, he argued that the one thing the federal government must take care of is the country’s military spending

Many high-income countries rely on migrant workers with irregular work contracts, to fill labor gaps, often operating with limited legal protections and standardized training. The situation is further complicated by poor working conditions, comparatively low salaries, and a lack of recognition making recruiting and retaining care workers difficult.

High-income countries have relatively high annual costs for care, while low-to-middle-income countries typically rely on family members to provide assisted care for the elderly.

For example, in the United States, the average annual cost in an assisted living community is approximately $75,000. Care in Switzerland is also expensive, with nursing home costs averaging over 100,000 Swiss francs annually. Similarly in Germany, the average annual cost for nursing home care is roughly between 36,000 to over 48,000 Euros.

Among OECD countries, publicly funded elder care systems still leave nearly half of older people with care needs at risk of poverty, especially those with severe care needs and low income. Out-of-pocket costs represent, on average, 70% of an older person’s median income across OECD countries.

Governments, especially those leaning towards political conservatism, are hesitant to cover the increasing expenses associated with care for the growing numbers of elderly.

In the United States, for example, the president recently announced that it’s not possible for the federal government to fund Medicare, Medicaid, and child care costs. Instead, he argued that the one thing the federal government must take care of is the country’s military spending.

Conservative and authoritarian governments typically do not see much economic benefit from government spending on elderly care, as they perceive the elderly as a societal burden. They argue that health care costs for the elderly is negatively correlated with economic growth and tend to oppose publicly funded efforts for life extension, advocating for limited government spending in these areas.

Furthermore, these conservatives and government officials often stress the importance of individual responsibility and solutions from the private sector. They believe that the costs of caring for the elderly should be borne by the elderly and their families.

However, the total cost of care for the elderly is often unaffordable for most families. In many OECD countries, elderly individuals risk falling into poverty without substantial financial assistance from their governments.

Some countries, such as Germany, Japan, South Korea, and the Netherlands, have implemented mandatory enrolment in elder care insurance. These programs are typically funded through mandatory payroll contributions.

In many countries, however, informal care for the elderly is still provided by family members, with the majority being women. This informal care is facing increasing strain due to factors such as urbanization, declining fertility rates, dual-career families, workforce mobility, and rising financial costs, all of which are putting pressure on the capacity of families to care for elderly relatives.

Although the need for elder care is rapidly increasing worldwide, the ability of existing systems to respond to current and rising needs remains limited in many countries. Most individuals in need of care rely on families and informal caregivers for support, while care services remain expensive, unstable, and difficult to access. These circumstances place significant strains on families, caregivers, and health care systems.

Further complicating care systems is the fact that elderly individuals often suffer from chronic health conditions. Some common health issues experienced by the elderly include Alzheimer’s disease, arthritis, asthma, back and neck pain, cancer, cataracts, chronic obstructive pulmonary disease (COPD), dementia, diabetes, frailty, falls and injuries, heart disease, hearing loss, high blood pressure, high cholesterol, osteoarthritis, stroke, and urinary incontinence. Furthermore, as individuals age, they are more likely to experience multiple health conditions simultaneously (Table 1).

Source: World Health Organization.

In conclusion, as a result of population ageing and increased longevity, countries are facing the challenge of providing care for their elderly citizens. The question of who should be responsible for meeting the rapidly growing need and expenses for elderly care remains a contentious issue in many countries.

The general public believes that the government should take on the responsibility of providing care for the elderly. In contrast, many governments, concerned about the escalating fiscal burden, prefer that the elderly and their families themselves provide the necessary care and be responsible for the expenses. Still, others believe that a new societal arrangement is needed to provide care for the elderly.

Joseph Chamie is a consulting demographer, a former director of the United Nations Population Division, and author of many publications on population issues.

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