Created as a three-year experiment, the GEF pilot phase (1991–1993) was intended to test whether a new financing mechanism could deliver global environmental benefits.

Its evaluation was requested by participants to inform the design of a permanent structure. Established under UNEP, UNDP, and the World Bank, the pilot allocated about US$939 million across 112 projects in 63 countries, with most resources directed to biodiversity and climate change.

The evaluation concludes that the GEF demonstrated the feasibility of mobilizing new and additional funding for global environmental priorities, but faced weak strategic guidance, unclear objectives, and heavy reliance on agency-driven project identification.

Many projects lacked strong links to national strategies, paid insufficient attention to participation and sustainability, and reflected inconsistent application of concepts such as global benefits and incremental costs. Institutional arrangements fostered competition rather than collaboration among agencies, and portfolio-wide learning was limited.

The evaluation recommends clarifying the GEF’s mission and strategic objectives, strengthening program management and accountability, improving country ownership and community engagement, and establishing clearer guidelines before moving into the next replenishment phase.