What is The Trust Fund for Environmentally and Socially Sustainable Development
TFESSD was set up in December 1999, initially as a Norwegian-funded 'umbrella' trust fund in the World Bank, replacing many separate trust funds on environment and social development. In November 2002, the Government of Finland joined the fund.
Since inception in 1999, $134 million have been received in donor contributions, more than 500 analytical and technical assistance activities have been financed, and $116 million have been disbursed. In the last four years alone, new activities worth $50 million have been approved, with $30 million of this focused on climate change. TFESSD currently has 154 ongoing activities worldwide. Half the funding is earmarked to Sub-Saharan Africa.
After 11 years running, the donors have now decided to phase out the TFESSD and discontinue financial support of the fund in its current form. Since approved projects normally have a three year time span, ongoing projects will run till at least 2013/14.
What the TFESSD does
TFESSD develops World Bank and client country capacity, promotes inclusion of sustainable development issues into World Bank operations, and fosters cooperation between different units in the World Bank and with external agencies and groups. TFESSD is the Bank’s leading trust fund on cross-cutting social, poverty and environmental issues with a track record of funding innovative tools and approaches before they become widely adopted. Examples of TFESSD-supported innovations include the piloting and subsequent scaling up of major approaches such as Country Environmental Analyses (CEA); Strategic Environmental Analyses (SEA); Poverty and Social Impact Analysis (PSIA); and social accountability tools. In recent years, TFESSD has been a strong supporter of the rapid increase in the World Bank Group’s work on adaptation to climate change.
TFESSD activities are managed in four Windows, which correspond to the following Sector Boards in the Bank: Environment, Social Development, Poverty, and Social Protection. The Sector Boards suggest and prioritise areas and proposals for funding every year. In addition, the sector boards monitor the progress of trust fund activities, making sure that the funds are used for strategic activities. Activities are managed by World Bank Group staff.
The Working Cycle of the TFESSD
The World Bank and the donors usually have formal consultations twice every year, in May/ June and in November. The Secretariat and selected experts from Norad and/or academia in Norway and Finland participate as advisors for the donors.
The consultations in May/ June are normally organised every second year in Norway and Finland. Progress of activities supported through the fund is discussed, and priorities and funding levels are agreed upon. In connection with the May/ June consultations, the World Bank in collaboration with the donors and the Secretariat organise a conference on a theme of relevance to the Trust Fund and of interest for the wider community. The conference aims at providing a forum for interaction for World Bank staff and relevant Norwegian and Finnish actors as for instance researchers, students, civil society, and representatives from the private sector, public administration, media personnel and others to discuss timely issues in an open and informal manner.
The consultations in November are usually organised in Washington DC, and are focused on the Call for Proposals. Funding is allocated on a competitive basis based on an annual Call for Proposals focusing on agreed themes. Selection among project proposals is made according to criteria such as strategic fit; quality; dissemination and knowledge management; cross-sectorality; and rationale for grant funding versus using Bank budget. Partnership with Norwegian and Finnish researchers and institutions is encouraged. Projects are initiated from the Bank, but external consultants and researchers are often engaged as partners.
The Fiscal Year 2012 Call for Proposals was launched towards the end of 2010 and focuses on inequality. The Fiscal Year 2011 Call for Proposals focused on vulnerability to short-term, economic crisis, long-term climate and environmental changes and conflict.