Integration for greater impact

9.3 Summary

Innovation and risk are inseparable drivers of the GEF’s mission—particularly against a backdrop of mounting global environmental challenges. By embracing higher-risk, higher-reward approaches and strategically scaling successful innovations, the GEF can amplify its catalytic role in addressing urgent environmental challenges and achieving lasting global impact. Calculated risk-taking and the adoption of innovative technologies, policies, and financing models are thus critical to unlock systemic change. The GEF has taken steps to align its risk appetite with transformational goals, designating a high tolerance for innovation risk. Yet most projects remain low to moderate risk by design, limiting the uptake of disruptive technologies such as AI, blockchain, and nanotechnology that hold the potential to reshape sectors, open new markets, and scale environmental and socioeconomic benefits.

Evidence shows that when innovation is combined with enabling policies, institutional capacity, and financial mechanisms, the GEF can achieve transformational change. Examples include the early-stage wind energy investments that helped transform Uruguay’s power sector, and the POPs project in China that exceeded targets and reduced health risks for millions. Similarly, digital monitoring platforms, remote sensing, and electric mobility initiatives illustrate how innovations, once piloted, can be scaled and replicated to multiply global environmental benefits.

To fully realize its catalytic role, the GEF must bridge the gap between its high stated appetite for innovation risk and its conservative portfolio practice. This effort requires horizon scanning for emerging technologies, stronger adaptive management, and deeper country and agency capacity building. Scaling technological, institutional, and financial innovations together will be essential to move beyond project-level success and enable transformational change across systems.