GEF projects must pass certain eligibility requirements before they can be considered by the GEF Council.

• One of the key aspects of funding from the GEF is that it does not usually cover the full cost of projects; its assistance is limited to financing only the costs of achieving global environmental benefits. The standard explanation is that the GEF covers the "difference or increment between a project undertaken with global environmental objectives in mind, and the costs of an alternative project that the country would have implemented in the absence of global environmental concerns". In the language of the GEF these are incremental costs. A project is eligible for GEF funding if it targets a global objective.
• Be country-driven and endorsed by host government.
• Produce identifiable, quantifiable global benefits.
• Include participation of all affected groups and transparency.
• Be consistent with the Conventions.
• Possess strong scientific and technical merit.
• Be financially sustainable and cost-effective.
• Include rigorous processes for monitoring, evaluation, and incorporation of lessons learned.
• Play a catalytic role that leverages other financing.
• Contain a budgeted communication component.

• Country-driven: Based on National Priorities and Programmes.
• Address GEF Focal Areas.
• Consistent with GEF Operational Strategy and Operational Programmes.
• Seek financing only for the agreed incremental cost of measures to achieve global environmental benefits.
• Endorsed by Government.