This article draws on a GEF study (1998) and over five years experience with Environmental Funds to review the lessons learned. It describes how EFs are structured and the kinds of activities they have supported. It examines the key conditions that influence their success or failure. It discusses factors that should be taken into consideration when deciding whether EFs may be an appropriate mechanism for supporting conservation activities in a particular setting. Finally, the article looks to the future and outlines important trends that are likely to affect the financing and future development of EFs.
