Issues under consideration in the contact group on financing
8. Emphasizing that it is fundamental that [Annex I countries] [developed country Parties and other developed Parties included in Annex II of the Convention] comply fully with the provisions as set out in Articles 4.3, 4.4 and 4.5 of the Convention in [supporting] [assisting] [enabling] all developing country Parties, particularly the most vulnerable, in undertaking adaptation measures and enhanced nationally appropriate mitigation actions (NAMAs), in a measurable, reportable and verifiable manner, through the provision of technology cooperation and transfer, capacity-building, financial resources and compensation. It is also particularly important that the provision of financial resources, particularly by developed countries, is adequate, predictable, stable, sufficient and timely to address the full costs of adaptation in developing countries.
9. In order to fulfill this shared vision, Parties have agreed to establish a coherent, cohesive and integrated system of financial and technology transfer mechanisms under the Convention and a follow-up/compliance mechanism. These institutions are robust and effective.
10. The new agreed post-2012 institutional arrangement and legal framework to be established for the implementation, monitoring, reporting and verification of the global cooperative action for mitigation, adaptation, technology and financing should be set under the Convention. It should include a financial mechanism and a facilitative mechanism, drawn up to facilitate the design, adoption and carrying out of public policies, as the prevailing instrument to which market rules and related dynamics should be subordinate, in order to assure the full, effective and sustained implementation of the Convention.
11. The new institutional arrangement will provide technical and financial support for developing countries in the following areas: (a) preparation, implementation and follow-up through monitoring, reporting and verification of nationally appropriate mitigation actions (NAMAs) by developing countries. These activities could include options to reduce emissions from deforestation and forest degradation (REDD); (b) preparation, implementation and follow-up of national adaptation programmes of action (NAPAs) or national communications in developing countries; (c) technology needs assessments (TNAs) for adaptation and mitigation under the NAMAs and the NAPAs or national communications of developing countries; (d) capacity-building and enabling environments for adaptation and mitigation in developing countries; (e) education, awareness raising and public participation, focused on youth, women and indigenous peoples; (f) design and implementation of adaptation programmes and projects; (g) support for all technological cycle phases: research and development (R&D), diffusion and transfer, including acquisition of technologies for adaptation and mitigation, including the purchase or flexibility of patents.
12. The scheme for the new institutional arrangement under the Convention will be based on three basic pillars: government; facilitative mechanism; and financial mechanism, and the basic organization of which will include the following:
(a) The government will be ruled by the COP with the support of a new subsidiary body on adaptation, and of an Executive Board responsible for the management of the new funds and the related facilitative processes and bodies. The current Convention secretariat will operate as such, as appropriate.
(b) The Conventions financial mechanism will include a multilateral climate change fund including five windows:
(a) an Adaptation window;
(b) a Compensation window, to address loss and damage from climate change impacts, including insurance, rehabilitation and compensatory components;
(c) a Technology window;
(d) a Mitigation window; and
(e) a REDD window, to support a multi-phases process for positive forest incentives relating to REDD actions.
(c) The Conventions facilitative mechanism will include:
(a) work programmes for adaptation and mitigation;
(b) a long-term REDD process;
(c) a short-term technology action plan;
(d) an expert group on adaptation established by the subsidiary body on adaptation, and expert groups on mitigation, technologies and on monitoring, reporting and verification; and
(e) an international registry for the monitoring, reporting and verification of compliance of emission reduction commitments, and the transfer of technical and financial resources from developed countries to developing countries. The secretariat will provide technical and administrative support, including a new centre for information exchange.
