1. Recalling Articles 4 and 11 of the Convention, the Parties agree that a Global Fund for Climate will be established which:
(a) Has as its purpose the funding of projects, programmes, policies and other activities related to the mitigation of and adaptation to climate change;
(b) Supports projects, programmes and activities administered, as appropriate, by the multilateral development banks, domestic institutions in host countries, or by other actors including the private sector and civil society;
(c) Takes into account that financing needs of developing countries vary according to their economic capacity;
(d) Gives due consideration to creating simplified administrative procedures, in particular to help meet the urgent needs of the least developed and most vulnerable countries;
(e) Utilizes a variety of financial products as appropriate to the circumstances;
(f) Finances actions informed by, inter alia, the low-carbon growth strategies referred to in Article [X];
(g) Integrates its funding, planning and activities with country-driven development strategies and programmes and coordinates with other delivery channels of climate finance;
(h) Is governed in a transparent, effective and efficient manner with balanced representation between net contributors and net recipients;
(i) Operates with an existing multilateral financial institution as its trustee.
2. The Global Fund for Climate shall be an operating entity of the financial mechanism pursuant to Article 11 of the Convention. In this regard, the Conference of the Parties shall enter into arrangements with the Fund pursuant to Article 11.3 of the Convention.
3. With respect to its capitalization arrangements, the Global Fund for Climate shall:
(a) Draw on contributions from all Parties except the least developed country Parties, in accordance with their national circumstances and respective capabilities;
(b) Be based on multi-year replenishments and multi-year pledges and accept, where appropriate, alternative forms of contribution as may be agreed between or among Parties;
(c) Allow contributions from Parties to be designated for thematic areas;
(d) Promote predictability through each Partys formal indication on the level and source of its expected contribution.
4. The Parties reaffirm the role of the Global Environment Facility (GEF) as an operating entity of the financial mechanism under Article 11 of the Convention. The Parties request the GEF to increase its efforts for readiness and capacity-building activities, and technology pilot programmes, as well as on providing financing for activities related to the measurement and reporting requirements specified in [Article X][Appendix X].
