3. Principles
5. [Chapeau]
Alternative 1: The operationalization of an effective financial mechanism with a view to enhancing the implementation of the Convention shall be guided by the following principles:
Alternative 2: The financial architecture to enhance the coherence and effectiveness of multilateral climate change support [, enabled by this agreement,] should be guided by the following principles:
(a) Fulfil the implementation of the commitments contained in Articles 4.3, 4.4, 4.5, 4.8 and 4.9 in the context of Article 4.7 of the Convention and be underpinned by the principles of equity and common but differentiated responsibilities;
(b) [Fair, inclusive, efficient and effective, and] [appropriately] [equitable and geographically] balanced representation of all Parties shall be ensured within a fully transparent system of governance;
(c) Alternative 1: The financial mechanism shall operate and function under the authority, governance and guidance of, and be fully accountable to, the COP, which shall decide on its policies, programme priorities and eligibility criteria, and allocation of resources for adaptation, mitigation, technology and capacity-building and any other function that may be determined by the COP;
Alternative 2: The financial mechanism shall operate and function under strategic guidance of the Meeting of the Parties to the Copenhagen Agreement;
(d) Alternative 1: Maintain consistency with the policies, programme priorities and eligibility criteria adopted by the decisions of the COP in all activities, including those related to funding, that are relevant to climate change undertaken by institutions outside the framework of the financial mechanism;
Alternative 2: Coherence in the global financial architecture of multilateral climate change related support, including between the financial mechanism of the UNFCCC and various financial sources and funds not accountable to and outside the guidance of the COP, shall be promoted, with existing institutions utilized more efficiently;
(e) Developed country Parties and other Parties included in Annex II of the Convention shall provide new and additional, adequate, predictable and sustainable financial resources and transfer technology to developing country Parties to make full and effective repayment of climate debt, including adaptation debt, taking responsibility for their historical cumulative emissions and current high per capita emission;
(f) Alternative 1: All the developing country Parties are eligible to access the financial resources. Financial resources for adaptation shall be prioritized, especially for developing countries Parties referred to in [paragraph 1 (c) (i) of the Bali Action Plan (decision 13/CP.1)][Article 4.8 of the Convention];
Alternative 2: All developing country Parties are eligible to access financial resources, in accordance with the objectives and provisions under this Agreement, with special attention given to the adaptation needs of the most vulnerable countries, especially those identified in paragraph 1 (c) (i) of the Bali Action Plan (decision 13/CP.1), and particularly vulnerable populations, groups and communities by supporting adaptation at local and national levels;
Alternative 3: All Parties that meet specified criteria shall be eligible to access the financial resources, with special attention given to the needs of vulnerable countries. The criteria set should be based on: national and regional development priorities; natural and geographical characteristics; resource endowment; relative size of the economy; economic and technological capacity; position on the human development index; and, being eligible to borrow from the World Bank (IBRD and/or IDA) or to be an eligible recipient of UNDP technical assistance through its country Indicative Planning Figure (IPF);
g) Funds shall be allocated for adaptation, mitigation, technology transfer and capacity building, in a balanced manner giving them equal consideration, with a special emphasis on adaptation, and the shares decided every two years, allocating financial resources based on the decided ratios;
(h) Alternative 1: Enable direct access to funding by the recipients. Access to funds by
Parties shall be inversely proportional to their contribution to greenhouse gases in the
atmosphere;
Alternative 2: Access to financial resources [shall][should] be simplified and improved, including direct access where appropriate, and be provided in expeditious, effective, equitable, and timely manner, ensuring that fiduciary standards of the in-country recipient entities are as effective as the internationally agreed fiduciary standards and eligibility criteria;
(i) Delivery of financial resources [shall][should] be efficient, goal-oriented and enable a shift from a project-based approach when dealing with proposals for funding to a programmatic approach, where appropriate, to make optimal use of the full range of means of implementation available and to allow for implementation at scale;
(j) Delivery of financial resources should be country driven and ensure ownership through recipient country involvement during the stages of identification, definition and implementation of activities;
(k) Financial resources shall be provided for the implementation of concrete actions, and their delivery [shall][should] strive to leverage other forms of financing, including private-sector financing through the carbon market and/or through other measures;
(l) Financial resources [shall][should] be provided in a variety of forms inter alia, on a grant basis for those identified in paragraph 1 (c) (i) of the Bali Action Plan (Decision 13/CP.1) and full cost of adaptation; and a grant or concessional basis or in the form of guarantees, where appropriate, for mitigation and specific programmes as per commitments under Article 4.3, 4.4, 4.5, 4.8 and 4.9 of the Convention and should not crowd out private investment or create market distortion;
(m) Alternative 1: Financial resources may be provided for funding international, regional or
national activities that contribute to the continued fulfilment of Article 4.1 of the Convention;
Alternative 2: Delete this paragraph.
(n) Mutual accountability, country ownership, alignment, harmonization, focus on results [with a compliance mechanism] and sound financial management[, taking into account the principles of aid effectiveness as set out in the Paris Declaration on Aid Effectiveness], and in accordance with internationally agreed environmental and social standards and safeguard policies;
(o) Responsiveness to evolving needs and respective roles of public [and private] finance.
