2. Objective and scope
1. The objective of the provision of financial resources is to promote equity and justice through further enhancement of the full, effective [, efficient] and sustained implementation of the Convention and the Bali Action Plan, so that the ultimate objective of the Convention can be achieved.
2. The provision of financial resources to developing country Parties for enhancing implementation of the Convention shall be guided by the principles of the Convention and the priorities of developing country Parties. Provision of financial resources to developing countries Parties should take full consideration of their specific needs and special circumstances, which may vary according to their national circumstances, their economic and technical capacity, and the implementation measures undertaken. Financial resources for adaptation shall be allocated to those particularly vulnerable to the adverse impacts of climate change, as identified in [paragraph 1 (c) (i) of the Bali Action Plan] [Article 4.8 of the Convention].
3. To [establish] [enhance] [operationalize], in accordance with Article 11 of the Convention, the Financial Mechanism of the Convention with a structure that meets the specific requirements laid down under Articles 11.1 and 11.2 of the Convention[, under the authority and governance of the COP], as mandated under Article 7.2 (h) of the Convention]. The Financial Mechanism shall enable, enhance and support mitigation and adaptation actions by developing country Parties to meet the objective(s) in accordance with Articles [4.3, 4.4 and 4.5] [4.3, 4.4, 4.5, 4.8 and 4.9] of the Convention [including the full cost of adaptation activities, technology transfer and capacity-building].
4. Alternative 1: The main source of funding will be new and additional financial resources, defined as resources over and above the financing provided through financing institutions outside of the framework of the financial mechanism of the Convention. These resources shall be regarded as fulfilment by developed country Parties and other developed Parties included in Annex II of commitments under Article 4.3 of the Convention, and of their obligations to provide measurable, reportable and verifiable financing, as referred to in paragraph 1 (b) (ii) of the Bali Action Plan.
Alternative 2: The developed country Parties, other developed country Parties included in Annex II to the Convention and other Parties, according to agreed eligibility criteria, or those in a position to do so, may also provide, and developing country Parties may avail themselves of, financial resources through bilateral, regional and other multilateral channels in fulfillment of the financial commitments [under the Convention] [in accordance with the relevant provisions of this Agreement].
