36

(n)

research and development, and the training of scientific,
technical, and managerial personnel ;)
Pinance its operations from a fund, separate from its programme
resources, established specifically to cover its administrative
expenses;
Provide annual roport, to the Conference of the Partie on it.
operations and, inter alle, on evaluation and usessment of the
of toctiveness of its functions and, as required, information to
the subsidiary bodies of the Conference of the Partio, in order
that they can fulfil thois mandatos;
Administor the (joint laplementation) (cooperative system of
exchango) of (caissions commitment. (commitmonts on emissions
(of groenhouse gases) and enhancement of all sinks) according to
the terms of the Convention; )
Administor operations required of it by protocols to this
Convontion, and any other matters agreed on by the Conference of
the Parties;) and
Explore ways and moans to employ tinancial resources to promoto
the flexibility of intellectual property rights with a view to
promoting the transfer of sound tochnology to developing
countries.))

11. Tho Parties hereby designato tho Global Environment facility (GBT) established and operated jointly by WB/UNDP/UNBP as the mechanina for the provision of financial resources to Parties in need of assistance in most ing agreed incremental costs of Lapleconting this convention. 2. The Conference of the Parties shall, in accordance with rolovant Rules of Proceduro, establish appropriate arrangements with the GET to Laplement Paragraph. 1 bove. Such arrangements shall include inter alle! (2) modalities to promote the involvement of the Parties in the GET

(with a view to ensuring a transparent systea of governance of the mechanian and a balanced representation of developed and

developing country Partial' (b)

provision for the Git in funding projects related to the convention to comply with]/[consider, the policy and) programme priorities and oligibility criteria sitablished by the conforence

of the Parties; (C)

provision for socolpt by the GIF of requests fra Parties in need of assistance in nating agreed incremental costs of laplementing

this convention, (d)

provision by the conference of the Parties or its subsidiary bodies to the Gil of information that might promote the Luplementation of this convention, including the establishment of cooperativo linkages between the STN and scientific and

tochaical bodies established under this convention, (O) provision by the Get of regular reports through the convontion

Secretariat to the conforence of the Parties on its operations rolated to the implementation of this convention, including projects selected; financial expendituros, current and anticipated funding rosorves; the relationship between its operations related to the implementation of this convention and other assistance it is providing in sectors colevant to climate change; and other information of interest to the Conference of

the Partios; (4) provision for the Conference of the Parties to request the GEF to

roconsider a particular funding decision in the light of the

criteria and priorities referred to in paragraph 21b); 3. The Conference of the Parties shall periodically usess the operation of the GET is the mechanism for the provision of financial resources related to the implementation of this convention, with a view to modifying the arrangement, under Paragraph 2 us may be appropriate.

• Noto:

Tho portion in squar. brackoto is not a logal toxt.

38

14. Parties may also provide assistance related to the laplenontation of this convention through bilateral or other multilateral channels. In this regard, interested parties may neat, on an ad hos basis, to consider whether any party is interested in uisting another party in the implementation of a proposed project the latter has identified in iti national report. Parties way, to appropriate, invito ropresentatives of multilateral i inancial institutions to such noot ings for the purpose of providing them with an opportunity to consider projects for inclusion in their development assistance portfolio1.1)

OPTION 3

Establishment

11. An International climate fund is hereby established under the authority of the Conference of the Parties which shall decide on its overall policies and operations, in particular determining prioritio, criteria and selection of projects and activities to be funded. it shall be distinct and independent from other funds and international financial institutions. 2. The mechanism for financial resources and transfer of technology set up under the International cilaato Pund, shall be administored as follows: Practions relating to flaancial resources (a) Meot on a grant basis the full incremental costs of measures takon by

developing country Parties to address climate change, in accordance with

criteria to bo doveloped by the Conference of the portions (b) cover the costo to doveloping country Parties of adaptation and

mitigation measures that may be needed u i rosult of the adverse consequences of climate change and the direct and indirect social and econoaic costs to developing countries that may result traa the

Laplementation of the convention, (C) Be responsible for receiving usressed and other contributions, other

financial or u otherwise provided by Parties and other bodio, in

accordance with criteria sot out by @he conference of the parties, (d) Establish appropriate accounting procedures to ensure that all

assortments and contributions made to fulfil the obligations of the

Convention are properly recorded, credited and accounted for i (od ke responsible for facilitating the identification and selection of

projects and activities for supporting the offorts of the parties to noot

thoir obligations under this convention, (6) Plaanco the secretulat service of the fund and related support

costos (9) Provide annual report to the contorence of the Parties on its

operati and, as required, information to the subsidiary bodies of the conform of the Parties, in order that they can fulfil thois mandatos;

(n) Provide, in general, funding for projects and activities organised under

thi. Article and in accordance with the provisions set out by this Convention.

reactions rolated to truastor of technologi
(1) Pursuant to the operational guidelines and policy direction of the

Conference of the Partie, coordinate the appropriate procedures and take the necessary steps to promoto, facilitato and enable the transfor of technology,

39

@ @ @

(3) Provide funding to purchase requisite technologies for the implementation

of project. undertaken by developing country Parties under the mechanism

set up by the International climate Pund; (k) Promoto, and finance when necessary, the exchange of and access to

technological information required by the Partiu. The technological information should include inter all, the environmentally sound and safe technologies including those that have been noglocted or displaced, the technological options, trading conditions, implementation costs and

technological security, 11) Coordinate ways and means to develop long-term technological partnerships

between the holders of environmentally sound tochnologies and potential users in Partios, particularly developing countries, taking into account

their national objectives and policies, (m) Organize, when requested by a recipient Party, or group of recipient

Parties and on terms and conditions set out by such recipient countries, international competitive bidding to purchase requisito technologies for

transfer to the requesting parties, in) Provide requested support to a recipient Party or group of recipient

Partiu to assess the offors presented in International competitive bidding, to enable the requesting partia to obtain the most favourable terms and conditions, including inter all, in terms of price, transfer of know-how, high safety and environmental requirements, training, supply

of spar. parts, and maintenance; and (0) Ensure the development of endogenous capacity building in developing

country Parties, including technologies in the public domain, accordance with their development plans, objectives and priorities of these countries, through, inter alig, the supply of necessary equipment, expertise and facilities for research and development, and the training of scientific, tochnical, and managerial personnel.)

(V1.6. IUSURUCB) for the sun LOW LYING: STAIBST

Option 1

(The Parties shall establish separate supplementary financial mechanisms to assist developing countries, particularly least developed countries, vulnerable small island and low lying coustal developing countries (and developing countries with vulnerable mountain areas) (and countries suffering from desertification or drought) to prevent or mitigate the adverse consequences of sou-level riso (and drought and desertification resulting from climate change, as specified in (Annex IVI (Insurance Mechanism).)

Option 2

(The Conference of the Parties shall consider what action is necessary under the Convention to meet the concerns of the most vulnerable small island and low lying developing countries about the adverse consequences of sea-level riso.)

Option 3

(The Parties shall astablish separate supplementary financial mechanism(s) to assist developing countries, particularly those most vulnerable among them, to counter, mitigato, and/or adapt to the adverse consequences of climate change. The details of such mechanisml.) shall be specilied by the conference of the Parti...)

Option 4

(The Conference of the Parties shall (at its first meeting) consider (the establishment of an insurance scheme 1 (what action is necessary) to meet the (concerns ) (noods) of the Parties which aro vulnerable small iiiand or vulnerable low lying coastal developing countries relating to the adverse consequences of sa-lovel ris.)).

VII. PROSDORES

VII.1. REPORTING

1. Each Party (shalll, (in accordance with its capabilities, I preparı, submit and periodically update a coport containing the information set forth in Annex iij including the measurus it is taking to implement the convention. (For developing country Parties, the fulfilment of thii obligation will be conditional on the availability of corresponding new and additional financial resources.) [The availability of financial resources from the financial mechanism shall be contingent upon the full implementation of this obligation. ) (2. Each Party shall submit an initial roport within x yours of entry into corco of the convention for it (, except that for such country defined as a dovoloping country for the purposes of this convention, an initial roport shall be submitted within y yours of the Convention coming into force for it,) and further that u least developed country may submit its first report within 2 yours of the Convention coming into force for it (or within four yours of receipt of financial resources from the fund established under this convention, whichever is the later). The frequency of subsequent roports for all parties shall be determined by the Conference of the parties. (For developing country Parties, i financial and technical sussistance) (cooperation) in the preparation of such reports shall lidt they so request, 1 be (provided through procedura developed under the provisions of Article VI.6.) [determined by the financial mechanism identified in Articl. VI.61.1 13. Any group of parties may, subject to prior notification to the Conference of the Parties and any guidelines adopted by the conference of the parties, submit a singl. report in fulfilment of their obligation under paragraph 1 above, provided that such report includes information on each party, fulfilment of its individual obligations. I 14. The reports submitted by the Parties shall be transmitted by the secretariat, as soon as possible, to the Conference of the Parties (and to the (names of any subsidiary bodies concerned with the laplementation). j 3. Information contained in the reports, designated us confidential by the supplying Party in accordance with (Annox 111 (critoria to be defined] shall not be disclosed by any of the bodies concerned with the reports.d/ 16. Subject to the provisions of pari. 5, and without projudice to the ability of any party to make public ito report, the secretariat shall make, the reports submitted by Partia publicly available (at the time they are subaitted to the conference of the Partion) (at any time, after the Conference of the Parties has considered the report from the body in charge of implementatioa).) (7. The manner in which reports would be prepared and their content, should i, subject to Annex 11,) be determined by the Individual Party.)

V (It has been proposed that Annex II have the following introduction:

*Nothing in this annox shall be interpreted as requiring Parties to
disclosi information relating to national defonso.
One delegation requested that while certain assential information in
the reports would be obligatory, some flexibility should be given with
regard to other information. )

(VII.2. N SOLUTION OF QUESTIONS ABONUDING INTENNITATION UND INLITATION OP TE CONVENTION

Procos

11. questions relating to the (interpolation of) implementation of the
Convention may be drawn to the attention of the conforonco of the parties by
Parties (and by any subsidiary body established by or under the Conventioni.
Any Party concerned about another party's implementation of its obligations
under the convention or about its own capacity to implement fully those
obligations may notify its concorn, through the secretariat, to the conference
ol Partios. The Conference of parties shall, in a timely tushion, consider
any such question and promote its resolution. To that and it may, if it so
decides, establish an (ad hocl Panel of ... of its members) (orIrofer the
issue to the implementation Committeol.)
Possible Alternative Paragraph 1
11. Any Party concerned about another party's (interpretation or)
implementation of its obligations under the convention or about its own
capacity to implement fully those obligations may notify ito concorn, through
the secretariat, to the implementation Committee.)
2. The (ad hoc) Panel (Implementation Committool, when the conference of the
Partios decides to rotor a question to it, shall, in considering the question
before the next ordinary meeting of the conference of the parties:
(0) Invite the party which has brought the question to the attention

of the Contorence of the Partisi (Implementation Committee) and
any other party whose linterpretation or! Laplementation of the
Convention to in question to attond bootings of the Panel
| Implementation Committee) and take part in consultations with

iti

(b)

» Provide the party whose (interpretation orl implementation of the

Convention is in question a full opportunity to inform the Panel : (Implementation Committee of its capacity to implement its obligations under the Convention and of it. neodo relevant to that issuos

Consult, as it decas necessary, any subsidiary body established
by or under the convention and other expert bodies,
Promote, as necessary, the enhancement of the capacity of the
Party whose (Interpretation or ) Laplementation of the convention
1. in question to implement fully its obligations under the
Convention, and
Report the results of its consultations, together with any
recommendations, to the next ordinary booting of the Conference
of the Partio.