10 October 1997
ENGLISH ONLY
UNITED NATIONS FRAMEWORK CONVENTION ON CLIMATE CHANGE
SUBSIDIARY BODY FOR IMPLEMENTATION
Seventh session
Bonn, 20 - 29 October 1997
Item 4 of the provisional agenda
1. At its first session, the Conference of the Parties (COP)
agreed to review the financial mechanism within four years of COP 1,
and take appropriate measures, including a determination of the
definitive status of the Global Environment Facility (GEF) in the
context of the Convention (FCCC/CP/1995/7/Add.1). As requested by
decision 11/CP.2, the Subsidiary Body for Implementation (SBI), at
its fifth session, began to undertake the review of the financial
mechanism and invited Parties to submit views on their experience
with the financial mechanism
(FCCC/CP/1996/1996/15/Add.1).
2. At its sixth session, the SBI considered a first compilation of
views submitted by Parties (FCCC/SBI/1997/MISC.3 and Add.1), a
synthesis report prepared by the secretariat (FCCC/1997/SBI/8) as
well as the Proposed Chairman's Draft (FCCC/SBI/1997/16, appendix
III) for a decision by the COP. It decided to defer further
consideration of the review of the financial mechanism to its seventh
session, urged all Parties to submit their views on the financial
mechanism in accordance with the guidelines for its review no later
than 15 September 1997, and requested the secretariat to
prepare a miscellaneous compilation of these views for consideration
at its seventh session (FCCC/SBI/1997/16, para. 22).
3. Two such submissions(1) have
been received. In accordance with the procedure for miscellaneous
documents, these submissions are attached and reproduced in the
languages in which they were received and without formal
editing.
FCCC/SBI/1997/MISC.9
GE.97-
Submission No. Page
Australia 3
(Submission received 9 September 1997)
AUSTRALIAN COMMENT ON GEF REVIEW
Republic of Uzbekistan 4
(Submission received 10 September 1997)
FINANCIAL MECHANISM
Australia considers that the GEF has made considerable progress as
the entity operating the financial mechanism of the Convention on an
interim basis since its replenishment and restructuring in 1994. The
governance arrangements for the GEF agreed in 1994 have resulted in
the facility operating in an open and transparent manner. These
arrangements have introduced equity and balanced representation into
all GEF operations. Appropriate modalities for ensuring GEF funded
projects conform with COP guidance and for GEF reporting to COP are
now in place. The MOU text agreed between the GEF and the Convention,
including the MOU's provisions for determining the funding necessary
for implementation of the Convention, is particularly important for
consolidating the formal relationship between the Convention and the
GEF.
Australia considers that the GEF operational strategy and relevant
GEF decisions encompass the guidance and priorities identified by
COP. The GEF council considers that the strategy must be a dynamic
document that is periodically revised to take account of new guidance
from the COP.
The acceleration in 1996-97 in the level of programming of GEF
climate change projects, including the significant level of leveraged
funds associated with these projects, attests to the positive
response of the GEF to COP's priorities and guidance. Australia is
particularly pleased with the streamlined procedures for project
planning, for national communications and for enabling activities
which the GEF council has agreed in order to overcome the
bottle-necks that previously slowed the development and approval of
some GEF activities.
Australia endorses the flexible approach taken by the GEF in
respect of incremental costs. However, we would not wish the
principle of incremental costs to be dissipated in practice by
excessive flexibility in its implementation. Australia is pleased
with progress on developing the GEF's monitoring and evaluation
framework. It is a good start which needs to be built on and
fine-tuned. Full implementation of the monitoring and evaluation
system will progressively allow parties to track the effectiveness
and sustainability of GEF field operations.
While the GEF's achievements have been significant, still more
needs to be done to consolidate and build on the past successes.
Australia will continue to work with our partners in COP and in the
GEF to achieve these ends. In order to continue to move forward
successfully, the GEF needs certainty and stability. Australia
considers that this certainty and stability can be achieved by
designating the GEF to operate the Convention's financial mechanism
on a permanent basis at COP 3.
1.1 In the course of reviewing the financial mechanism following
the decision 9CP.1 it is necessary to take into full account 4-year
experience of administration realised on the temporary basis by GEF
basing on Article 21.3 of Convention. The experience of co-operation
with GEF allows to conclude that the policy, program priorities and
criteria for COP selection are fully taken into account.
1.2 The activities in the development of measures for
rationalisation of the project cycle and project documentation,
reduction of period needed for processing of GEF projects being
realised through the World Bank will facilitate the increase of
general effect of financial mechanism. In further process of
financial mechanism improvement it is necessary to define the
deadlines for the projects expertise and due payments through UNDP
and UNEP offices.
1.3 GEF or any other body which is responsible for the financial
mechanism management should promote the effective implementation and
timely support of permanent process of preparation and updating of
national communications.
1.4 It is expedient to preserve clauses of Article 11 of
Convention.
1.5 With the whole experience gained and organisational progress
GEF is really ready to be the body of financial mechanism of
Convention management.