Funding Mechanisms and guidance to the GEF

Parties have reached general agreement on the frameworks for technology transfer, capacity building, and other forms of assistance related to mitigation of, and adaptation to, climate change. These frameworks will further the objectives of the Convention, including as reflected in the Buenos Aires Plan of Action. Parties have also reached general agreement that special consideration will be given to the least developed countries and small island States amongst them. 

Annex II Parties express their intent to seek, through a variety of means, including augmenting their bilateral programs, a significant increase in funding for international climate change related activities, recalling, inter alia, Article 4.3 of the Convention. Annex II Parties have also expressed their support for a successful replenishment of the Global Environment Facility and commitment to ensure that the GEF become more responsive to the needs and priorities of developing countries. Ownership and "country-drivenness"in GEF projects should be enhanced. The scope of activities funded by the GEF should also be broadened. GEF procedures and policies should be streamlined.

Adaptation Fund

Parties declare their intention to seek the establishment of, and the resources to fund, a new window under the GEF: the Adaptation Fund.

Specific needs of the least developed countries (LDCs, including SIDS)

Convention fund

Parties declare their intention to seek the establishment of, and the resources to fund, a new window under the GEF: a Convention Fund. 

Funding and Modalities

Contributions from Annex II Parties will reflect their initial assigned amounts. These contributions should be made at rates adjusted to generate $1 billion over the first commitment period. These may be directed to either the Adaptation or Convention funds or both as Parties deem appropriate, with the modalities to be defined at COP 7. Finance for the Adaption Fund will be generated by the share of the proceeds on the CDM (2% of the CERs generated by projects), voluntary contributions and by a percentage of assigned amount, or its financial equivalent. 

-- There will be periodic reviews of the modalities of the new GEF funds, including with respect to the level of funding and the eligibility requirements. 

Climate Resources Committee

Parties declare their intent to establish a Climate Resources Committee at COP-7, with the following mandate: