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DRAFT FINANCIAL RULES OF THE CONFERENCE OF THE PARTIES, ITS SUBSIDIARY BODIES AND THE PERMANENT SECRETARIAT

The Working Group also considered the financial rules as contained in document A/AC.241/45. The Group was only able to consider the first ten rules that cover the scope, financial period, budget and part of the section on funds. Three agreements were reached, but some delegations expressed frustration at the inability of the Group to reach agreement on majority of the issues.

As an introduction, the Secretariat highlighted three points. Models on percentage rates for the scales of contribution were available but because these vary depending on the number of Parties to the Convention, presentations are best done to individual delegations to demonstrate the scenarios of interest to them. The models indicate that the effect of large or small contributions is insignificant, thus, the issue is whether to do away with small contributions. The cost of processing a financial contribution of any amount is US$500. With respect to the administration of different trust funds, the costs for all three are comparable, although for practical purposes, financial experts prefer the option with three separate accounts.

Delegates debated the currency to be used, whether the budget could be considered at extraordinary sessions, the terms under which the secretariat could make budget transfers, all without agreement. Delegates agreed to establish three separate trust funds. Language was added in brackets focusing some financial support on representatives from least developed countries. Delegates deleted "30 percent" of core budget expenditure from a list of options for a capital reserve, but they did not agree on how to set the size of the reserve. Some delegations preferred the option of a capital reserve which is "a percentage of" core budget expenditure "set by the COP". One delegation said it may be premature to define the expenditures because the COP will need experience on the flow of resources, while another said the programme and budget issue needs to be addressed before finalizing this matter.

The Group adopted a draft decision, contained in document A/AC.241/WG.I(8)/L.3, inviting the Secretariat to prepare a revised version of the rules for INCD-9.

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