Update on the work of the Standing Committee. on Finance related to the Fifth Review of the. Financial Mechanism of the Convention
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1 Update on the work of the Standing Committee on Finance related to the Fifth Review of the Financial Mechanism of the Convention 13 June, 2014
2 Mandates of the SCF related to the review of the Financial Mechanism The Standing Committee on Finance assists the Conference of the Parties (COP) in exercising its functions with respect to the financial mechanism of the Convention in terms of improving coherence and coordination in the delivery of climate change financing, rationalization of the financial mechanism One of the mandated activities of the SCF include providing expert input, including through independent reviews and assessments, into the preparation and conduct of the periodic reviews of the financial mechanism by the COP (Decision 2/CP17) The SCF to continue to provide expert input to the fifth review of the financial mechanism, with a view of the review to be finalize by the COP at its 20 th session (Decision 8/CP.19)
3 The Review of the Financial Mechanism By decision 3/CP.4, the COP to review the effectiveness of its financial mechanism every four years in accordance with the provisions of Article 11, paragraph 4. The Fourth review of the Financial Mechanism was concluded by COP 16 in Cancun (2010) with decision 2/CP.16 In Warsaw, Parties adopted the updated guidelines for the review (annexed to decision 8/CP.19) and requested the SCF to continue to provide input to the fifth review
4 Work of the SCF on the Fifth Review of the FM Work of the SCF on the fifth review in 2013 Provided draft updated guidelines to the fifth review of the FM, taking into consideration recent developments under the FM COP adopted updated guidelines to the review of the FM, annexed to decision 8/CP.19 Work of the SCF on the fifth review in 2014 Engaged in in-depth discussion on the approach to the provision of expert input at the 6 th Meeting, March Agreed on the outline of a technical paper to be prepared by the secretariat and that will inform the SCF discussions at its 7 th Meeting, June 16-18
5 A. Governance Clusters of issues for the review of the FM 1. Transparency of decision-making processes of the operating entities of the financial mechanism (Decision 8/CP.19, para.3(a)) 2. Level of stakeholder involvement (Decision 8/CP.19, para. 3(b)) 3. Gender sensitive approaches (Decision 8/CP.19, para. 3(c)) 4. Fiduciary standards 5. Environmental and social safeguards B. Responsiveness of the operating entities to COP guidance 1. Level of responsiveness of the OEs to COP Guidance 2. Responsiveness and efficiency of the GEF project cycle (Decision 8/CP.19, para. 3(e)) C. Mobilization of financial resources 1. Amount of resources provided to developing country Parties (Decision 8/CP.19, para 3(f)) 2. Amount of finance leveraged and modalities of co-financing (Decision 8/CP.19, para 3(g)) 3. Adequacy, predictability and sustainability of funds (Decision 8/CP.19, para 3(d)) 4. Enabling environments (Decision 8/CP.19, para. 1b(iii)) 5. Role of the financial mechanism in scaling-up the level of resources (Decision 8/CP.19, para 1b(ii))
6 Clusters of issues for the review of the FM (cont d) D. Delivery and effectiveness of financial resources 1. Accessibility and timely disbursement of funds 2. Country ownership of programmes and projects 3. Sustainability of funded programmes and projects and operations in developing country Parties 4. Enabling environments E. Results and impacts achieved with the resources provided (Decision 8/Cp.19, para. 3(f)) 1. Mitigation results achieved 2. Adaptation results achieved 3. Forestry 4. Capacity Building F. Consistency of the financial mechanism with the objectives of the Convention 1. The extent to which the resources provided are contributing to achieve the objectives of the Convention (Decision 8/CP.19, para. 3(j)) G. Consistency and complementarity of the financial mechanism with other sources of investment and financial flows (Decision 8/CP.19, para 1(b))
7 Timeline for the expert input to the fifth review Update to SBI 40 on the fifth review 7 th Meeting of the SCF: Consideration of the technical paper on the fifth review and discussion on the preliminary findings and recommendations Inter-sessional work of the working group in preparing the draft Expert Input for consideration by the SCF at its 8 th Meeting 8 th Meeting of the SCF: Consideration of the draft conclusions and recommendations prepared by the working group and finalization of the expert input to be forwarded to the COP Second half 2014 June July Aug Sept October
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