Framework Convention on Climate Change

United Nations Framework Convention on Climate Change FCCC/SBI/2011/INF.3 Distr.: General 2 May 2011 English only Subsidiary Body for Implementation Thirty-fourth session Bonn, 6 16 June 2011 Item X of the provisional agenda Interim financial statements for the biennium 2010 2011 as at 31 December 2010 Note by the Executive Secretary Summary This document contains the interim financial statements for the biennium 2010 2011, as at 31 December 2010, which have not been audited by the United Nations Board of Auditors. The interim financial statements are attached as an annex to this document and reproduced as received, without formal editing. The Subsidiary Body for Implementation may wish to take note of the report and propose appropriate recommendations to be included in draft decisions on administrative and financial matters to be adopted by the Conference of the Parties at its seventeenth session and the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol at its seventh session. GE.11-60956

Annex Interim Financial Statements for the biennium 2010 2011 as at 31 December 2010 3

CONTENTS I. Certification of the Financial Statements II. Narrative financial report A. Introduction B. Financial highlights III. Interim Financial Statements for the Biennium 2010 2011 Statement I - Income and expenditure and changes in reserves and fund balances Statement II - Assets, liabilities, reserves and fund balances Statement III - Cash flow Statement IV Statement of appropriations of the core budget Schedule 1.1 Outstanding indicative to the UNFCCC convention Schedule 1.2 Outstanding indicative to the Kyoto Protocol Schedule 2.1 Voluntary Schedule 2.2 Clean Development Mechanism and Joint Implementation Schedule 2.3 Contributions to the International Transaction Log IV. Notes to the financial statements V. Annexes Aging analysis of outstanding indicative Annex 1 To the UNFCCC convention Annex 2 To the Kyoto Protocol 4

UNITED NATIONS NATIONS UNIES FRAMEWORK CONVENTION ON CLIMATE CHANGE - Secretariat CONVENTION - CADRE SUR LES CHANGEMENTS CLIMATIQUES - Secrétariat I. Certification of the Interim Financial Statements 1. The interim financial statements of the United Nations Framework Convention on Climate Change (UNFCCC) for the biennium 2010 2011, as at 31 December 2010, have been prepared in accordance with financial rule 106.10. They include all trust funds and special accounts operated by the UNFCCC. 2. A summary of significant accounting policies applied in the preparation of these statements is included as notes to the financial statements. The notes provide additional information and clarification of the financial activities undertaken by the UNFCCC during the period covered by the statements for which the Executive Secretary has administrative responsibility. 3. I certify that the appended interim financial statements of the United Nations Framework Convention on Climate Change for the biennium 2010 2011, as at 31 December 2010, are correct. (Signed) Christiana Figueres Executive Secretary 21 March 2011 5

II. Narrative financial report A. Introduction 4. The United Nations Framework Convention on Climate Change (UNFCCC) submits herewith the interim financial statements for the biennium 2010 2011 as at 31 December 2010. The report is presented in accordance with the financial procedures 1 of the Conference of the Parties (COP), its subsidiary bodies and its secretariat as well as the United Nations System Accounting Standards 2. 5. The objective of the financial statements is to provide information about the financial position and performance of the organization, changes in its financial position and compliance with legislative and other authorities. The attached financial statements include: Financial highlights in summary; Statement of income and expenditure, changes in reserves and fund balances (Statement I); Statement of assets, liabilities and reserves and fund balances (Statement II); Statement of cash flow (Statement III); Statement or schedule of appropriations by programme (Statement IV); Notes to the financial statements; Detailed schedule on status of outstanding indicative ; Annexes to the financial statements. 1 Decision 15/CP.1 of 7 April 1995 2 United Nations System Accounting Standards Revision IX of February 2010 6

B. Financial highlights 1. Overall financial results and trends 6. The following section provides an overview of the performance of UNFCCC. The overall results and trends are expressed in millions of United States dollars and the individual Trust Funds are expressed in thousands of United States dollars. Table 1: UNFCCC consolidated total income Increase/ (decrease) 2008 2009 2010 2008/2010 29.5 29.8 34.5 17% Voluntary 40.2 40.9 35.0 (13%) CDM share of proceeds and fees 39.4 37.3 35.2 (11%) Other income 4.5 3.7 3.2 (29%) Total income 113.6 111.7 107.9 (5%) Figure 1: UNFCCC consolidated total income 45 40 Millions of United States dollars 35 30 25 20 15 10 5 0 2008 2009 2010 CDM share of proceeds and fees Voluntary Other income 7. There was an increase in the level of income from indicative to the core budget owing to the increase in the approved core budget for the year. The level of income from voluntary to all trust funds and the fees and share of proceeds from the Clean Development Mechanism projects both decreased during 2010 compared to the previous two years. Overall, the total income decreased by USD 5.7 million compared to the first year of the previous biennium. 7

Table 2: UNFCCC consolidated total expenditure Increase/ Total expenditure (decrease) (USD millions) 2008 2009 2010 2008/2010 Staff and other personnel costs 42.5 48.8 53.1 25% Other direct expenditure 28.7 51.9 45.4 58% Total direct expenditure 71.2 100.7 98.5 38% Programme support costs 7.6 11.0 9.6 26% Figure 2: UNFCCC consolidated total expenditure Millions of United States dollars 60 50 40 30 20 10 0 2008 2009 2010 Staff and other personnel costs Programme support costs Other direct expenditure 8. Total expenditure reflected the overall level of activity of the secretariat which increased significantly during 2010 compared to the first year of the previous biennium. 8

Table 3: UNFCCC consolidated total assets, liabilities and fund balances Increase/ (decrease) 2008 2009 2010 2008/2010 Cash and term deposits 122.5 143.9 156.8 28.0% Accounts receivable and other assets 10.7 12.9 11.4 6.5% Unliquidated obligations (8.7) (15.9) (13.5) 55.2% Other liabilities (analysed below) (26.1) (25.6) (27.7) 6.1% Operating and working capital reserves (52.6) (55.3) (56.0) 6.5% Overall cumulative surplus 45.8 60.0 71.0 55.0% Analysis of other liabilities: End of service and post retirement 21.1 18.5 21.7 2.8% Inter-fund balances payable 2.5 0.3 0.0 (100.0%) Contributions received in advance 1.9 4.1 3.7 94.7% Other accounts payable 0.6 2.8 2.3 283.3% Total other liabilities 26.1 25.7 27.7 6.1% Figure 3: UNFCCC consolidated total assets, liabilities and fund balances 180 160 Millions of United States dollars 140 120 100 80 60 40 20 0 2008 2009 2010 Cash and term deposits Unliquidated obligations Operating and working capital reserves Accounts receivable and other assets Other liabilities (analysed below) Overall cumulative surplus 9. There was a general increase in the total assets and total reserves and fund balances during 2010, in particular, cash and short term deposits increased by more than USD 34 million as at 31 December 2010 compared to the balances as at 31 December 2008. This reflects a healthy operating cash balance for the secretariat and manageable levels of outstanding liabilities. 9

2. Trust Fund for the Core Budget of the UNFCCC 10. Objective of the Fund: The Trust Fund for the Core Budget of the UNFCCC supports the core functions of the secretariat. The main source of income are indicative by all Parties based on the United Nations scale of assessment. Table 4: Summary accounts for the Trust Fund for the core budget Increase/ (decrease) Summary financial position 2008 2009 2010 2008/2010 Income and expenditure Total income 26 795 26 442 31 551 17.7% Total direct expenditure (21 527) (24 366) (24 718) 14.8% Programme support costs (2 796) (3 171) (2 893) 3.5% Excess of income over expenditure 2 472 (1 095) 3 940 59.4% Assets, liabilities and fund balances Cash and short-term deposits 12 316 15 082 15 779 28.1% Other assets 3 112 3 605 4 784 53.7% Unliquidated obligations (1 401) (3 302) (1 734) 23.8% Other liabilities (1 724) (4 277) (3 502) 103.1% Working capital reserve (2 241) (2 241) (2 406) 7.4% Cumulative surplus 10 062 8 867 12 921 28.4% 11. Commentary: This fund achieved an excess of income over expenditure of USD 3.94 million during 2010, which together with the savings on prior period obligations of USD 0.28 million not shown on the above table resulted into the increase in the cumulative surplus. 3. Trust Fund for Participation in the UNFCCC Process 12. Objective of the Fund : The Trust Fund for Participation in the UNFCCC Process supports participation of representatives from eligible developing country Parties and Parties with economies in transition in the sessions of the COP and its subsidiary bodies, using voluntary. Table 5: Summary accounts for the Trust Fund for the participation in the UNFCCC process Increase/ (decrease) Summary financial position 2008 2009 2010 2008/2010 Income and expenditure Total income 8 000 8 319 7 973 (0.3%) Total direct expenditure (3 967) (10 214) (7 219) 82.0% Programme support costs ( 492) (1 317) ( 891) 81.1% Excess of income over expenditure 3 541 (3 212) ( 137) (103.9%) Assets, liabilities and fund balances Cash and short-term deposits 7 192 4 385 7 251 0.8% 10

Other assets 53 172 14 (73.6%) Unliquidated obligations ( 401) ( 346) (2 276) 467.6% Other liabilities ( 35) ( 614) ( 3) (91.4%) Operating reserve ( 437) (1 155) ( 814) 86.3% Cumulative surplus 6 372 2 442 4 172 (34.5%) 13. Commentary: This fund received a boost during the year following a transfer of USD 1.28 million from the CDM reserves in lieu of the CDM prompt start, leading to an increase in the cumulative surplus even though the total income for the year was almost equal to the expenditure. There were also some modest savings on prior year obligations of 0.24 million. 4. Trust Fund for Supplementary Activities 14. Objective of the Fund: The Trust Fund for Supplementary Activities supports mandated activities for which provisions are not made under the core budget. Funds are contributed voluntarily by Parties. Table 6: Summary accounts for the Trust Fund for supplementary activities Increase/ (decrease) Summary financial position 2008 2009 2010 2008/2010 Income and expenditure Total income 28 140 23 359 19 999 (28.9%) Total direct expenditure (14 481) (24 840) (15 925) 10.0% Programme support costs (1 808) (3 228) (1 794) (0.8%) Excess of income over expenditure 11 851 (4 709) 2 280 (80.8%) Assets, liabilities and fund balances Cash and short-term deposits 21 897 22 560 27 531 25.7% Other assets 6 027 5 939 2 824 (53.1%) Unliquidated obligations (2 380) (7 603) (2 512) 5.5% Other liabilities ( 35) ( 150) ( 279) 697.1% Operating reserve (2 694) (4 001) (2 654) (1.5%) Cumulative surplus 22 815 16 745 24 910 9.2% 15. Commentary: This fund is used to account for Joint Implementation Supervisory Committee, which received a boost of USD 2.22 million from CDM reserves in lieu of CDM prompt start. Together with savings on prior year obligations of USD 2.8 million, the fund ended up with a net increase the total cumulative surplus as at the end of 2010. 5. Trust Fund for the Clean Development Mechanism 16. Objective of the Fund: The Trust Fund for the Clean Development Mechanism supports the administration of the clean development mechanism. It enables Annex I Parties to meet their emission limitation and reduction commitments by using certified emission reductions (CERs) generated from CDM projects. It receives shares of proceeds from CDM projects and fees related to the management of CDM activities. 11

Table 7: Summary accounts for the Trust Fund for clean development mechanism Increase/ (decrease) Summary financial position 2008 2009 2010 2008/2010 Income and expenditure Total income 39 656 40 498 36 144 (8.9%) Total direct expenditure (15 587) (18 349) (27 732) 77.9% Programme support costs (1 975) (2 381) (3 300) 67.1% Excess of income over expenditure 22 094 19 768 5 112 (76.9%) Assets, liabilities and fund balances Cash and short-term deposits 65 356 82 800 85 841 31.3% Other assets 45 1 441 1 464 3153.3% Unliquidated obligations (1 619) (1 892) (3 285) 102.9% Other liabilities (1 793) ( 394) ( 355) (80.2%) Operating reserve (45 000) (45 000) (45 000) 0.0% Cumulative surplus 16 989 36 955 38 665 127.6% 17. Commentary: Although this fund had an excess of income of USD 5.1 million during 2010, a total of USD 3.5 million in lieu of the CDM prompt start was transferred to the trust fund for the participation in the UNFCCC process and to the Joint Implementation Supervisory Committee under the trust fund for supplementary activities. 6. Trust Fund for the International Transaction Log 18. Objective of the Fund: The Conference of the Parties serving as the meeting of the parties to the Kyoto Protocol (CMP), by its decision 13/CMP.1 in 2005, requested the secretariat to establish and maintain the ITL to verify the validity of transactions undertaken by national registries of Annex B Parties and CDM registry. The ITL takes a central role between registries and is an essential component of the settlement infrastructure for emissions trading under the Kyoto Protocol. The Trust Fund for the International Transaction Log covers the resource requirements for activities assigned to the ITL administrator. The income is drawn from indicative based on a scale of assessment. Table 8: Summary accounts for the Trust Fund for the international transaction log Increase/ (decrease) Summary financial position 2008 2009 2010 2008/2010 Income and expenditure Total income 5 498 5 357 4 430 (19.4%) Total direct expenditure (2 182) (4 549) (3 507) 60.7% Programme support costs ( 284) ( 591) ( 377) 32.7% Excess of income over expenditure 3 032 217 546 (82.0%) Savings on prior period obligations 330 Assets, liabilities and fund balances Cash and short-term deposits 5 752 4 264 5 828 1.3% Other assets 145 255 14 (90.3%) Unliquidated obligations (1 903) ( 700) ( 636) (66.6%) Other liabilities (1 382) ( 952) (1 463) 5.9% 12

Operating reserve ( 357) ( 430) ( 350) (2.0%) Cumulative surplus 2 255 2 437 3 393 50.5% 19. Commentary: This fund had an excess of income over expenditure of USD 0.54 million during the year which together with the savings on prior period obligations of USD 0.33 million and the decrease in the operating reserve resulted into a net increase in the total cumulative surplus balance as at the end of the year. 7. Trust Fund for Special Annual Contribution from the Government of Germany 20. Objective of the Fund: The Trust Fund for the Special Annual Contribution from the Government of Germany (the Bonn Fund) is used to finance the logistical arrangements of events taking place in Germany, including workshops and the sessions of the subsidiary bodies. Table 9: Summary accounts for the Trust Fund for special annual contribution from the Government of Germany Increase/ (decrease) Summary financial position 2008 2009 2010 2008/2010 Income and expenditure Total income 2 782 2 380 2 421 (13.0%) Total direct expenditure (2 116) (2 364) (2 322) 9.7% Programme support costs ( 274) ( 306) ( 307) 12.0% Excess of income over expenditure 392 ( 290) ( 208) (153.1%) Assets, liabilities and fund balances Cash and short-term deposits 598 428 310 (48.2%) Other assets 161 37 48 (70.2%) Unliquidated obligations ( 62) ( 60) ( 41) (33.9%) Other liabilities ( 3) ( 1) ( 111) 3600.0% Operating reserve ( 300) ( 300) ( 300) 0.0% Cumulative surplus 394 104 ( 95) (124.1%) 21. Commentary: The fund is relatively stable as expected. Since the contribution is a fixed amount paid in euro, changes from one period to the next are caused only by conversion to the US dollar or any savings from prior period obligations. Any excess balances at the end of a biennium are normally refunded back to the German Government during the subsequent biennium. The Government however, exceptionally allowed the secretariat to retain the savings at the end of the 2008-2009 biennium of USD 104,000, which was utilised in 2010. 8. The account for Programme Support Costs 22. Objective of the Account: This account is used to manage the overhead charges payable on all trust funds of the UNFCCC to cover costs relating to administrative services. Table 11: Summary accounts for programme support costs account Increase/ (decrease) Summary financial position 2008 2009 2010 2008/2010 Income and expenditure Total income 8 065 11 299 9 833 21.9% Total direct expenditure (6 454) (7 743) (8 959) 38.8% 13

Excess of income over expenditure 1 611 3 556 874 (45.7%) Assets, liabilities and fund balances Cash and short-term deposits 7 330 10 788 11 698 59.6% Other assets 159 411 402 152.8% Unliquidated obligations ( 274) ( 418) ( 398) 45.3% Other liabilities ( 39) ( 49) ( 11) (71.8%) Operating reserve (1 526) (2 199) (4 481) 193.6% Cumulative surplus 5 650 8 533 7 210 27.6% 23. Commentary: As part of strengthening of the secretariat s administrative capacity, the expenditure during 2010 increased significantly compared to the previous two years. The level of income from overheads (programme support costs) increased in 2010 compared to 2008 in line with the overall trends of the level of activity within the secretariat. 9. The account for Conferences and Other Recoverable Costs 24. Objective of the Account: Income and expenditure under this special account is principally in respect to costs associated with the hosting of Conferences of the Parties under the host country agreement. Balances on this account after closure of the events and finalisation of the accounts are refunded to the host country in line with the host country agreements. An administrative charge of 5 per cent of the total expenditure per activity is applied to cover administrative overheads and is transferred upon the closure of the respective activities. 25. The special account is also used to account for the support provided by the Government of Germany associated with office moves under the host country agreement. Table 12: Summary accounts for conference and other recoverable costs account Increase/ (decrease) Summary financial position 2008 2009 2010 2008/2010 Income and expenditure Total income 2 219 4 864 5 091 129.4% Total direct expenditure (1 810) (4 576) (4 940) 172.9% Excess of income over expenditure 409 288 151 (63.1%) Assets, liabilities and fund balances Cash and short-term deposits 2 037 3 597 2 537 24.5% Other assets 887 1 048 1 835 106.9% Unliquidated obligations ( 662) (1 556) (2 595) 292.0% Other liabilities ( 10) ( 532) ( 279) 2690.0% Cumulative surplus 2 252 2 557 1 498 (33.5%) 26. Commentary: During the year, the secretariat was split between two locations, Haus Castenjen on 8 Martin Luther King Strasse and Lange Eugen on 10 Hermann-Ehlers-Strasse, both in Bonn, Germany. The associated costs and the funding due from the German Government are included in the above table. The reduction in the cumulative surplus balance is due to the refunds made to the host countries on the accounts that were closed during the year. 14

III. Interim Financial Statements of the Biennium 2010 2011 A. Statement I Interim statement of income and expenditure and changes in reserves and fund balances for the year ended 31 December 2010 (Thousands of United States dollars) Trust Fund for the Trust Fund for Core Budget of the Participation in the UNFCCC UNFCCC process Trust Fund for Supplementary Activities Trust Fund for the Clean Development Mechanism Trust Fund for the International Transaction Log Trust Fund for the Special Annual Contribution from the Government of Germany INCOME: (Note 4) a 30 103 4 350 Voluntary 1 074 7 608 19 198 32 2 409 Programme support cost income Other income CDM and JI fees 433 34 792 Interest income 263 77 313 1 303 78 11 Other/miscellaneous income 111 288 55 17 2 1 TOTAL INCOME 31 551 7 973 19 999 36 144 4 430 2 421 EXPENDITURE: (Note 5) a Staff and other personnel costs 17 166 5 949 14 471 864 436 Consultants 714 807 1 098 46 26 Experts 934 420 3 293 Travel 978 7 095 3 278 3 042 30 70 Contractual services 552 248 290 2 112 215 Operating expenses 908 1 3 254 3 332 138 1 570 Acquisitions 359 127 14 1 35 Fellowships grants 922 1 460 476 4 Exchange revaluation differences 2 185 123 382 1 716 316 ( 34) Total direct expenditure 24 718 7 219 15 925 27 732 3 507 2 322 Programme support costs 2 893 891 1 794 3 300 377 307 TOTAL EXPENDITURE 27 611 8 110 17 719 31 032 3 884 2 629 NET EXCESS (SHORTFALL) OF INCOME OVER EXPENDITURE 3 940 ( 137) 2 280 5 112 546 ( 208) RESERVES AND FUND BALANCES As at 1 January 2010 11 108 3 597 20 564 81 955 2 867 404 Refunds to donors or project fees refunds ( 257) ( 536) CDM Prompt start reserves adjustments 1 284 2 218 (3 503) Savings on prior period obligations 279 242 2 759 638 330 10 Net excess (shortfall) of income over expenditure 3 940 ( 137) 2 280 5 112 546 ( 208) RESERVES & FUND BALANCES AS AT 31 DECEMBER 2010 15 327 4 986 27 564 83 666 3 743 205 a The accompanying notes are an integral part of the financial statements. 15

Statement I continued Special account for UNFCCC programme support costs Special account for conferences and other recoverable costs End-of-service and post retirement benefits INCOME: (Note 4) 34 453 29 544 Voluntary 4 680 35 001 40 188 Programme support cost income 9 564 b 12 b Other income CDM and JI fees 35 225 39 741 Interest income 181 41 2 267 3 368 Other/miscellaneous income 88 370 932 785 TOTAL INCOME 9 833 5 091 107 878 113 626 EXPENDITURE: (Note 5) Staff and other personnel costs 6 502 46 45 434 36 061 Consultants 329 3 020 2 970 Experts 25 4 672 3 500 Travel 17 3 904 18 414 10 898 Contractual services 157 204 3 778 1 861 Operating expenses 1 254 428 3 201 14 086 11 363 Acquisitions 57 274 867 521 Fellowships grants 391 3 253 4 010 Exchange revaluation differences 252 59 4 999 6 Total direct expenditure 8 959 4 940 3 201 98 523 71 184 b b Programme support costs 12 TOTAL EXPENDITURE 8 959 4 940 3 201 98 523 71 184 NET EXCESS (SHORTFALL) OF INCOME OVER EXPENDITURE 874 151 (3 201) 9 356 42 442 Total 2010 Notes a Total 2008 RESERVES AND FUND BALANCES As at 1 January 2010 10 732 2 557 (18 468) 115 316 54 385 Refunds to donors or project fees refunds (1 311) (2 104) 7 ( 46) CDM Prompt start reserves adjustments ( 1) Savings on prior period obligations 85 100 4 443 1 560 Net excess (shortfall) of income over expenditure 874 151 (3 201) 9 356 42 442 RESERVES & FUND BALANCES AS AT 31 DECEMBER 2010 11 691 1 497 (21 669) 127 010 98 341 a The accompanying notes are an integral part of the financial statements. b Programme Support Costs income under the totals column have been netted off with the equivalent expenditure. It totalled USD 9.56 million in 2010 compared to USD 7.63 million in 2008. These internal cross charges are not shown under the overall totals column in order to reflect only external income and expenditure. 16

B. Statement II Interim statement of assets, liabilities, reserves and fund balances for the biennium 2010 2011 as at 31 December 2010 (Thousands of United States dollars) Trust Fund for the Core Budget of the UNFCCC Trust Fund for Participation in the UNFCCC process Trust Fund for Supplementary Activities Trust Fund for the Clean Development Mechanism Trust Fund for the International Transaction Log Trust Fund for the Special Annual Contribution from the Government of Germany ASSETS Cash and term deposits 15 779 7 251 27 531 85 842 5 828 310 Accounts receivable receivable 2 315 Inter-fund balances receivable 11 3 21 64 Service clearing account - UNDP 145 Other accounts receivable 2 129 11 2 607 1 194 14 31 Deferred charges 329 51 206 16 TOTAL ASSETS 20 563 7 265 30 355 87 306 5 842 357 LIABILITIES Contributions/payments received in advance 2 317 1 398 Unliquidated obligations 1 734 2 276 2 512 3 285 636 41 Accounts payable Inter-fund balances payable 2 Service clearing account - UNDP Other accounts payable 1 185 3 279 355 65 109 End-of-service and post retirement liabilities TOTAL LIABILITIES 5 236 2 279 2 791 3 640 2 099 152 RESERVES AND FUND BALANCES Operating reserve 814 2 654 45 000 350 300 Working capital reserve 2 406 Reserve for allocations Cumulative surplus 12 921 4 172 24 910 38 666 3 393 ( 95) End of service and post retirement benefits TOTAL RESERVES AND FUND BALANCES 15 327 4 986 27 564 83 666 3 743 205 TOTAL LIABILITIES, RESERVES AND FUND BALANCES 20 563 7 265 30 355 87 306 5 842 357 17

Statement II continued Special account for UNFCCC programme support costs Special account for conferences and other recoverable costs End-of-service and post retirement benefits Total 2010 Notes a Total 2008 ASSETS Cash and term deposits 11 698 2 537 156 776 8 122 478 Accounts receivable receivable 2 315 9 1 936 Inter-fund balances receivable 10 2 111 1 960 Service clearing account - UNDP 145 345 Other accounts receivable 340 1 832 8 158 9 5 973 Deferred charges 52 654 450 TOTAL ASSETS 12 100 4 371 168 159 133 142 LIABILITIES Contributions/payments received in advance 3 715 1 901 Unliquidated obligations 398 2 595 13 477 8 702 Accounts payable Inter-fund balances payable 2 2 529 Service clearing account - UNDP Other accounts payable 11 279 2 286 10 591 End-of-service and post retirement liabilities 21 669 21 669 14 21 078 TOTAL LIABILITIES 409 2 874 21 669 41 149 34 801 RESERVES AND FUND BALANCES Operating reserve 4 481 53 599 11 50 314 Working capital reserve 2 406 11 2 241 Reserve for allocations 28 Cumulative surplus 7 210 1 497 92 674 66 836 End of service and post retirement benefits (21 669) (21 669) 14 (21 078) TOTAL RESERVES AND FUND BALANCES 11 691 1 497 (21 669) 127 010 98 341 TOTAL LIABILITIES, RESERVES AND FUND BALANCES 12 100 4 371 168 159 133 142 a The accompanying notes are an integral part of the financial statements. 18

C. Statement III Interim statement of cash flow for the biennium 2010 2011 for the year ended 31 December 2010 (Thousands of United States dollars) Trust Fund for the Special Annual Trust Fund for Trust Fund for Trust Fund for Trust Fund for the Clean Trust Fund for Contribution from the the Core Budget Participation in the Supplementary Development the International Government of of the UNFCCC UNFCCC process Activities Mechanism Transaction Log Germany CASH FLOWS FROM OPERATING ACTIVITIES: Net excess (shortfall) of income over expenditures 3 940 ( 137) 2 280 5 112 546 ( 208) ( Increase ) decrease in receivable (2 315) 5 495 255 (Increase)/decrease in other accounts receivable 1 186 161 (2 607) 59 ( 15) 5 (Increase)/decrease in other assets ( 39) 249 ( 18) ( 16) Increase/(decrease) in received in advance (1 086) 723 Increase/(decrease) in accounts payable 344 ( 602) 129 12 ( 206) 109 Increase/(decrease) in unliquidated obligations (1 568) 1 930 (5 091) 1 393 ( 64) ( 19) Increase/(decrease) in end-of-service and post retirement liabilities Less: Interest income received ( 263) ( 77) ( 313) (1 303) ( 78) ( 11) NET CASH FROM OPERATING ACTIVITIES 199 1 275 142 5 255 1 161 ( 140) CASH FLOWS FROM INVESTING AND FINANCING ACTIVITIES: (Increase)/decrease in inter-fund balances receivable ( 11) ( 3) ( 21) ( 64) Increase/(decrease) in inter-fund balances payable ( 33) ( 9) ( 182) ( 51) ( 6) 1 Plus: Interest income received 263 77 313 1 303 78 11 NET CASH FROM INVESTING AND FINANCING ACTIVITIES 219 65 110 1 188 72 12 CASH FLOWS FROM OTHER SOURCES: Savings on prior periods' obligations 279 242 2 758 638 330 10 Refunds to donors ( 257) ( 536) CDM Prompt start reserves adjustments 1 284 2 218 (3 503) NET CASH FROM OTHER SOURCES 279 1 526 4 719 (3 401) 330 10 NET INCREASE (DECREASE) IN CASH AND TERM DEPOSITS 697 2 866 4 971 3 042 1 563 ( 118) CASH AND TERM DEPOSITS AT BEGINNING OF PERIOD 15 082 4 385 22 560 82 800 4 265 428 CASH AND TERM DEPOSITS AT END OF PERIOD 15 779 7 251 27 531 85 842 5 828 310 19

Statement III continued Special account Special account for conferences for UNFCCC and other programme recoverable support costs costs End-of-service and post retirement benefits Total 2010 Notes a Total 2008 CASH FLOWS FROM OPERATING ACTIVITIES: Net excess (shortfall) of income over expenditures 874 151 (3 201) 9 356 42 442 ( Increase ) decrease in receivable 3 435 1 704 (Increase)/decrease in other accounts receivable 21 ( 784) (1 974) (4 691) (Increase)/decrease in other assets ( 2) 174 ( 154) Increase/(decrease) in received in advance ( 363) ( 34) Increase/(decrease) in accounts payable ( 14) ( 245) ( 473) (1 243) Increase/(decrease) in unliquidated obligations ( 20) 1 039 (2 400) 2 004 Increase/(decrease) in end-of-service and post retirement liabilities 3 201 3 201 2 961 Less: Interest income received ( 181) ( 41) (2 267) (3 368) NET CASH FROM OPERATING ACTIVITIES 678 120 8 689 39 621 CASH FLOWS FROM INVESTING AND FINANCING ACTIVITIES: (Increase)/decrease in inter-fund balances receivable ( 10) ( 2) ( 111) (1 409) Increase/(decrease) in inter-fund balances payable ( 24) ( 8) ( 312) 1 993 Plus: Interest income received 181 41 2 267 3 368 NET CASH FROM INVESTING AND FINANCING ACTIVITIES 147 31 1 844 3 952 CASH FLOWS FROM OTHER SOURCES: Savings on prior periods' obligations 85 101 4 443 1 561 Refunds to donors (1 312) (2 105) ( 46) CDM Prompt start reserves adjustments ( 1) NET CASH FROM OTHER SOURCES 85 (1 211) 2 337 1 515 NET INCREASE (DECREASE) IN CASH AND TERM DEPOSITS 910 (1 060) 12 870 45 089 CASH AND TERM DEPOSITS AT BEGINNING OF PERIOD 10 788 3 597 143 906 77 389 CASH AND TERM DEPOSITS AT END OF PERIOD 11 698 2 537 156 776 8 122 478 a The accompanying notes are an integral part of the financial statements. 20

D. Statement IV The Core budget: Interim statement of appropriations of the biennium 2010 2011 for the year ended 31 December 2010 (Thousands of euros unless otherwise indicated) Expenditure Programmes and secretariat wide cost 2010 Disbursements obligations expenditure on budget of Unliquidated Total Balance Percentage Equivalent Approved of the total expenditure budget expenditure EUR EUR EUR EUR EUR over budget USD Programme appropriations: Executive Direction and Management 1,975 1,609 296 1,905 70 96.5% 2,523 Reporting, Data and Analysis 4,148 3,467 46 3,513 635 84.7% 4,635 Financial and Technical Support 2,588 2,344 66 2,410 178 93.1% 3,190 Adaptation, Technology and Science 2,209 2,064 51 2,115 94 95.7% 2,804 Sustainable Development Mechanisms 426 355-355 71 83.3% 468 Legal Affairs 1,558 1,124 8 1,132 426 72.7% 1,494 Conference Affairs Services 1,446 1,336 68 1,404 42 97.1% 1,850 Information Services 3,725 2,853 221 3,074 651 82.5% 4,058 Secretariat-wide Costs 1,450 586 563 1,149 301 79.2% 1,510 Total 19,525 15,738 1,319 17,057 2,468 87.4% 22,532 27. The total expenditure of USD 22.53 million shown above excludes the unrealised exchange revaluation differences of USD 2.19 million shown under the trust fund for the core budget as these are not attributable to any specific programme appropriation. These differences have arisen owing to the revaluation of assets and liabilities held in currencies other than the United States dollar as at 31 December 2010 compared to the respective balances as at 1 January 2010. 21

E. Schedule 1.1 Status of indicative to the Convention for the biennium 2010 2011 as at 31 December 2010 (in Euros unless otherwise indicated) receivable for 2010 Contributions received in advance as at 01 Jan 2010 Remittances received in 2010 received in advance for 2011 receivable as at 31 Dec 2010 A B C A-B-C A-B-C outstanding from prior periods (in USD) Afghanistan 514 514 406 Albania 1 285 9 1 276 Algeria 16 454 16 454 Angola 1 285 1 286 1 Antigua and Barbuda 257 257 Argentina 36 894 36 894 Armenia 643 643 Australia 248 486 229 756 261 791 243 061 Austria 109 396 109 419 23 Azerbaijan 1 928 1 928 Bahamas 2 314 2 057 2 057 1 800 Bahrain 5 013 5 013 18 006 Bangladesh 1 285 1 285 17 375 Barbados 1 028 1 028 Belarus 5 399 2 610 2 789 Belgium 138 191 141 685 3 494 Belize 132 132 158 Benin 386 386 133 Bhutan 132 65 108 41 Bolivia 900 1 780 880 Bosnia & Herzegovina 1 800 1 800 Botswana 2 314 4 577 2 263 Brazil 207 093 207 093 2 803 Brunei Darussalam 3 599 3 599 4 030 Bulgaria 4 885 9 663 4 778 Burkina Faso 386 386 1 152 Burundi 132 132 2 203 Cambodia 386 132 254 Cameroon 1 414 1 414 16 566 Canada 412 258 382 756 29 502 Cape Verde 132 132 178 Central African Republic 132 132 Chad 257 257 3 005 Chile 30 338 30 338 China 409 945 170 000 240 031 86 Colombia 18 511 18 511 Comoros 132 132 3 005 Congo 386 386 527 22

Schedule 1.1 (continued) receivable for 2010 Contributions received in advance as at Remittances received received in receivable as at 01 Jan 2010 in 2010 advance for 2011 31 Dec 2010 A B C A-B-C A-B-C outstanding from prior periods (in USD) Cook Islands 132 132 519 Costa Rica 4 371 4 371 Cote d'ívoire 1 285 1 285 1 459 Croatia 12 469 6 429 6 429 389 Cuba 9 127 9 127 9 928 Cyprus 5 913 5 913 1 846 Czech Republic 44 864 36 128 8 745 9 Democratic People's Rep. of Korea (North) 900 900 Democratic Rep.of Congo 386 386 4 289 Denmark 94 612 187 179 92 567 Djibouti 132 132 960 Dominica 132 132 3 005 Dominican Republic 5 399 5 399 29 960 Ecuador 5 142 2 242 3 084 184 Egypt 12 084 12 084 El Salvador 2 442 2 442 3 081 Equatorial Guinea 1 028 1 028 Eritrea 132 132 129 129 Estonia 5 142 2 057 3 085 Ethiopia 1 028 974 54 European Union 329 601 329 601 Fiji 514 514 Finland 72 759 72 514 71 292 71 047 France 787 109 787 109 Gabon 1 800 1 800 1 091 Gambia 132 132 644 Georgia 771 386 385 Germany 1 030 710 1 030 927 217 Ghana 771 771 3 475 Greece 88 828 88 828 Grenada 132 132 Guatemala 3 599 3 289 310 Guinea 257 257 5 259 Guinea-Bissau 132 132 2 953 Guyana 132 132 Haiti 386 386 308 Honduras 1 028 1 028 269 Hungary 37 408 37 408 Iceland 5 399 10 680 5 281 India 68 645 68 645 69 302 Indonesia 30 595 30 601 6 23

Schedule 1.1 (continued) receivable for 2010 Contributions received in advance as at 01 Jan 2010 Remittances received in 2010 received in advance for 2011 receivable as at 31 Dec 2010 A B C A-B-C A-B-C Iran, Islamic Republic of 29 952 29 952 75 770 Iraq 2 571 2 571 Ireland 64 018 57 214 69 437 62 633 Israel 49 363 97 648 48 285 Italy 642 619 642 619 Jamaica 1 800 1 800 1 566 Japan 1 610 726 1 611 064 338 Jordan 1 800 1 543 257 Kazakhstan 9 770 2 242 3 175 4 353 Kenya 1 543 1 543 Kiribati 132 132 25 Kuwait 33 809 33 809 Kyrgyzstan 132 132 Lao People's Democratic Republic 132 132 316 Latvia 4 885 2 314 7 350 4 779 Lebanon 4 242 4 242 6 761 Lesotho 132 132 Liberia 132 132 776 Libyan Arab Jamahiriya 16 583 16 583 66 351 Liechtenstein 1 157 1 286 129 Lithuania 8 356 16 529 8 173 Luxembourg 11 569 10 929 640 Madagascar 386 187 199 outstanding from prior periods (in USD) Malawi 132 119 13 Malaysia 32 523 24 400 39 899 31 776 Maldives 132 132 Mali 386 386 Malta 2 185 2 185 Marshall Islands 132 132 Mauritania 132 132 2 570 Mauritius 1 414 1 414 Mexico 302 863 302 926 63 Micronesia, (Federated States of) 132 132 Monaco 386 386 Mongolia 257 132 125 Montenegro 514 974 460 Morocco 7 456 7 456 Mozambique 386 97 289 Myanmar 771 771 24

Schedule 1.1 (continued) receivable for 2010 Contributions received in advance as at Remittances received received in receivable as at 01 Jan 2010 in 2010 advance for 2011 31 Dec 2010 A B C A-B-C A-B-C outstanding from prior periods (in USD) Namibia 1 028 655 373 Nauru 132 132 1 640 Nepal 771 771 4 614 Netherlands 238 459 240 813 2 354 New Zealand 35 094 33 742 35 680 34 328 Nicaragua 386 386 848 Niger 257 257 1 088 Nigeria 10 027 10 027 22 080 Niue 132 132 25 Norway 111 967 83 476 28 491 Oman 11 055 9 386 1 669 Pakistan 10 541 10 541 20 445 Palau 132 132 184 Panama 2 828 2 500 328 Papua New Guinea 257 257 1 378 Paraguay 900 900 13 420 Peru 11 569 11 569 Philippines 11 569 11 569 Poland 106 439 210 554 104 115 Portugal 65 689 65 689 Qatar 17 354 9 074 22 906 14 626 Republic of Korea (South) 290 522 290 522 Republic of Moldova 257 132 125 Romania 22 753 45 010 22 257 Russian Federation 205 936 205 936 Rwanda 132 132 Saint Kitts and Nevis 132 132 Saint Lucia 132 37 95 Saint Vincent and the Grenadines 132 132 2 140 Samoa 132 51 81 San Marino 386 386 Sao Tome and Principe 132 132 933 Saudi Arabia 106 696 106 719 23 Senegal 771 771 1 073 Serbia 4 756 4 756 Seychelles 257 257 Sierra Leone 132 132 2 810 Singapore 43 064 44 383 1 319 Slovakia 18 254 8 100 10 154 Slovenia 13 241 12 343 898 25

Schedule 1.1 (continued) receivable for 2010 Contributions received in advance as at 01 Jan 2010 Remittances received in 2010 received in advance for 2011 receivable as at 31 Dec 2010 A B C A-B-C A-B-C outstanding from prior periods (in USD) Solomon Islands 132 16 116 Somalia 132 132 South Africa 49 492 444 97 459 48 411 Spain 408 402 411 436 3 034 Sri Lanka 2 442 1 556 886 Sudan 1 285 1 285 Suriname 386 386 176 Swaziland 386 386 Sweden 136 777 136 779 2 Switzerland 145 261 145 292 31 Syrian Arab Republic 3 214 3 214 1 490 Tajikistan 257 257 Thailand 26 867 23 914 29 233 26 280 The Former Yugoslav Rep.of Macedonia 900 900 Timor-Leste 132 132 Togo 132 132 Tonga 132 132 170 Trinidad and Tobago 5 656 5 656 Tunisia 3 856 3 857 1 Turkey 79 315 79 315 Turkmenistan 3 342 3 342 Tuvalu 132 132 819 Uganda 771 771 Ukraine 11 184 11 184 6 932 United Arab Emirates 50 263 50 273 10 United Kingdom 848 941 849 120 179 United Republic of Tanzania 1 028 1 028 1 463 United States of America 2 828 090 2 738 509 89 581 Uruguay 3 471 3 471 Uzbekistan 1 285 1 008 277 Vanuatu 132 40 92 Venezuela 40 365 40 365 Viet Nam 4 242 4 242 Yemen 1 285 1 285 12 603 Zambia 514 514 Zimbabwe 386 386 7 018 Total 13 184 050 1 319 244 12 061 942 839 862 642 726 465 379 26

F. Schedule 1.2 Status of indicative to the Kyoto Protocol for the biennium 2010 2011 as at 31 December 2010 (Euros unless otherwise indicated) receivable for 2010 Contributions received in advance as at 01 Jan 2010 Remittences received in 2010 received in advance for 2011 receivable as at 31 Dec 2010 A B C A-B-C A-B-C Afghanistan Albania 960 960 Algeria 12 286 8 258 4 028 Angola 768 768 outstanding from prior periods (in USD) Antigua and Barbuda 192 192 Argentina 27 547 622 35 570 8 645 Armenia 480 17 468 5 Australia 185 537 172 528 194 074 181 065 Austria 81 682 3 82 470 791 Azerbaijan 1 440 1 440 Bahamas 1 728 1 545 1 545 1 362 Bahrain 3 743 3 743 7 596 Bangladesh 768 768 4 633 Barbados 768 308 460 Belarus 4 031 1 960 2 071 Belgium 103 183 19 361 106 390 22 568 Belize 96 96 92 Benin 288 288 576 Bhutan 96 96 Bolivia 672 297 1 031 656 Bosnia & Herzegovina 1 344 1 357 13 Botswana 1 728 3 414 1 686 Brazil 154 630 154 630 Brunei Darussalam 2 688 2 688 Bulgaria 3 647 7 206 3 559 Burkina Faso 288 288 1 019 Burundi 96 96 489 Cambodia 288 179 109 Cameroon 1 056 1 056 4 648 Canada 307 820 287 429 23 459 3 068 Cape Verde 96 96 92 Central African Republic 96 97 1 Chad 192 192 Chile 22 652 22 652 China 306 092 309 057 2 965 Colombia 13 822 13 822 Comoros 96 96 138 Congo 288 288 276 27

Schedule 1.2 (continued) receivable for 2010 Contributions received in advance as at 01 Jan 2010 Remittences received in 2010 received in advance for 2011 receivable as at 31 Dec 2010 A B C A-B-C A-B-C outstanding from prior periods (in USD) Cook Islands 96 96 489 Costa Rica 3 263 3 263 7 046 Cote d'ívoire 960 960 2 218 Croatia 9 310 4 828 4 827 345 Cuba 6 815 6 815 6 247 Cyprus 4 415 4 415 4 710 Czech Republic 33 498 27 129 6 694 325 Democratic People's Rep. of Korea (North) 672 672 Democratic Rep.of Congo 288 288 1 528 Denmark 70 644 3 139 561 68 920 Djibouti 96 96 489 Dominica 96 96 474 Dominican Republic 4 031 4 031 12 128 Ecuador 3 839 1 653 2 186 Egypt 9 022 9 022 El Salvador 1 824 1 824 6 068 Equatorial Guinea 768 768 23 Eritrea 96 97 73 74 Estonia 3 839 1 545 2 294 Ethiopia 768 768 European Union 191 920 191 920 Fiji 384 172 212 Finland 54 327 54 451 53 016 53 140 France 587 709 24 587 685 Gabon 1 344 1 344 926 Gambia 96 96 489 Georgia 576 290 286 Germany 769 598 32 777 020 7 454 Ghana 576 576 2 150 Greece 66 325 1 795 64 870 340 Grenada 96 96 Guatemala 2 688 2 688 Guinea 192 192 867 Guinea-Bissau 96 96 409 Guyana 96 32 64 Haiti 288 288 227 Honduras 768 768 Hungary 27 931 1 28 208 278 Iceland 4 031 1 7 964 3 934 India 51 255 51 255 52 094 Indonesia 22 844 23 065 221 28

Schedule 1.2 (continued) receivable for 2010 Contributions received in advance as at 01 Jan 2010 Remittences received in 2010 received in advance for 2011 receivable as at 31 Dec 2010 A B C A-B-C A-B-C outstanding from prior periods (in USD) Iran, Islamic Republic of 22 364 22 364 20 757 Iraq 1 920 1 920 Ireland 47 800 42 962 51 472 46 634 Israel 36 858 1 80 928 44 071 Italy 479 823 536 616 56 793 Jamaica 1 344 1 344 1 161 Japan 1 202 676 62 1 214 262 11 648 Jordan 1 344 1 159 185 Kazakhstan 7 295 7 295 Kenya 1 152 499 653 Kiribati 96 96 489 Kuwait 25 244 25 244 21 485 Kyrgyzstan 96 206 110 Lao People's Democratic Republic 96 96 184 Latvia 3 647 1 738 5 467 3 558 Lebanon 3 167 3 167 11 363 Lesotho 96 97 1 Liberia 96 96 489 Libyan Arab Jamahiriya 12 382 12 382 22 982 Liechtenstein 864 15 965 116 Lithuania 6 239 12 327 6 088 Luxembourg 8 639 8 206 433 Madagascar 288 141 147 Malawi 96 96 Malaysia 24 284 18 315 29 657 23 688 Maldives 96 97 97 98 Mali 288 291 3 Malta 1 632 1 630 2 Marshall Islands 96 96 Mauritania 96 96 440 Mauritius 1 056 1 1 062 7 Mexico 226 138 228 328 2 190 Micronesia, (Federated States of) 96 96 75 Monaco 288 291 3 Mongolia 192 97 95 Montenegro 384 745 361 Morocco 5 567 5 567 Mozambique 288 288 Myanmar 576 187 389 29

Schedule 1.2 (continued) receivable for 2010 Contributions received in advance as at 01 Jan 2010 Remittences received in 2010 received in advance for 2011 receivable as at 31 Dec 2010 A B C A-B-C A-B-C outstanding from prior periods (in USD) Namibia 768 768 Nauru 96 96 489 Nepal 576 576 1 551 Netherlands 178 050 180 809 2 759 New Zealand 26 204 26 065 25 681 25 542 Nicaragua 288 288 885 Niger 192 192 489 Nigeria 7 487 7 487 16 721 Niue 96 96 216 Norway 83 602 62 694 20 908 Oman 8 255 7 048 1 207 Pakistan 7 871 7 871 13 651 Palau 96 96 92 Panama 2 112 2 090 22 Papua New Guinea 192 192 1 263 Paraguay 672 672 1 491 Peru 8 639 8 639 Philippines 8 639 8 639 Poland 79 475 1 119 685 40 211 Portugal 49 048 49 049 1 Qatar 12 958 7 047 16 233 10 322 Republic of Korea (South) 216 923 80 259 136 664 Republic of Moldova 192 97 95 Romania 16 989 17 159 170 Russian Federation 153 766 4 153 765 3 Rwanda 96 128 32 Saint Kitts and Nevis 96 84 12 Saint Lucia 96 96 Saint Vincent and the Grenadines 96 96 480 Samoa 96 96 San Marino 120 120 Sao Tome and Principe 96 96 130 Saudi Arabia 79 667 113 802 34 135 Senegal 576 576 1 642 Serbia 3 551 3 551 Seychelles 192 131 61 Sierra Leone 96 96 143 Singapore 32 155 33 500 1 345 Slovakia 13 630 1 6 082 7 547 30

Schedule 1.2 (continued) receivable for 2010 Contributions received in advance as at 01 Jan 2010 Remittences received in 2010 received in advance for 2011 receivable as at 31 Dec 2010 A B C A-B-C A-B-C outstanding from prior periods (in USD) Slovenia 9 886 9 269 617 Solomon Islands 96 96 Somalia 16 16 South Africa 36 954 73 016 36 062 Spain 304 941 10 304 936 5 Sri Lanka 1 824 178 1 301 345 Sudan 768 768 Suriname 288 288 92 Swaziland 288 450 162 Sweden 102 127 103 093 966 Switzerland 108 462 128 446 19 984 Syrian Arab Republic 2 400 2 400 4 490 Tajikistan 192 194 2 Thailand 20 061 17 958 21 680 19 577 The Former Yugoslav Rep.of Macedonia 672 678 6 Timor-Leste 96 392 136 432 Togo 96 96 25 Tonga 96 96 157 Trinidad and Tobago 4 223 422 3 801 Tunisia 2 880 3 122 242 Turkey 59 222 59 222 Turkmenistan 2 496 2 496 130 Tuvalu 96 96 489 Uganda 576 576 809 Ukraine 8 351 8 351 5 205 United Arab Emirates 37 530 17 713 19 817 United Kingdom 633 877 24 646 084 12 231 United Republic of Tanzania 768 768 2 117 United States of America Uruguay 2 592 2 592 Uzbekistan 960 751 209 Vanuatu 96 96 Venezuela 30 139 30 139 593 Viet Nam 3 167 3 167 Yemen 768 768 3 574 Zambia 384 388 4 Zimbabwe 288 288 Total 7 676 788 918 215 6 948 174 760 977 571 376 254 490 31

Countries/Trust Funds G. Schedule 2.1 Status of voluntary for the biennium 2010 2011 as at 31 December 2010 (United States dollars) I. Trust Fund for the core budget of the UNFCCC Voluntary received in 2010-2011 Germany 1 074 143 Total Trust Fund for the Core Budget of the UNFCCC 1 074 143 II. Trust Fund for participation in the UNFCCC process Australia 1 024 936 Belgium 15 871 Canada 288 013 Denmark 1 025 641 European Union 1 194 255 Finland 126 743 Germany 488 400 Ireland 65 531 Japan 20 000 New Zealand 366 612 Norway 808 661 Sweden 452 025 Switzerland 101 318 United States of America 1 630 000 Total Trust Fund for the participation in the UNFCCC process 7 608 005 III. Trust Fund for supplementary activities Australia 122 916 Belgium 61 058 Canada 351 234 Climate Technology Initiative 20 408 Denmark 59 970 European Union 2 677 376 Finland 45 537 Global Environment Facility 429 370 Germany 986 437 Ireland 61 652 Japan 670 223 Luxembourg 19 676 New Zealand 161 766 Norway 4 705 645 32

Schedule 2.1 continued Countries/Trust Funds Voluntary received in 2010-2011 III. Trust Fund for supplementary activities (continued) Romania 138 889 Spain 2 664 166 Sweden 261 499 Switzerland 561 061 United Kingdom 1 146 429 United States of America 4 526 395 Total Income received in 2010 19 671 707 Less: Contributions received in 2009 reallocated in 2010* (473 981) Total Trust Fund for supplementary activities 19 197 726 IV. Trust Fund for the Clean Development Mechanism Norway 31 880 Total Trust Fund for the Clean Development Mechanism 31 880 V. Trust Fund for special annual contribution from Germany Germany 2 408 509 Total Trust Fund for special annual contribution from Germany 2 408 509 TOTAL VOLUNTARY CONTRIBUTION 30 794 243 * USD 473 981 contributed by the Government of Spain was partly reallocated from the Trust Fund for Supplementary Activities to the Trust Fund for Participation in the UNFCCC Process and also applied against outstanding indicative to the International Transaction Log. USD 2 218 160 contributed by the Governments of Norway, the Netherlands, United Kingdom of Great Britain and Northern Ireland and Germany towards the CDM prompt start was reallocated to Joint Implementation Supervisory Committee under the Trust Fund for Supplementary Activities. These balances are shown as adjustments to the reserves under statement I. USD 1 283 763 contributed by the Government of Norway towards the CDM prompt start was reallocated to the Trust Fund for Participation in the UNFCCC Process. These balances are shown as adjustments to the reserves under statement I. 33

H. Schedule 2.2 Status of fees for Clean Development Mechanism (CDM) and Joint Implementation (JI) for the biennium 2010 2011 for the year ended 31 December 2010 (United States dollars) Type of income Received in 2010 CDM accreditation process related fees 27 019 CDM accreditation fees 112 425 CDM methodologies fees 31 718 CDM project registration fees 15 865 805 CDM share of proceeds 18 755 051 Total CDM fees 34 792 018 Joint Implementation determination fees 187 410 Joint Implementation verification fees 245 993 Total Joint Implementation 433 403 34

I. Schedule 2.3 Status of for the International Transaction Log (ITL) of the biennium 2010 2011 for the year ended 31 December 2010 Contributions for 2010 Fees received in advance as at 01.01.2010 Contributions outstanding from prior periods Remittances in 2010 Fees received in advance for 2011 Fees receivable as at 31.12.2010 EUR EUR EUR EUR EUR EUR Australia 70 609 141 218 70 609 Austria 45 482 45 482 Belgium 56 517 2 986 56 517 2 986 Bulgaria 1 019 1 019 Canada 130 330 130 330 Croatia 32 062 32 062 Czech Republic 14 413 14 413 14 413 14 413 Denmark 37 882 37 868 37 896 37 882 Estonia 815 815 815 815 European Community 76 928 76 928 Finland 28 914 28 914 28 914 28 914 France 305 647 305 647 Germany 439 762 439 762 Greece 30 544 30 544 30 398 30 398 Hungary 12 521 12 521 Iceland 21 139 21 139 21 139 21 139 Ireland 22 828 22 828 22 828 22 828 Italy 260 427 260 427 Japan 428 028 428 028 Latvia 932 932 932 932 Liechtenstein 5 387 5 387 Lithuania 1 601 3 202 1 601 Luxembourg 4 368 4 368 Monaco 5 183 5 183 Netherlands 96 029 96 023 96 035 96 029 New Zealand 27 516 27 516 27 516 27 516 Norway 66 446 66 446 66 446 66 446 Poland 25 682 25 682 Portugal 27 021 27 021 27 021 27 021 Romania 3 581 3 581 Russian Federation 78 588 78 588 Slovakia 3 232 6 464 3 232 Slovenia 4 921 4 921 Spain 152 168 304 336 152 168 Sweden 54 916 54 895 21 Switzerland 79 054 79 054 79 054 79 054 Ukraine 21 372 21 372 United Kingdom 340 559 15 681 103 340 559 Total 3 014 423 461 435 3 577 509 1 024 542 21 35

IV. Notes to the financial statements Note 1: The United Nations Framework Convention on Climate Change and its activities The permanent secretariat of the United Nations Framework Convention on Climate Change (UNFCCC) was established in January 1996 for the following purposes: (a) (b) (c) (d) (e) (f) (g) (h) To make arrangements for sessions of the Conference of the Parties and its subsidiary bodies established under the Convention and the Kyoto Protocol and to provide them with services as required; To compile and transmit reports submitted to it; To facilitate assistance to the Parties particularly developing country Parties on request in the compilation and communication of information required in accordance with the provisions of the Convention and the Kyoto Protocol; To prepare reports on its activities and present them to the Conference of the Parties; To ensure the necessary coordination with the secretariats of other relevant international bodies; To enter under the overall guidance of the Conference of the Parties into such administrative and contractual arrangements as may be required for the effective discharge of its functions; To perform other secretariat functions specified in the Convention and in any of its protocols and To undertake any other functions as may be determined by the Conference of the Parties. Note 2: Summary of significant accounting and financial reporting policies The following are the main accounting policies of the UNFCCC: (a) Rules and procedures The financial administration of the secretariat of the United Nations Framework Convention on Climate Change is governed by the financial procedures adopted by the COP under decision 15/CP.1 in 1995. In so far as not specifically provided under these procedures the Financial Regulations and Rules of the United Nations and the United Nations System Accounting Standards Revision VIII apply. (b) Currency All amounts are expressed in thousands of United States dollars (USD) unless otherwise indicated. (c) Accounting convention The accounts are prepared under the historical cost convention modified to the extent that the cost of all fixed assets and property acquired is charged to income and expenditure statement as an expense in the year of purchase. 36