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The Chair introduced the documents including the request for proposals to host the Global Mechanism (GM) and replies received from IFAD, UNDP, UNEP and the World Bank (A/AC.241/33) and the reply of the GEF (A/AC.241/33/Add.1).

Uganda, on behalf of the G-77 and China, supported by Guinea, Benin, Mali, Senegal, the Philippines, Lesotho, Ethiopia, Bolivia and Syria, said GM host proposals responded to little guidance with limited information. The G77 and China will submit a proposal requesting additional and complementary information including modalities and operations, relations between the COP and the host institution, financial mobilization and accountability of resources. He requested the Interim Secretariat to prepare additional guidelines and terms of reference.

Spain, on behalf of the EU, supported by Switzerland and Australia, said the GM is not a fund in itself but a facilitator of existing finances. Delegates must decide on modalities and the GM's detailed functions, taking into account the resources and capacity of interested organizations. Modalities, including administration and finance of the GM, should be discussed in an informal document for INCD-8.

Switzerland said the GM cannot have the possibility of fundraising but should be a facilitator and an advisor.

The UK said that the GM's modalities are related to the choice of a host organization because only the COP can agree with the host organization on modalities. There is overlap between the GM's role and the COP's financial responsibilities, so the Interim Secretariat should summarize possible GM roles in the CCD's financial provisions.

Senegal called for a study to clarify some vague aspects of the GM. For the GM only to forward information is not enough; it must also play a role in ensuring necessary funds even if it is not called fundraising.

Tunisia, supported by Ethiopia, expressed concern over the discussion of modalities of the GM only as facilitator and clearing house for financial resources.

China, supported by Algeria and Iran, said the GM's function is to ensure affected countries are easily able to obtain financing. Delegates cannot consider the GM without its role as a funding mechanism.

The US said the Interim Secretariat, with input from a small informal group, should write a guidance document to deal with the scope, functions and modalities of GM, drawing from relevant convention provisions.

The IFAD said the GM's role can be cast as low or high potential. A minimalist GM would identify resource gaps but would not be able to do more. The high potential approach would encompass active efforts to mobilize, catalyze and leverage financial resources.

ELCI, on behalf of NGOs, said the GM should mobilize funds for a process approach, not just projects, including awareness raising and popular participation.

Mauritania called for IFAD to try a high intensity proposal, but he said a quick decision was not necessary. Benin said it was not the time to assess specific offers. Morocco said existing offers could provide ideas for defining and selecting the GM.

The Chair asked delegates to submit recommendations in writing on how to further develop guidelines for the GM. Those that are submitted will be circulated to delegates, and after consideration of the procedure, discussion on the GM will resume Monday.

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