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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 Global Environment Facility (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 the proposals to host the GM responded to insufficient guidance with limited information. He said the INCD should request further information from interested organizations. 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.

Senegal called for a study to clarify some vague aspects of the GM. For the GM to only 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 the 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 anything more. The high potential approach would encompass active efforts to mobilize, catalyze and leverage financial resources. UNDP said it needed indications from the Working Group on the role and functions of the GM. He hoped the selection would not be a bidding process but an interagency partnership. 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 added that 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 G-77 and China submitted a draft decision (A/AC.241/WG.I(VII)/L.2), which invites institutions to transmit additional and complementary information. Areas of additional information include modalities of operations, the relationship between the COP and host institution, and financial mobilization and accountability according to the institution's governing bodies. It also mandates a review of the GM according to a Secretariat report.

In the end, delegates adopted a revised version of the G-77 and China draft decision, A/AC.241/WG.I(VII)/L.2/Rev.1. The decision notes the responses by potential host organizations and welcomes the positive character of UNDP and IFAD's responses. It also requests that the Interim Secretariat should prepare: a compilation of references to the GM in Convention articles and annexes; a compilation of inputs from member States; and a preliminary draft list of selection criteria for a host institution. The decision invites interested organizations to continue consulting with their governing bodies and plans a review of the GM selection for INCD-8.

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