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GLOBAL MECHANISM: The morning session adjourned early to enable the G- 77 and China to complete discussions on the Global Mechanism (GM) and the OECD group of countries to consult on the Permanent Secretariat. In the afternoon, an informal open-ended working group, with core regional representatives, began negotiations on text for paragraph 4 (mobilization of resources).

INFORMAL OPEN-ENDED WORKING GROUP: Following introductory remarks from the Chair, one regional group circulated and introduced a six-paragraph non-paper, which combined different sub-paragraphs of paragraph 4 drawn from document A/51/76/Add.1, for discussion. Although many delegations were hesitant to comment on this draft text, they made preliminary observations that centered on whether or not the GM should mobilize and channel financial resources.

Some argued against: the tendency to arbitrarily select text on mobilization of resources; the failure to include proposals made Wednesday by other delegations; and the failure to link the function of mobilizing and channelling of resources to “promoting or facilitating” these activities. Some said the GM cannot disburse financial resources because there are no legal provisions on disbursement. Others said mobilizing resources is the role of the Parties, not the GM. Some noted that: the Convention provisions do not bar the GM from mobilizing or channelling resources; mobilizing resources is in line with Article 2 of the Convention; and the functions allocated to the GM so far are very academic.

Many delegates expressed frustration and urged each other to stop playing “hide-and- seek.” Some were hesitant to begin a paragraph-by-paragraph reading of the non-paper, and expressed a preference to discuss the Chair’s text contained in document A/51/76/Add.1. Negotiations continued into the evening.

PERMANENT SECRETARIAT: The Secretariat introduced the administrative arrangements for the Permanent Secretariat contained in A/AC.241/64 prepared from: draft decision A/AC.241/WGI/VII/L.1, submitted by Uganda at INCD-7; proposals of the Secretary-General at INCD-8 in A/AC.241/44, which were amended to A/AC.241/55 for INCD-9; and proposals from the UNEP Executive Director to INCD-9 in A/AC.241/55/Add.2. Document A/AC.241/64 contains answers provided by the UN and UNEP to the questions raised by delegations at INCD-9. Referring to paragraph 15, the Secretariat said the questions on budget and staffing are the prerogative of the COP, thus the UN and UNEP could not issue responses. He also pointed out a typographical error that makes reference to possible budget and staffing implications, which are contained in document A/AC.241/65.

Substantive discussion on the subject took place in the afternoon. The Chair submitted a draft decision similar to the one he submitted at INCD-9. Delegates agreed to a first reading of the draft, on the understanding that a substantive discussion would be held during the second week after regional consultations.

The Chair’s document decides that the Permanent Secretariat: shall be institutionally linked either to the UN or UNEP without being fully integrated into the work programme and management structure of the institution; accepts the arrangements proposed for administrative support; decides to review these arrangements not later than the fourth session, in consultation with the institution’s head; requests the Executive Secretary to pursue the question of allotment of overhead to defer administrative expenses and to report the results to the second session; and expresses appreciation to the UN agencies and UN system that have supported the Interim Secretariat. The decision also contains preambular paragraphs of a procedural nature, which authorize the draft decision.

Austria reserved its position on the substantive and legal construction of the paragraph on institutional linkages, while Haiti noted that the language of the text is not conclusive because text in all the UN’s official languages was not available.

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