INTERGOVERNMENTAL NEGOTIATING COMMITTEE FOR AN
  INTERNATIONAL LEGALLY BINDING INSTRUMENT FOR
  IMPLEMENTING INTERNATIONAL ACTION ON
  CERTAIN PERSISTENT ORGANIC POLLUTANTS

Second session
Nairobi, 25-29 January 1999

Existing technical and financial assistance mechanisms in support of
multilateral environmental agreements

Note by the Secretariat

I. INTRODUCTION

1. At its first session, the Intergovernmental Negotiating Committee asked the Secretariat to prepare a number of documents pertaining to technical and financial assistance for consideration at its second session. Among the documents requested was "a description of the content and operations of existing multilateral mechanisms for providing technical and financial assistance, including, but not limited to, those of GEF, of multilateral funds such as the Multilateral Fund for the Implementation of the Montreal Protocol, and of voluntary trust funds" (UNEP/POPS/INC.1/7, para. 62 (c)).

2. In response to this request, the Secretariat prepared a report (UNEP/POPS/INC.2/INF/4), that discusses existing mechanisms for providing technical and financial assistance to developing countries and countries with economies in transition for environmental projects. Without prejudice to any approaches that the Committee may wish to consider, the report includes information about mechanisms in operation so that experience can be considered in developing an instrument on persistent organic pollutants.

3. The present note summarizes the information provided in that report on the four types of technical and financial assistance mechanism currently used in multilateral environmental agreements, namely:

(a) An independent mechanism that relies on mandatory contributions and is specific to an agreement;

(b) A multipurpose mechanism that relies on mandatory contributions / and is not linked exclusively to any single agreement;

(c) An independent mechanism that relies on voluntary contributions and is specific to an agreement;

(d) A mechanism that facilitates and coordinates available donor funding.

This list is not exhaustive and does not include types of mechanism not currently used by any of the agreements reviewed in UNEP/POPS/INC.2/INF/4.

II. AN INDEPENDENT MECHANISM THAT RELIES ON MANDATORY

4. A mechanism may be considered independent when it has been established solely for the purpose of providing assistance under a single multilateral environmental agreement. That is, the mechanism was not in existence prior to the signing of the agreement, and would not exist in the absence of that agreement. An example would be the Multilateral Fund for the Implementation of the Montreal Protocol on Substances that Deplete the Ozone Layer.

5. Such mechanisms generally have the following attributes:

(a) A structure specifically designed to accommodate the needs of Parties and the requirements of the agreement;

(b) A body such as a secretariat to administer the mechanism;

(c) Specific operating guidelines developed for the mechanism;

(d) Priorities for providing assistance set by the Parties or their designated representatives;

(e) The costs for operation of the mechanism borne by the contributing Parties.

III. A MULTIPURPOSE MECHANISM THAT RELIES ON MANDATORY

6. While a multipurpose mechanism may serve all of the functions of an independent mechanism, it also exists to provide assistance for projects implemented under more than one multilateral environmental agreement, or possibly outside the scope of any agreement. A multipurpose mechanism is one which was in existence prior to the completion of the agreement and with which the Parties to the agreement have negotiated an arrangement for administering their technical and financial assistance needs. In this case, in the absence of any one multilateral environmental agreement using the mechanism as a means of providing technical and financial assistance, the mechanism would still function. An example of this type of mechanism is the Global Environment Facility, which has been used to support the Convention on Biological Diversity, the United Nations Framework Convention on Climate Change, and the Montreal Protocol in respect of countries with economies in transition that are not eligible for support from its Multilateral Fund.

7. Multipurpose technical and financial assistance mechanisms that rely on mandatory contributions have attributes which generally resemble those of independent mechanisms that rely on mandatory contributions. However, they may also have a number of distinctive features and attributes that set them apart from independent mechanisms, including the following:

(a) The mechanism may be split into several parts, based on geographical region, subject matter, or some other criteria. For example, the Global Environment Facility is divided into four focal areas;

(b) The mechanism will have a specific set of general operating guidelines, but individual parts of the mechanism may have additional guidelines or requirements;

(c) Priorities for providing assistance are typically set by a governing body established by the secretariat. This body may or may not include representatives from donor or recipient countries;

(d) Resources are often placed in a general fund, and technical assistance projects draw from this fund regardless of their subject matter or geographical region.

IV. AN INDEPENDENT MECHANISM THAT RELIES ON VOLUNTARY

8. Generally speaking, the classification of a mechanism as voluntary or mandatory relates to the approach for providing financial or other contributions to its operation. Voluntary mechanisms are maintained solely through voluntary contributions from both Parties and non-Parties to the agreement and from interested intergovernmental organizations. An example is the Trust Fund of the Basel Convention.

9. An independent technical and financial assistance mechanism that relies on voluntary contributions will generally have many attributes similar to those of an independent mechanism that relies on mandatory contributions. There will be some differences. Attributes of this type of mechanism may include:

(a) A structure specifically designed to accommodate the needs of Parties and the requirements of the agreement;

(b) A body such as a secretariat established to administer the mechanism;

(c) Specific operating guidelines developed for the mechanism;

(d) Priorities for providing assistance set by the Parties or their designated representatives;

(e) The costs for operation of the mechanism borne by some subset of Parties;

(f) The ability of individual Parties to decide for themselves the level of their contribution;

(f) An unstable and unpredictable inflow of funds, which may affect the ability of the mechanism to provide all the needed support to eligible Parties.

V. A MECHANISM THAT FACILITATES AND

10. This type of mechanism does not provide any funding or assistance on its own, but rather serves as a means for identifying outside sources of funding and assistance, as well as assisting countries in applying for such funds and assistance. An example is the Global Mechanism under the United Nations Convention to Combat Desertification.

11. Mechanisms of this type have a number of unique attributes and characteristics which set them apart from the independent or multipurpose mechanisms. These attributes include the following:

(a) They provide a very low-cost form of assistance in that they do not actually solicit or distribute funds or in-kind contributions;

(b) The only funding required is for the operation of the secretariat or body that would carry out the activities of the mechanism;

(c) There is no guarantee that sufficient funding or technical assistance will be available to provide all the needed support to eligible Parties.