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PROPOSED GCOS DONOR FUND

A Progress Report to

SBSTA Intersessional Meeting2 June 2003

S L BarrellAustralia

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Proposed GCOS Donor Fund

Origin Rationale Objective Process Challenges and risks Features Implementation issues Next steps

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Origin of proposal

Decision 14/CP.4– Addressing priorities for improved global monitoring– Options for financial support

Subsequent SBSTA Conclusions Critical gaps in funding options

Addressing diversity of needs Lack of coordinated mechanism Global vs national/regional priorities

US announcement on funding Call for matching contributions

Impending Second Adequacy Report Pathway for implementation

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GCOS Fund – why bring to SBSTA?

Relevance to UNFCCC Meet commitments under Art 4.2g&h, Art 5 Implementation of COP Decisions Implementation of 2AR recommendations

Visibility To broader climate change community All countries, all portfolios

Governance of fund Member countries of GCOS sponsors As member countries, not as Parties to UNFCCC

Information not negotiation Why GCOS?

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Global Climate Observing System

GlobalOcean

ObservingSystem(GOOS)Ocean Global

TerrestrialObserving

System(GTOS)Land

WMO

WWWGlobal

ObservingSystem(GOS)

Atmosphere

WMO

GlobalAtmospheric

Watch(GAW)

AtmosphericChemistry

WMO

World Hydrological

CycleObserving

System(WHYCOS)Land/Water

Other component

systems

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Objective of Proposed GCOS Fund

To provide: A stable, long-term, flexible funding source; Addressing highest priority needs for key

(baseline) elements; Of an agreed global observing system for

climate; In developing countries; In support of UNFCCC and others; On the basis of voluntary contributions; Complementing existing funding, coordination

& implementation mechanisms

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Process so far

Concept developed Donor Fund and Board

Australian intervention at SBSTA17

Informal discussion paper circulated

SBSTA17 conclusions Requested GCOS SC to explore

Informal meeting, Geneva February 2003

GCOS SC meeting, Melbourne April 2003

Progress report to SBSTA18

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Challenges and risks

Possible overlaps with other mechanisms Competition for donor resources Competition for monitoring priorities Sustainability of new/resumed stations Factors other than funding Potential manipulation of priorities Donor preferences for one-off vs ongoing

contributions Complex financial/management structure

required Cost/overheads of administration of fund

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Proposed features

Donor Board Management, oversight, priority setting Advised by GCOS SC and Science Panels Establish guidelines for funds allocation Monitor and review implementation activities

Donors countries, agencies, institutions, etc

Contributions Option 1: Untargeted (cash) contributions, allocated

by Board Option 2: Targeted (cash or in kind) contributions

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More proposed features

Develop & sustain critical mass of funding More effective use of limited resources

Avoid duplication, optimise opportunities

Generate sustained resource stream through investment

Address global priorities Within context of national/regional programs

Complement & build on national/regional activities

Complement, not replace bi-lateral arrangements

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More proposed features

Address breadth of funding needs Capacity building Infrastructure, establishment & maintenance Sustained operating support

End-to-end integrated approach to funding and implementation

Develop and implement cross-cutting approaches

Across all climate regimes and disciplines Including data management and exchange

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More proposed features

Transparent allocation and reporting procedures

Utilise & build on existing funding, coordination and implementation mechanisms

Cooperative arrangements with other mechanisms

Co-finance especially for capacity building activities

Regional implementation

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Implementation issues

Establishment of Donor Board Membership Participation self-funded

Location of fund GCOS Trust Fund Distinct identity for Donor Fund

Methods of contribution Options 1 or 2 Controls on Option 2

Management of fund Program manager within GCOS Office Priorities set by Board

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More Implementation Issues

Monitor implementation Avoid duplication Set goals and performance measures Maximum use of existing mechanisms eg WMO/VCP Collaboration with regional mechanisms eg SPREP Utilise existing monitoring systems eg GCOS Monitoring

Centres Collaborate in establishing new mechanisms

Recipients of funds Early focus on LDCs Early focus on key baseline systems eg GUAN Aim at self-sufficiency Exclude staff and telecommunications costs

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More Implementation Issues

Consultation & linkages with stakeholders Actual and potential donors GCOS Steering Committee GCOS Office GCOS sponsoring agencies Potential recipients UNFCCC Other funding and implementation mechanisms

Need to keep as simple as possible

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Next steps

GCOS SC gave “strong endorsement” Need to consider views of all stakeholders

But not an issue for SBSTA negotiation

High level planning meeting of potential donors Before COP-9 Convened by GCOS SC Flesh out details of establishment and operation of

Donor Fund and Donor Board NOT a commitments meeting

Report back to SBSTA-19 / COP-9

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Summary

Proposal recognises a gap in existing funding mechanisms

Addressing global priorities Meeting wide range of funding needs Integrated and cross-sectoral approach

and an opportunity to create an effective critical mass of funding

Donors to have strong voice in allocation & implementation

Strong support from many stakeholders

Ambitious but achievable