Mr Chairman, the Group of 77 and China would like to express its appreciation to the Government and people of Germany for the excellent arrangements provided for our meetings. We would also take this opportunity to thank the secretariat of the UNFCCC for all the hard work that it puts in during the preparation and execution of these meetings. Chair the Group of 77 and China would like to assure you of its support and cooperation in the discharge of your responsibilities. We look forward to working in the spirit of openness, transparency and cooperation to make this meeting successful. Mr. Chairman the group would like to assure our negotiating partners, the Group of 77 and China's resolve, to engage constructively so as to ensure a substantive outcome of this important meeting.

Mr. Chairman, the group of 77 and China attaches very high priority to the actual implementation of measures that reduce emissions of green house gasses and measures that strengthen the capacity of states to adapt to the consequences of past actions and inaction in accordance with the principles of the convention. We have spent significant time defining and refining the problem while the level of emissions and the Costs of adaptation keep increasing. We must now move expeditiously to implement the provisions of the convention in a comprehensive and balanced manner, on the basis of our common but differentiated responsibilities.

Mr. Chairman, the limitations in financing and in access to technology have been the major constraints to the implementation by developing countries. In this regard, the Group of 77 and China considers this fourth review of the financial mechanism very important to the convention's future work and full implementation. In Bali the Group worked for widening the review so as to open the way for finding solutions to financing problems that have continuously constrain developing countries in their efforts to implement the convention. All the papers so far produced for this review have confirmed that financing for developing countries implementation of the convention has been inadequate. We sincerely hope that the review will assist us in increasing the financial resources available for implementation of the convention.

Mr. Chairman agreement on the Adaptation Fund was an important development in the effort to assist developing countries adapt to climate change. The Group of 77 and China is aware that the Adaptation Fund under the Kyoto Protocol reports directly to the COP/MOP. However, given the importance of implementation we would be pleased to have an opportunity to be informed of the progress in the operationalization of the fund. We are aware that the Board held its first meeting last March and will hold its second meeting immediately after these sessions. The Group of 77 and China is of the opinion that we as the CMP might give some direction to the Board, in advance of its next meeting.

Parties will recall that in Bali by its Decision 4/CP. 13, the COP requested the Global Environmental Facility, as and operational entity of the Financial Mechanism under the Convention, in consultation with interested parties, international financial institutions, other relevant multilateral institutional and representatives of the private financial community, to elaborate a strategic programme to scale up the level of investment for technology transfer to help developing countries address their needs for environmentally sound technologies, and to report on its findings to the twenty-eighth session of the Subsidiary Body for Implementation for consideration by Parties.

The Group of 77 and China is greatly disappointed by the response and work carried out by the GEF, as a result of the decision of the GEF Council. This is completely opposite to the expectations of the parties- at least the developing country Parties and brings into question whether the GEF takes guidance for Parties of vice versa.

Mr Chairman, the Group of 77 and China is increasingly convinced that the GEF is unable to deliver out expectations as an effective financial mechanism for the convention. This leads us to conclude that a new financial mechanism may need to be put inplace to service the needs of the convention.

Mr. Chairman, one of the most regrettable outcomes at SBI 27 for developing countries was the lack of consensus on renewing the mandate of the Consultative Group of Experts (CGE). At this session, the Group of 77 and China would like to reiterate its willingness to renew the CGE mandate and have fruitful discussions under this agenda item. Mr. Chairman, we must be clear however, that the review of the CGE mandate cannot lead to any kind of reviewing of the process of National Communications from non-Annex I Parties.

Mr. Chairman, it is of the view of the Group that Reducing Emissions from Deforestation and Forest Degradation (REDD) is an important mitigation alternative, and in addition there is the need to treat it in a comprehensive manner discussing the contribution of forest conservation, sustainable management of forest, and enhancement of forest carbon stocks.

Finally, Mr. Chairman, let me indicate that, due to the multiplicity of meetings anticipated to deliver our mandate over the next year and a half, developing countries will find it extremely difficult to finance the level of representation needed to effectively participate in the process. The Group is therefore requesting additional funding to allow and effective inclusive participation of all member states.

I thank you Mr. Chairman.