Dear Co-Chairs:

1. I have the honour to deliver this statement on behalf of the Group of 77 and China. Our Group is still considering various aspects pertaining to financial rules, taking into account that the details addressed in the documents prepared by the Co-Chairs on this matter require further review and analysis.

2. Noting that pursuant to Article 47 of the Agreement, the COP should adopt, at its first meeting, among others, financial rules. We would like to mention that any option or model that might be considered for the purposes of such rules requires appropriate approaches that take into account the special requirements of developing countries in line with the Agreement as well as fully take into account the special circumstances of the least developed countries, and of the small island developing States. These approaches must also effectively support developing countries, in particular LDCs and SIDS, regarding commitments under financial rules while addressing the related challenges.

3. Along similar lines, the Group wishes to reiterate the importance of the full and effective participation of developing countries, in particular for the LDCs, LLDCs and SIDS, in the works and activities of the COP and in the implementation of the Agreement. In this regard, effective steps should be foreseen to ensure appropriate and timely funding and contributions for supporting the participation of developing countries in the related meetings, including the Conference. Appropriate avenues for ensuring that proper and timely funding is always available to support participation of developing countries in such meetings and activities, should be explored.

4. With regard to the funding for Secretariat, we recall our view that it may be necessary to have a comprehensive comparative analysis of existing multilateral Secretariats. The Group commends the secretariat for touching upon this matter in the note provided related to matrix on the arrangements for the secretariats of selected instruments representative of each of the secretariat models. The Group is of the view that discussions and decisions on the structure of the Secretariat, its status and relationship with the United Nations could inform the discussions on the rules needed for funding the Secretariat, since its funding is relevant to its very structure and status.

5. We would like to stress the need for funding, in support of the implementation of the BBNJ Agreement, to enable developing States to fulfil their obligations and secure their rights in the conservation and sustainable use of marine biological diversity of the ocean in marine areas beyond national jurisdiction. We further stress that the financial resources under the BBNJ Agreement shall be adequate, accessible, new, and additional and predictable. It goes without saying that the effective and full implementation of the BBNJ Agreement depends on the provision and mobilization of new, adequate, predictable, and additional resources to developing countries in line with Article 52 of the Agreement.

6. Pertaining to Rule 3.5, it is essential that any such estimates be dully circulated among States and appropriate time e.g. 72 hours be given for consideration of these estimates by States.

7. Finally, the Group firmly believes that the Preparatory Commission should advance on all three pillars of the financial mechanism. We believe that it is crucial that the Preparatory Commission have a scheduled discussion on the operationalization of the Special Fund. We appreciate the preparation of a note by the Secretariat on Operationalization of other provisions on financial resources and mechanism under the Agreement.

8. Our member States will go into further detail in this context, and we look forward to the discussions.

I thank you!