Dear Co-Chairs:

1.On behalf of the Group of 77 and China, we would like to express our appreciation for the draft study circulated on 6 February, including parts B, C, and D, as well as the document titled Consolidated Draft Study on the Technical Aspects of the Operationalization of the Clearing-House Mechanism under the Agreement under the United Nations Convention on the Law of the Sea on the Conservation and Sustainable Use of Marine Biological Diversity of Areas Beyond National Jurisdiction.

2. The Group of 77 and China acknowledges the importance of establishing a clear direction toward which Member States can converge in reaching a decision on specific models, and appreciates the illustrative examples of how the functions of the Mechanism could be implemented. The Group notes that these options should not be viewed as a mere menu of independent features; instead, it suggests that there should be flexibility to explore elements that can be combined or adapted to develop an effective and appropriate operational model.

3. Notwithstanding the outcome of that direction, the Group wishes to stress the following general observations:

a) The Clearing-House Mechanism must serve as a platform to facilitate international cooperation including the matching of capacity development needs with the support available and providers for the transfer of marine technology. The functionality of the Mechanism is particularly important for developing countries that will rely on the mechanism to access information and technical resources, as well as matching of capacity building needs with the programs available and with the providers for the transfer of marine technology. In this regard, the Group considers that it is important to ensure an approach that promotes equitable access. The Clearing House Mechanism under the Agreement will also play a critical role in promoting transparency in its implementation. The Mechanism should be accessible, user-friendly, interactive, multilingual and interoperable. We recall its role in facilitating coherent information exchange between and among BBNJ subsidiary bodies and Parties, as well as in relation to other relevant stakeholders, international frameworks and bodies in accordance with article 51 while providing an effective platform to match needs for capacity building and transfer of technology of Parties.

b) The Group also highlights the critical role the Mechanism will play in the implementation of all provisions related to marine genetic resources (MGR), digital sequence information and the fair and equitable sharing of benefits. In this regard, we are open to explore provisional arrangements for its early operationalization, through a phased development. We firmly believe that the discussions on design of the Mechanism should focus on MGR related matters, including the process for generating the BBNJ standardised batch identifiers, as well as on the creation of capacity-building for developing countries Parties to the Agreement, whereby form shall follow function.

c) Pursuant to article 51(5), in the management of the Clearing-House mechanism, the special requirements of developing States Parties, as well as the special circumstances of SIDS, are to be fully recognized. While we note the consideration of user-friendliness of the platform and accessibility via internet, as well as financial support mechanism and capacity-building workshops in the respective draft documents presented by the Secretariat, we consider that the needs of developing countries need to be addressed in a broader scope. Article 52 is also responsible for facilitating international cooperation and collaboration, including scientific and technical cooperation and collaboration. This should encompass appropriate ways and means to promote such cooperation with developing countries and to address the obstacles that these countries encounter in this area.

d) Given that in accordance with 51(4) of the Agreement, the Secretariat manages the Mechanism, further consideration may be made as to duties and mandates of the Secretariat specifically with regard to the role of Mechanism including in facilitating international cooperation and addressing related challenges of developing countries.

e) Facilitating the access of developing countries to information and data, promoting capacity-building support, transfer of technology and enhancing funding opportunities for developing countries as well as appropriate training and technical assistance and scientific scholarships for such countries are also among the areas that the Mechanism could address and facilitate. Lastly, it is of utmost importance to ensure in the design of the Mechanism cohesion and coordination in structuring communication among the subsidiary bodies.

4. Our Group will reflect its further observations and views on the topic related to the Clearing-House Mechanism at a later stage. We are looking forward to a fruitful discussion on this matter.

I thank you.