Mr. Chairman,

I have the honour to deliver this statement on behalf of the Group of 77 and China. Allow me at the outset to express our sincere appreciations to the Government of Germany for hosting this meeting, and for the Convention's Secretariat for organizing this meeting in this critical time of the climate change negotiation process, I would like to assure you moreover of our full support and cooperation.

The Group would like to reiterate the difficulties that developing country parties are facing in receiving technical and financial support on national communications. Predictability of funding and the provision of the agreed full costs for the preparation of National Communications from Non-Annex I Parties are crucial.

We look forward to progressive and serious consideration of the G77 and China's submissions on elements and views for concrete proposals towards the implementation of decision 1/CP10. In the course of negotiations over the last two years, our efforts were frustrated by referring almost all proposals to the AWG-LCA. Therefore, we should reiterate the fact that the Bali Action Plan is meant to enhance the implementation of the Convention and not replace it. We encourage our partners to show flexibility and commitment towards the adaptation needs of the developing countries, specially LDCs and SIDs, and to treat adaptation in a balanced manner exactly as the case in mitigation.

Mr. Chairman,

The Group of 77 and China would like to underline that as we deliberate in this session on the future of the financial architecture of the Convention at this 4th review of its financial mechanism, developing countries continue to undergo suffering from the adverse impacts of climate change. At the same time, the Special Climate Change Fund and the Least-developed Countries Fund remain greatly underfunded. We call for more contributions to these funds, and in particular for the latter, the suppression of the requirement of co-financing for the projects submitted under them.

The Group of 77 and China notes the results of the 5th replenishment of the interim operating entity of the financial mechanism, the Global Environment Facility, the pledges for which barely exceed those of the 4th replenishment, taking into account the rollover funds from one replenisment to another. Meager results were likewise obtained at the recent meeting of the GEF General Assembly.

These developments will inform the ongoing review of the financial mechanism of the Convention, and we will work to undertake appropriate action, inclusion decisions, that would reinvigorate a financial mechanism that would be an effective channel for the implementation of commitments for financial resources under the Convention, and fully respond to the needs of developing countries.

We welcome the progress made in the operationalization of the Adaptation Fund under the Kyoto Protocol, recent contributions made to it, and in particular the start of direct access procedures by the Adaptation Fund Board. We will then undertake an initial review that would assess the effectiveness of the Fund, including the interim institutional arrangements.

Mr. Chairman,

Given that four bodies will be meeting during this sessional period, the time available for contact groups and informal consultations will be very limited. In this connection, the group requests that not to schedule many parallel meetings in order to allow effective participation of small delegations from developing countries.

The Group would also like to draw your attention to the fact that the upcoming UN Climate Conference in Cancun will be the 16th Session of the Conference of the Parties (COP) and the 6th Session of the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol (CMP). The Group of G77 and China hereby officially requests that any logo, poster or any other material to appear in the Conference premises and on the official websites of the Host Country and the UNFCCC Secretariat should be designed to give equal treatment to the COP16 and the CMP6, to avoid any confusion whatsoever as to the non-existence and non-continuation of the Kyoto Protocol.

In conclusion, Mr. Chairman,

The Group of 77 and China would like to assure you that it will continue to work constructively with you and our partners to make real progress during this session in order to pave the road for a deliverable outcome in Cancun.

I thank you.