Mr. Chairman,

        I have the honor to deliver this statement on behalf of the Group of 77 and China. The Group of G77 and China was constructively engaged in the work this session and therefore, has shown a lot of flexibility in many issues with the aim of achieving progress.

        The Group of 77 and China wants to express their concerns on the trends visualized in the report on national GHG inventory data from Parties included in Annex I to the Convention for the period 1990-2007 where it is demonstrated that Annex I Parties increased by 11.2 percent their emissions excluding LULUCF and by 12.8 per cent including LULUCF. This shows the tendency which goes against the commitments those parties have, according to paragraph 4.2 of the Convention. Therefore the G77+China considers that further actions are needed in order to assure the fulfillments of commitments of developed country Parties and their compliance.

Mr. Chairman,

        As we indicated earlier, that developing country parties are facing many difficulties in terms of lack of support, technically and financially, to enable them to prepare their national communications. In this connection, the group would like to reiterate that predictability of funding and the provision of the agreed full costs for the preparation of National Communications from Non-Annex I Parties are crucial.

The G77 and China regrets that no conclusions have been reached on item 3, which SBI has the mandate to fix a date of the submission of the 6th national communications from Annex I Parties. In a time when non-annex I Parties are being pushed to increase the frequency of their national communications, Annex I Parties are delaying the process of fixing the date of their national communications and are not willing to increase the frequency of their submissions. This is unfair to non-Annex I Parties and it is contradictory to the provision of article 12.5 of the Convention and the principle of common but differentiated responsibilities.

        The Group of 77 and China is glad to note that the work programme prepared by the reconstituted CGE in its first meeting has been endorsed and, therefore, CGE can start working. However, we regret that no conclusion was reached on the further implementation of Article 12.5 of the Convention under the SBI.

Mr. Chairman

        Implementation of decision 1/CP10 based on the G77 and China's submissions and views on different elements has been a big concern for the group for many years. Although, little progress has achieved during this session in this respect, the group will continue its involvement towards progressive and serious consideration of our concrete proposals in order to meet adaptation needs of the developing countries, specially those most vulnerable, particularly LDCs and SIDs through implementation of decision 1/CP10.

        There is a lack of inflow of fund to the Special Climate Change Fund and the Least-developed Countries Fund, bearing in mind the fact that these funds are under-funded to start with, Therefore, we call for more contributions to assist developing countries to tackle the adverse impacts of climate change.

Mr. Chairman,

      During these two weeks we exchanged views on the review of the financial mechanism of the Convention on which we reitarate our readiness to build on, and continue working in order to undertake appropriate actions and decisions, that would reinvigorate a financial mechanism. Such mechanism, will be an effective channel for the implementation of commitments for financial resources under the Convention, and fully respond to the needs of developing countries.
        Although, parties could not come to a clear outcome on the review of the Adaptation Fund during this session as it was envisaged, some steps have already being undertaken, in this context, the group of 77 and China will continue to constructively engaged in the next session. The Adaptation Fund is a solidarity fund among developing countries, mainly funded through the shares of proceeds from the Clean Development Mechanism project activities. It is also open to other contributions, and we would like to acknowledge the contributions made by Spain to this Fund. We consider the Fund to be a model of governance of funds under this Convention, and bring this model, among other models, forward in our discussions of a new fund under this Convention. An adaptation needs assessment would be necessary in order to determine the adequacy of existing and other possible sources of financing for adaptation. We endorse the progress made in the operationalization of the Adaptation Fund, in particular on the legal capacity for the Board that would allow direct access to the Fund.

Mr. Chairman,

        We are concluding the fourth review of the financial mechanism which would allow us to assess the operations of current financing institutions providing financial resources to developing countries. We note that the current channels of financing lack adequacy as well predictability of financing required by the Convention. We continue to have concerns over the accessibility of these funds, as well as the conditionalities attached to provision of resources under existing channels. We hope to have a review that would pave the way for an effective operationalization of the financial mechanism of the Convention, under the authority of the Conference of the Parties, one that would be a truly effective channel through which implementation of obligations of developed countries to provide new and additional financial resources to developing countries, to meet costs of adaptation as well as for development and transfer of technology, would be implemented.

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 concrete progress during the next and subsequent sessions in order to achieve the objectives of the convention and the Protocol.

I thank you.