Mr. Chairman,

1. I have the honor to deliver this statement on behalf of the Group of 77 and China.

2. At the outset, the Group of 77 and China would like to assure you of our full support and cooperation. We are ready to engage constructively in substantive work, in a Party-driven manner, so that concrete progress can be achieved during this session on the many issues under the Subsidiary Body for Implementation.

Mr. Chairman,

3. According to the Compilation and Synthesis of fifth national communications from Parties included in Annex I to the Convention, over the period 1990- 2008, the total aggregate of greenhouse gas (GHG) emissions from Annex I Parties that are not economies in transition, excluding LULUCF, increased by 8%. Moreover, according to projected data, the GHG emissions of Annex I Parties, excluding emissions and removals from the LULUCF sector are expected to increase by 7.8 %, between 2010- 2020. We continue to be very concerned about the facts and the trend contained in the reports FCCC/SBI/2011/INF.1, Add 1 and Add. 2.

4. We expect that the decision adopted by the COP on this matter reflects a strong call to Annex I Parties to intensify their efforts aimed at reducing their GHG emissions in accordance with the principles and provisions, the objective of the Convention and their commitments under the Convention and the Kyoto Protocol.

Mr. Chairman,

5. With reference to the above mentioned document, that states that "many data gaps and inconsistencies in reporting approaches among Annex II countries and across periods still persist", we urge Annex I Parties first, to provide detailed information or make available in their national communications the level of improvement in emissions reductions, or lack thereof. In this sense, it is important to maintain and strengthen Annual reports on the technical review of greenhouse gas inventories from Parties included in Annex I to the Convention as well as the monitor, report and evaluation of their domestic mitigation action. Secondly, as repeatedly stated in the synthesis of Annex I communications, standard formats of reporting on the provision of financial resources, including for transfer of technology and adaptation should be utilized in fulfillment of obligations under Article 12.3 of the Convention. Therefore, a COP decision under this agenda item must take all these elements on board.

6. At a time when more and more responsibilities on reporting are placed on developing country Parties, it is incumbent on developed country Parties who have the obligation to provide financial resources at agreed full costs basis to developing country Parties, to clarify whether they are meeting their commitments under the Convention related to financing.

7. We underline our call on Parties included in Annex II of the Convention to intensify their efforts aimed at fulfilling their commitments on the provision of financial resources, enhancing technology development and transfer, meeting costs of adaptation, and strengthening capacity building in developing country Parties in accordance with articles 4, paragraphs 3, 4 and 5 of the Convention. To this end, the accuracy, comparability and level of detail of information regarding the provision of support of financial resources, technology development and transfer and capacity building reported in National Communications of Annex II Parties must be further defined and enhanced.

8. The conclusions forwarded by the SBI to COP must include the above mentioned elements for adoption by this COP.

Mr. Chairman,

9. The Group would like to recall the Cancun decisions contain additional reporting obligations for developing countries, as well as provisions on more frequent timelines for the submission of reports, which represent an added burden to the difficulties faced by developing country parties in terms of lack of technical and financial support when it comes to prepare their national communications. As we are all aware, paragraph 60 (c) of Decision 1/CP.16 clearly establishes a link between the level of support provided and the submission of biennial reports by developing countries. Therefore, it requires specific technical and technological inputs, as well as increased human and institutional capacities.

10. Regarding the preparation of national communications from non-Annex I Parties, predictability of funding and the provision of the agreed full costs is also to be met. Unfortunately, we are currently faced with a situation where national communications are subject to limited allocations and other conditions.

11. We also reiterate our call for more contributions to the funds devoted to adaptation under the Convention, in particular the Special Climate Change Fund, the Least Developed Countries Fund and the Adaptation Fund under the Kyoto Protocol. Not only are they hugely underfunded, and most of them dependent on voluntary funding, they are also the only main sources of financing adaptation under the Convention.

12. The Group of 77 and China insists that conditions attached to the allocation and use of the funds that are managed through the Global Environment Facility as an operating entity of the financial mechanism of the Convention should not be applied to these funds, in particular the requirement of co-financing prior to accessing funding. Also, the Group reiterates its position that adaptation efforts must be treated in an equal manner as mitigation. Adaptation has historically been underfunded, as situation that must be reversed. The Group will continue to insist firmly on a balanced allocation of resources for adaptation, including for the design and capitalization of the Green Climate Fund, as well as direct access as operationalized in the Adaptation Fund, which are fundamental principles of the Group of 77 and China.

Mr. Chairman,

13. The G77 and China expects a successful outcome for a clear and well-supported LDC process for the formulation and implementation of National Adaptation Plans (NAPs), including on the modalities and guidelines that may be employed by other particularly vulnerable developing countries.

14. We must also agree on the necessary institutional linkages to support this process, stressing the important role that the Adaptation Committee and the LDC Expert Group should have in the preparation and implementation of NAPs.

15. We believe that NAPs without the adequate means of implementation create new responsibilities for developing countries and we need to make progress to ensure that the formulation and the implementation of NAPS is not an additional burden, but an implementation-driven process to respond to climate change.

16. The Group consider the Work Program on loss and damage as one of the key aspects to advance the implementation of adaptation in order to cope with the adverse impacts of climate change in developing countries. We welcome the progress made since the establishment of the Work Program on Loss and Damage at COP 16 and we look forward to further advance in this important issue here with a view to making recommendations on loss and damage to the Conference of the Parties for its consideration at its eighteenth session.

17. On the activities to be undertaken by the Work Programme on Loss and Damage, the G77 and China reaffirms the need to strengthen international cooperation, to enhance knowledge and capacity directed to reduce adverse effects of climate change, and to provide support for its implementation.

Mr. Chairman,

18. The G77 and China looks forward to engaging constructively in the forum on the impact of the implementation of response measures at the Subsidiary Bodies, with the objective of developing a work programme under the SBSTA and the SBI to address these impacts, and to adopt at the 17th COP modalities for the operationalization of the work programme and a forum on response measures. Even if there is a need to make progress in the SBs in this matter specifically related to Paragraph 93 of 1. CP/16, it is important to note that there is also a mandate to continuing discussions in the AWG-LCA on all the elements of economic and social consequences of response measures, in order to establish the political parameters that are required to meet the specific needs and concerns of developing countries in relation to this issue.

19. The G77 and China acknowledges the work done by the Technology Executive Committee in its first and only meeting so far. We expect next year the TEC can meet as often as necessary and have enough time and resources to develop and implement a program of work that fulfils its functions as were adopted by the COP in Cancun, last year.

20. The Group of 77 and China reiterates the necessity of enabling the active participation of Palestine in the UNFCCC process and to make every effort to grant Palestine access to funding from sources of climate change financing.

Finally, Mr. Chairman,

21. The Group of 77 and China would like to reassure you of its commitment to make concrete progress to ensure the success of the 17th session of the Conference of the Parties and the 7th Meeting of the Parties here in Durban.

I thank you.