This paper unpacks key questions related to the operationalisation of the BBNJ’s financial mechanisms–in particular the new special fund. It proposes two potential approaches: transitional committees & open-ended ad hoc working groups.
This paper aims to unpack some of the key questions related to the operationalisation process of the BBNJ Agreement’s financial mechanism, and in particular, the process for setting up the new special fund. To support this process, the BBNJ Preparatory Commission co-chairs’ provided a note proposing two potential approaches: an ad hoc “transitional committee” with limited membership or an “open-ended ad hoc working group” open to all state parties. Drawing from desk research, interviews with members from transitional committees and working groups, and personal AG experience participating in transitional committee meetings, this paper will cover three main questions:
How were transitional committees used to operationalise the Fund for Responding to Loss and Damage under the UNFCCC and the Green Climate Fund, and what were the key elements?
How was an ad hoc open-ended working group used to support the creation of the Cali Fund under the Convention for Biological Diversity, and what were the key elements?
Drawing from all the key lessons learned in other processes, what are the ten key recommendations applicable to the BBNJ Agreement?
This document has been prepared by the UNSW Centre for Sustainable Development Reform, as the Secretariat to the BBNJ Finance Advisory Group (Advisory Group). The Secretariat is grateful to the main authors Joe Thwaites and Steve Herz for writing this paper on behalf of the Advisory Group on BBNJ Finance, with research support from Tom David and Trisha Ramesh. Further the Secretariat thanks the co-chairs of the Advisory Group (Angelique Pouponneau, and Torsten Thiele), the members of the Advisory Group, and additional Secretariat staff for their input, critical reviews, and helpful suggestions.
The Advisory Group consists of global experts serving in their personal capacity to provide thought leadership on innovative financial mechanisms for the implementation of the BBNJ Agreement.
Members of the Advisory Group contribute diverse perspectives to advance discussions and offer expert insights, but their participation does not constitute endorsement of all content. The opinions expressed in this note and other outputs, do not represent the official positions of any government, organisation, country, or member. This initiative is supported by the Bloomberg Ocean Initiative.