Dear Co-Chairs:

1. On behalf of the Group of 77 and China, I would like to provide a brief statement on this subject, while stressing that our Group is still considering various aspects pertaining to financial rules, taking into account that the details addressed in the documents prepared by the Co-Chairs on this matter require further review and analysis.

2. Noting that pursuant to article 47 of the Agreement, the COP should adopt, at its first meeting, among others, financial rules. We would like to mention that any option or model that might be considered for the purposes of such rules requires appropriate approaches that take into account the special requirements of developing countries in line with the Agreement as well as fully take into account the special circumstances of the least developed countries, and of the small island developing States. These approaches must also effectively support developing countries, in particular LDCs and SIDS, regarding commitments under financial rules while addressing the related challenges.

3. Along similar lines, the Group wishes to reiterate the importance of the full and effective participation of developing countries, in particular for the LDCs, LLDCs and SIDS, in the works and activities of the COP and in the implementation of the Agreement. In this regard, effective steps should be foreseen to ensure appropriate and timely funding and contributions for supporting the participation of developing countries in the related meetings, including the Conference. Appropriate avenues for ensuring that proper and timely funding is always available to support participation of developing countries in such meetings and activities, should be explored.

4. We would also like to stress that the intrinsic relationship between the financial rules of the Agreement and its Financial Mechanism, especially the provisions related to Articles 52 and 14.6. The Group envisions the Special Fund as one of the core operating entities of the BBNJ's financial architecture and recalls the importance of the fulfillment of the obligations of developed country Parties budgetary contributions for the early operationalization of that Fund as per article 52.4.(b). In this regard, we request the Secretariat and the Co-Chairs to produce and circulate as soon as possible the additional documents indicated on arrangements with the GEF and operationalization of the Trust Fund and the Special Fund.

5. As regard the funding for Secretariat, recalling our view that it may be necessary to have a comprehensive comparative analysis of existing multilateral Secretariats, the Group is of the view that discussions and decisions on the structure of the Secretariat, its status and relationship with the United Nations could inform the discussions on the rules needed for funding the Secretariat, since its funding is relevant to its very structure and status.

I thank you.