Financial Resources and Mechanism

This section will provide a brief overview of the financial resources and the financial mechanism of the BBNJ Treaty.

Is there an overall concept that is applicable to the contribution of funds by the Parties to the BBNJ Treaty?

Yes. Each Party must provide, "within its capabilities, resources in respect of those activities that are intended to achieve the objectives of this Agreement, taking into account its national policies, priorities, plans and programmes."

Ref. BBNJ Treaty, Art. 52.1.

For information about Parties, visit the page here.

How will the Parties fund the BBNJ Treaty's institutions that will facilitate the objectives?

The institutions established under the BBNJ Treaty will be funded through assessed contributions of the Parties.

Ref. BBNJ Treaty, Art. 52.2

For information about BBNJ Treaty's institutional arrangements, visit the page here.

What is the BBNJ Treaty's financial mechanism?

The BBNJ Treaty established a financial mechanism that will provide "adequate, accessible, new and additional and predictable financial resources," which will function under the authority of, where appropriate, and guidance of, and be accontable to the Conference of the Parties (COP). The mechanism will assist developing States Parties in implementing the obligations of the BBNJ Treaty, including through funding to support capacity building and the transfer of marine technology as well as to perform other functions for the conservation and sustainable use of marine biological diversity.

The COP must determine the initial resource mobilization goal through 2030 for the special fund from all sourvces, taking into account, inter alia, the institutional modalities of the special fund and the information provided through the capacity-building and transfer of marine technology committee. Further, the COP will consider the reports and recommendations of the finance committee and take appropriate action. Also, the COP will conduct a periodic review to assess the adequcy, effectiveness, and accessibility of financial resources.

The financial mechanism will consist of the following three funds:

Voluntary trust fund established by the COP
Special fund that will be funded through monetary benefit sharing of marine genetic resources (MGRs) of areas beyond national jurisdiction (ABNJ) and additional voluntary contributions from Parties and private entities that wish to fund conservation and sustainable use of BBNJ
The Global Environment Facility (GEF) trust fund

The above funds will provide financial resources for different types of activities:

The voluntary trust fund will facilitate the participation of representatives of developing States Parties in the meetings of the BBNJ Treaty's institutions.
The special fund and the Global Environment Facility trust fund will be used to fund:
- capacity-building projects under the Treaty
- assist developing States Parties to implement the BBNJ Treaty
- support conservation and sustainable use programme by Indigenous Peoples and local communities as holders of traditional knowledge
- undertake any other activities as decided by the COP.

A visual chart of the three funds and the uses thereof.

The COP may also consider the possibility of establishing additional funds, as part of the financial mechanism for the purposes of supporting conservation and sustainble use of marine biological diversity of ABNJ. Such funds may be used for rehabilitation and ecological restoration of marine biological diversity of ABNJ.

The financial resources to support the implementation of the BBNJ Treaty may be mobilized from a wide range of sources, including public and private sources. In light of capacity constraints, the Parties must encourage international organizations to grant preferential treatment to, and consider the specific needs and special requirements of developing States Parties in the allocation of appropriate funds and technical assistance and the utilization of their specialized services for the purposes of conservation and sustainable use of marine biologival diversity of ABNJ.

Ref. BBNJ Treaty, Art. 52.3 through 52.13 and 52.15 and 52.16

For information about BBNJ Treaty's institutional arrangements, visit the page here. For information about the BBNJ Treaty's capacity building and the transfer of marine technology, visit the page here. For information about the monetary benefit sharing requirements associated with the utilization of MGRs of ABNJ, visit the page here. For information about the COP meetings, visit the page here.

Who can have access to the funds from the BBNJ Treaty's financial mechanism?

Access to the funds will be open to develping States Parties on the basis of need. Funding under the special fund will be distributed according to an equitable sharing criteria. Further, the Special Fund will aim to ensure efficient access to funding through simplified application and approval procedures and "enhanced readiness of support" for the developing States Parties.

Ref. BBNJ Treaty, Art. 52.3 through 52.13 and 52.15 and 52.16

What is the BBNJ Treaty's finance committee?

The BBNJ Treaty's Conference of the Parties (COP) will establish a finance committee. The committee will periodically report and make recommendations on the identification and mobilization of funds under the financial mechanism. It will also collect information and report on funding under other mechanisms and instruments contributing directly or indirectly to the achievement of the objectives of the BBNJ Treaty.

The financial committee will also consider the following:

the assessment of the needs of the Parties, in particular developing States Parties;
the availability and timely disbursement of funds;
the transparency of decision-making and management processes concerning fundraising and allocations; and
the accountability of the recipient developing States Parties with respect to the agreed use of funds.

The specific terms of reference and the modalitis for the opereation of the committee will be decided by the COP.

Ref. BBNJ Treaty, Art. 52.14

For information about the COP meetings, visit the page here.