Skip to main content
Environmental Governance

Definition(s)

In international environmental law ways and means of providing new and additional financial resources, particularly to developing countries, for environmentally sound development programmes and projects. (Source: UNEP, Agenda 21/A/CONF.151/26 (Vol. III),1992)

In UNFCCC the concept is used for documents that discuss the financial mechanism of the convention as well as the standing committee on finance. A mechanism for the provision of financial resources on a grant or concessional basis, including for the transfer of technology. It functions under the guidance of and is accountable to the COP, which shall decide on its climate change policies, programme priorities and eligibility criteria for funding. Through this mechanism, developed country Parties (Annex II Parties) provide financial resources to assist developing country Parties implement the Convention. The Parties to the Convention assigned operation of the financial mechanism to the Global Environment Facility (GEF) on an on-going basis, subject to review every four years. The Kyoto Protocol also recognizes, under its Article 11, the need for the financial mechanism to fund activities by developing country Parties (Source: UNFCCC, Article 11, para 1)

The Conference of the Parties of an Multilateral Environmental Agreement shall establish its own financial rules [...].These rules are meant to govern the financial administration of the COP, its subsidiary bodies and the MEA secretariat. They cover financial matters essential to MEAs and usually provide that, for other matters, the Financial Rules and Regulations of the United Nations will apply (Source: MEA Negotiator's Handbook, 2007)

Hierarchy

Alternative labels:
financing
investment
resource exploitation
resource mobilization

In other languages

French
mécanisme financier
Russian
механизм финансирования
Spanish
mecanismo financiero
Arabic
الآلية المالية

Explore content

Follow up the links below to see InforMEA content related to financial mechanism coming up from several external sources.

Multilateral environment agreements tagged with financial mechanism

You can see below a list of multilateral environment agreements. Use the links on the right to view the content tagged with financial mechanism. This includes official treaty texts, decisions, recommendations, and other related informational documents such as publications, annuals, meetings, documents or reports.
Convention on Biological Diversity
Basel Convention
Convention on International Trade in Endangered Species of Wild Fauna and Flora
Convention on Migratory Species
Stockholm Convention
Montreal Protocol
Cartagena Protocol
Nagoya Protocol
Agreement on the Conservation of African-Eurasian Migratory Waterbirds
International Treaty on Plant Genetic Resources for Food and Agriculture
United Nations Framework Convention on Climate Change
World Heritage Convention
Kyoto Protocol
Ramsar Convention
United Nations Convention to Combat Desertification
Rotterdam Convention
Barcelona Convention
Dumping Protocol
Hazardous Wastes Protocol
Cartagena Convention
Jeddah Convention
Minamata Convention on Mercury
United Nations Environment Assembly
ASEAN Agreement on Transboundary Haze Pollution

Multimedia

Private sector in the future of climate finance

Effectiveness of Multilateral Environmental Agreements

Financial Mechanisms