Stockholm Convention on Persistent Organic Pollutants. Conference of the Parties to the Rotterdam Convention on the Prior

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1 UNITED NATIONS Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade UNEP/CHW.13/26 UNEP/FAO/RC/COP.8/25 UNEP/POPS/COP.8/29 Distr.: General 2 December 2016 Original: English BC RC SC Stockholm Convention on Persistent Organic Pollutants Conference of the Parties to the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal Thirteenth meeting Geneva, 24 April 5 May 2017 Item 6 of the provisional agenda Programme of work and budget Conference of the Parties to the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade Eighth meeting Geneva, 24 April 5 May 2017 Item 7 of the provisional agenda Programme of work and budget Conference of the Parties to the Stockholm Convention on Persistent Organic Pollutants Eighth meeting Geneva, 24 April 5 May 2017 Item 7 of the provisional agenda Programme of work and budget Programmes of work and proposed budgets for the biennium : combined proposal including joint activities Note by the Secretariat I. Introduction 1. In decisions BC-12/25, RC-7/15 and SC-7/33 on financing and budgets for the biennium , the conferences of the Parties to the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal, the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade and the Stockholm Convention on Persistent Organic Pollutants among other things: (a) Requested their respective executive secretaries to prepare budgets for the biennium for consideration by the conferences of the Parties at their next ordinary meetings and to explain the key principles, assumptions and programmatic strategy on which the budgets were based; (b) Noted that there was a need to facilitate priority-setting by providing Parties with timely information on the financial consequences of various options and, to that end, requested the K UNEP/CHW.13/1. UNEP/FAO/RC/COP.8/1. UNEP/POPS/COP.8/1.

2 II. executive secretaries to include in the proposed operational budgets for the biennium two alternative funding scenarios taking into account any efficiency identified in the use of financial and human resources and based on: (i) (ii) Implementation The executive secretaries assessment of the required changes in the operational budgets, which should not exceed a 5 per cent increase on the level in nominal terms, to finance all proposals before the conferences of the Parties that have budgetary implications; Maintaining the operational budget at the level in nominal terms. A. Overview of the proposed programmes of work, staffing and budgets for the biennium As was the case with the programmes of work and budgets of the Basel, Rotterdam and Stockholm conventions for the bienniums and , the proposed programmes of work and budgets for have been developed jointly and are presented in a harmonized format in a single document (UNEP/CHW.13/INF/51-UNEP/FAO/RC/COP.8/INF/36- UNEP/POPS/COP.8/INF/53) (hereinafter referred to as the proposed operational budgets document). 3. In the development of the programmes of work, the overall objective was to provide a framework consisting of both convention-specific and joint activities that correspond to the Secretariat s assessment of the activities and resources that it will require to support implementation of the conventions. 4. This approach should allow for a discussion of budget issues that encompasses all three conventions and will assist in identifying activities in the programmes of work that are complementary and relate to the implementation of two or more of the conventions. A list of the proposed activities in the programmes of work is presented in the annex to the present note. 5. The proposed activities constitute mainly a continuation of the activities implemented in the current biennium , taking into account lessons learned, financial contributions received and outcomes achieved, while some activities are new. The functional headings of the programmes of work and most activity titles in the programmes of work for the biennium have accordingly been maintained, with some adjustments to specific activities. The most significant adjustments are as follows: (a) Activities 13 (tools and methodologies for training and capacity-building) and 17 (training and capacity-building activities to enhance the implementation of the Basel, Rotterdam and Stockholm conventions at the regional and national levels) of the programme have been merged into activity 13 (technical assistance and capacity development programme of the Basel, Rotterdam and Stockholm conventions), and consequently activity 17 has been discontinued for ; (b) Webinar equipment and licences have been moved from activity 13 to activity 36 (joint information technology services) because the webinar infrastructure supports various programme areas. 6. An information document setting out budget activity fact sheets provides additional information on the proposed joint and convention-specific activities, along with information on relevant meeting documents, mandates and the particulars of each activity, including objectives, indicators of achievement, expected outputs with cost estimates, methods of implementation, partners, resources approved for and resources required for The fact sheets are set out in document UNEP/CHW.13/INF/52-UNEP/FAO/RC/COP.8/INF/37-UNEP/POPS/COP.8/INF/ Annex I to the proposed operational budgets document presents the programmes of work and budgets under the executive secretaries scenario and the zero nominal growth scenario. 8. The budget proposals for the biennium with their two alternative funding scenarios have been reviewed by the Office of the Executive Director of the United Nations Environment Programme (UNEP) as part of the established UNEP process for the preparation of proposed budgets. 9. The operational budgets include activities whose costs are to be covered by the assessed contributions of Parties and the host country contributions to the general trust funds, as well as activities to be funded from the voluntary special and technical cooperation trust funds. Many 2

3 activities draw upon resources from both trust funds; essential activities have been prioritized for funding from the general trust funds. 10. Italy and Switzerland, the host countries of the Secretariat of the Rotterdam Convention, contribute a total of 1.2 million euros annually to that convention s general and voluntary special trust funds. Switzerland, as the host country of the Stockholm Convention Secretariat, contributes 2 million Swiss francs per year (including its assessed contribution) to that convention s general and voluntary special trust funds. In , the Food and Agriculture Organization of the United Nations (FAO) continued its financial support of $1.5 million 1 to the Secretariat of the Rotterdam Convention. Further details are provided in section E below. Further details on the status, as at 31 December 2016, of the general trust funds and of the voluntary special and technical cooperation trust funds of the three conventions are provided in the Secretariat s financial reports for the conventions (UNEP/CHW.13/INF/53, UNEP/FAO/RC/COP.8/INF/38 and UNEP/POPS/COP.8/INF/55). Additional information on contributions to the technical cooperation and voluntary special trust funds of the Basel, Rotterdam and Stockholm conventions in the biennium is provided in document UNEP/CHW.13/INF/55-UNEP/FAO/RC/COP.8/INF/43-UNEP/POPS/COP.8/INF/ The proposed operational budgets document contains information regarding the annual assessed contributions of each Party. The assessed contributions for Parties are based on the current United Nations scale of assessments for , which was adopted by the General Assembly by resolution 70/245 of 23 December 2015, adjusted to take account of the fact that not all States Members of the United Nations are Parties to the conventions. 12. The staffing component of the two scenarios for all three conventions is calculated based on the indicative staffing table for the biennium As is shown in the indicative staffing table, it is proposed that the number of core funded posts be reduced by four compared to the indicative staffing table for the three conventions. 13. Further information about assumptions made in calculating staffing costs is provided in the proposed operational budgets document. B. Presentation of the programme budgets and their scenarios 14. In preparing the proposed programmes of work and budgets for the biennium , the executive secretaries have been guided by a set of key goals that would allow them to enhance the ability of the Secretariat to support and facilitate Parties implementation of the conventions and the decisions of the conferences of the Parties. These goals are: (a) To ensure that the Secretariat maintains core capacity to service the meetings of the conferences of the Parties and their subsidiary bodies, facilitate the delivery of technical assistance to Parties at their request and ensure the delivery of scientific, technical and legal support to Parties; (b) conventions; To meet the Parties wish to enhance science-based action to implement the (c) To ensure that all administrative services necessary to mobilize resources and spend available financial contributions wisely, and in a manner consistent with United Nations rules and regulations and the decisions adopted by the conferences of the Parties, are in place. 15. The programmes of work have been organized under the following functional headings: (a) (b) (c) (d) (e) (f) (g) Conferences and meetings; Technical assistance and capacity-building; Scientific and technical activities; Knowledge and information management and outreach; Overall management; Legal and policy activities; Office maintenance and services. 16. The functional headings have been further organized by programme of work activities. The change in the United Nations financial management system has rendered the object codes used in previous budget presentations obsolete. The budget proposal has therefore been developed to utilize 1 References hereafter to $ are to United States dollars. 3

4 the new financial system s activity-based expenditure tracking module, with the programme of work activities serving as the basis for budgeting. 1. Executive secretaries scenario 17. The executive secretaries scenario has been developed with a view to ensuring that the Secretariat maintains the most essential elements of its work programme at the level. To the extent practicable, the operational budget for non-staff costs has also been maintained at levels, particularly for those activities that recur in It should be noted that activities relating to the financial mechanism and effectiveness evaluation under the Stockholm Convention are cyclical and that while there will be a saving of $309,000 in the next biennium, inflation-adjusted provisions for those activities will be required in the subsequent biennium. The following subparagraphs describe the most significant changes to the operational budget for core activities funded through the general trust funds introduced in the executive secretaries scenario: Increases (a) Activity 6: An additional $90,000 has been allocated to meetings of the Stockholm Convention Persistent Organic Pollutants Review Committee for conference services. This amount was reduced during the budget negotiations at the seventh meeting of the Conference of the Parties. The Secretariat thus had to reduce the duration of, and interpretation available during, the Committee s twelfth meeting, while also compressing the length of pre-session documents required in languages, to absorb the shortfall. Similar adjustments are expected to be required for the thirteenth meeting. Therefore, the proposed addition restores the budget of Committee meetings to levels required for annual meetings lasting five days each with interpretation during all sessions, and translation of all required documents; (b) Activity 13: $60,000 has been allocated for an impact assessment aimed at evaluating the national-level impact of the technical assistance programme of the three conventions, aimed at informing future programme plans; (c) Activity 20: An additional $142,625 has been allocated for developing new technical guidelines under the Basel Convention as well as updating, translating and publishing technical guidelines on e-waste and three technical guidelines on waste management technologies; (d) Activity 22: $40,000 has been allocated for one of the two expert group meetings on best available techniques and best environmental practices and on the Toolkit for Identification and Quantification of Releases of Dioxins, Furans and Other Unintentional Persistent Organic Pollutants under the Stockholm Convention planned for the biennium, while the second meeting will be funded from voluntary contributions; (e) Activity 27: $24,000 has been allocated for the design and production of electronic media products in support of the Secretariat s communications strategy for all three conventions; (f) Stockholm Convention working capital reserve: $130,622 has been allocated to an increase in the working capital reserve for the Stockholm Convention from 13 per cent of the annual average of the biennial operational budget to 15 per cent; Decreases (g) Activity 20: A reduction of $20,000 is proposed in the amount allocated for the preparation of a submission to the World Customs Organization to ensure that the identification of wastes covered by the Basel Convention in the Harmonized Commodity Description and Coding System is proposed; (h) Activity 23: A reduction of $120,000 from the previous biennium is proposed due to the fact that no effectiveness evaluation in respect of the Stockholm Convention will be carried out in ; (i) Activity 24: A reduction of $43,500 in the allocation for enhancements to the electronic reporting system for national reports under the Basel and Stockholm conventions is proposed because the systems and user manuals are in place and only updates and maintenance need to be funded; (j) Activity 30: Reductions are proposed of $105,000 in the amount allocated for the fourth review of the financial mechanism of the Stockholm Convention, of $84,000 in the amount allocated for the assessment of funding needs for the period for the Stockholm Convention and a net reduction of $18,000 in the amount allocated for all three conventions for the financial resources component mainly because no donor roundtables have been proposed; 4

5 (k) Activity 31: A reduction of $120,700 in the amount allocated for support for the review of the synergies decisions is proposed for all three conventions; (l) Activity 36: A reduction of $54,000 in the amount allocated for webinar software and licences for all three conventions through the implementation of more cost-effective solutions is proposed. 18. The combined operational budgets for the activities under the three conventions to be funded from the general trust funds under this scenario for the biennium , excluding programme support costs, total $26,507,568, a 3.03 per cent increase over the total operational budgets adopted for the biennium The combined estimated cost under this scenario of activities to be funded from the voluntary special and technical cooperation trust funds for the biennium , excluding programme support costs, is $13,223,526, a decrease of per cent compared with the estimated cost of such activities for the biennium Zero nominal growth scenario 20. The executive secretaries proposal would maintain the activities in the operational budget for the programme of work at the level approved for the biennium In order to achieve zero nominal growth of the operational budget of $25,727,737, however, a reduction of $779,831 from the general trust funds would be necessary when compared with the executive secretaries scenario. To that end, the executive secretaries propose that the following activities included in their proposed scenario for the operational budget for activities to be funded from the general trust fund be adjusted as follows: (a) Activities 1, 2 and 3: A 42 per cent reduction (from 610 to 355) in the number of pages of pre-session documents edited and translated into the six United Nations languages for meetings of the conferences of the Parties to the three conventions, which would result in a saving of $172,125; (b) Activities 7, 8 and 9: Discontinuation of face-to-face meetings of the individual bureaux of the Basel, Rotterdam and Stockholm conventions, resulting in a saving of $86,700. Such meetings could instead be conducted using the Secretariat s webinar infrastructure, and any communication costs would need to be absorbed within the existing budget for office maintenance. One joint face-to-face meeting of the three bureaux would be held; (c) Activity 13: The technical assistance impact assessment for all three conventions would be funded from voluntary contributions rather than the core budget, resulting in a saving of $60,000; (d) Activity 19: The annual joint meeting of directors of Basel and Stockholm convention regional centres would be funded from voluntary contributions rather than the core budget, resulting in a saving of $88,300; (e) Activity 20: The development, updating and translation of technical guidelines on environmentally sound management under the Basel Convention would be funded from voluntary funds rather than the core budget, resulting in a saving of $342,000; (f) A decrease in the staffing envelope for all three conventions, resulting in a savings of $30,206 in addition to the savings achieved by the elimination of the four posts mentioned in paragraph 12 above. 21. The total combined operational budgets for the three conventions under this scenario, excluding programme support costs, would be $25,727,737 which is equivalent to the combined operational budgets adopted for the biennium The combined estimated cost under this scenario for activities funded from the voluntary special and technical cooperation trust funds for the biennium , excluding programme support costs, is $13,626,026, a decrease of per cent compared with the estimated cost of such activities for the biennium

6 C. Umoja implementation in the United Nations Secretariat, the United Nations Environment Programme and the Secretariat of the Basel, Rotterdam and Stockholm conventions 23. One major change during 2015 and 2016 has been the introduction and deployment of a new enterprise resource planning system, Umoja, in an administrative reform initiative for the United Nations Secretariat that includes a thorough streamlining of United Nations Organization business processes through the implementation of Umoja. 24. Umoja is intended to provide a simplified and real-time approach to the Organization s management of finances, resources and assets. The implementation of Umoja requires a complete re-working of the way the Organization manages its administration in respect of both business processes and systems. Umoja is fully compliant with International Public Sector Accounting Standards. 25. The Secretariat of the Basel, Rotterdam and Stockholm conventions, as part of the United Nations Environment Programme (UNEP), began to implement Umoja on 1 June During the first 18 months of implementation the Secretariat has experienced delays in the processing of travel and procurement, payments to vendors, consultants and implementing partners as well as with regard to financial reporting. In some cases this has resulted in the rescheduling of workshops, the need to borrow supplies and equipment from other entities, payment of higher transaction fees, for example to process procurement through other United Nations entities, and late reporting on donor contributions. 26. Umoja enforces strict cash management of voluntary contributions from donors: funds may only be committed to the extent of cash on hand. Thus donors must transfer the cash needed to fund their pledged contributions before project implementation can begin. The misalignment of donor timelines for transferring funds and the requirements of Umoja has to some extent affected the mobilization of financial resources for voluntary activities and the implementation of those activities. 27. The implementation of Umoja has placed considerable strain on the Secretariat in terms of project implementation, management and reporting. The Secretariat has worked closely with UNEP, the United Nations Office at Nairobi and United Nations Headquarters to resolve remaining issues. In the long term, Umoja will provide more accurate reporting and monitoring for management and donors. There is a clear need, however, at headquarters level, to provide additional support to resolve financial issues resulting from the conversion to Umoja, to revise current business processes, especially for procurement, to establish clear standard operating procedures and to provide targeted training and ongoing support for the use of Umoja in the day-to-day operation of the Secretariat. D. Enhanced efficiency in the use of financial and human resources 28. The overall efficiency of the Secretariat and its matrix structure was reviewed as part of a review of the matrix-based management approach and organization of the Secretariat that was carried out in A report on the results of the review is presented in document UNEP/CHW.13/INF/44-UNEP/FAO/RC/COP.8/INF/30-UNEP/POPS/COP. 8/INF/ As a result of a decrease in voluntary contributions, an internal placement process was conducted in the Secretariat in April 2016 to provide staff members in fixed-term positions currently funded through voluntary contributions with an opportunity to apply for posts funded from the core budget. 30. The internal placement process affected 10 such staff members (seven Professional posts and three General Service posts). After an extensive review of the funds available for staff positions, funding was identified for four core and one voluntarily-funded P-3 posts as well as for one General Service post. 31. The modalities for internal placement involved a competency-based selection process and were developed in consultation with the Human Resources Management Service of the United Nations Office at Nairobi, the Nairobi Staff Association and the UNEP Corporate Services Division, in accordance with ST/AI/2010/3, section 2.5. Four Professional candidates and one General Service candidate were successful in the internal placement process and have assumed their new posts. 32. The Secretariat in July 2016 established a project oversight group, which prioritizes and monitors voluntarily-funded project implementation and aims to ensure that projects stay on schedule and make appropriate use of funds. 6

7 E. The contribution to the Rotterdam Convention Secretariat of the Food and Agriculture Organization of the United Nations 33. From the entry into force of the Rotterdam Convention in 2004 to the present, FAO has provided approximately $12.2 million to support the Rotterdam Convention Secretariat in Rome, including direct financial support of around $1.5 million per biennium ($581,000 in staff costs and $909,000 in non-staff costs). This support has continued despite the fact that from 2012 to 2015 FAO implemented an organization-wide process for transformational change that included a budget reduction of some $108 million. 2 In addition, FAO has provided between $350,000 and $500,000 per biennium in in-kind contributions such as administrative and legal support, office space and conference facilities. The funds allocated to the Rotterdam Convention have been designated as corporate technical activities 3 and as such have been protected from cuts in recent years affecting other parts of FAO operations. The FAO contribution to the Secretariat has been used to support activities to implement the Convention in FAO member States. These activities are in line with the decisions of the Conference of the Parties and integrated with the FAO Strategic Programme. 34. At its seventh meeting the Conference of the Parties to the Rotterdam Convention noted with appreciation that in its programme of work and budget for , to be approved at the thirty-ninth session of the Conference of the Food and Agriculture Organization in June 2015, FAO intended to maintain its level of contributions by allocating $1.5 million from its regular budget to the Secretariat of the Rotterdam Convention, to be managed directly by the Secretariat. 35. Also at its seventh meeting the Conference of the Parties to the Rotterdam Convention decided to include a P-5 Senior Programme Officer post in FAO among the posts funded from the general trust fund on an interim basis and invited the governing body of FAO at its thirty-ninth session to consider establishing the post of Senior Coordinator within its programme of work and budget for the biennium Deductions from both the special contingency reserve and the balance of the prior year savings in the general trust fund were made to cover the cost of this post from the conventions staffing envelope in the biennium At its thirty-ninth session, held in June 2015, the FAO Conference adopted its programme of work and budget for without including a provision to establish the post of Senior Coordinator for the Rotterdam Convention Secretariat. The FAO programme of work and budget for will be decided on by the Conference at its fortieth session, in June The budget scenarios presented in the proposed operational budgets document therefore include the post of the P-5 Programme Coordinator, at a cost of $463,154 for the biennium, among the posts to be funded from the general trust fund. F. Working capital reserve of the Stockholm Convention 37. One of the findings of the Office of Internal Oversight Services (OIOS) audit (Report 2014/024) of the Secretariat of the Basel, Rotterdam and Stockholm conventions conducted in 2013 was that the working capital reserve for the Stockholm Convention General Trust Fund was inadequate and not in line with those for the Basel and Rotterdam conventions. The final outcome of the OIOS audit is described in a note by the Secretariat on the issue (UNEP/CHW.12/INF/43- UNEP/FAO/RC/COP.7/INF/29-UNEP/POPS/COP.7/INF/49). 38. At its seventh meeting the Conference of the Parties to the Stockholm Convention decided to increase the working capital reserve to 13 per cent of the annual average of the biennial operational budget for the biennium. It is now recommended that the working capital reserve be increased to 15 per cent as recommended by the OIOS following its audit. G. Arrears in core budget contributions 39. In their decisions BC-12/25, RC-7/15 and SC-7/33, the conferences of the Parties to the Basel, Rotterdam and Stockholm conventions decided to further consider at their next meetings additional incentives and measures for addressing arrears in the core budget contributions to the conventions in an effective and efficient manner. In this regard, the Secretariat has implemented a number of measures including bilateral meetings between the Executive Secretary and Governments, the preparation of personalized letters to Governments, the timely issuance of invoices, reporting on the 2 FAO C2015/3, para. 74. Bearing this in mind, and recognizing the limited scope for further efficiencies having achieved USD million in savings since 2012, the resources reallocated come from two main sources 3 Ibid, para. 83. The FAO funding commitment for the Rotterdam Convention is $1.5 million. 7

8 8 status of contributions on a monthly basis on the Secretariat website and the preparation of reports to the conferences of the Parties and the bureaux. 40. While these efforts have been effective in particular cases, they could be supplemented by enhancing the role of the bureaux, particularly as bureaux members are in a position to reach out to their peers in their regions in the course of carrying out their functions as bureaux members. H. Joint trust fund: Single operational account for staff costs and single joint voluntary trust fund for the Basel, Rotterdam and Stockholm conventions 41. In its 2013 audit report OIOS recommended the establishment of a mechanism for jointly funding the costs of Secretariat staff members, suggesting that the funds from the three conventions be pooled in one operational account and used to pay the staff members. 42. The conferences of the Parties deliberated on the matter at their 2015 meetings and invited the Executive Director of UNEP to provide additional information, to be made available immediately through the bureaux of the conferences of the Parties, on the practical implications of such a measure and to make proposals on any required changes to the financial rules for consideration at their 2017 meetings. The conferences of the Parties also invited the Executive Director to explore the possibility of establishing a single joint voluntary trust fund for the three conventions, to provide information on the matter to the bureaux as soon as possible and to present related proposals at the next meetings of the conferences of the Parties. 43. The Executive Director after careful consideration has concluded that there is no need to establish a single operational account for staff costs. Together with the Secretariat and UNEP Corporate Services he has: (a) Analysed the advantages and disadvantages of establishing a joint trust fund for managing the resources of the three conventions; (b) (c) shared staff. Analysed the features of Umoja that can be used to manage shared staff costs; Looked at the practices of other conventions and UNEP subprogrammes involving 44. With the deployment of Umoja, the costs of shared staff can be apportioned among existing trust funds as necessary. The establishment of a single joint general trust fund for shared costs (primarily staff, but possibly also operating costs such as rent, information technology, etc.) would complicate the management of each convention s funds as shared and unshared funds, including income from assessed contributions, related operating reserves, unspent biennial balances and interest income, would need to be distinguished and managed separately. In addition, a joint trust fund would result in joint financial reporting on shared expenditures rather than separate reporting by convention. 45. Neither does there seem to be a compelling reason to establish a single joint voluntary trust fund for the Basel, Rotterdam and Stockholm conventions. This issue can be revisited in the future if there is a significant increase in the amount of voluntary funding received specifically for joint activities between the three conventions. Presently, the Umoja Grants module enables voluntary contributions to a trust fund to be managed separately, and the Secretariat uses this module to manage funds for joint activities within the Stockholm Convention s voluntary trust fund. I. Synergies in the delivery of secretariat services of the Basel, Rotterdam and Stockholm conventions and the Minamata Convention on Mercury 46. In its resolution on arrangements in the interim period (UNEP(DTIE)/Hg/CONF/4, annex I, resolution 1), the Conference of Plenipotentiaries of the Minamata Convention on Mercury, which met in Kumamoto, Japan, in October 2013, requested the Executive Director of UNEP to present a report setting out proposals on how the Executive Director would perform the functions of the permanent secretariat for the Convention, including an analysis of options that, inter alia, addressed effectiveness, costs and benefits, different locations for the secretariat, merging the secretariat with the Secretariat of the Basel Rotterdam and Stockholm conventions and utilizing the interim secretariat of the Convention. 47. The Executive Director, through the interim secretariat, prepared the requested report (UNEP(DTIE)/Hg/INC.7/15) in close consultation with the Secretariat of the Basel, Rotterdam and Stockholm conventions for consideration by the intergovernmental negotiating committee to prepare a global legally binding instrument on mercury at its seventh session, in March The report presented two options for the structure of the Minamata Convention secretariat. The first would merge it into the Secretariat of the Basel, Rotterdam and Stockholm conventions, while the second would

9 utilize the interim secretariat. The report lays out the implications of the two proposals, including for the structure of the secretariat, staffing and costs. 48. The committee at its seventh session requested the interim secretariat to revise the report in line with the discussions at the meeting and to present it as so revised for consideration by the Conference of the Parties to the Minamata Convention at its first meeting (UNEP(DTIE)/Hg/INC.7/22/Rev.1, paragraph 168), which is expected to take place in September III. Proposed action 4 A. Possible action by the Conference of the Parties to the Basel Convention 49. The Conference of the Parties to the Basel Convention may wish to consider adopting a decision along the following lines: The Conference of the Parties, Taking note of the financial reports on the Basel Convention trust funds for 2016 and estimated expenditures for 2017 from the Trust Fund for the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (Basel Convention Trust Fund), 5 I Trust Fund for the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal 1. Approves the programme budget for the Basel Convention for the biennium of [ ] United States dollars for 2018 and [ ] United States dollars for 2019 for the purposes set out in table [ ] of the present decision; 2. Authorizes the Executive Secretary of the Basel Convention to make commitments in an amount up to the approved operational budget, drawing upon available cash resources; 3. Decides to maintain the working capital reserve at the level of 15 per cent of the annual average of the biennial operational budgets for the biennium ; 4. Adopts the indicative scale of assessments for the apportionment of expenses for the biennium set out in table [ ] of the present decision and authorizes the Executive Secretary, consistent with the Financial Regulations and Rules of the United Nations, to adjust the scale to include all Parties for which the Convention enters into force before 1 January 2018 for 2018 and before 1 January 2019 for 2019; 5. Recalls that contributions to the Basel Convention Trust Fund are due by or on 1 January of the year for which those contributions have been budgeted, requests Parties to pay their contributions promptly, encourages Parties in a position to do so to pay their contributions by 16 October 2017 for the calendar year 2018 and by 16 October 2018 for the calendar year 2019 and requests the Secretariat to notify Parties of the amounts of their contributions as early as possible in the year preceding the year in which they are due; 6. Notes with concern that a number of Parties have not paid their contributions to the Basel Convention Trust Fund for 2016 and prior years, contrary to the provisions of paragraph 3 (a) of rule 5 of the financial rules, and urges Parties to pay their contributions promptly by or on 1 January of the year to which the contributions apply; 7. Recalls the provisions of paragraph 3 (e) of rule 5 of the financial rules on outstanding contributions due from 1 January 2001 onwards and paragraph 10 of decision BC-12/25 and decides to continue the practice that no representative of any Party whose contributions are in arrears for four or more years and that has not agreed on or is not respecting a schedule of payments implemented in accordance with paragraph 3 (d) of rule 5 of the financial rules shall be eligible to receive financial support for attendance at intersessional workshops or other informal meetings, as arrears that have been outstanding for more than four years must be treated as 100 per cent doubtful debts under the International Public Sector Accounting Standards; 4 The information to be included in the tables mentioned in the draft decisions would be based on the information set out in the proposed operational budgets document. 5 UNEP/CHW.13/INF/53. 9

10 8. Takes note of the efforts of the Executive Secretary and the President of the Conference of the Parties, who through a jointly signed letter invited the ministers of foreign affairs of Parties with contributions in arrears to take timely action to rectify those arrears, requests that this practice continue and thanks those Parties that have responded in a positive manner by paying their outstanding contributions; 9. Takes note of the indicative staffing table for the Secretariat for the biennium used for costing purposes to set the overall budget, which is set out in table [ ] of the present decision; 10. Authorizes the Executive Secretary to continue to determine the staffing levels, numbers and structure of the Secretariat in a flexible manner, provided that he remain within the overall cost of the staff numbers set out in table [ ] of the present decision for the biennium as recommended by the Office of Internal Oversight Services in its audit report; 6 II Trust Fund to Assist Developing Countries and other Countries in Need of Technical Assistance in the Implementation of the Basel Convention 11. Takes note of the funding estimates included in table [ ] of the present decision for activities under the Convention to be financed from the Trust Fund to Assist Developing Countries and other Countries in Need of Technical Assistance in the Implementation of the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (Technical Cooperation Trust Fund) in the amount of [ ] United States dollars for 2018 and [ ] United States dollars for 2019; 12. Notes that the Technical Cooperation Trust Fund requirement presented in the budget represents the Secretariat s best efforts to be realistic and reflects priorities agreed upon by all Parties and urges Parties and invites non-parties and others to make voluntary contributions to the Technical Cooperation Trust Fund so as to encourage contributions from donors; 13. Also notes the importance of having funding available in the Technical Cooperation Trust Fund for the participation in the meetings of the Convention of developing-country Parties, in particular least developed countries and small island developing States, and Parties with economies in transition; 14. Urges Parties, and invites others in a position to do so, to contribute urgently to the Technical Cooperation Trust Fund with a view to ensuring the full and effective participation of developing-country Parties, in particular least developed countries and small island developing States, and Parties with economies in transition, in the meetings of the Conference of the Parties; III Single operational account or joint trust fund 15. Decides, based on the additional information provided by the Executive Director of the United Nations Environment Programme in response to the recommendation of the Office of Internal Oversight Services, 7 that there is no current need to establish either a single operational account for staff costs or a single joint voluntary trust fund for the Basel, Rotterdam and Stockholm conventions; IV Preparations for the next biennium 16. Decides that the two trust funds for the Convention shall be continued until 31 December 2019 and requests the Executive Director of the United Nations Environment Programme to extend them for the biennium , subject to the approval of the United Nations Environment Assembly of the United Nations Environment Programme; 17. Takes note of the efforts since 2012 to enhance efficiency in the use of financial and human resources in the joint secretariat and encourages the Executive Secretary to continue such efforts in the future work of the Secretariat; 10 6 Office of Internal Oversight Services, Internal Audit Division, Report 2014/024, available at 7 UNEP/CHW.13/26-UNEP/FAO/RC/COP.8/25-UNEP/POPS/COP.8/29, sect. II. H.

11 18. Requests the Executive Secretary to prepare a budget for the biennium , for consideration by the Conference of the Parties at its fourteenth meeting, explaining the key principles, assumptions and programmatic strategy on which the budget is based and presenting expenditures for the period in a programmatic format; 19. Notes the need to facilitate priority-setting by providing Parties with timely information on the financial consequences of various options and, to that end, requests the Executive Secretary to include in the proposed operational budget for the biennium two alternative funding scenarios that take account of any efficiencies identified as a result of paragraph 17 above and are based on: (a) The Executive Secretary s assessment of the required changes in the operational budget, which should not exceed a 5 per cent increase over the level in nominal terms, to finance all proposals before the Conference of the Parties that have budgetary implications; (b) Maintaining the operational budget at the level in nominal terms; 20. Requests the Executive Secretary to report to the Open-ended Working Group on the status of the implementation of the present decision; 21. Also requests the Executive Secretary at the fourteenth ordinary meeting of the Conference of the Parties to provide, where relevant, cost estimates for actions that have budgetary implications that are not foreseen in the draft programme of work but are included in proposed draft decisions before the adoption of those decisions by the Conference of the Parties; 22. Stresses the need to ensure that the proposal for the Technical Cooperation Trust Fund requirement presented in the budget is realistic and represents the agreed priorities of all Parties so as to encourage voluntary contributions from donors. B. Possible action by the Conference of the Parties to the Rotterdam Convention 50. The Conference of the Parties to the Rotterdam Convention may wish to consider adopting a decision along the following lines: The Conference of the Parties, Taking note of the financial reports on the Rotterdam Convention trust funds for 2016 and estimated expenditures for 2017 from the Trust Fund for the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade (Rotterdam Convention Trust Fund), 8 I Trust Fund for the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade 1. Approves the programme budget for the Rotterdam Convention for the biennium of [ ] United States dollars for 2018 and [ ] United States dollars for 2019 for the purposes set out in table [ ] of the present decision; 2. Authorizes the executive secretaries of the Rotterdam Convention to make commitments in an amount up to the approved operational budget, drawing upon available cash resources; 3. Decides to maintain the working capital reserve at the level of 15 per cent of the annual average of the biennial operational budgets for the biennium ; 4. Invites the governing bodies of the United Nations Environment Programme and the Food and Agriculture Organization of the United Nations to continue their financial and other support for the operation of the Convention and its Secretariat in the biennium ; 5. Welcomes the continued annual contribution by Italy and Switzerland, the host countries of the Secretariat, of 600,000 euros each to the Secretariat to offset planned expenditures; 6. Notes that Switzerland s annual host country contribution of 600,000 euros will be apportioned 50 per cent to the Rotterdam Convention General Trust Fund and 50 per cent to the voluntary Special Trust Fund for 2018, 2019 and thereafter; 8 UNEP/FAO/RC/COP.8/INF/38. 11

12 7. Adopts the indicative scale of assessments for the apportionment of expenses for the biennium set out in table [ ] of the present decision and authorizes the executive secretaries, consistent with the Financial Regulations and Rules of the United Nations, to adjust the scale to include all Parties for which the Convention enters into force before 1 January 2018 for 2018 and before 1 January 2019 for 2019; 8. Recalls that contributions to the Rotterdam Convention Trust Fund are due by or on 1 January of the year for which those contributions have been budgeted, requests Parties to pay their contributions promptly, encourages Parties in a position to do so to pay their contributions by 16 October 2017 for the calendar year 2018 and by 16 October 2018 for the calendar year 2019 and requests the Secretariat to notify Parties of the amounts of their contributions as early as possible in the year preceding the year in which they are due; 9. Notes with concern that a number of Parties have not paid their contributions to the Rotterdam Convention Trust Fund for 2016 and prior years, contrary to the provisions of paragraph 3 (a) of rule 5 of the financial rules, and urges Parties to pay their contributions promptly by or on 1 January of the year to which the contributions apply; 10. Recalls paragraph 14 of decision RC-7/15 and decides to continue the practice that, with regard to contributions due from 1 January 2005 onwards, no representative of any Party whose contributions are in arrears for two or more years shall be eligible to become a member of the Bureau of the Conference of the Parties or a member of any subsidiary body of the Conference of the Parties, provided, however, that this shall not apply to Parties that are least developed countries or small island developing States or to any Party that has agreed on and is respecting a schedule of payments in accordance with the financial rules; 11. Also recalls paragraph 15 of decision RC-7/15 and decides to continue the practice that no representative of any Party whose contributions are in arrears for four or more years and that has not agreed on or is not respecting a schedule of payments implemented in accordance with paragraph 3 (d) of rule 5 of the financial rules shall be eligible to receive financial support for attendance at intersessional workshops or other informal meetings, as arrears that have been outstanding for more than four years must be treated as 100 per cent doubtful debts under the International Public Sector Accounting Standards; 12. Takes note of the efforts of the executive secretaries and the President of the Conference of the Parties, who through a jointly signed letter invited the ministers of foreign affairs of Parties with contributions in arrears to take timely action to rectify those arrears, requests that this practice continues and thanks those Parties that have responded in a positive manner by paying their outstanding contributions; 13. Takes note of the indicative staffing table for the Secretariat for the biennium used for costing purposes to set the overall budget, which is set out in table [ ] of the present decision; 14. Authorizes the executive secretaries to continue to determine the staffing levels, numbers and structure of the Secretariat in a flexible manner, provided that the executive secretaries remain within the overall cost of the staff numbers set out in table [ ] of the present decision for the biennium as recommended by the Office of Internal Oversight Services in its audit report; 9 II Special Trust Fund for the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade 15. Takes note of the funding estimates included in table [ ] of the present decision for activities under the Convention to be financed from the Special Trust Fund for the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade (voluntary Special Trust Fund) in the amount of [ ] United States dollars for 2018 and [ ] United States dollars for 2019; 16. Notes that the voluntary Special Trust Fund requirement presented in the budget represents the Secretariats best efforts to be realistic and reflects priorities agreed upon by all Parties 12 9 Office of Internal Oversight Services, Internal Audit Division, Report 2014/024, available at

13 and urges Parties and invites non-parties and others to make voluntary contributions to the voluntary Special Trust Fund so as to encourage contributions from donors; 17. Invites Switzerland to include in its contribution to the voluntary Special Trust Fund support for, among other things, the participation of developing-country Parties, in particular least developed countries and small island developing States, and Parties with economies in transition, in meetings of the Convention and joint activities between the Basel, Rotterdam and Stockholm conventions; 18. Urges Parties, and invites others in a position to do so, to contribute urgently to the voluntary Special Trust Fund with a view to ensuring the full and effective participation of developing-country Parties, in particular least developed countries and small island developing States, and Parties with economies in transition, in the meetings of the Conference of the Parties; III Single operational account or joint trust fund 19. Decides, based on the additional information provided by the Executive Director of the United Nations Environment Programme in response to the recommendation of the Office of Internal Oversight Services, 10 that there is no current need to establish either a single operational account for staff costs or a single joint voluntary trust fund for the Basel, Rotterdam and Stockholm conventions; IV Preparations for the next biennium 20. Decides that the two trust funds for the Convention shall be continued until 31 December 2019 and requests the Executive Director of the United Nations Environment Programme to extend them for the biennium , subject to the approval of the United Nations Environment Assembly of the United Nations Environment Programme; 21. Takes note of the efforts since 2012 to enhance efficiency in the use of financial and human resources in the joint secretariat and encourages the executive secretaries to continue such efforts in the future work of the Secretariat; 22. Requests the executive secretaries to prepare a budget for the biennium , for consideration by the Conference of the Parties at its ninth meeting, explaining the key principles, assumptions and programmatic strategy on which the budget is based and presenting expenditures for the period in a programmatic format; 23. Notes the need to facilitate priority-setting by providing Parties with timely information on the financial consequences of various options and, to that end, requests the executive secretaries to include in the proposed operational budget for the biennium two alternative funding scenarios that take account of any efficiencies identified as a result of paragraph 21 above and are based on: (a) Their assessment of the required changes in the operational budget, which should not exceed a 5 per cent increase over the level in nominal terms, to finance all proposals before the Conference of the Parties that have budgetary implications; (b) Maintaining the operational budget at the level in nominal terms; 24. Requests the executive secretaries at the ninth ordinary meeting of the Conference of the Parties to provide, where relevant, cost estimates for actions that have budgetary implications that are not foreseen in the draft programme of work but are included in proposed draft decisions before the adoption of those decisions by the Conference of the Parties; 25. Stresses the need to ensure that the proposal for the voluntary Special Trust Fund requirement presented in the budget is realistic and represents the agreed priorities of all Parties so as to encourage voluntary contributions from donors. 10 UNEP/CHW.13/26-UNEP/FAO/RC/COP.8/25-UNEP/POPS/COP.8/29, sect. II. H. 13

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