WORKSHOP ON THE

UNFCCC BUDGET 2020-2021

(Presentation on work-in-progress)

Bonn, Germany, 25 March 2019

Agenda

25 MarchOpening1. Format and Purpose of the Workshop2. Role and Evolution of the UNFCCC Process and the secretariatQ&A3. How the budget was built: principles, criteria, methodology4. Overview of work in progress on the budget: real needs budget and zero nominal

growthQ&A

26 March1. Presentation of the budget for Programmes2. Presentation of the budget for Operations3. Presentation of the budget for Cross-cutting work streams and Executive DirectionQ&ASummary and wrap-up

25 March 2019 2

Timeline

25 March 2019 3

Format and purpose of the workshop

Purpose

• Present advanced version of the UNFCCC budget proposal 2020-21 as work-in-progress

• Advance understanding of budget preparation process for focused discussion at SBI 50 and agreement by SBI to forward a recommendation for adoption at COP 25

• Ensure a common reference point for Parties

• Timely and advanced sharing of information

Format

• Presentations by secretariat

• Facilitated questions and answers sessions

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ROLE AND EVOLUTION OF THE UNFCCC PROCESS AND THE SECRETARIAT

25 March 2019 5

Role Pre Kyoto Protocol(KP)

KP Operation Bali-Doha Warsaw-Katowice

Intergovernmental engagement (Governing,subsidiary and ad-hoc bodies;frameworks, mechanisms, work programmes)

COP, 2 SBsAG on Article 13AG on Berlin MandateFinancial Mechanism (FM) oversightActivities implemented jointly (AIJ)

COP, CMP, 2 SBsFM oversight (+Adaptation Fund), Nairobi Work Programme (NWP)AWG on further commitments (KP), AWG on Long-term cooperative action

COP, CMP, 2 SBsAWG on Durban PlatformFM oversight (+Green Climate Fund)NWP, Cancun Adaptation Framework (CAF)Technology Mechanism (TM)Multilateral Assessment/Facilitative Sharing of Views (MA/FSV)ResponseMeasures (RM) & Durban Forums

COP, CMP, CMA, 2 SBs,AWG on Paris Agreement, FM oversight, NWP, CAF, TM, MA/FSV (> Facilitative Multilateral Consideration of Progress (FMCP), RM & Durban ForumsREDDplus, Technical Expert Meetings, Koronivia Work Programme

Constituted Bodies Consultative Group of Experts on NAI NCs(CGE)

CGEExpert Group on Technology TransferLeast Developed Countries Expert Group (LEG)Clean DevelopmentMechanism (CDM) EBJoint Implementation (JI) SCKP-Compliance Committee

CGE, LEG, CDM-EB, JISC, KP-CCAdaptation Committee (AC)Technology Executive Committee(TEC)Standing Committee on Finance (SCF)

CGE, LEG, CDM-EB, JISC, KP-CC, AC, TEC, SCFParis Committee on Capacity BuildingWarsaw International Mechanism for Loss and Damage Ex-ComLocal Communities and Indigenous Peoples’ PlatformKatowice Committee of Experts on the Impacts of the Implementation of response measuresPA – Implementation and ComplianceCommittee

Data and Information Management

Conference records, NCs, Inventories

Conference records, NCs, Inventories, CDM-Registry, International Transaction Log (ITL), Compilation and Accounting Database (CAD)

Conference records, NCs, Inventories, ITL, CAD, CDM registry,BRs/BURs, NAMA Registry

Conference records, NCs, Inventories,ITL, CAD, CDM registry, BRs/BURs (> BTRs)NAMA Registry ( > NDC/AC registry)

Enhance Participation Delegates,Observers,National Focal PointsReview Teams

Delegates, Observers,National Focal Points, Review Teams, CDM/JI Stakeholders

Delegates, Observers,National Focal Points, Review Teams, CDM/JI Stakeholders,

Delegates, Observers,National Focal Points, Review Teams,, Action Climate Empowerment , Gender, Indigenous Peoples,Non-Parties

Role and Evolution of the UNFCCC Process and the Secretariat

Red: Element concluded Green: New element Black: Continuing element

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Development of constituted bodies established under the UNFCCC process

Role and Evolution of the UNFCCC Process and the Secretariat

25 March 2019 7

Major outputs delivered in support of the Intergovernmental Process(data for 2018)

Role and Evolution of the UNFCCC Process and the Secretariat

25 March 2019 8

Financial trends

25 March 2019 9

Financial trends

2010 2011 2012 2013 2014 2015 2016 2017 2018Total requirements 22.1 22.1 24.3 24.3 27.3 27.3 27.3 27.3 28.4

Amount received 20.9 21.0 22.2 21.3 23.4 24.9 23.8 25.2 23.0

 ‐

 5.0

 10.0

 15.0

 20.0

 25.0

 30.0

Millions

Annual core contributionsApproved budget versus received funds

in USD as 31 December 2018

For 2019, outstanding contributions under both the Convention and the KP amount to EUR 15.4 million.

For 2018 and prior years, outstanding contributions under the Convention and KP amount to EUR 8.6 million 

As at 21 March 2019, total cumulative outstanding contributions to the core budget are EUR 24 million. 25 March 2019 10

HOW THE BUDGET IS BEING BUILT

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Secretariat wide objectives for 2020-2021

Objectives Results

Facilitate intergovernmental engagement on responding to the threat of climate change, including by providing effective organizational, process, technical and substantive support to the climate change negotiations and to the operation of established processes arising from the negotiated mandates

Presiding Officers are enabled to perform their mandated functions The operation of the intergovernmental negotiations is facilitated Parties' consideration of the outcome and reports of established

processes is facilitated Parties' development and consideration of new/additional

guidelines/decisions is facilitated Parties are provided with support and training, as appropriate, to facilitate

their implementation of agreed UNFCCC provisions

Enable UNFCCC constituted bodies to fulfil their mandates, including by providing effective organizational, process, technical and substantive support

Constituted bodies are enabled to meet and perform their assigned functions through organizational support and process-related advice

Constituted bodies are provided with quality support in the delivery and implementation of their mandates and work programmes

Manage a trusted repository of data and information in support of the intergovernmental response to the threat of climate change

Data is synthesized and analyzed with a view to supporting further consideration by the intergovernmental negotiations and other established processes

Parties and the public are provided with authoritative, up to date and readily accessible information on the UNFCCC process

Facilitate participation* in the UNFCCC process in order to promote action towards the achievement of the objectives and goals of the UNFCCC, the Kyoto Protocol and the Paris Agreement

Participation in the UNFCCC process is enabled, enhanced and recognized

Policymakers are supported in understanding and aligning their actions with established objectives and goals of the UNFCCC, the Kyoto Protocol and the Paris Agreement

Effectively manage and administer the secretariat The human and financial resources and other assets of the UNFCCC secretariat are effectively managed in accordance with relevant UN regulations

* Does not refer to the Trust Fund for Participation

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How the budget is being built: From the ground up

• Integrated budget from the ground up based on the full range of work mandated to the secretariat by Parties

• All mandated activities to be undertaken in 2020–2021 were costed and categorized according to the mandates they support as follows:1. Essential mandates2. Permanent or long-term mandates3. Temporary or short-term mandates4. Complementary activities broadly mandated as beneficial to achieving UNFCCC objectives and

goals

• Activities falling into categories 1 and 2 are core critical, for which sufficient, predictable and timely resources are of utmost importance

• Activities falling into categories 3 and 4 are project specific / time bound

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How the budget is being built: Review of inputs

• Rigorous multi-step peer review to ensure coherence and consistency in how similar activities are being budgeted against the following criteria:

o Consistency with the objectives and categorization of mandated activities(1. essential, 2. permanent, 3. temporary, 4. complementary)

o Validity of assumptions underlying the budget estimates

o Avoidance of redundancies in and overlap of activities

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How the budget is being built: Standardization to enhance coherence and consistency

• Core resources are expected to deliver essential operational support for different workstreams and to act as anchors for supplementary work:

a) Workstreams established by Parties are assigned a manager for continuous and consistent support to the intergovernmental process

b) Constituted bodies are assigned:• A team lead each to support the implementation of the body’s work programme and Chair/Co-

Chairs• Necessary resources for the minimum number of mandated meetings with standardized costs

for participation and logistics

c) Established processes such as forums and work programmes are assigned programmeofficers

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How the budget is being built: Principles for arriving at zero nominal growth (ZNG)

• Decision 21/CP.23, para 20, requests the Executive Secretary to present a ZNG scenario in the same format and at the same level of detail as any other budget scenarios

• Estimated resource requirements for mandated activities in categories 1 and 2 (essential and permanent), exceed core resources in a ZNG budget scenario

• The following principles were applied to determine which activities to be funded from core:

a) All category 1 activities (essential mandates)

b) Category 2 activities (permanent or long-term mandates) as follows:

• Balance across different thematic areas is ensured

• Anchors for critical workstreams are kept in core

• Ratio between staff and non-staff costs is not significantly altered

• Due consideration of all mandates regardless of age and overarching instrument

(Convention, Kyoto Protocol, Paris Agreement and Katowice outcomes)

25 March 2019 16

How the budget is being built: Arriving at zero nominal growth

• ZNG budget proposal shifts support for activities responding to permanent mandates from core to none-core resources

Areas funded from supplementary under ZNG Potential impact

Support for the intergovernmental process and constituted bodies• Shifting staff resources• Reducing number of meetings/events by 50%• Reducing consultancies (100%) and staff

travel (25%)

Activities may not be undertaken at the quality and scale and within the timeframe as mandated

Support for coordination of activities: shifting staff resources

Reduced coherence, synergies/ efficiencies and negative impact on the quality of support for presiding officers

Support for activities that are still undernegotiation: shifting staff and non-staff resources for activities related to the implementation of provisions related to PA Art.6

Any agreed activities related to Art. 6 thatmay be mandated to the secretariat may not be undertaken in a timely and adequate manner, leading to delays

Support for facilitating engagement andcommunications: shifting staff and non-staff resources

Mandated engagement may not be undertaken in a timely and adequate manner, leading to reduced stakeholder engagement

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How the budget is being built: Summary

25 March 2019 18

OVERVIEW OF THE WORK-IN-PROGRESS UNFCCC 2020-2021 BUDGET

25 March 2019 19

2018-2019 SUMMARY

25 March 2019 20

Core

Suppl.

CDM/ITL/JI

Bonn Fund/HostParticipati

on

25 March 2019 21

Budget/Funding source Appropriation Indicative PSC  Total

Core budget 50,356,185  6,532, 907 56,889,092 

CDM‐MAP 28,401,620  3,692,211  32,093,831 

ITL 4,605,770  598,750  5,204,520 Supplementary funding requirements 61,230,358  7,959,946  69,190,304 

Bonn Fund 3,167,296  411,748  3,579,044

Special contributions from Germany 1,073,846 53,692 1,127,538

Trust Fund for participation 8,993,274 1,169,126  10,162,400

Grand Total 157,828,349  20,418,380  178,246,729 

Overview of 2018-2019 resource requirements by source of funding (EUR)

25 March 2019 22

Core

Suppl.

CDM/ITL/JI

Bonn Fund/HostParticipati

on

25 March 2019 23

Overview of 2018-2019 approved core budget by programme (EUR)

Programme EUR

Executive Direction and Management 4,707,490Adaptation 5,362,100Sustainable Development Mechanism 879,480Finance, Technology and Capacity‐Building  6,020,360Mitigation, Data and Analysis 15,626,860Conference Affairs Services 3,395,655Legal Affairs 2,153,600Information and Communication Technology 5,447,800Secretariat‐wide costs  3,228,463Communications and Outreach 3,431,320Total appropriations 50,253,128Programme support costs 6,532,907

25 March 2019 24

WORK-IN-PROGRESSTOTAL INTEGRATED BUDGET:DRAWN FROM ANNEX 1 OF WORKSHOP DOCUMENT

25 March 2019 25

Core

Suppl.

CDM/ITL/JI

Bonn Fund/HostParticipati

on

25 March 2019 26

All resource needs – by funding source

Funding source EUR % StaffCore/Supplementary 111,614,691  63% 296“Real needs” core appropriations 63,127,355  36% 206 “Real needs” supplementary 48,487,336  27% 90 Predefined funding ‐ KP Fees 30,732,327  17% 97CDM‐MAP 25,882,228  15% 86 ITL 3,852,484  2% 7 JI‐MAP 997,615  < 1% 4 Predefined funding ‐ other 12,314,103  7% 15 Special contributions from Germany 2,286,103  1% 15 Participation Fund 10,028,000  6% ‐Programme Support 22,692,305  13% 83 Grand Total 177,353,426  100% 490 

25 March 2019 27

All resource needs by funding source (EUR) – 177.4mEUR total

25 March 2019 28

All staff by funding source – 490 total

25 March 2019 29

All resource needs by objective

Objective EUR % Staff1. Facilitate intergovernmental engagement 51,345,494 29% 148

2. Support constituted bodies 44,909,052 25% 118

3. Manage data and information 21,491,802 12% 554. Facilitate participation to promote action 23,225,101 13% 67

5. Effectively manage the secretariat 36,381,978 21% 102

Grand Total 177,353,426 100% 490

25 March 2019 30

All resource needs by objective (EUR) – 177.4mEUR total

25 March 2019 31

All staff needs by objective – 490 total

25 March 2019 32

WORK-IN-PROGRESS“REAL NEEDS” CORE

DRAWN FROM ANNEX 3 OF WORKSHOP DOCUMENTATION

25 March 2019 33

Real needs Core

Suppl.

CDM/ITL/JI

Bonn Fund/HostParticipati

on

25 March 2019 34

Real needs core estimates by objective

Objective EUR % Staff1. Facilitate intergovernmental engagement 30,645,510 49% 110

2. Support constituted bodies 9,432,490 15% 27

3. Manage data and information 7,801,718 12% 284. Facilitate participation to promote action 4,356,802 7% 15

5. Effectively manage the secretariat 10,890,835 17% 26

Grand Total 63,127,355 100% 206

25 March 2019 35

Real needs core estimates by objective

25 March 2019 36

Real needs core staff by objective

25 March 2019 37

Real needs core – by department

Department Resources (EUR)  % Staff

Executive  4,283,230  7% 14

Programmes 33,090,840  52% 113

Operations 15,165,325  24% 37

Cross‐cutting 10,587,960  17% 42 

Grand Total  63,127,355  100% 206 

25 March 2019 38

Division Resources (EUR)  %  StaffExecutive  4,283,230  7% 14Programmes Coordination  800,160  1% 3Adaptation 6,872,300  11% 22Mitigation 5,481,880  9% 19Means of Implementation 6,060,120  10% 21Transparency 13,876,380  22% 48Operations Coordination  1,199,560  2% 4Conference Affairs 2,922,240  5% 10Legal Affairs 3,209,440  5% 11AS/HR/ICT 4,945,290  8% 12Secretariat wide costs 2,888,795  5% ‐Intergov. Support and Progress 3,902,360  6% 17 Communications and Engagement  6,685,600  11% 25 Grand Total  63,127,355  100% 206 Programme support costs (13%) 8,206,556 

Real needs core – by division

25 March 2019 39

ZERO NOMINAL GROWTH – COREDRAWN FROM ANNEX 4 OF WORKSHOP DOCUMENT

25 March 2019 40

ZNG Core

Suppl.

CDM/ITL/JI

Bonn Fund/HostParticipati

on

25 March 2019 41

ZNG scenario - overview

2018‐19 Approved core budget 56,889,092 

Programme support costs (13%) 6,544,762

ZNG appropriations for 2020‐21 50,344,330

25 March 2019 42

ZNG scenario by objective

Objective EUR % Staff1. Facilitate intergovernmental engagement 24,751,306  49%

92

2. Support constituted bodies 6,598,492  13%25

3. Manage data and information 6,548,880  13%24

4. Facilitate participation to promote action 3,206,077  6% 12 

5. Effectively manage the secretariat 9,239,575  19% 21 

Grand Total 50,344,330 100% 172 

25 March 2019 43

Need to shift to supplementary funding – by objective

ObjectiveResources 

(EUR) Staff (EUR)Non‐staff 

(EUR) Staff1. Facilitate intergovernmental engagement (5,894,204) (3,936,072)  (1,958,132)  (18) 

2. Support constituted bodies (2,833,998) (666,498)  (2,167,500)  (3) 3. Manage data and information (1,252,838) (992,838)  (260,000)  (4) 4. Facilitate participation to promote action (1,150,725) (662,970)  (487,755)  (3) 5. Effectively manage the secretariat (1,651,260) (1,187,760)  (463,500)  (5) 

Grand Total (12,783,025) (7,446,138) (5,336,887) (33)

25 March 2019 44

Need to shift to supplementary funding – by objective

Objective Staff (EUR) Non‐staff (EUR)1. Facilitate intergovernmental engagement ‐16% ‐35%

2. Support constituted bodies ‐11% ‐63%

3. Manage data and information ‐17% ‐13%4. Facilitate participation to promote action ‐19% ‐53%

5. Effectively manage the secretariat ‐20% ‐9%

Grand Total ‐16% ‐32%

25 March 2019 45

Division Resources (EUR)  %  Staff Executive  3,404,663  7% 13 Programmes Coordination  517,800  1% 2 Adaptation  5,649,260  11% 21 Mitigation  3,758,822  7% 15 Means of Implementation  5,035,580  10% 20 Transparency  11,526,160  23% 41 Operations Coordination  823,200  2% 3 Conference Affairs  2,642,240  5% 10 Legal Affairs 2,476,760  5% 9 AS/HR/IT  4,233,810  8% 9 Secretariat wide costs (core) 2,888,795  6% ‐Intergov. Support and Progress  3,033,320  6% 13 Communications and Engagement  4,353,920  9% 17 Grand Total  50,344,330  100% 172 Programme support costs (13%) 6,544,762

ZNG scenario by division

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Division Resources (EUR)  %  Staff Executive  (878,567) ‐21% (1)Programmes Coordination  (282,360) ‐35% (1)Adaptation  (1,223,040) ‐18% (1)Mitigation  (1,723,058) ‐31% (4)Means of Implementation  (1,024,540) ‐17% (1)Transparency  (2,350,220) ‐17% (7)Operations Coordination  (376,360) ‐31% (1)Conference Affairs (280,000) ‐10% 0 Legal Affairs (732,680) ‐23% (2)AS/HR/ICT (711,480) ‐14% (3)Secretariat wide costs 0 0% 0 Intergov. Support and Progress  (869,040) ‐22% (4)Communications and Engagement  (2,331,680) ‐35% (8)Grand Total  (12,783,025) ‐20% (33)Programme support costs (13%) (1,661,794) ‐20% ‐

Need to shift to supplementary funding – by division

25 March 2019 47

Q&A

25 March 2019 48

UNFCCC process: unique nature/role

Depository of unique information/data on action

against climate change

Recognized authority to facilitate action against

climate change, underpinned by science

“Direction-setter” for global action, within and beyond

the UN system

• GHG inventories• National communications• National adaptation plans• Biennial transparency reports• …

• WMO/IPCC on climate change• Climate Change Convention and its institutions/processes

• Kyoto Protocol and its institutions/processes

• Paris Agreement and its institutions/processes

• Response to climate change by the UN system as a whole

• Triggering/strengthening global action by non-State actors, at all levels (regional, national, local, individual)

25 March 2019 49