While developing country parties are worried with the disbursement of fast-track climate fund committed by developed countries in Copenhagen, a new institutional arrangement for financing came into focus in the ongoing climate change meeting here in Bonn today. Delegates of the country parties of the UNFCCC discussed the issue in a meeting of the Ad-hoc Working Group on Long-term Cooperative Action (AWG-LCA) here today. The meeting with Mexico in the chair, discussed the matter of the source of the new fund, its design and governance, said Monjur Hannan Khan, Deputy Secretary of the Ministry of Environment and Forest and a member of Bangladesh delegation. The new financing arrangement has been basically envisaged for mobilizing annually US$ 100 billion fund by the year 2020 to address the needs of developing countries to combat the adverse impacts of climate change, he said. Bangladesh in the meeting called for giving preference to the most vulnerable countries (MVC) and small island states (SIS) in disbursing the fund, Khan said. AWG-LCA chair Margaret Mukahanana Sangarwe of Zimbabwe proposed for the enhanced action for financial resources and investment and scaling up new and additional, predictable and adequate funding as well as improved access to developing countries. The fund will be for enhancing meaningful mitigation actions, including substantial finance to REDD-plus, adaptation, technology development and transfer and capacity-building, the AWG-LCA Chair said in her text placed before the parties. The main source of funding through the financial mechanism shall be new and additional financial resources provided by developed country parties and will come from a wide variety of sources, public and private, bilateral and multilateral sources of finance. The chair proposed that Conference of the Parties (COP) will establish a high-level panel to study the contribution of the potential sources of revenue towards meeting this goal. Developed country parties shall provide adequate, predictable and sustainable financial resources, technology and capacity- building to support the implementation of adaptation action in developing country parties. The new multilateral funding will be delivered through effective and efficient fund arrangements with a governance structure providing for equal representation of developed and developing countries. A significant portion of such funding should flow through the Copenhagen Green Climate Fund, the AWG- LCA chair proposed. A Finance Board of the financial mechanism shall be established under the guidance of and be accountable to the Conference of the parties. The Finance Board shall have an equitable and balanced representation of all Parties within a transparent system of governance.