Cap. 543 Art. 16Climate Action Fund. Cap. 123.

(1) The Minister, in consultation with the Minister responsible for Finance, shall by Order establish and maintain a Climate Action Fund.

(2) The Climate Action Fund shall be replenished from:

(a) revenues accruing to the Government from its participation in and implementation of market-based measures relating to climate action adopted pursuant to international treaties or European Union legislation, including, inter alia, from the auctioning of allowances pursuant to Directive 2003/87/EC as may be amended or replaced from time to time;

(b) revenues generated by the Government through the implementation of national measures relating to the reduction or limitation of greenhouse gas emissions;

(c) any donations or grants made to the Fund by individuals or institutions;

(d) any sums appropriated by Parliament for such purpose; and

(e) any sums or monies as may from time to time be provided by or under this Act or any other law.

(3) (a) The Climate Action Fund shall be administered by a board of governors that is chaired by the Chairperson of the Climate Action Board, or the vice chairperson of the Climate Action Board as his delegate, as appointed according to article 10(1)(a):

Provided that the member representing the Ministry responsible for Finance in article 10(1)(c) shall sit on the Board of Governors ex officio.

(b) The Minister shall by regulation establish:

(i) the composition of the rest of the Board of Governors of the Climate Action Fund; and

(ii) the Rules of Procedure for the Board of Governors of the Climate Action Fund.

(4) The Climate Action Fund shall have a legal personality independent and distinct from that of Government and shall be capable of entering into contracts and of acquiring and transferring property and doing all such things that are necessary for, or ancillary to its functions.

(5) The Climate Action Fund referred to in sub-article (2) shall be applied to:

(a) support the fulfilment of the obligations set out in this Act and regulations made thereunder;

(b) support the fulfilment of the Government’s obligations and commitments established by the UNFCCC and European Union legislation;

(c) the provision of financial support to, and the promotion, facilitating and financing of the transfer of, and access to, environmentally sound technologies and know-how or capacity for national requirements and developing countries, in accordance with obligations and commitments of the Government pursuant to international treaties.

(6) The Climate Action Fund referred to in sub-article (2) may be applied to support research and development related to the climate system or to promote education, training and public awareness related to the climate system or to finance such other activities including activities organized by non-governmental organisations, as the Minister, in consultation with the Board, may prescribe.

(7) The board referred to in sub-article (3) shall every financial year deliver to the Minister a copy of its duly audited balance sheet together with a report of its activities during the previous financial year. The Minister shall lay a copy of the balance sheet and of the report on the Table of the House of Representatives.

(8) The Minister may, with the concurrence of the Minister responsible for Finance, make regulations prescribing the procedure to be followed by the board referred to in sub-article (3) and otherwise regulating the fund. The Minister may by such regulations in particular prescribe such functions, activities and initiatives that may be or are to be financed by the fund.

(9) The revenue of the Climate Action Fund shall not be subject to tax under the Income Tax Act.

SCHEDULE (Article 2) Greenhouse gases include:

(a) Carbon dioxide (CO ) 2

(b) Methane (CH ) 4

(c) Nitrous Oxide (N O) 2

(d) Hydro fluorocarbons (HFCs)

(e) Per fluorocarbons (PFCs)

(f) Sulphur Hexafluoride (SF ) 6

(g) Nitrogen trifluoride (NF ) 3