Progress was made on many technical issues in the long negotiating texts. However, some issues need political resolution in order to make further progress. One of the most difficult issues as yet unresolved is supplementarity. There is still a large divergence of views between Parties on these issues. The questions of institutional arrangements for the CDM and the composition of the CDM executive board still lack agreement.
Disagreement relates to enforcement consequences, i.e. the consequences of non-compliance.
The challenge is to find a balance between deterrence and over-stringent enforcement consequences. There are also divergent views on the institutional structure and composition of the compliance bodies. The developed country Parties want the enforcement branch to consist of Annex I Parties only, or, at least, a majority of Annex I Parties. Funding of developing country activities Progress was made on the frameworks for capacity building and technology transfer, but Parties still have different views on the issue of financing. There is divergence in views on the role of the GEF and other funding sources.