As part of the Cancun Agreement, at the 16th Conference of the Parties (COP 16), Parties decided to establish a Standing Committee on Finance (SCF) to assist the COP in relation to the Financial Mechanism of the Convention. The SCF is to assist the COP in exercising its functions with respect to the Financial Mechanism of the Convention in terms of improving coherence and coordination in the delivery of climate change financing, rationalization of the Financial Mechanism, mobilization of financial resources and measurement, reporting and verification (MRV) of support provided to developing country Parties.
At COP 17, Parties further defined the roles and functions, as well as the composition and working modalities, of the SCF. The SCF will report and make recommendations to the COP, for its consideration, at each ordinary session of the COP on all aspects of its work.
The standing committee on finance in Rome pictured above:
The SCF will assist the COP in exercising its functions with respect to the Financial Mechanism of the Convention through activities, such as:
- Organizing a forum for communication and continued exchange of information among bodies and entities dealing with climate change finance in order to promote linkages and coherence;
- Maintaining linkages with the Subsidiary Body for Implementation (SBI) and thematic bodies of the Convention;
- Providing to the COP draft guidance for the operating entities of the Financial Mechanism of the Convention, with a view to improving the consistency and practicality of such guidance, taking into account the annual reports of the operating entities as well as submissions from Parties;
- Making recommendations on how to improve the coherence, effectiveness and efficiency of the operating entities of the Financial Mechanism;
- Providing expert input, including through independent reviews and assessments, into the preparation and conduct of the periodic reviews of the Financial Mechanism by the COP;
- Preparing a biennial assessment, overview of climate finance flows (BA), to include information on the geographical and thematic balance of such flows, drawing on available sources of information, including national communications and biennial reports of both developed and developing country Parties, information provided in the registry, information provided by Parties on assessments of their needs, reports prepared by the operating entities of the Financial Mechanism, and information available from other entities providing climate change finance;
- Additionally, the SCF will perform any other functions that may be assigned to it by the COP.
At COP 21 and in line with 
decision 1/CP.21, paragraph 63, it was decided that the SCF shall serve the Paris Agreement in line with its functions and responsibilities established under the COP.
The SCF will meet at least twice a year, or more if necessary.
The COP, in line with decision 6/CP.20, conducted a review of the functions of the SCF at COP 23. Further, it decided to agree on the timeline for the second review of the functions of the SCF at its twenty-fifth session (November 2019) at the latest.
