1. Report from UNFCCC COP20, Lima PURPOSE To provide a report on the outcomes of UNFCCC COP 20/ CMP 10, that took place in Lima, Peru, in December 2014 1

2. COMPETING ARCHITECHTURE PARADIGMS IN GLOBAL NEGOTIATIONS A bottom-up style driven by a pledge and review system –Unilateral and self-determined pledged domestic targets, policies and measures –Domestically legal commitments –Domestically determined rules and criteria –Ambition is informed by national priorities and circumstances –“Internationalised” through reporting and review procedures A top-down Kyoto-style agreement driven by the requirements of science –Multilateral commitments, with inclusive and equitable participation –Internationally legally binding on all Parties –Common multilaterally agreed rules and criteria –Level of ambition is informed by science (but also accounting for national circumstance and priorities) CONFIDENTIAL 2

3. COP 17, Durban Outcomes, 2011 Provided an historic opportunity for reconciling the 2 competing paradigms, with participation of all countries Durban Platform agreement to: – conclude the negotiation of a future global legal agreement by 2015, applicable to all, coming into effect by 2020, covering mitigation, adaptation, means of implementation and transparency requirements –Increase level of ambition pre 2020 Agreement on 2 nd Commitment Period of Kyoto Protocol Durban COP 17/ CMP 7 - 2011

4. COP17 Durban 2011 Ad Hoc Working Group on the Durban Platform (ADP)  4 year negotiation of new agreement 2015 to be adopted in 2020. Increase level of ambition pre 2020 COP18 Doha 2012 Doha Amendment  Adopted amendment to Kyoto Protocol to secure the 2 nd Commitment Period Confirmed multi-year plan of work to conclude negotiations on new legal agreement by COP 21 in Paris 2015 COP 19 Warsaw 2013 Outlined required ADP decisions for 2015, Secured Warsaw International Mechanism on Loss and Damage established, Consolidated the Adaptation agenda Advanced Green Climate Fund (GCF) and adaptation fund $100mil Progress on KP accounting rules for 2 nd commitment period Progress Towards Paris 2015 4

5. KEY ISSUES IN Lima COP 20- CMP 10 Elements and legal form of the new multilateral legal agreement, to be concluded by 2015 in Paris, COP 21; Process and minimum information requirements for Parties’ Intended Nationally Determined Contributions (INDCs); Giving effect to the principle of common but differentiated responsibility and equity; and Dealing with urgency, and operationalising the international mechanisms, such as the Green Climate Fund; 5 UNFCCC NEGOTIATIONS

6. SA POSITION – 2015 new legal agreement Reinforce multilateral rules based system of the UN; Implement and contribute to the fulfillment of the objective of the Convention as set out in Article 2; Be inclusive (applicable to all Parties); fair (give effect to the principles of equity and common but differentiated responsibilities and respective capabilities); effective (be based on sound science); Be adequate (to keep temperature increase below 2°C); Enable and enhance the transition to a low emissions and climate resilient sustainable development pathway; Give equal priority to adaptation and mitigation with balanced provision of means of implementation. 6 SA expectations of the 2015 agreement:

7. SA POSITION FOR LIMA [1]  South Africa’s position with regard to the INDC process was that: Parties’ INDCs must cover the full scope of issues of the Durban Platform for Enhanced Action, i.e. mitigation, adaptation and the provision of finance, technology and capacity-building support. A formal process must be agreed on for the communication of INDCs to all Parties. In keeping with a transparent and fair multilateral process under the UNFCCC, this information must be multilaterally agreed and applied, rather than being determined domestically. This information must facilitate clarity, transparency and understanding of a Party’s intended national contribution.  Elements and legal form of the new agreement: Lima needed to finalise the elements of the new agreement. The agreement must reflect all elements, i.e., Mitigation, Adaptation, Finance, Technology development and transfer, capacity building and transparency issues. 7

8. SA POSITION FOR LIMA [2]  Common but differentiated responsibility and equity South Africa’s view is that equity and appropriate differentiation can be more meaningfully advanced by following the structure of the Convention for the formulation of individual commitments. o Article 4(1) of the Convention provides the framework for commitments for all Parties. o Article 4(2) onwards creates the framework for additional commitments for developed country Parties.  Dealing with urgency and making the system operational now: Progress towards mobilizing 100 billion USD Adaptation Finance Technology transfer to support implementation Institutional arrangements for Loss and damage 8

9. KEY OUTCOMES [1]  After running into overtime the conference concluded successfully with the Lima call for climate action.  The Outcomes reflect three of the 5 Key political issues: an agreement to maintain differentiation and the principle of common but differentiated responsibilities and respective capabilities; an agreement to do a synthesis report on the aggregate effect of the Intended Nationally Determined Contribution (INDCs) - offers expected from each party in 2015 for the new post 2020 climate regime); and that the scope of the INDCs will include both mitigation and adaptation.  Paris COP 21 will have to concluded the following two political issues: Cycle of contributions / length of the commitment period; and The legal form of the post 2020 agreement. 9

10. KEY OUTCOMES [2]  The Conference addressed the current inadequate level of ambition by outlined steps that will be undertaken through the technical expert meetings that are tasked with identifying scalable actions in the post-2012 and pre- 2020 period. these actions must include adaptation, health and sustainable development co-benefits. urged all parties to finalise the ratification processes of the second commitment period of the Kyoto Protocol that was agreed to in Durban.  Dealing with urgency, and operationalising the mechanisms: Mobilised over USD 10 billion for the Green Climate Fund Agreed to continue discussion on identifying the sources and scale of long-term climate finance. Launched a two year work plan aimed at promoting gender balance within the UNFCCC Adopted a declaration on Education and awareness-raising. 10

11. POLITICAL DYNAMICS [1] Negotiations under UNFCCC towards the adoption of a new legal instrument in December 2015, should be seen in a wider global political debate over differentiation of responsibilities in international relations. Middle income and key emerging countries are expected to assume greater responsibility. Developed countries refuse the retention of existing binary division in UNFCCC between developed and developing countries. Attempts to re-classify countries pose a challenge to traditional regional groupings, North-South configuration and political alliances. Negotiating context highly complex characterised by the fragmentation of the United Nations membership into a multitude of groupings and alliances with overlapping memberships. SA is the Chair of the G77 and China in 2015. 2015 is also a crucial year for Africa - co-Chair of the ADP discussions (Algeria). Unity of the G77 & China as well as Africa group that South Africa engage as part of will be crucial. 11

12. POLITICAL DYNAMICS [1] BASIC (Brazil, India, South Africa and China) functions as an informal political discussion group and not as a negotiating group. China is exerting strong pressure on the other BASIC countries to increase coordination and develop common positions. This is particularly problematic for South Africa and Brazil, which unlike India and China, are not members of the group of Like-Minded Developing Countries (LMDCs) that are most reluctant to take on new commitments in the UNFCCC context. China also tends to use BASIC as a platform to demonstrate ‘transparency’ vis-a-vis fellow emerging economies by reporting on its bilateral undertakings with major economies - and in particular the USA - at a time when there are concerns amongst many countries that the 2015 agreement may be pre-determined by the political arrangement that was announced between China and the USA in 2014 CONFIDENTIAL 12

13. POLITICAL DYNAMICS [1] It is worth noting that the Lima achievement was made through the resolve of the Africa group that refused to accept an outcome that did not address the continent’s needs. The conference had to go into extra time to resolve issues that the Africa group insisted they need to be resolved. South Africa rallied other BASIC countries (Brazil, India and China) to support the Africa position. This marked a successful achievement by South Africa to use the BASIC countries to support the Africa common position and thus further strengthening South-South cooperation. With South Africa chairing the Group of 77 and China in 2015, it will therefore rely on and negotiate through the Africa group to advance its national and regional interests 13

14. PREPARATORY PROCESS FOR COP 21 / CMP 11 - PARIS ADP Inter-Session Meeting : 08 -13 February 2015 BASIC Meeting: 15 – 18 April 2015, Brazil Informal Ministerial Consultations: May 2015 Petersberg Dialogue: 18- 19 May 2015 - Berlin 42 nd Session UNFCCC SB: 01 – 11 June 2015 – Bonn ADP Inter-Session Meeting: 31 August – 04 September 2015 Pre- COP 21 Meeting: 18-20 October 2015 ADP Inter-Session Meeting: 19 – 23 October 2015 Paris COP 21: 30 Nov – 11 December 2015 14