1. 1 SOUTH AFRICA’S PERSPECTIVES ON CLIMATE ACTION Dialogue on Long-Term Cooperative Action 15 & 16 May 2006 Bonn Germany

2. 2 WHY ARE WE HERE? Consensus that climate change is happening. –The poor, in particular, extremely vulnerable –Impacts threaten to undermine sustainable development In Southern Africa, reaching tipping points –E.g. combined effects of increased drought and climate change could remobilize Kalahari dune fields and transform system to a mobile, wind-blown state –with serious consequences for local livelihoods Required solutions are truly global balancing –Adaptation –Mitigation

3. 3 CONTEXT – WHERE ARE WE? From Montréal: two-track process agreed for broader participation an environmental effectiveness. –“Kyoto Process” 2 nd Commitment Period (Art 3.9) –‘Convention process’ – dialogue on long-term cooperative action And other important issues –Positive incentives for forest conservation –Article 9 review of Protocol –Procedure for voluntary Annex B Commitments For Annex 1 Countries, No pick + choose” –Annex 1 Parties should take the lead –All need to achieve absolute emission reductions –Meet other obligations, eg. Art 4.3 (finance) and Art 4.5 (Tech transfer) For non-Annex I: broader participation –Taking responsibility –Scope to explore new ideas such as incentive-based opportunities.

4. 4 F0CUS OF THE DIALOGUE To explore means of strengthening and fully implementing the Convention. (All Parties have commitments under FCCC Art 4.1) Not through new commitments for developing countries… …Through focus on innovative approaches to implement existing Convention decisions and commitments related to the 4 identified themes - advancing development goals in a sustainable way; full potential of technology; Addressing action on adaptation; Realising the full potential of market mechanisms) Currently the Climate Change International Regime is fragmented and lacks clear priorities and therefore begs the question of: –How do we better organise and consolidate our existing work programme –How do we fill the gaps that have been identified. –How do we develop a clear mandate to take us forward

5. 5 ADVANCING SUSTAINABLE DEVELOPMENT South Africa proposes that Sustainable Development Policies and Measures (SD PAMS) form a central pillar of the future Programme of Work under the UNFCCC (Delhi Ministerial Declaration) with the objective of incentivising climate friendly sustainable development Priority Elements of the Programme of Work to achieve this should include positive incentives for inter alia: –R+D for sectoral climate friendly SD PAMS –Implementation of sectoral climate friendly SD PAMS –Education, training and public awareness programmes and climate change capacity building so that climate change issues are integrated into all development activities. –South-South and South-North co-operation programmes to assist in achieving the above. –Incentives and financing for climate change SD PAMS

6. 6 ADVANCING SUSTAINABLE DEVELOPMENT CONT… Positive incentives for SD PAMS should focus on facilitating inter-alia: –Access to sustainable and climate friendly energy sources –Consumer energy demand management –Energy efficiency programmes –Sustainable climate friendly LULUCF practices (eg in agriculture, landcare, alien invasives, wetland conservation and wild fire management); –Carbon sink improvement and conservation (eg forest and geological programmes) –Sustainable transport systems (including bunker fuels) –Climate friendly clean production systems –Addressing the unintended consequences of climate actions on developing country economies

7. 7 REALISE THE FULL POTENTIAL OF TECHNOLOGY Major challenges are climate friendly technology R+D, tech transfer and R+D barriers A new technology related Programme of Work is required with the objective of incentivising climate friendly technology development and transfer. Priority element of this Programme of Work should include incentives for inter alia: –Developing country R+D capacity building, including South-South and South-North R+D Cooperation –Mitigation and adaptation R+D –Overcoming IPR barriers, including: Measures for publicly owned climate change tech transfer A multi-lateral technology acquisition and deployment fund for privately owned tech transfer

8. 8 ADDRESS ACTION ON ADAPTATION Climate change is happening and although a SBSTA 5 year Programme of Work exists, a SBI Programme of Work is required now. The objective of this would be to facilitate adaptation implementation Priority elements of this Programme of Work should include positive incentives for inter-alia: –Establishment of early warning systems where these are lacking –Risk management and burden sharing financial mechanisms –Transfer of sectoral adaptation technologies –Adaptation capacity building

9. 9 REALISE THE FULL POTENTIAL OF MARKETS A major challenge is the price gap between climate friendly and climate unfriendly activities. Experience of Emissions Trading System, Joint Implementation and CDM demonstrate that markets may address some of the gap, but not completely and the lack of a true global market is a challenge to be addressed in a programme of work. The objective of this should be to use market mechanism to finance and incentivise climate action Priority elements of the Programme of Work should include positive incentives for inter-alia: –Creating a global market –CDM expanded beyond project level to a programmatic level –Sectoral crediting mechanism within countries

10. 10 SOUTH AFRICA PROPOSES A POSITIVE INCENTIVE APPROACH TO THE PROGRAMMES OF WORK To enhance the development of mitigation and adaptation actions under the Convention which also –Promote local sustainable development –Is appropriate to national circumstances –Promotes development to meet basic human needs 3 Types of Positive Incentives are proposed: –Upfront: encouraging a party to take action (eg. Access to funding to allow for deployment of commercial low carbon technologies) –Recurring: ensuring continuance of efforts (eg. Continued conservation of forests) –After the fact, ex-post-facto: (eg. On meeting a set target)

11. 11 NEED PLAN OF ACTION All nations accept responsibility to deal with climate change within an inclusive multilateral regime that balances adaptation & mitigation Consolidate fragmented decisions into a coherent programme of work. Coordinate different strands of work Supported by financing and improved investment environment from both public and private sources

12. 12 ORGANISATION OF WORK 4 workshops –Deal with each of the four elements at each workshop –Need to explore concrete ideas and specific proposals on each –Input by officials, other experts, organisations South Africa proposes a special workshop addressing the positive incentives approach

13. 13 Thank you