1. Komitet/Potkomitet BiH Steering Committee and Sub-Committee of Bosnia and Herzegovina STEPS TAKEN on THE UNFCCC IMPLEMENTATION The United Nations Framework Convention on Climate Change was ratified on September 2000, and on 6 December 2000 the Convention has been entered into force by Bosnia and Herzegovina. The United Nations Framework Convention on Climate Change was ratified on September 2000, and on 6 December 2000 the Convention has been entered into force by Bosnia and Herzegovina. Other MEA, to which B&H is party, related to the UNFCC are: Other MEA, to which B&H is party, related to the UNFCC are:  The Convention on Long-Range Trans-boundary Air Pollution-CRLTAP (ratified on 6 March 1992) and Protocol to the Convention Financing of the Co-operative Programme for Monitoring and Evaluation on the Long- range Transmission of Air Pollutants in Europe (EMEP Protocol), ratified also on 6 March 1992.  Vienna Convention for the Protection of the Ozone Layer (ratified on 6 March 1992) and Montreal Protocol on Substances that Deplete the Ozone layer, ratified also on 6 March 1992.  UN Convention on Biological Diversity, ratified on 24 August 2002.  UN Convention on Desertification, ratified on 24 August 2002.

2. Komitet/Potkomitet BiH Steering Committee and Sub-Committee of Bosnia and Herzegovina INSTITUTIONS DEALING WITH THE CLIMATE CHANGE  Ministry of Physical Planning, Civil engineering and Ecology of Republic Srpska, acting as a Focal Point of Bosnia and Herzegovina to the UNFCCC and the GEF Operational Focal Point B&H for climate change issues;  The State Steering Climate Change Committee of B&H;  GEF Political and Operational Focal Point;  B&H Administrative Committee on Environment and Sustainable development, together with and its Sub- Committee for climate change;  Institute for Urbanism of the Republic of Srpska, acting as a Coordinator of all climate change activities in B&H and the Technical Secretariat on Climate Change;

3. Komitet/Potkomitet BiH Steering Committee and Sub-Committee of Bosnia and Herzegovina STATUS OF RATIFICATION: ACTIONS AND PRIORITIES  Preparation of The Medium-Term B&H Program of Activities on implementation of UNFCCC (2002-2006) was adopted by the State Steering Climate Change Committee of Bosnia and Herzegovina.  Preparation of the First National Communication, bearing in mind the status of Non-Annex I country,  Preparation and initiation of the project: “Enabling B&H to prepare its First National Communication to the UNFCCC”  Ratification of the Kyoto protocol, and initiation of the emissions certification process

4. Komitet/Potkomitet BiH Steering Committee and Sub-Committee of Bosnia and Herzegovina PRIORITIES SET UP BY THE MEDIUM- TERM PROGRAM OF ACTIVITIES 1.Capacity Building activities 2. 2.Creation of the national inventory system and estimations of changes of the greenhouse gases emission at the level of the enterprises, entities and the whole country 3. 3.Collecting the necessary data; compilation of the Study on the B&H opportunities for ratification of the Kyoto Protocol 4. 4.Initiation of the national programs and projects on GHG emissions collection and abatement 5. 5.Initiation of the projects with financial support of the GEF 6. 6.Initiation of the projects on synergy activities for the implementation three UN Convention related to climate change, biodiversity and desertification 7. 7.Preparation of the Climate Action Plan for Bosnia and Herzegovina 8. 8.Strengthening local and international cooperation

5. Komitet/Potkomitet BiH Steering Committee and Sub-Committee of Bosnia and Herzegovina Data on GHG emissions Bosnia and Herzegovina has a small GHG emission per capita. CO 2 emission resulting from a combustion of fossil fuels in 2001 for B&H has accounted to 3.8 tCO2/capita, and it is the smallest emission after Albania, comparing to other Non-OECD European countries CO 2 emissions per capita in 1999 (estimation)

6. Komitet/Potkomitet BiH Steering Committee and Sub-Committee of Bosnia and Herzegovina INITIATION OF NEW CLIMATE CHANGE RELATED PROJECTS  Changes in the country’s governance system have caused delays in the GHG inventories, therefore it is necessary to use international assistance for the completion of emission cadastre.  From October 29, 2001, B&H is eligible for applying for GEF financial support. Preparatory activities for realization have been completed, despite the lack of financial assistance. Request for the financial support for the proposed project: “Enabling B&H to Prepare its Initial National Communication to the UNFCCC”, has been recently approved by the GEF.

7. Komitet/Potkomitet BiH Steering Committee and Sub-Committee of Bosnia and Herzegovina WAYS OF FINANCING THE CLIMATE CHANGE PROJECTS Pursuant to the article 12.4 of UNFCCC B&H has initiated new Climate change related projects in order to provide technical, methodological and institutional capacities Group A: Projects that would be financed by GEF funds, as a basic financing mechanism of UNFCCC Group B: Projects financed from other sources; multilateral and bilateral arrangements

8. Komitet/Potkomitet BiH Steering Committee and Sub-Committee of Bosnia and Herzegovina KYOTO RATIFICATION STATUS The Climate Change Steering Committee and Sub- Committee of Bosnia and Herzegovina, have launched the initiative for Kyoto protocol ratification, during their last Session, held on July 6 th, 2004. Together with the Kyoto protocol ratification, an initiative for compilation of the Feasibility Study of the conditions for ratification and implementation of the Kyoto Protocol. The Climate Change Steering Committee and Sub- Committee of Bosnia and Herzegovina, have launched the initiative for Kyoto protocol ratification, during their last Session, held on July 6 th, 2004. Together with the Kyoto protocol ratification, an initiative for compilation of the Feasibility Study of the conditions for ratification and implementation of the Kyoto Protocol. During this session, the Independent Expert Team, to work on the Feasibility Study has been nominated During this session, the Independent Expert Team, to work on the Feasibility Study has been nominated

9. Komitet/Potkomitet BiH Steering Committee and Sub-Committee of Bosnia and Herzegovina STEPS AND CONSTRAINS IN RATIFICATION PROCESS  Through the official channels, the request for ratification has been directed to the B&H Council of Ministries (ministerial body at the state level), and its member ministry, competent for environmental issues, Ministry of Foreign Trade and Economic Relations of B&H (MOFTER B&H)  MOFTER is going to ratify the Kyoto, in complex procedure with mutual consent of both Entity Governments  The Focal Point (MPPCEE RS) has proposed to act as a Certification Body, together with the Independent Expert Team

10. Komitet/Potkomitet BiH Steering Committee and Sub-Committee of Bosnia and Herzegovina Participant (Company A) （ DOE ： Designated Operational Entity ） Host country Approva l Investment Country Account of Company A Account of Company B Trans- action National Registry Country B Account National Registry … Validation, Verification Certification Submission of PDD Approval Open Accoun t ※ For project started after 2000, reductions from the start of the project will be valid and generate credits retrospectively if the project is only registered at CDM EB before the end of 2005. International Emissions Trading CDM Executive Board CDM Registry Overview of CDM scheme Designate Issuance of CER

11. Komitet/Potkomitet BiH Steering Committee and Sub-Committee of Bosnia and Herzegovina AUSTRIAN INITIATIVE The Republic of Austria has offered, through its Federal Ministry of Agriculture, Forestry, Environment and Water, the Memorandum of Understanding (MoU), regarding the bilateral cooperation for the realization of Joint Implementation Projects Between the Republic of Austria and Bosnia and Herzegovina

12. Komitet/Potkomitet BiH Steering Committee and Sub-Committee of Bosnia and Herzegovina AUSTRIAN INITIATIVE  Bosnia and Herzegovina cannot accept such proposal, because of its status in the convention: Non-Annex I country (developing country), and its current status of Kyoto ratification  Hence, Bosnia and Herzegovina proposes the program of Professional and Technical Cooperation with Republic of Austria, with main aims to: 1. Propel the Institutional building and Staff-training and to create the conditions for fast resolving of the urgent issues the country faces, that have came out from the obligations undertaken by the Convention ratification, as well as the obligations of Republic of Austria to provide financial contribution for the technology transfer in the developing countries

13. Komitet/Potkomitet BiH Steering Committee and Sub-Committee of Bosnia and Herzegovina (continued) 2. Preparation of the project: Enabling activities for Preparation of its Initial National Communication to the UNFCCC Secretariat 3. Realization of the above project 4. Creation of the National Action Plan for the Climate Change 5. Creation of the Study on the Conditions for ratification of Kyoto protocol, and the Strategy of its ratification, including the strategy for participation of Bosnia and Herzegovina to the CDM/JI mechanisms, and establishment of the mechanisms at B&H state level, for approval and control of the projects related to the CDM mechanism, together with the Executive Council of the Kyoto Protocol

14. Komitet/Potkomitet BiH Steering Committee and Sub-Committee of Bosnia and Herzegovina (continued) 6. Working out and realization of the project for Professional training for application of new climate technologies for estimation of the climate changes and the impact assessment of the climate changes to the natural resources and infrastructural systems in Bosnia and Herzegovina 7. Working out of the Strategy of the Power Supply Sector in Bosnia and Herzegovina 8. Working out the Program of Re-vitalization and development of the forest ecosystems The activities would be carried out in the joint expert groups

15. Komitet/Potkomitet BiH Steering Committee and Sub-Committee of Bosnia and Herzegovina SOURCES of FINANCING The following sources of financing were recognized: The following sources of financing were recognized:  The UNFCCC Trust Funds, intended mainly to support the Developing Countries in completion of their National Communication Reports  Special Fund for Climate Change and the Fund for Adaptation within the Kyoto Protocol, aimed for the financial support to the Developing countries’ activities in the fields of technology transfer, energy, transport, traffic, industry, agriculture, forestry and waste management  Funds for the National Strategic Researches, established by the World Bank for contribution in the Emissions Trading mechanisms, especially in the CDM to which the Developing countries may participate  Funds established by the Austrian State Program for strengthening the bilateral cooperation to the developing countries  Funds provided by the State of Bosnia and Herzegovina

16. Komitet/Potkomitet BiH Steering Committee and Sub-Committee of Bosnia and Herzegovina Inter-state Agreement for creation of the Energy Community in SEE In relation to this Agreement, that is based on the provisions of the Athens Memorandum of Understanding (2002, 2003), B&H as a EU Non-member Country is obliged to ratify the Kyoto Protocol within 1 year after enforcement of the Agreement

17. Komitet/Potkomitet BiH Steering Committee and Sub-Committee of Bosnia and Herzegovina FINAL REMARKS The meeting of Austrian and Bosnia and Herzegovina’s Experts should be held in the coming period, in order to discuss with their governments the way of finding the solution