ECBI Regional Workshop 2008 Prepared by FIELD, London The UNFCCC & Kyoto Protocol - key issues in the negotiating process from Bali (2007) to Copenhagen (2009) ECBI Regional Workshop 2008 Prepared by FIELD, London

Climate change Wide political recognition that it is a serious threat Many argue that warming must be kept to less than 2°C degrees to avoid the worst effects

The international agreements UN Framework Convention on Climate Change (UNFCCC) Rio Conference on Environment and Development 1992 192 Parties Kyoto Protocol 182 Parties – in force in 2005

UNFCCC & Kyoto Protocol - Objectives UNFCCC - aims to bring developed country greenhouse gas emissions back to 1990 levels Kyoto Protocol - aims to reduce overall developed country emissions by around 5% below 1990 levels over ‘first commitment period’ 2008-2012

UNFCCC & Kyoto Protocol Industrialised countries have historical responsibility for climate change and are to take the lead in emissions reductions Commitments transfer financial resources and technology to developing countries Principle of ‘common but differentiated responsibilities’

UNFCCC & Kyoto Protocol Annex I countries have emissions reduction commitments under the UNFCCC and as listed in Annex B to the Kyoto Protocol Annex II countries have commitments to assist developing countries with finance and technology

Groups in the negotiations G77 and China Least Developed Countries Group AOSIS (Alliance of Small Island States) European Union (EU) Umbrella Group – loose group of non-EU developed countries Environmental Integrity Group – Mexico, Republic of Korea, Switzerland

Political issues The US, a major emitter, has not ratified the Kyoto Protocol, but is a Party to the Convention Pressure to engage some developing countries which do not have targets but have rapidly increasing emissions (e.g., China, India)

Main Goals in 2009 Agreement on commitments for developed countries under the Kyoto Protocol after 2012, when current commitments run out Agreement on enhanced future cooperation for Parties to the Convention

Presentation structure Summary overview of negotiations from Bali Climate Conference (December 2007) to Copenhagen Climate Conference (December 2009) Overview of key issues

December 2007, Bali Thirteenth Conference of the Parties (COP) to UNFCCC and Third Meeting of Parties (CMP) to Kyoto Protocol Bali Road Map, which includes Bali Action Plan and other decisions.

From Bali to Copenhagen Ad Hoc Working Group on Further Commitments for Annex 1 Parties under the Kyoto Protocol (AWG-KP) Ad Hoc Working Group on Long-term Cooperative Action under the Convention (AWG-LCA) Subsidiary Body for Scientific & Technological Advice (SBSTA) Subsidiary Body for Implementation (SBI) Workshops to deepen understanding of some issues COP 14/CMP 4 & Subsidiary Bodies, 1-12 December 2008, Poznan, Poland COP 15/CMP 5 & Subsidiary Bodies, 30 November – 11 December 2009, Copenhagen, Denmark

AWG-LCA First Session in Bangkok, 31 March-4 April, 2008 AWG-LCA focuses on: A shared vision for long-term cooperative action Enhanced national/international action on mitigation of climate change Enhanced action on adaptation Enhanced action on technology development and transfer to support action on mitigation and adaptation Enhanced action on the provision of financial resources and investment to support action on mitigation and adaptation and technology cooperation

AWG-KP Has met several times. Issues include: Methodological issues Emissions trading and the project-based mechanisms LULUCF (land-use, land-use change and forestry) Greenhouse gases, sectors and source categories Possible approaches targeting sectoral emissions Methodological issues Potential environmental, economic and social consequences, including spillover effects, of tools, policies, measures and methodologies available to Annex 1 Parties

Bonn, Accra meetings Bonn, 2-13 June 2008, meetings of: AWG-LCA 2 AWG-KP (resumed Fifth Session) 28th Subsidiary Body for Scientific & Technological Advice (SBSTA) 28th Subsidiary Body for Implementation (SBI) Accra, 21-27 August 2008, meetings of: AWG-LCA 3 AWG-KP 6 (First Part)

Overview - key issues until 2009 Shared vision for long-term cooperative action & mitigation: Action by both developed and developing countries Possible approaches targeting sectoral emissions: E.g. possible broadening of coverage of GHGs, sectors and source categories; bunker fuels Emissions trading & project-based mechanisms: Possible improvements and changes for second commitment period, e.g. expanding scope of Clean Development Mechanism (CDM)

Adaptation Five- year Nairobi work programme agreed in 2006 Link to financing discussions SBSTA 29 (December 2008) will consider the possible need for a group of experts to be established

Adaptation contd. Upcoming technical workshops include Before SBSTA 30 (May/June 2009): workshop on increasing economic resilience and reducing reliance on vulnerable economic sectors; and on integrating practices, tools and systems for climate risk assessment, management and disaster risk reduction strategies into national policies and programmes Before SBSTA 31 (COP15/CMP 5): workshop on advancing integration of various approaches to adaptation planning, including local and community-based adaptation

UNFCCC Arts. 4.8 and 4.9 Art. 4.8: actions to meet specific needs and concerns of developing country Parties arising from the adverse effects of climate change and/or the impact of the implementation of response measures - includes actions related to funding, insurance and technology transfer; Art. 4.9: Parties are to take full account of the specific needs and special situations of LDCs in their actions with regard to funding and transfer of technology. Assessment of implementation of Art. 4.8 and related decisions 5/CP.7 and 1.CP10 to take place at COP 14/CMP 4 in Poznan

Adaptation Fund Funded through 2 % share of proceeds generated by the CDM Developing country Parties to the Kyoto Protocol that are particularly vulnerable to the adverse effects of climate change are eligible for funding Country-driven concrete adaptation projects Adaptation Fund Board – tension with the Global Environment Facility (GEF), which provides Secretariat on interim basis

Other Funds Special Climate Change Fund Projects on adaptation, technology transfer and capacity-building, energy, transport, industry, agriculture, forestry and waste management, and economic diversification Least Developed Countries Fund Support for LDCs – NAPAs

Financing Concerns about the GEF: Financing for national communications; difficulties accessing funding; Resource Allocation Framework (RAF) Fourth review of the financial mechanism - decision in preparation for COP 15 Role of the private sector in financing: developing countries see limited role, while e.g. US believes it should be main source

REDD Reducing Emissions from Deforestation and Degradation Potential for emissions reductions (tropical deforestation estimated at roughly 20 % annual share) and revenue generation Uncertainties, monitoring and verification challenges Risk of displacement of deforestation (‘leakage’); perverse incentives; need take into account different country situations

Land-use, land-use change and forestry Kyoto Protocol Arts. 3.3 & 3.4 LULUCF Land-use, land-use change and forestry Kyoto Protocol Arts. 3.3 & 3.4 Need for new rules for second commitment period Concerns about making it too easy to obtain credits

Technology Transfer Developing countries concerned about barriers posed by Intellectual Property Rights (IPRs) Expert Group on Technology Transfer (EGTT) – looking at performance indicators for implementation of technology transfer framework; financial resources

Capacity-building for developing countries Under the Convention Under the Kyoto Protocol Comprehensive review of capacity-building under both items under way – for decision at COP 15/CMP 5

Second review of Protocol under Art.9 Differing views about the scope of the review - Umbrella Group wants comprehensive review. Issues include: Extending the share of proceeds to meet the cost of adaptation to JI and emissions trading Flexibility mechanisms, including equitable regional distribution of CDM projects Workshop in October, in Athens, Greece

COP 14/CMP4, 1-12 December, Poznan Subsidiary Bodies also meet in Poznan - extremely busy Intention that negotiations on emissions reductions for second commitment period begin Second review of the Kyoto Protocol under Art. 9 Meeting schedule for 2009 will be confirmed

Between now and Copenhagen A very busy schedule of meetings, including AWG-LCA, AWG-KP and regular Subsidiary Body meetings in Bonn Need to be selective and focus on the most important issues

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