1. european capacity building initiativeecbi Post-2012 Scenarios Elements of the BASIC Sao Paoulo Proposal Benito Müller european capacity building initiative initiative européenne de renforcement des capacités ecbi for sustained capacity building in support of international climate change negotiations pour un renforcement durable des capacités en appui aux négociations internationales sur les changements climatiques

2. european capacity building initiativeecbi Task 4 – Designing international climate change policy and enhancing negotiations skills (Brazil Team)

3. european capacity building initiativeecbi

4. * Core Element 1: Medium and Long Term Goals Core Element 2: Commitments of Annex I/B Parties Core Element 3: Automatic Extension of Annex I/B Commitments Core Element 4: Economic Hardship Core Elements 2 – 4:* Annex I Commitments Any financial payments are divided by the COP/MOP between the Adaptation Fund and a new Technology Funding Mechanism Annex B is amended to list the annual emissions caps of each Annex I Party from 2013 through 2018 in tCO2e/year. After the commitments have been agreed each Party may choose to convert its commitment into a combination of: an absolute emissions limit; emissions intensity limit; and new and additional funding (< 10% of its commitment)

5. european capacity building initiativeecbi Core Element 5: Non-Annex I Parties’ Quantified Sustainable Development Actions and “No-Lose” Commitments A Non-Annex I Party may: 1.host Clean Development Mechanism (CDM), including programmatic CDM, projects 2.quantify the emission reductions achieved by its sustainable development actions, including policies to reduce deforestation 3.adopt a sectoral, excluding LULUCF, or national “no lose” commitment* * A “no lose” commitment (also called “non-binding” or “one way” commitments) entails no compliance obligation if actual emissions exceed the commitment, but allows the surplus credits to be sold if actual emissions are lower than the commitment.

6. european capacity building initiativeecbi Core Element 5.2: Non-Annex I Parties’ Quantified Sustainable Development Actions Quantified sustainable development actions can NOT generate tradable credits. But Parties … will be entitled to use simplified procedures for access to funding from the Adaptation Fund and Technology Funding Mechanism*. * The entitlement is to (i) fast tracking of funding requests and (ii) for these to be on the basis of simplified procedures (e.g. simplified ways of meeting the incremental cost conditions for policies and measures that support a Non-Annex I Party’s quantified sustainable development actions). A Non-Annex I Party that prefers to generate tradable units could implement its sustainable development actions as programmatic CDM projects.

7. european capacity building initiativeecbi A Non-Annex I Party that adopts a sectoral or national “no lose” commitment can earn voluntary emission reduction units (VERs) for the net emission achieved. VERs (equivalent to CERs for Annex I/B compliance purposes) can be banked or traded. A proposed commitment is subject to independent review by the CDM Executive Board to ensure that it is more stringent than the emissions that would otherwise occur and assess the calculation of net emission reduction achieved. Core Element 5.3: Non-Annex I Parties’ “No-Lose” Commitments VERs are subject to the 2 per cent levy for adaptation assistance. A “no lose” commitment must be maintained until the Party becomes an Annex I/B Party.

8. european capacity building initiativeecbi “Graduation Trigger” for each developing country’s that takes the form of a limit on cumulative transfers of CERs and VERs by each Non-Annex I Party. A Non-Annex I Party is expected to become an Annex I/B Party and adopt a national emissions limitation commitment when its cumulative transfers of CERs and VERs reach its share of the global transfer limit. Core Element 6: Limits on Transfers of CERs and VERs by Non- Annex I Parties A Non-Annex I Party that does not adopt a national emissions limitation commitment when it has reached its transfer limit is deemed to have withdrawn from the Protocol.

9. european capacity building initiativeecbi Core Element 7: Clean Development Mechanism Core Element 8: Joint Implementation Joint Implementation will continue to function unchanged except that ERUs transferred from the national registry of the host Party will be subject to a share of proceeds equal to 2 per cent to assist technology development. Core Element 9: Emissions Trading Core Element 7 to 9: The Kyoto Mechanisms Emissions trading will continue to function unchanged except that: AAUs and RMUs transferred from the national registry into which they were issued will be subject to a share of proceeds equal to 2 per cent to assist technology development. Core Element 10: Compliance

10. european capacity building initiativeecbi Core Element 11: Enhanced Implementation of Adaptation The Adaptation Fund is funded by the 2 per cent share of the proceeds on CERs and is supplemented by a similar levy on VERs and a share of the funding from Annex I/B Parties financial commitments as decided by the COP/MOP * Emergency response to extreme weather events – medical assistance, food, water, shelter, etc. – is better addressed by institutions such as the International Red Cross/Red Crescent and hence is excluded from this revised Protocol. Despite implementation of measures to adapt to climate change, extreme weather events will continue to inflict serious damage. Parties assess mechanisms to manage the risk of damage and to provide compensation for damages incurred as a result of extreme weather events and to adopt an appropriate legal instrument to give effect to such mechanism(s) no later than the end of 2010.*

11. european capacity building initiativeecbi Core Elements 12–13: Technology Any Party that believes another Party is restricting the transfer of a technology may present its case to the Facilitative Branch of the Compliance Committee. Core Element 13: Technology Research and Development A Technology Funding Mechanism is established Funds from the Technology Funding Mechanism can be used to participate in international efforts to develop technologies to reduce emissions of greenhouse gases or adapt to climate change, or to enhance diffusion of relevant technologies by buying down their cost. Core Element 12: Technology Transfer

12. european capacity building initiativeecbi Core Element 14: Memoranda of Understanding Extending the Scope of the Agreement Core Element 15: Trade Restrictions Core Element 14 –: Misc. Core Element 16: Review