1. PROGRESS ON THE 20TH SESSION OF THE CONFERENCE OF PARTIES TO THE UNFCCC (COP20) AND THE 10TH SESSION OF THE CONFERENCE OF PARTIES SERVING AS THE MEETING OF PARTIES TO THE KYOTO PROTOCOL 1 PORTFOLIO COMMITTEE ON ENVIRONMENTAL AFFAIRS 04 NOVEMBER 2014

2. PURPOSE The purpose of this presentation is: To provide the Portfolio Committee on Environmental Affairs with an update on the international climate change negotiations. To update the Portfolio Committee on negotiations so far this year, including on the recent UN Summit. To provide a briefing on the upcoming UNFCCC meeting in Lima, Peru, at the end of the year (COP20 /CMP10 that will be held from the 01-12 December). 2

3. BACKGROUND UNFCCC COP 17 in Durban Set up a four-year negotiation process for a new agreement to be reached in 2015, to apply to global emissions after 2020, and increase the international effort to limit emissions up to 2020 – the Durban Platform UNFCCC COP 18 in Doha a) Adopted an amendment to the Kyoto Protocol (the Doha Amendment) to secture the second commitment period. b) terminated the Ad hoc Working Group on the Kyoto Protocol (AWG KP); c) terminated the Ad hoc Working Group on Long term Cooperative Action (AWG LCA); and d) confirmed the agenda for and a multi-year plan of work for negotiations under the two workstreams of the Ad Hoc Working Group on the Durban Platform (ADP), to come into effect by 2020. 3

4. BACKGROUND UNFCCC COP 19 in Warsaw  Outlined decisions required under the Ad Hoc Working Group for the Durban Platform (ADP) towards the adoption of a new legal instrument by December 2015;  established the Warsaw International Mechanism on Loss and Damage;  consolidated the adaptation agenda;  advanced the capitalisation of the Green Climate Fund (GCF) and mobilised US$100 million for the Adaptation Fund; and  Made progress towards the finalisation of the Kyoto Protocol accounting rules necessary for ratification of the Protocol’s second commitment period. 4

5. COP17 Durban 2011 Ad Hoc Working Group on the Durban Platform (ADP)  4 year negotiation of new agreement 2015 & increase level of ambition COP18 Doha 2012 Doha Amendment  Terminates AWG KP and LCA KP, confirms ADP Agenda to come into effect by 2020 COP 19 Warsaw 2013 Outlined required ADP decisions for 2015, Warsaw International Mechanism on Loss and Damage established, adaptation agenda consolidated, Green Climate Fund (GCF) advanced and adaptation fund $100mil & progress made KP accounting rules for second commitment period Progress Towards Paris 2015 CONFIDENTIAL 5

6. UNFCCC EVENTS & MEETINGS HELD IN 2014 UNFCCC BONN, Germany March 2014, 10 th -14 th Focused on the second session of the ADP that aims at building a new global climate agreement and drive greater immediate climate action under the UNFCCC. UNFCCC BONN, Germany June 2014, 4 th to 15 th A ministerial round table under the Kyoto Protocol and ADP took place in the first two days of the session in June to try and raise the level of ambition. Sadly, the two Ministerial Meetings could not help in this regard; and The most tangible outcome was that Parties mandated the co-Chairs to produce a non-paper that would facilitate discussions at the next meeting in October 2014 ADP prior to COP 20. 6

7. UN SECRETARY GENERAL’s CLIMATE SUMMIT Attended by over 120 Heads of State and Government The current round of UNFCCC negotiations should conclude in 2015. To generate political momentum towards the 2015 agreement, the UN Secretary General hosted a Climate Summit in New York on the 23 September 2014. Leaders committed: a) to finalise a meaningful, universal new agreement under the UNFCCC at COP 21 in Paris in 2015; b) to arrive at a first draft of such an agreement at COP 20, in Lima, in December 2014, c) Parties to submit their Intended Nationally Determined Contributions (INDCs) for the new agreement, well before Paris. 7

8. POLITICAL DYNAMICS 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. 8

9. POLITICAL DYNAMICS 5 key political issues face the climate change negotiations: 1. Differentiation and how the Paris agreement reflects equity and the principle of common but differentiated responsibilities? What is emerging is a momentum on the principle of non-backsliding. Whatever the countries commit to within the pre-2020 period shouldn’t be retrogressive. 2. How long is the next commitment period? Some countries propose 2020-2025, while others propose 2020-2030. South Africa is not attached to any length of commitment period so long as countries commit to ambitious emissions limits / cuts. 9

10. POLITICAL DYNAMICS 3. How will the international climate regime approach countries’ commitments? There are two proposals on this: South Africa’s view is that a ‘sunshine process’ in the leadup to Paris should be followed by a more rigorous ex-ante process in 2016, after the finalisation of the new agreement. The ‘sunshine process’ is in South Africa’s view not enough to produce the outcome which we require. 10 Many developing countries’ view on this is that that every country should submit upfront information on their commitment plans, for the purpose of clarity and understanding, as well to allow ex ante consideration of their nationally determined contributions by the international community. The ex ante assessment process will lead to a review of, or revising of the INDCs before inscription in the 2015 agreement. The USA approach that says these INDCs should be submitted by countries to what they call a ‘Sunshine process’: Under this process countries (with contributions from civil society) will do an assessment of each other’s INDCs but no further action will be taken after this step. The sunshine process is intended for transparency and information purposes only.

11. POLITICAL DYNAMICS  The scope and question of the INDCs? Mitigation only or mitigation, Adaptation, technology, Capacity building and transparency? South Africa is of the view that the scope was agreed in Durban at COP17, and that all elements should be included – not just mitigation.  What will be the legal form of the 2015 agreement? The key issue is which elements of the 2015 agreement will be legally binding and which will be captured through decisions - which are legally much weaker. South Africa is of the view that the 2015 agreement should be a legally binding document in a form of a Protocol to the UNFCCC. It is unacceptable to have mitigation efforts being the only legal element whilst adaptation support continues to be voluntary. 11

12. COMPETING ARCHITECHTURE PARADIGMS 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 12

13. EMERGING ARCHITECTURE Although the negotiations are yet to address the issue of the legal form, the negotiations have progressed on the form, scope and structure of the 2015 agreement. The following picture is starting to emerge… 1. The Paris agreement that is applicable to all should give meaning and effect to the principles of equity and Common But Differentiated Responsibilities & Respective Capacities (CBDR & RC) through provisions that reflect common and specific Party commitments 2. The Paris agreement should also strengthen and enhance the effectiveness and efficiency of climate action through provisions to strengthen institutional linkages between various mechanisms 13

14. EMERGING ARCHITECTURE: CBDR & RC Principles The Paris agreement that is applicable to all should give meaning and effect to the principles of equity and Common But Differentiated Responsibilities & Respective Capacities (CBDR & RC) through provisions that reflect common and specific Party commitments, including:  to submit, implement and report on nationally determined quantified economy-wide emission reduction targets for developed countries  the aggregate developed country effort c) to submit, implement and report on nationally determined mitigation programmes and actions by developing countries; d) conduct a strengthened Measurement, Reporting & Verification (MRV) process; e) participate in periodic reviews of the implementation and adequacy of the provisions of the Convention and its instruments; f) formulate and implement national adaptation plans; g) provide and mobilise financial and technology development and transfer support for developing country mitigation and adaptation programmes and action, particularly for Least Developed Countries (LDCs), Africa and Small Islands Developing States (SIDS); and h) provide capacity building support to developing countries. 14

15. EMERGING ARCHITECTURE: Institutional Linkages The Paris agreement should also strengthen and enhance the effectiveness and efficiency of climate action through provisions to strengthen institutional linkages between various mechanisms created under the UNFCCC, for example:  between the Adaptation Committee and the Technology Executive Committee with the Standing Committee on Finance and the Green Climate Fund (GCF) and other operating entities of the Convention’s Financial Mechanism.  The GCF will serve as the major financial mechanism through which the climate finance will flow after the year 2020. 15

16. KEY ISSUES FOR LIMA COP 20/CMP 10 Parties agreed at COP 19 to initiate or intensify their domestic preparations for their intended nationally determined contributions (INDCs); Elements of the draft negotiation text; Agriculture; Forum on response measures; Institutional arrangements for Loss and damage; and Sources and scale of finance 16

17. SOUTH AFRICA’S APPROACH South Africa will chair the G77 + China in 2015, and Africa will co-chair the ADP, which will be challenging, and provide opportunities to further our vision for a post-2015 climate regime. Important elements: Paris 2015 will be the critical moment - but LIMA COP 20 will also be crucial – we should make significant progress there; We need to achieve progress both in the two permanent Subsidiary Bodies, i.e., SBSTA & SBI, as well as in the ADP discussions; Issues of Loss and Damage are crucial to developing countries as well as Response Measures Forum to that deal with Trade related impacts from responses to climate change; Agriculture (adaptation) is also a key issue for developing countries. These discussions need to progress; Need to see progress towards mobilizing $100 billion & Full Operationalization of the Green Climate Fund. LIMA has to conclude draft Elements of the Negotiation Text. This should receive more focus. SA’s view is that all elements must be treated equally. 17

18. CONSULTATIVE PROCESS Consulted: The SA UNFCCC Delegation; National / public consultations held the auspices of this portfolio committee; The Intergovernmental Committee and the National Committee on Climate Change (IGCCC, NCCC); The Global Governance Committee (GGC); and National Stakeholder Consultation session. 18

19. RECOMMENDATION It is recommended that the PCWEA: Discuss and note the progress made on the negotiations for the forthcoming COP20 /CMP10 that will be held from the 01-12 December 2014 in Lima, Peru. 19

20. THANK YOU 20