PROGRESS REPORT ON COP 17: SUBSTANCE & LOGISTICS

1. PROGRESS REPORT ON COP 17: SUBSTANCE & LOGISTICS 21 JUNE 2011

2. OUTLINE OF THE PRESENTATION • Overview on Climate Change • Overall achievements in Cancun • Where are we with COP 17 negotiations • Feedback on outreached parties • Recommendations based on outreached parties and IMC engagements • Proposed Implementation Plan for the Development of the National Climate Change Negotiation Position • COP 17 Logistics • DoE COP 17 preparations • Recommendations to PPC

3. OVERVIEW OF CLIMATE CHANGE • The Objective of the Convention is to protect the climate system for present and future generations by stabilising greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous interference with the earth’s climate system (Article 2 of the Convention). A subsidiary body was established in 2005, the Ad Hoc Working Group on Further Commitment for Annex 1 Parties under the Kyoto Protocol (AWG-KP) to negotiate binding post 2012 emissions targets; • During COP 13 in Bali in December 2007, the UNFCCC negotiation process assigned to a new subsidiary body, the Ad hoc Working Group on Long-Term Cooperative Active (AWG-LCA) expected to complete its work in 2009 and present the outcome of its work to the Conference of the Parties for adoption at its fifteenth session; leading to the Bali Action Plan – UNFCCC decided to launch a comprehensive process to enable the full, effective and sustained implementation of the Convention through long-term cooperative action, up to and beyond 2012, in order to reach an agreed outcome and adopt a decision at its fifteenth session (Copenhagen); • Outline of Bali Action Plan: • Long-term global goal for emission reductions, • Enhanced national/international mitigation action,

4. OVERVIEW OF CLIMATE CHANGE • Enhanced action on adaptation; • Enhanced action on technology development and transfer to support action on mitigation and adaptation; and • Enhanced action on the provision of financial resources and investment to support action on mitigation and adaptation and technology cooperation. • Both committees could not complete their work which was anticipated for adoption in Copenhagen in 2009 hence their continuation. • No agreement was reached in Copenhagen with the collapse of talks thereof. • A Copenhagen Accord (Political) was then negotiated by the Heads of States with South Africa committing to reduce its emissions by 34% and 42% by 2020 and 2025 respectively subject to resources made available; • So, all the outstanding work / unresolved issues were carried over to Cancun, Mexico in 2010. Still the negotiations followed a two track approach: the Convention track and Kyoto Protocol track

5. OVERALL ACHIEVEMENTS IN THE CANCUN AGREEMENTS • The Cancun Agreements: to establish a new Green Climate Fund, Technology transfer mechanism, Adaptation Framework and processes for Measurements, Reporting and Verification (MRV), and a review process to track the adequacy of global mitigation efforts (Mitigation Framework); • On all these, the committees were formed with both developed and developing countries represented to unpack how the agreements will be achieved. The committees are: • Transitional Committee to design the fund and Standing Committee to oversee / coordinate the finance flows, • Two part technology mechanism comprising of Technology Executive Committee (TEC) and Climate Technology Centre and Network (CTCN) • Adaptation Committee • The future of Kyoto Protocol remains the point of contention with some countries already declared their position not to support KP’s second commitment period; • Convention Track negotiation extended to COP 17 to complete its work.

6. WHERE ARE WE WITH COP 17 NEGOTIATIONS • The Mexican Team (COP 16), United Nations Secretariat and the South African team led by Minister Maite Nkoana-Mashabana, Minister of DIRCO and COP 17 President and Minister Edna Molewa, Minister of Environment and Water Affairs and Leader of South African Negotiation delegation met in February and March 2011 respectively to start the handing over process and mapping the way forward for COP 17 preparations; • The main goal is to ensure that consultation, transparency and political issues are mapped out and considered from the beginning for the success of Conference of the Parties. The three teams will continue to engage on all aspects of COP until South Africa signs a hosting agreement which is anticipated in August 2011; • The negotiation process started in 3-8 April 2011 in Bangkok where AWG committees met to unpack the Cancun Agreement and agree on the Agenda for COP 17 which would form the start of / basis of the negotiations process and the update to the SA position paper. • This interactive session was for Parties to engage in an open, inclusive and transparent discussion on general policy issues before deliberating on the more technical details and exchange of views in seeking to address ways to advance the unresolved issues relating to the work on adaptation, mitigation, technology transfer, finance and capacity building, etc.

7. FEEDBACK ON PARTIES OUTREACHED • Firstly, all countries consulted have prioritized the technical work and workshops associated with the main architectural elements and processes of the future climate change regime that were agreed in Cancun. • Further, this work is being scheduled by the UNFCCC secretariat as part of the formal negotiation agenda for 2011 with special focus on the following: • On Adaptation - modalities of how to measure, report and verify (MRV) support provided for national adaptation plans and elaborate on modalities for the development of national adaptation plans for consideration by COP 17; • the mitigation commitments under the Kyoto Protocol – Continued negotiation of a 2nd Commitment Period beyond 2012 and enhancement of associated rules and mechanisms. • Mitigation commitments and actions under the Convention – The workshops required to unpack, clarify and understand the pledged mitigation targets of developed countries and nationally appropriate mitigation actions of developing countries.

8. FEEDBACK ON PARTIES OUTREACHED CONT’ • On the MRV of Mitigation commitments and actions – For developed countries the elaboration of modalities and guidelines on: • (1) enhanced rigorous, robust and transparent reporting (RRTR) of progress towards their mitigation targets, including information on the rules for counting and accounting of the targets, national GHG inventories and on the support provided to developing countries; • (2) enhanced modalities and guidelines for the review of progress towards their targets including an international assessment and review (IAR) of these annual inventory and national communication reports. • For developing countries the elaboration of modalities and guidelines for (1) domestic and international MRV of their nationally appropriate mitigation actions (NAMA’s) through national communications, including biennial GHG inventories and update reports as well as • (2) guidelines for the international consultation and analysis (ICA) of these reports. • On Capacity Building – The modalities for enhanced monitoring and review of capacity building; as well as modalities for capacity building institutional arrangements.

9. FEEDBACK ON PARTIES OUTREACHED CONT’ • On supporting and recognizing developing country mitigation action – the elaboration of the modalities and functions of the registry mechanism with 2 parts; one to match proposed action with finance, technology and capacity building support and the other part to recognize actions taken. • On reducing emissions from forestry and land use (so-called REDD+) – The elaboration of a work programme addressing modalities and guidelines for REDD+ actions and its measurement (MRV). • On Market and Non-Market mitigation mechanisms – To elaborate new market and non-market mechanisms building on those already detailed under the Kyoto Protocol. • On Finance – The design of a Green Climate Fund by a Transitional Committee; the elaboration of a Standing Committee oversight mechanism roles and function and; the reporting of the provision of Fast-Start finance by developed countries. • On Technology – The elaboration of the modalities and procedures for the operation of a Technology Mechanism comprising of a Technology Executive Committee (TEC) and Technology Centre and Network; as well as the elaboration of a decision on the relationship, reporting lines and links between the TEC and the Technology Center and Network as well as with the Financial Mechanism.

10. FEEDBACK ON PARTIES OUTREACHED CONT’ • Further consideration was given on issues NOT agreed to in Cancun: • Intellectual Property Rights – Reaching agreement on how to facilitate technology transfer while protecting intellectual property rights in a manner that complies with other international agreements (e.g. the WTO). • Trade and Climate Change – Reaching multi-lateral agreement on rules for the issue of how to treat unilateral trade measures based on carbon emissions standards which is a priority for most developing countries, but particularly for emerging developing economies, including Argentina, Singapore, OPEC and BASIC countries. Many developed countries regard this as a WTO issue not to be elaborated under the climate change regime. • Finance – The design of the Green Climate Fund by the Transitional Committee Africa (i.e. short, medium and long term finance)

11. RECOMMENDATIONS BASED ON OUTREACHED PARTIES AND IMC ENGAGEMENTS • Based on emerging dynamics and expectations for Durban on Outreached Parties and IMC engagements it has been recommended that the strategy for the development of and engagement on the South African national substantive content positions should include the following elements: • A programme of consultation with national stakeholders such as parliamentarians, local government, NGO’s, business, labour and other groupings that have an interest in the process. • The agenda for these consultations should include: • Consideration of and input into the draft national substantive content positions, as well as the development of possible compromise solutions to issues which are experiencing difficulty in the international negotiation process. • Encouraging national stakeholders to participate in any international stakeholder meetings and lobby for possible compromises with their international stakeholder counterparts.

12. RECOMMENDATIONS BASED ON OUTREACHED PARTIES AND IMC ENGAGEMENTS CONT’ • Mobilise national stakeholders to support, sponsor and participate in the programme to use the COP 17 opportunity to showcase both South Africa’s climate change efforts including marketing South Africa pavilion, parallel and side events. • Encouraging national stakeholders to mobilize their international counterparts to actively participate in the COP17/CMP7 conference. • IMC gave the mandate to the negotiators team led by both COP 17 President, Minister of DIRCO and Minister of DEA to engage on the negotiations based on the preliminary UN agenda at the second session of the negotiation process in Bonn, Germany in June 2011. • A draft position paper will be developed after the Bonn negotiations for tabling to Cabinet in August / September 2011.

13. THE SA COP 17 NEGOTIATING POSITION • This key priority deals with the development, compilation, approval and implementation of the South African COP 17 negotiating position • This is NOT a new area of work – it is what we do every year • However – • As the COP President, there is now an important balancing act between what will constitute a successful COP outcome for the global community and what will constitute a successful COP outcome for South Africa (the SA – COP President balance) • The IMC recommended a far more public and inclusive consultation process (the Provincial Workshops) • With COP 17, there is going to be a very high level of public interest (incl. international), thus the need for a common “script”. • The basic development plan includes – • Get ‘in principle’ approval for an initial working SA position by end July • Update Cancun position in response to recent developments • Present to IMC, IGCCC and NCCC • Present to Cabinet • Public engagements around the initial working SA position during the Provincial Summits – August to September • Position finalisation and submission in October

14. PROPOSED IMPLEMENTATION PLAN FOR THE DEVELOPMENT OF THE NATIONAL (SA) CLIMATE CHANGE NEGOTIATING POSITION

15. PROPOSED IMPLEMENTATION PLAN FOR THE DEVELOPMENT OF THE NATIONAL (SA) CLIMATE CHANGE NEGOTIATING POSITION

17. COP 17 LOGISTICS • The UNFCC will be held at the Durban ICC and DIRCO is responsible to lead all the UN processes and supported by DEA on matters of substance including all government departments serving on IMC. • Logistics will be divided into two parts: UN precinct and the SA EXPO (an exposition on Climate Change and Response (CCR) . • It should be noted that there is limited participation in the UNFCCC processes which allows only accreditated participants and mainly country members and registered bodies / organisations under UN. • SA EXPO led by DEA will be hosted adjacent and at the same time as the UN conference. This expo is open to all South African Businesses, Government Organisations, NGO's & CBO's and any other interested parties working in and around climate change. The advert to call for Expression of Interest was released in May 2011. • DEA will, amongst others, be responsible for the co-ordination and management of the Climate Change & Response Expo to be held in the ICC Durban precinct. Whereas COP17 is a tightly controlled event only open to registered delegates and press, the CCR expo will be open to local and potentially international exhibitors and everyone from the public

18. COP 17 LOGISTICS • The objective of the CCR expo is to: • Raise awareness and educate the public about climate change in South Africa and the World. • Showcase both local and international initiatives and technologies that are at the forefront of climate change resilience. • Mobilise South Africans across all sectors to act on climate change in all aspects of their lives. • Create a platform for Business, Government, and NGO‘s to showcase climate change initiatives and technologies in South Africa. • Create a platform for all South Africans and international visitors to network and transfer knowledge and skills about climate change. • Initiate a lasting legacy

19. DEPARTMENT OF ENERGY COP 17 LOGISTICS • To respond and implement action on the above mentioned, the DoE participates on all the COP 17 institutional structures such as IGCCC, NCCC, IMC, NEDLAC, and the International negotiation forums / committees under UN. • Established both an internal and external COP 17 steering committee. • Conducted workshops on the proceedings of COP 17 with the energy sector to ensure that energy issues are tackled as a collective. • On the International forum DoE has engaged the African Union on the need for African Ministers of Energy to participate on COP 17 in February 2011 and we have since received a positive response from AU affirming its support and participation • As a build up towards COP 17 and ensuring that energy matters in the continent at large are addressed, the DoE will be hosting a Pre-COP 17 African Ministers of Energy Conference schedule for 15 -16 September 2011. • Cabinet approved the hosting of the conference on 15 June 2011. • Preparations on the Conference have since started with invitations expected to be out in two weeks time.

20. DEPARTMENT OF ENERGY COP 17 PREPARATIONS • The proposed Africa Ministers of Energy Conference and its input towards the development of a Sustainable Energy Access Road Map/Joint Communiqué, Mitigation, adaptation, strengthening regional power pools/interconnectivity, scaling up Renewables, Energy Efficiency will guide actions and outline financing possibilities for sustainable options of increasing clean energy access in Africa. • The Conference will provide a platform for a high-level policy dialogue, and its outputs which will serve as an important input into the COP 17 discussions, where Africa’s energy investment priorities should be considered as an important part of the international negotiations for the whole African continent. • International engagements on COP 17 with special focus to the energy sector led to the offer by World Bank to assist the South African government through the Department of Energy with resources to host this conference.

21. RECOMMENDATIONS • It is recommended that PPC on Energy : • Notes progress made on COP 17 including the proposed SA Negotiation Position Development and Implementation Plan; • Notes that a Cabinet approved that South Africa hosts the Pre-Cop 17 African Ministers of Energy Conference scheduled for 15-16 September 2011, in line with the UNFCCC agenda; and • Notes that the Department of Energy (DoE) will extend the invitation to other key Departments/organisations, Ministers from African countries and other international organisations to participate in the Pre-COP 17 Ministers conference.

22. Thank you