The UNFCCC & Kyoto Protocol - key issues in the negotiating process from Bali (2007) to Copenhagen (2009)

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

2. 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

3. 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

4. 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

5. 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’

6. 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

7. 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

8. 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)

9. 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

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

11. 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.

12. 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

13. 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

14. AWG-KP • Has met several times. • Issues include: • 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

15. 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)

16. Overview - key issuesuntil 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)

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. Capacity-building for developing countries • 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

27. 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

28. 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

29. 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

30. Thank you www.field.org.uk