Outcomes from COP 16 United Nations Climate Conference

Outcomes from COP 16 United Nations Climate Conference Briefing 23 February 2011 3 March 2011 Kate Phillips, Melbourne Ilona Millar, Sydney

Status of International Climate Negotiations 2

History of Climate Law Development Rio Earth Summit Kyoto Protocol enters into force COP 15 UNFCCC Second World Climate Conference COP 6 Bonn COP 1 Berlin COP 4 The Hague Australian RECs 1997 1990 1995 2000 Feb 2001 COP 3 Kyoto Protocol US rejects Kyoto G 8 Genoa Statement Nov 2001 UK Emissions EU Trading commits Scheme to ratifying UK ROCs Kyoto Aug 2002 July 2001 March 2002 COP 7 Marrakech Accords First mention of the Clean Development Mechanism (Art 12) 1992 April 2002 COP 8 New Delhi Nov 2003 Oct 2002 Copenhagen EU Emissions Trading Scheme starts Dec 2007 Feb 2005 COP 9 Milan Jan 2008 1 st KP Commitment Period starts Dec 2010 2 nd Phase EU ETS starts COP 13 Bali 2002 Dec 2009 COP 16 Cancun 2005 3

Bali Roadmap – two track process – Ad-hoc working group on Article 3(9) of Kyoto Protocol (AWG-KP) • Mandated to continue work of AWG-KP established at COP/MOP 1 to consider commitments for developed country Kyoto Parties – Ad-hoc working group on long term co-operative action under the UNFCCC (AWG-LCA) • Mandated to looking at building blocks of mitigation, adaptation, technology transfer and financing and overarching shared vision (Decision 1/CP 13 – The Bali Mandate) – AWG’s were working towards a comprehensive outcome at COP 15 in Copenhagen 4

Copenhagen… 5

Key outcomes from Cancun – AWG-LCA Decisions – Endorsement by Parties of the agreements reached under the Copenhagen Accord, including: – A long term goal to limit temperature increases to a global average of 2 degrees C – Pledges for emission mitigation targets and actions from all major emitters – New requirements for monitoring, reporting and verification by developed and developing countries – Establishment of the Green Climate fund to deliver mitigation and adaptation finance to developing countries 6

Key outcomes from Cancun – AWG-LCA Decisions cont. . – Establishment of a REDD+ Mechanism and a programme to elaborate upon safeguards and LULUCF methodologies – Establishment of a Technology Mechanism involving a Technology Executive Committee and a Climate Technology Centre and Network – Establishment of the Cancun Adaptation Framework which will be overseen by an Adaptation Committee – Consideration of new market mechanisms during 2011 7

Key outcomes from Cancun – The Kyoto Protocol post 2012 – Japan indicated it would not agree to a second commitment period in its opening statement – Parties nevertheless continued discussions regarding targets and rules for a second commitment period – Decision confirms continued availability of the flexible mechanisms (CDM, JI, IET) – Working text made progress on options for rules regarding LULUCF accounting, carry-over, eligibility of projects and enhancing the CDM 8

Developments related to the CDM – Guidance to the Executive Board – Strong endorsement for the development and implementation of standardised baselines – Request for enhanced (and direct) communication with stakeholders – Request for revision of the procedures related to the effective date of registration – CMP seeking submissions regarding the proposed CDM appeals procedure – CMP seeking submissions regarding incorporating the concept of materiality into the CDM – Decision that CCS in geological formations may be eligible under the CDM provided certain issues are addressed and modalities and procedures are elaborated – Establishment of a CDM Loan Scheme for projects in countries with less than 10 CDM projects registered. 9

Expectations for Durban – Work will continue to flesh out the modalities and procedures required for the new mechanisms and the Green Climate Fund – Significant progress needs to be made regarding targets and actions for developed and developing countries – Two-track process remains on foot with little hope of convergence – Few expect a legally binding agreement to be reached – Carbon market will continue to press for certainty regarding implications of a ‘gap’ or no agreement on targets post 2012 10

Thank You ilona. millar@bakermckenzie. com kate. phillips@bakermckenzie. com Baker & Mc. Kenzie International is a Swiss Verein with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a “partner” means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an “office” means an office of any such law firm.