The UNFCCC Kyoto Protocol key issues in the

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

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 2

The international agreements • UN Framework Convention on Climate Change (UNFCCC) ØRio Conference on Environment and Development 1992 Ø 192 Parties • Kyoto Protocol Ø 182 Parties – in force in 2005 3

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 4

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’ 5

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 6

Groups in the negotiations • • • G 77 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 7

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) 8

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 9

Presentation structure • Summary overview of negotiations Øfrom Bali Climate Conference (December 2007) to ØCopenhagen Climate Conference (December 2009) ØOverview of key issues 10

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. 11

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 12

AWG-LCA • First Session in Bangkok, 31 March-4 April, 2008 • AWG-LCA focuses on: Ø A shared vision for long-term cooperative action Ø Enhanced national/international action on mitigation of climate change Ø Enhanced action on adaptation Ø Enhanced action on technology development and transfer to support action on mitigation and adaptation Ø Enhanced action on the provision of financial resources and investment to support action on mitigation and adaptation and technology cooperation 13

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

Bonn, Accra meetings • Bonn, 2 -13 June 2008, meetings of: Ø AWG-LCA 2 Ø AWG-KP (resumed Fifth Session) Ø 28 th Subsidiary Body for Scientific & Technological Advice (SBSTA) Ø 28 th Subsidiary Body for Implementation (SBI) • Accra, 21 -27 August 2008, meetings of: Ø AWG-LCA 3 Ø AWG-KP 6 (First Part) 15

Overview - key issues until 2009 • Shared vision for long-term cooperative action & mitigation: Ø Action by both developed and developing countries • Possible approaches targeting sectoral emissions: Ø E. g. possible broadening of coverage of GHGs, sectors and source categories; bunker fuels • Emissions trading & project-based mechanisms: Ø Possible improvements and changes for second commitment period, e. g. expanding scope of Clean Development Mechanism (CDM) 16

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 17

Adaptation contd. • Upcoming technical workshops include Ø 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 Ø Before SBSTA 31 (COP 15/CMP 5): workshop on advancing integration of various approaches to adaptation planning, including local and communitybased adaptation 18

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. Ø Assessment of implementation of Art. 4. 8 and related decisions 5/CP. 7 and 1. CP 10 to take place at COP 14/CMP 4 in Poznan 19

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 20

Other Funds • Special Climate Change Fund Ø Projects on adaptation, technology transfer and capacity-building, energy, transport, industry, agriculture, forestry and waste management, and economic diversification • Least Developed Countries Fund Ø Support for LDCs – NAPAs 21

Financing • Concerns about the GEF: Ø Financing for national communications; difficulties accessing funding; Ø 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 22

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 23

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 24

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 25

Capacity-building for developing countries • Capacity-building for developing countries: Ø Under the Convention Ø Under the Kyoto Protocol • Comprehensive review of capacity-building under both items under way – for decision at COP 15/CMP 5 26

Second review of Protocol under Art. 9 • Differing views about the scope of the review Umbrella Group wants comprehensive review. • Issues include: Ø Extending the share of proceeds to meet the cost of adaptation to JI and emissions trading Ø Flexibility mechanisms, including equitable regional distribution of CDM projects • Workshop in October, in Athens, Greece 27

COP 14/CMP 4, 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 28

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 29

Thank you www. field. org. uk 30