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Monday, October 19, 2009

Jairam for major shift at climate talks

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NEW DELHI: India seems to have begun to shuffle its feet in the climate change negotiations. Environment minister Jairam Ramesh, in a confidential letter to the PM, has suggested that India junk the Kyoto Protocol, delink itself from G77 -- the 131-member bloc of developing nations -- and take on greenhouse gas emission reduction commitments under a new deal without any counter guarantee of finances and technology.

This proposal comes just after he wrote to the PM suggesting India permit strict external scrutiny -- just as is done under IMF and WTO -- of the mitigation measures it takes at its own cost.

If accepted by the government, the minister's proposal will radically shift India's stand away from its position on climate negotiations that governments of all political hues have backed since 1990 and which was defended robustly as recently as at the UN talks in Bangkok earlier this month.

The minister has justified the proposed shift of gears by repeating his argument that India need not be seen as a deal-breaker and should try to curb emissions in its own interest. He has also pointed to the advantages -- a permanent seat on the Security Council, for instance -- that it can hope to reap with a changed stance.

In his October 13 letter to the PM, Ramesh argues for a deviation from the Kyoto Protocol under which only the developed countries -- listed in Annexure 1 -- are required to take obligations for emission cuts, saying that it would also help in a better alignment with the US. "We must welcome initiatives to bring the US into the mainstream, if need be through a special mechanism, without diluting basic Annex 1/non-Annex distinctions. If the Australian Proposal of a schedule maintains this basic distinction and nature of differential obligations we should have no great theological objections."

When approached for his comments, the union minister responded on phone, "I am surprised that a privileged communication between me and the Prime Minister has found its way into the public domain. I am shocked. And whatever I had to say I have said to the PM." He refused to speak further.

In his letter, Ramesh emphasizes his concern about India being seen as a bugbear for the developed countries in the climate negotiations. "India must listen more and speak less in negotiations" as its stance is "disfavoured by the developed countries, small island states and vulnerable countries. It takes away from India's aspirations for permanent membership of the Security Council."

The minister has also suggested diluting India's strong stance -- enshrined in the UN Framework Convention on Climate Convention (UNFCCC) -- on demanding compensation from the industrialized countries in terms of funds and technology for having caused the climate change problem to begin with. He writes, "The position we take on international mitigation commitments only if supported by finance and technology needs to be nuanced simply because we need to mitigate in self-interest."

Ramesh had previously suggested to the PM in a personal letter that India allow IMF and WTO-style review and `surveillance' of even those emission control steps that it takes under its own legislation and at its cost.

Besides their radical import, his proposals are significant because they come just a week after India vigorously stuck to its known negotiating guns at the Bangkok round of negotiations. The UN talks in the Thai capital saw India leading the attack by G77 and China on the Australian Proposal which the environment minister now favours in his letter to the PM.

India along with other countries said that the industrialised countries by introducing the US and EU-backed Australian Proposal were attempting to "kill" the Kyoto Protocol, and alter the character of the UN Framework Convention. The Indian delegates said that the Australian Proposal, asking for a single legal instrument, would "unilaterally impose new commitments and burdens on developing countries and undermine the exiting convention".

But now Ramesh has said India should "not stick with G77 but be embedded in G20. We should be pragmatic and constructive, not argumentative and polemical." Interestingly, India had recently fought off immense pressure at the G20 talks to dilute its stand and give up its rights to financial compensation.

An internal document of the government cleared by the environment minister, drawing the "red lines" for the Bangkok negotiations clearly states that India will not allow commitments of the rich countries to be listed in a single instrument along with the `actions' that India undertakes. In short, it said that the emission-cut obligations of the rich countries under the Kyoto Protocol should not be lumped with whatever the developing countries agree to do voluntarily -- something that the Australian Proposal seeks to do away with.

The brief for Bangkok, which is with TOI, had said that the continuation of the Kyoto Protocol along with deep and ambitious cuts of the rich nations is of critical importance and non-negotiable. It also told the negotiators -- again contrary to what Ramesh suggests to the PM -- that they shall not agree to any international review of its unilateral and unsupported domestic action under any agreement.

The UN Framework Convention and the Kyoto Protocol distinguishes between the industrialized countries that are historically to blame for the accumulated greenhouse gases in the atmosphere. The Protocol, to which most countries, with the exception of US, are party, imposes strong emission reduction targets, obligations and non-compliance penalties on only the rich nations. It also follows the "polluters pay" principle where developing countries like India have no obligation to cut down emissions and must be compensated fully for any actions it might undertake voluntarily to reduce emissions.

The Australian Proposal runs contrary to the existing Kyoto Protocol and has been strongly backed by the US. Even EU has come around to back it. It demands that all the countries, including India, be put on merely one list and that all countries, with the exception of the least developed, take on commitments of same nature though of various degrees without any contingent guarantee of technology or finance in return.

In fact, another proposal backed by US demands that India instead contribute money to climate change actions for the rest of the world. The EU does not go that far, but has said that India should reduce its emissions substantially below `business as usual' at mostly its own cost.

In his letter to the PM, the environment minister has said India will suffer no harm if the Australian Proposal does not dilute the distinction between Annex 1 countries and others, and recognises difference in obligations. Significantly, the Australian Proposal has no such provisions.

The proposal, which the US has lobbied India in bilateral forums and in multilateral meets to accept, asks all countries regardless of existing status, to take obligations. In its present form, when read with other proposals, it seeks to cap India's emissions by 2020 and force further reductions later on. A cap on emissions automatically converts into a cap of how much energy India can use.

The US has demanded that each country undertake a domestic legislation -- something that Ramesh too has now backed -- and put that as part of its obligations under the Australian Proposal. The US is keen to do so as it is not a signatory to the Kyoto Protocol and does not want to adhere to a strict multilateral regime that imposes clear penalties and targets to be achieved. It's been demanding that India, China, South Africa and Brazil also take on similar obligations before it joins any new international compact.

In Bangkok, the consternation of the Indian negotiators, the chief US negotiator had openly demanded the delegation relent from its stance, as the Indian environment minister had shown more flexibility in meetings during his US tour.

Observers feel that Indian environment minister's proposals would sit well with the US position despite the difference in energy consumption levels of the two countries.

India, at present emits only 1.2 tonnes per capita of greenhouse gas emissions, as compared to 20 tonnes by the US. Acquiescence in any regime that does not differentiate between the super polluters like the US, on the one hand, and varying levels of developing countries on the other, would, lock the country into an arrangement where its growth options would be restricted.

The suggestion by the minister comes contrary to the internal position that the government had taken as recently as July while assessing how badly uncompensated mitigation would impact India's economy.

In a note circulated within the government and to select Members of Parliament, it had said that mitigation action (as the Australia Proposal suggests) would lead to rise in the price of power and a drop in the production, impact the expansion of railways and adversely hit the prices of fertilizers in years to come. It would increase the cost of all goods, especially food items; the government assessed that it would increase unemployment especially in the rural agricultural sector. It had also warned that even if the country were to undertake such actions, it would have no impact on the costs of climate change adaptation that India would have to bear.

Interestingly, Ramesh's concern about India being seen as the leader of G77 comes when India is hosting a meeting of different countries on October 22-23 to build consensus among the countries on what demands should be made at the UN negotiations on technology. On October 21, India is also holding a dialogue with China and signing an MoU on climate change.

The PM is also slated to visit the US next month where climate change is expected to be a key issue for discussion. The minister in his letter has suggested that just like he has signed MoUs with other countries, "India should sign an agreement on climate change cooperation (during the PM's visit to US) and show willingness to engage."

Nitin Sethi,
TOI 19 October 2009,
12:18 AM
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Thursday, October 15, 2009

खतरे का कबाड़

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जहरीले कचरे से लदे एक अमेरिकी जहाज का चोरी-छिपे गुजरात के बंदरगाह अलंग पर जा पहुंचना चिंताजनक है।
यह घटना विकसित देशों के प्रदूषण को गरीब और विकासशील देशों के मत्थे मढ़े जाने के लंबे सिलसिले की ताजा कड़ी जान पड़ती है। यह अच्छा है कि केंद्रीय पर्यावरण मंत्रालय ने जहाज और पूरे घटनाक्रम की जांच का आदेश दे दिया है। पिछले दो दशकों में अलंग बंदरगाह में टूटने आए कई जहाज विवादों के केंद्र में आ चुके हैं। बाकी विकासशील देशों की तरह भारत में भी फिलहाल इस बारे में ठोस दिशा-निर्देशों का अभाव है।

पर्यावरण मंत्री जयराम रमेश ने प्रदूषण संबंधी कानूनों की बाबत गंभीर रुख अख्तियार करने और अदालती हस्तक्षेप के पहले ही ज्यादातर मामलों में कार्रवाई करने की मंशा कई बार जाहिर की है। उम्मीद की जानी चाहिए कि इस जहाज को लेकर ही नहीं बल्कि अलंग में टूटने आने वाले तमाम जहाजों के बारे में साफ नियम बनाए जाएंगे और उनका पालन सुनिश्चित किया जाएगा।

गौरतलब है कि विकसित देशों में जहरीले पदार्थों को लेकर कड़े नियमों के चलते ही वहां की कंपनियां इस तरह के जहाजों को टूटने के लिए विकासशील देशों में भेज देती हैं। यह सही है कि भारत में जहाजों को तोड़ने के काम में चालीस हजार से ज्यादा लोगों को रोजगार मिला हुआ है। लेकिन यह भारत के तटों के पर्यावरण और मजदूरों की सेहत की कीमत पर नहीं होना चाहिए। अलंग इस समय दुनिया में जहाजों को तोड़ने का सबसे बड़ा केंद्र बन गया है। यहां हर साल करीब तीन सौ बड़े जहाजों के तमाम हिस्सों को अलग किया और तोड़ा जाता है।

भारत में इस उद्योग का करीब चार हजार करोड़ का सालाना कारोबार है। यहां चालीस हजार से ज्यादा मजदूर प्रदूषण के खतरनाक स्तर के बीच काम करने को मजबूर हैं। तीन साल पहले सुप्रीम कोर्ट के हस्तक्षेप के बाद फ्रांस के एक जहाज को वापस भेज दिया गया था। शायद इस वजह से इस अमेरिकी जहाज के अलंग पहुंचने तक काफी गोपनीयता बरती गई और कायदे-कानूनों को ताक पर रख दिया गया।

पर्यावरणवादी संगठनों की आंखों में धूल झोंकने की नीयत से इस जहाज का नाम तक बदल दिया गया। इस जहाज का असली नाम एसएस-इंडिपेंडेस बताया जाता है। यह एसएस-ओसिनिक नाम से पिछले डेढ़ साल से दुबई के बंदरगाह पर खड़ा था, जिसे अलंग बंदरगाह प्लेटिनम-टू का नाम देकर पहुंचाया गया है। चोरी-छिपे इसका टूटना शुरू भी हो जाता अगर यह पास में ही खड़े एक दूसरे जहाज अमीरा-एस से टकरा न गया होता। इसी के बाद मीडिया और नागरिक संगठनों का ध्यान इस जहाज की तरफ गया।

पर्यावरण और मानव अधिकारों के लिए काम कर रहे संगठनों का आरोप है कि इस जहाज में ढाई सौ टन एस्बेस्टस और दो सौ दस टन पोलीक्लोरिनेटेड बाइफेनल है। इसी साल जनवरी में अमेरिकी पर्यावरण संरक्षण एजेंसी ने इस जहाज के स्वामित्व वाली कंपनी ‘ग्लोबल मार्केटिंग सिस्टम्स’ पर जहरीले तत्त्वों को नष्ट किए बगैर इसे निर्यात करने की कोशिश करने के आरोप में भारी जुर्माना लगाया था। लिहाजा पर्यावरण कार्यकर्ताओं की दलील में दम है.

Excerpts from Jansatta editorial
Photographs from www.ssmaritime.com
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Wednesday, October 07, 2009

Polluting nations reluctant to cut emissions

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Developing countries grapple with the collusion of rich nations

International Energy Agency shared early excerpts of the World Energy Outlook 2009 to inform the climate change negotiations leading into Copenhagen that continuing with today’s energy policies would lead to severe climate change impacts. It noted that if right policies put in place promptly, this could help to achieve 450 ppm but some wondered whether it will be adequate.

Meanwhile developing countries are opposed to “the concerted efforts to put the Kyoto Protocol aside. There has to be come comparability between the US and EU commitments. Now there is uncertainty regarding law, scope and nature of commitments, said Shyam Saran, the PM’s Special Envoy on Climate Change in Bangkok. He explained that their proposal for funding sources in the form of assessed contributions from developed countries was based on the experiences of the Group of G-77 and China. He said financing provided through existing institutions outside the Convention has been inadequate and he highlighted the need for a compliance mechanism for monitoring how developed countries implement their financial commitments.

Saran noted that 40% reduction (by developed countries) is a rather reasonable target for 2020. Most missed their targets for the first commitment period. We need significant cuts in the second commitment period. The National Action Climate plan (to cut emissions) sets out national actions and not international obligations.
Historical responsibility is an integral part of determining the equitable basis on which a new climate change relationship can be fashioned. The Kyoto is a valid legal document and the negotiations taking place right now have nothing to do with bringing in another protocol. We are not only focusing on carbon emissions, we have a much broader agenda in terms of climate action plan. We don't see that scale of resources (to fund mitigation measures in developing and least developed countries) being made available. We need to look at the IPR regime to make (climate change) technologies, public good. To talk about any deviation from business as usual and not talk about how this is to be supported by technology and finance is simply not saleable. There are commitments, which have to be undertaken by the developed countries and appropriate actions to be taken by the developing countries. Its not on an equal level.

Supporting the Indian stance, China’s Climate Change Envoy, Yu Qing-tai said that ”Ëveryone is born equal” and it was “politically and morally incorrect and unacceptable” that someone who was born Chinese had only a limited entitlement to atmospheric space. There is a concerted effort to put an end to Kyoto Protocol. It is clear that our partners in developed world are not interested in entering into serious discussions on targets for emission reduction".

New multilateral institutions on the lines of the World Bank to manage funding for countries to adapt to gobal warming should not be “donor-driven, to reflect the priorities of the donor community. We are talking about entitlements, not aid," Saran said.

He cited a German colleague saying, “Some 60-70% of such technologies are already available,” he said. “We need a zero-tariff regime on these and eco-friendly goods.
There was an ëxtraordinary responsibility”to spread these technologies as well as a global mechanism to adapt them to different regions, which is why India was advocating regional innovation centres."

Venezuela has emphasized that “99% of the text” reflects proposals by developed countries on market mechanisms and stressed that the text should better reflect proposals by developing countries. South Africa, China and India, Venezuela and Singapore stressed that this subparagraph of the BAP addresses “various approaches,” not just markets.

The US noted that it is uncertain “what the configuration of Copenhagen might be regarding the fate of the Kyoto Protocol” and suggested addressing such uncertainty by adding language that: “the COP shall take decisions necessary to enable the applicability of the CDM under this agreement.”

Algeria noted that countries wishing to use the CDM could ratify the Protocol.
The EU clarified that their intention is “not to step away from the Protocol,” but to build on it. It explained that their preferred outcome from Copenhagen would be an integrated instrument that incorporates key elements from the Protocol, including:
binding QELROs; robust reporting consistent with Protocol Articles 5, 7 and 8; strong compliance; and the flexibility mechanisms. It stressed the intention to: strengthen the legally binding framework for all parties; retain the CDM; and integrate new market mechanisms as voluntary tools for developing countries to engage in cost-effective mitigation. He noted efforts by the EU, the Republic of Korea, New Zealand and others to consolidate their proposals on new mechanisms and provide streamlined text.

Brazil stressed that for his country, the continuity of the Protocol is one of “the key aspects of the Copenhagen outcome” and noted that selectively picking elements from the Protocol would weaken the entire regime.

India has proposed the establishment of a new financial mechanism under Convention Article 11 (financial mechanism). It said only funding channeled through the financial mechanism should count towards the fulfillment of Annex II parties’ financial obligations. Japan and US cautioned against creating new bureaucratic
organizations, noting the need to reconsider the role and scope of the existing funds under the Convention and Protocol in order to avoid duplication. US clarified that their proposal for a global climate fund envisaged new arrangements and not the
creation of a new institution.

G-77 and China stressed that the group’s mandate is to consider the “full, sustained and effective implementation of the Convention,” particularly implementation of Convention Articles 4.1(c) and 4.5 (technology transfer) and urged parties not to
digress from this mandate.

China and India stressed the importance of deep emission reductions by Annex I parties in the second commitment period for “a strong and robust carbon price.”
INDIA warned that the proposed new mechanisms would “flood the market” with cheap credits. China identified the need to define the concept of supplementarity to avoid “mainstreaming” offsetting, specifying that the figure can be further discussed but that it should be below 50%. India proposed that caps on the use of offsets could be scaled according to Annex I countries’ circumstances, such as historical responsibility or sustainable lifestyles.

Interestingly, Norway, the Russian Federation, New Zealand noted that where emission reductions take place is irrelevant for the atmosphere. While the EU recognized the importance of supplementarity and domestic action, it emphasized the role of mitigation potential in determining the amount of emission reductions to be achieved through offsetting, and identified the need to “let the market play.”

Heated discussions on the fate of the Kyoto Protocol also surfaced during the day both in contact groups and in informal consultations. Some of those participating in the AWG-LCA subgroup on various approaches to mitigation commented on the
proposal by the US to introduce language that would include the CDM in an agreement reached under the AWG-LCA. “The US interest in the CDM is obviously welcome news,” remarked one delegate. “I am increasingly worried about the Protocol,” said
another: “If we start discussing the CDM under the AWG-LCA, it means that the AWG-KP will just die - and I don’t want the blood of the Protocol on my hands,” he explained. “It seems that many developed countries are ready to finish off the Protocol,” opined another.

The divide between developed and developing countries on the fate of the Protocol became more evident under the AWGKP in the evening when a small group convened to discuss the legal implications of the Protocol being submerged under a new agreement. Several developing countries stressed that the question was political rather than a legal one, and opposed any discussions implying that the Protocol would cease to exist in the future. Several developing country delegates, in fact,
reportedly walked out of the meeting after expressing this view.

The financial and economic crisis has led to delay in the investments in polluting
technologies. Consequently, CO2 emissions is expected to fall in 2009 by as much as
3% - steeper than at any time in the last 40 years, finds the International Energy
Agency's new study. This would lead to emissions in 2020 being 5% lower – even in the
absence of additional policies -- than the IEA estimated just twelve months ago. The
economic downturn has thereby created an opportunity to put the global energy
system on a trajectory to stabilise greenhouse gas emissions at 450 parts per million
(ppm) of CO2-equivalent, in line with an increase in global temperature of around 2
degrees Celsius.

The IEA 450 ppm Scenario sees the use of fossil fuels peak before 2020, and energyrelated CO2 emissions just 6% higher in 2020 than in 2007. Relative to a Reference Scenario of current policies, emissions in 2020 would need to be reduced by 3.8 gigatonnes (Gt) worldwide to achieve the 450 Scenario. 1.6 Gt of this reduction occurs in OECD countries, while policies and measures in China – already being considered by the Chinese government – account for 1 Gt of emissions reductions, more than anywhere else. This underlines the leading role China will play in the global combat against climate change.

To achieve this energy revolution, incremental investment of USD 10 trillion will be
necessary between 2010 and 2030 in the energy sector - equivalent to 0.5% of global
GDP in 2020, rising to 1.1% of GDP in 2030. Yet fuel savings across industry,
transport and buildings total USD 8.6 trillion between today and 2030, similar to the
additional investment in these sectors.

In 2020, the energy sector in non OECD countries would need to make USD 200
billion of extra investments in clean power, energy-efficiency measures in industry
and buildings and next-generation hybrid and electric vehicles. For this, developing
countries will need some financial support from OECD countries. OECD domestic
investment needs amount to a further USD 215 billion in 2020. But the benefits, in
terms of energy savings, reduced fuel imports and air quality improvements offset
much of this extra cost, not to mention the fact that this will help to avoid extreme
climate change.

The IEA 450 scenario is the energy pathway to Green Growth. Yet we need to act urgently and now. Every year of delay adds an extra USD 500 billion to the investment needed between 2010 and 2030 in the energy sector.

The WEO-2009 excerpt sets out, for key countries and regions (including the United
States, Japan, the European Union, Russia, China and India), the energy
transformation that each might undertake, sector by sector, if the world were to adopt a 450ppm trajectory. It also describes the current trends in energy use and emissions in a fully updated Reference Scenario, detailing the implications of current policies.

The entire WEO 2009 will be launched in London on 10 November 2009 and contains
substantially more climate analysis and provides a comprehensive set of results, by sector and by region, for both the Reference Scenario and the 450 Scenario, and analyses the international financial flows and mechanisms that might underpin a post-2012 agreement.
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Tuesday, October 06, 2009

Kyoto Protocol Does Not End in 2012

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"We are not talking about the successor of Kyoto Protocol"

Annex-1 countries like US, EU and others are ignoring the equity issues in order to protect their lifestyles' said the Prime Minister's Special Envoy on Climate Change Shyam Saran gave a briefing to the Indian NGOs present in Bangkok climate talks.

Amid efforts by developed nations and their powerful corporate media to muddy waters with an ulterior motive of diverting attention, Saran reiterated the obvious aspects of Kyoto Protocol like how it is not the Protocol but the first commitment period under the Protocol that ends in 2012.

Ad Hoc Working Group on Further Commitments for Annex I Parties under the Kyoto Protocol (AWG-KP) is meant to undertake the task of post 2012. Second commitment period starts in 2013.

Ad Hoc Working Group on Long-term Cooperative Action under the Convention (AWG-LCA) is meant for those who are not parties to the Protocol like US wherein they are required to make commitments comparable to the ones in the Protocol.

The Protocol is a legal document an dit remains a legal instrument until is abrogated or modified.

He underlined that 'The industrialised countries keep talking about how the large populations in India and China are using up the world's resources. I remember once when it happened, an African delegate got up and quoted from a World Bank report to show that an American or a European child uses 30 times as much natural resources as a child from Africa'.

The most important issue is that in the negotiations whether or not the developed countries are able to come up with very clear and significant target for reduction of their emissions, on which all parties so far have not been able to get to an agreement.

On the issue of financing, he said. "If developing countries are expected to take on additional responsibilities beyond what we are already doing, then unless there is a clarity about the amount of finances which will be available, unless there is a clarity about technology transferred, it will be very difficult for them to really take forward their own climate adaption plans."

Talking about the steps India has made recently to tackle the climate issue, he said, "what we have agreed is that whatever we are going to be doing domestically, whatever targets we are going to put on ourselves, we can report to UNFCCC...that is a positive step forward we have made."

With missions that cover both the aspect of mitigation as well as the aspect of adaptation, "what we have said is that in each of these missions, whenever possible, we will set domestic targets that we would want to achieve by certain dates. that is part of the planning process."

As far as our voluntary actions are concerned, and whatever we are able to do within the limitation of our resources, we will be very happy to report to the international community as is required under the UNFCCC.

"We, no matter India, China or any other developing countries, have made it very clear that the main responsibility for the emissions is that of the developed countries, because they have historical responsibility. The climate change is not taking place because of the current emissions, but because of the accumulated greenhouse gas emissions during many years of industrial activities in the developed countries, who have, in the UNFCCC, acknowledged their responsibilities. The first unusual business is they (developed countries) must take the lead in reducing their emissions. This does not mean that developing countries, just like India and China, don't have their own responsibilities. Of course we have, but that's because we are the ones that will be most affected by climate change. So we are quite clear about our responsibility to pursue sustainable development. China is doing that; India is doing that," Saran said. Adding that "We are already spending a very large part of our national resources for adapting to climate change, for which we are not responsible."
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Notes from Bangkok

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The Story So Far

The first part of the ninth session of the Ad Hoc Working Group on Further Commitments for Annex I Parties under the Kyoto Protocol (AWG-KP) and the first part of the seventh session of the Ad Hoc Working Group on Long-term Cooperative Action under the Convention (AWG-LCA) is taking place between Monday 28 September and Friday 9 October 2009 at the United Nations Conference Centre (UNCC) of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), Rajdamnern Nok Avenue, Bangkok, Thailand .

At a meeting of AWG-LCA Contact Group on Mitigation (paragraph 1(b)(v) of the Bali Action Plan (BAP), G-77 and China opposed proposals unifying mitigation in Annex I and non-Annex I parties. China highlighted that NAMAs are voluntary and decided by developing countries, and that actions needed to be discussed alongside support. India highlighted that support should cover full costs of measures and not be based on assessments of needs. It also highlighted that unsupported actions cannot be subject to verification. The G-77 and China noted that the Protocol’s targets were based on pledges, which was not the solution preferred by all countries, and stressed the need for adequate mid- and long-term mitigation by developed countries, saying “this goes far beyond countries putting forward national numbers.” It stressed that: mitigation under sub-paragraph 1(b)(i) must take the same form of quantitative targets as under the Protocol; rules on MRV for all developed countries should be the same as in Kyoto Protocol Articles 5, 7 and 8. India said that central ideas that protect economic growth in developing countries should be retained in the text. The G-77 and China said that the structure of the text should be streamlined and emphasized that the key message on adaptation finance should not be lost. He highlighted the need for immediate medium- and long-term adaptation actions.

G-77 and China underlined that this mechanism should lead to action on technology and go beyond assessments or information exchange. China said that a tangible mechanism should be established to kick off action on technology.India emphasized that technology transfer does not refer to commercial transfer but to concessional transfer.

G-77 and China emphasized the importance of principles and drew attention to problems arising from a lack of coherence and the multiplicity of governance systems that deal with financing. She underscored direct access as a separate principle, while the EU questioned whether all the principles were required. The EU expressed preference for, inter alia, formulations addressing: the needs of the most vulnerable countries; simplified access to financial resources while maintaining principles of sound financial management; and leveraging other forms of financial resources, such as private-sector financing. China noted that one of the functions should be the provision of financial resources, primarily from the public sector. The EU emphasized the importance of the private sector and the carbon markets, while acknowledging the role of public international finance. In the context of private sector funding, India and China drew attention to double counting arising from emission reductions achieved through offset mechanisms.

The G-77 and China said that funding pledged outside the Convention did not fulfill developed countries’ commitments under the Convention. The US noted that many mitigation challenges were in fact investment opportunities and highlighted the ten-fold increase in funding to vulnerable countries by the US Congress. He also observed that many countries that are not in Annex II of the Convention have the capacity to contribute financially. He said that the US domestic system limits consideration of levies and taxes, and noted that as the US is not a party to the Protocol, it could not participate in auctioning of AAUs.

China underscored the fundamental responsibility of Annex I parties to reduce their emissions in aggregate by 40- 45% by 2020 and said that if parties disagreed with this level of responsibility they should define what they felt their collective responsibility was.

Venezuela voiced objection to proposals seeking to “market the atmosphere,” which he said amounted to “who pays may pollute.” China said estimates concerning how much finance the private sector and markets could generate had been exaggerated.

The US stressed that agreement on binding language on MRV would provide a way of evaluating obligations, and that a long-term perspective is important in measuring adequate stringency. The US said experiences in the past ten years have shown that markets have enabled more cost-effective emission reductions and that the CDM has stimulated clean investment, stressing that the proposals could make an important contribution to the Convention’s objective. The US outlined his country’s proposal for establishing a technology hub, which would provide full-time experts available to parties.

Bolivia highlighted the structural link between climate change and markets. It noted the necessity of removing barriers to technology transfer.

Some negotiators felt that the legal nature of the outcome was not on the agenda, but we were discussing the document or documents that might come out of Copenhagen, other negotiators felt that it was difficult, if not impossible, to isolate discussions on form from discussions on legal nature, continuing: “I think that the number of lawyers in the room might be a testament to that notion.”

G-77 and China opposed including the proposals for frameworks as well as the related structural proposals, stressing the distinction between mitigation by developed and developing countries both in magnitude and legal nature. The US explained that their vision is different from the Protocol and builds on the Convention’s commitments and obligations that are common for all parties. He called for enhancing action and reporting by all parties, while recognizing that actions would be different for developed and developing countries. He stressed the need for upfront information on countries’ actions, noting that national communications convey such information only years after actions have been taken. The US also outlined plans for a legally-binding and economywide national system, highlighting a long-term perspective.

India stressed that the proposals contained in the frameworks conflict with the Convention and the BAP, as they seek to erase the distinction between developed and developing countries and impose new mitigation and reporting commitments on the latter. China opposed the proposals, noting historical responsibility and the clear distinction between mitigation by developed and developing countries, also reflected in subparagraphs 1(b)(i) and 1(b)(ii) of the BAP.

On Intellectual Property Rights (IPRs), Australia called for greater cooperation with relevant organizations such as the World Intellectual Property Organization and, with the US, noted that IPRs incentivize technology development. G-77 and China reiterated that IPRs represent a barrier to technology transfer. Bolivia said strong IPRs increase costs of R&D, and India alongwith the Philippines suggested compulsory licensing. At a “off the media” briefing, the US negotiator said that some countries do not realize that things can work even without compulsory licensing.

On whether it was possible to use 1990 as the base year with multiple reference years. Australia supported using a single legally binding base year with multiple reference years. Canada stressed that their pledge used 2006 as the base year. It recommended using a table with base years as defined by individual countries in their pledges, as well as columns comparing 1990 and other common base years.

The EU, Iceland, Switzerland, and the Russian Federation supported a single base year of 1990, with multiple reference points that could be used for communication or policy purposes. The G-77 and China, Norway, AOSIS, Brazil, Saudi Arabia, India and the African Geoup called for retaining 1990 as the base year for the sake of simplicity, comparability and transparency.

The G-77 and China emphasized that a common internationally binding base year would not preclude countries from translating their commitments into other reference years for domestic purposes. The EU expressed concern that using multiple base years would require a Protocol amendment, as several provisions, including Protocol Articles 3.5 and 3.7, refer to “1990” rather than to “base year.” Australia noted that multiple base years present challenges in the calculation of AAUs. Japan stressed that while their new pledge is relative to a 1990 base year, there should be flexibility to choose other base years to facilitate the participation of the broadest number of countries.

The EU highlighted their proposal on sectoral crediting, which would move a number of developing countries from the CDM. AOSIS proposed considering improved access to the CDM by building on elements in the text related to positive lists of project activities and on text on financing validation, verification and certification of projects in certain host parties. Bangladesh highlighted the high cost of operationalizing CDM projects, including the registration fee and validation by a Designated Operational Entity, calling for exemptions for LDCs.

On promoting co-benefits for CDM projects, Canada said projects with co-benefits receive a premium from the market and proposed including in the project documents a place for listing co-benefits. It also suggested considering the timing of the registration fee. BRAZIL supported postponing payment of the registration fee until the first issuance of Certified Emission Reductions, saying the CDM Executive Board could take prompt action.

India has noted that the new report by the World Bank on the Economics of Adaptation to Climate Change estimates that US $75-100 billion per year is required for adaptation in developing countries. It stressed that this range “is probably an underestimate” but should be used as a starting point for discussions on the scale of resources needed. Delegates considered the finance section (FCCC/AWGLCA/INF.2). Canada emphasized the need to provide support for adaptation to the poorest and most vulnerable countries, and called for creation of an architecture that maximizes the effectiveness of delivery. Japan supported using existing institutional mechanisms. The use of existing mechanisms was opposed by the G-77 and China, LDCs, and the African Group. The G-77 and China stressed that existing institutions had failed as a finance delivery system, objected to co-financing and said that the architecture should be concentrated in “one house.” The African Group underscored that financial mechanisms must be subject to MRV. The LDCs emphasized that existing institutions have failed to provide adequate financing and that a new multi-window institution is needed. He stressed that funding should come from public sources in developed countries and be supplemental to official development assistance.

There were discussions in the corridors about the impact of the introduction of the Boxer-Kerry climate bill in the Senate and the regulation of greenhouse gases by the Environmental Protection Agency under the Clean Air Act.

Mexico proposed a green fund, highlighting that participation in the fund would be voluntary, but that once parties had opted in, their contributions would be based on assessment criteria related to emissions, population and economy. Saying that developing countries’ contributions would be “much smaller but not zero,” it expressed concern that, without developing countries taking any responsibility to act, “the victims of today may become the culprits of tomorrow.” It highlighted, inter alia, that: the LDCs would be the only “accepted free-riders;” developing countries would get more than they contribute; and the green fund would not eliminate obligations under other elements of the financial architecture. The G-77 and China, LDCs, and the African Group expressed reservations with the Mexican proposal.

Venezuela said that developed countries were using “green excuses” to get out of their historical responsibilities. The EU emphasized that the “core” of the negotiation is how to mobilize effective financing and that parties need to discuss linkages between sources of funding to create a coherent system. Venezuela, with China, stated that market approaches play a limited role in the Protocol and are not mentioned in the Convention, suggesting their inclusion poses a legal problem. The US proposed emphasizing that the use of market mechanisms is voluntary.

India, Nepal and Thailand highlighted the need to keep REDD-plus separate from NAMAs. Vice-Chair Dovland of AWG-KP CONTACT GROUP referred to the previous lengthy discussions on carbon capture and storage (CCS) under the CDM, identifying it as an issue that “might not get resolved before Copenhagen.” He explained that views expressed by some parties at the informal meeting in August, that CCS under the CDM should not be restricted to geological formations, has been reflected in the new text. On the inclusion of nuclear activities under the CDM, Vice-Chair Dovland said that the issue “would probably need to be resolved at the political level in Copenhagen.

Saudi Arabia highlighted work on ocean sequestration under the IMO.

New Zealan, Norway, Switzerland, the EU and AOSIS raised concerns over the inclusion of ocean sequestration under the CDM. Australia, opposed by AOSIS, proposed referencing the existing approach under the 1996 London Protocol to the Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter.
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Monday, October 05, 2009

UN Climate Change Negotiations Face a Dead End

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Developed countries killing the Kyoto Protocol

Eight Days Left for the Copenhagen Deal

The US and EU are attempting to terminate the Kyoto Protocol and all-important international negotiations over its next phase, according to a joint statement by G-77 and China in Bangkok. A rally and a demonstration took place outside the UNESCAP building demanding climate justice outside the walls of the conference center demanding climate justice. Notably, US is still the only industrialized nation not to ratify the Protocol.

Climate Change negotiators have gathered in Bangkok from 28 September to 9 October in the penultimate round of climate change negotiations ahead of the UN Climate Change Conference in Copenhagen in December, 2009 at which a comprehensive international climate change deal is to be sealed.

The Bangkok Climate Change talks were preceded by the UN Climate Change Summit in New York on 22 September, convened by UN Secretary-General Ban Ki-moon, at which around 100 heads of state and government clearly called for a comprehensive climate change agreement in Copenhagen.

Whilst negotiations are expected to focus on the five elements world leaders subscribed to in New York, areas in which some progress had been made at previous UNFCCC negotiating sessions and in which progress can be extended include: adaptation action, REDD (reducing emissions from deforestation and forest degradation in developing countries), technology, capacity building, and institutional arrangements for finance.

A key focus is on obtaining clarity on further emission reduction commitments for industrialised countries. Important technical work under the Kyoto Protocol was expected to be taken forward on issues such as Land Use, Land-Use Change and Forestry, identifying new greenhouse gases to be included in the Copenhagen agreed outcome and defining base years for emission cuts. But the way EU and US are beginning to collude against the interest of the developing countries shows that history is repeating itself.

UN sources note that the conference is being attended by more than 4,000 participants, including government delegates from 177 countries, representatives from business and industry, environmental organisations and research institutions. The Bangkok meeting will be followed by a final five days of pre-Copenhagen negotiations in Barcelona in November. In effect, now there are just eight days left for the Copenhagan conference.

"The reason why we are not making progress is the lack of political will by Annex 1 [industrialised] countries. There is a concerted effort to fundamentally sabotage the Kyoto protocol. We now hear statements that would lead to the termination of the protocol. They are introducing new rules, new formats. That's not the way to conduct negotiations," said ambassador Yu Qingtai China's representative on climate talks at his press briefing. Qingtai was visibly disturbed at the pattern of collusive reactions from US and EU.

Lumumba Di-Aping, the chairman of the G77 & China said, "It is clear now that the rich countries want a deal outside the Kyoto agreement." "He added, "ït would be based on a total rejection of their historical responsibilities."

These statements seem to have been made in the backdrop of the statement by Barack Obama's energy adviser, Carol Browner. She is the Director of the White House Office of Energy and Climate Change Policy in the Obama Administration. Browner previously served as Administrator of the Environmental Protection Agency during the Clinton Administration. Browner said that she did not expect the US Senate to vote on the crucial climate change bill before the Copenhagen talks at a conference hosted by the Atlantic magazine in Washington. She reportedly spoke some 48 hours after Senate Democrats staged a campaign-style rally in support of a climate change bill that seeks to cut US emissions by 20% on 2005 levels by 2020.

Subsequently, this view is reported to have been retracted by the White House.

In a briefing today at Bangkok where the US asked the media to leave, it said that we want a deal outside the Protocol and we want a new MRV regime which has been missing all this while. It felt that market solutions like improved CDM can respond but it said that we await the outcome of our legislation to say anything with finality.

At the US briefing, Jonathan Pershing, the US negotiator asked, How mitigtation are taken and measured as of now is debatable. We are not in those negotiations. What happens in it we are keeping track through some friends who are party to the protocol The CDM has been standardized and is operational. It does not require US EPA to duplicate this work. But we realize that there are flaws in the way it is operating. There has to be some improvements to make the credits to be additional and credible. The case study approach of the CDM is faulty. Carbon finance and policy based offsets can go a long way. We will create a market signal but that will require legislation and we are working on it. Pershing added, We are not going to sign Kyoto Protocol we are going to remain out of it. About the two working groups, he said that Ad Hoc Working Group on Long-term Cooperative Action under the Convention (AWG-LCA) and Ad Hoc Working Group on Further Commitments for Annex I Parties under the Kyoto Protocol (AWG-KP) is currently not going anywhere. Mitigation action and low carbon strategies need to be adopted and it needs to be noted that both are not the same. Its like trade matters. Our relations with Canada has economic significance. But what china does has political significance. If china does not do enough we cannot go ahead. On climate finance, : We will feed into the funding but we are more flexible on it than EU (on conditionalities attached to finance) We need background in financial services investments in tech and capacity building. There are some countries which stress on public sector finance and they stress that money should be provided to the governments. They do not realize that when projects are fiancés there are technological risks. Central issue is technology transfer and currently the IPR discussion text is a red line, Pershing noted.

Developed countries have so far refused to show their hand on what their emission cuts should be. The UN's Intergovermental Panel on Climate Change has estimated that to keep below a 2C rise in temperatures they need to cut their emissions by 25-40% by 2020, compared with 1990 levels. But developing countries are calling for an aggregate cut of at least 40%.

The UN estimates that the combined cut from national pledges made by rich countries without the US, comes to 16-23% overall. However, a new analysis by the Alliance of Small Island States, estimates that this drops to just 11-18% with the US's present offer. If rich countries are allowed to offset large amounts of emissions, as expected, this would mean that the world's rich countries might not to have to make any emissions at home.

Several of the world's largest developing countries including China and India, Indonensia and Mexico have indicated that they are ready to make significant emissions cuts provided development countries undertake steps in keeping with their obligations.

"The United States wants only to have a national target without binding it to a global treaty. It appears to have won over many other developed countries. They are stressing that developing countries have 'common' responsibilities," " said Martin Khor, the director of the South Centre based in Geneva while chairing the press briefing of the G-77 and China.

P.S: Venezuela has submitted a proposal that bars offset benefits for non-parties to the Kyoto Protocol which seems to be in reaction to efforts by EU and US to converge the two working groups-AWGKP and AWG-LCA.
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