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Special Report on Selected Side Events at UNFCCC COP-7
Marrakesh, Morocco; 29 October - 9 November 2001
published by the International Institute for Sustainable Development
in cooperation with the UNFCCC Secretariat
<< visit the UNFCCC Secretariat website >>

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Events convened on Friday, 2 November 2001

CC: FORUM on national communications from non-Annex I Parties
Presented by the UNFCCC Secretariat

This event reviewed national communications from Chad, Congo-Brazzaville, Ethiopia, Guinea and Togo.

Germain Kombo, Congo-Brazzaville, stresses the need to translate relevent documents into French to facilitate the compilation of GHG inventories.
Moussa Tchitchaou, Chad, introduced Chad's national communication. He explained that the greenhouse gas (GHG) inventory illustrates that 65 percent of emissions stem from land use, land-use change and forestry (LULUCF) activities, and 33 percent from agriculture and ranching. The national communication identifies a number of mitigation measures for the forestry, agriculture, energy and waste sectors, including: rational management of natural resources; implementation of measures to reduce bush fires; and the use of renewable energy. Threats of climate change include rising temperatures, changes in precipitation patterns, and increased evaporation.

Isidore Dianzinga and Germain Kombo, Congo-Brazzaville, explained that the national communication's GHG inventory covers the energy, agriculture, ranching, forestry, industry and waste sectors. According to the inventory, the energy, agriculture and waste sectors are the primary sources of GHG emissions. The national communication identifies regions particularly vulnerable to climate change, and proposes strategies to address climate change, including strengthening national capacities, reducing GHG emissions, and managing industrial waste.

Abebe Tadege, Ethiopia, provided an overview of Ethiopia's national communication, highlighting that the national GHG inventory covers seven gases in the energy, agriculture, LULUCF and waste sectors. Tadege stated that the energy sector accounts for 88 percent of carbon dioxide (CO2) emissions, with transport generating 44 percent of these emissions. The national communication identifies a number of win-win mitigation options, such as improving energy efficiency, generating renewable energy, and composting waste. Tadege noted that Ethiopia's financial and capacity-building needs relate to data collection and monitoring, training, research, and awareness-raising.

Ahmed Traore, Guinea, explained that Guinea's national communication examined GHG emissions in the energy, agriculture, waste, and LULUCF sectors. The inventory indicates that CO2 emissions account for 60 percent of all GHG emissions, with forest conversions being the most significant source of CO2 emissions. A vulnerability and adaptation study examined the sensitivity of coastal zones, water resources and the agriculture sector to projected climate changes. Adaptation measures identified include the establishment of an institution addressing water protection and management, and the development of agricultural irrigation schemes.

Kodjovi Edjame, Togo, explained that the GHG emissions inventory of Togo's national communication covers the energy, agriculture, forestry and industry sectors, and demonstrates that land use accounts for 80 percent of all emissions. The national communication identifies a number of mitigation policies and measures, including the regulation of GHG emissions, the restructuring of markets, and the introduction of pollution taxes. The vulnerability and adaptation study recognizes the vulnerability of agriculture and human health to climate change.

More information:
Moussa Tchitchaou <moussatchit@yahoo.fr>
Isidore Dianzinga <gescongo@hotmail.com>
Germain Kombo <kombo_g@yahoo.fr>
Abebe Tadege <a_tadege@hotmail.com>
Ahmed Traore <climat-guinee@mirinet.net.gn>
Kodjovi Edjame <sedjame@tg.refer.org>

Please visit the UNFCCC's "On Demand" webcast page for RealVideo coverage of this event

Abdelhanine Benallou, CDER, presents Morocco's national strategic plan for renewable energy.
Moroccan national strategy for renewable energy
Presented by the Moroccan delegation in collaboration with the Centre de Développement des Energies Renouvelables (CDER)

Abdelhanine Benallou, CDER, described Morocco's national strategic plan for renewable energy. He noted that Morocco possesses significant renewable energy potential, particularly solar and wind resources, but needs to develop the means for their mobilization. He explained that the strategic plan aims to: reduce dependence on imported energy; improve energy supply in rural areas; reduce deforestation associated with unsustainable use of biomass for rural energy; attract private investment; generate rural employment; and protect natural resources and the environment. By 2010, the plan expects to achieve an 80 percent rate of rural electrification, install 1,000 megawatts of wind capacity and 400,000 square meters of solar collectors, reduce rural use of biomass for energy by 50 percent, and supply 12 percent of the nation's energy with renewables.
Listen to Benallou's presentation

More information:
Abdelhanine Benallou <cernet@cybernet.net.ma>

Sustainable development of policy conditions for a natural gas future
Presented by the International Gas Union

From left to right: Chiaka Gomi, IGU; Marc Darras, Gaz de France; and Yannick Guerrini, UN-ECE.
This event described new strategies being implemented by the gas industry in response to climate change.

Chiaka Gomi, International Gas Union (IGU), explained that the IGU aims to demonstrate the crucial role that natural gas can play in meeting the global need for an environmentally-friendly energy source. He highlighted the IGU's work to: promote the technical and economic progress of the global gas industry; help optimize the economics of the entire gas chain, while emphasizing sound environmental performance, safety and reliability; and promote transfer of technology and know-how. The IGU develops global energy scenarios to facilitate strategic planning in the industry.

Marc Darras, Gaz de France, highlighted the gas industry's efforts to protect the environment and promote economic and social development. The industry is working to promote energy efficiency and conservation, reduce industrial emissions of GHGs and other air pollutants, and implement comprehensive environmental management systems to reduce its impacts. The industry also contributes to local economies, by purchasing local goods and services and providing employment to communities, and promotes community development, by investing in employment training programmes, implementing cutting-edge employment standards and practices, and cooperating with stakeholders on comprehensive public consultation processes.

Yannick Guerrini, United Nations Economic Commission for Europe (UN-ECE), outlined UN-ECE's climate change mitigation strategy for economies in transition (EITs). The strategy's overall objective is to enhance regional cooperation on energy efficiency market formation and investment project development to reduce GHG emissions in EITs. Specifically, it works to accelerate regional networking, create energy efficiency investment zones, and foster regional energy efficiency policies and standards. UN-ECE is also carrying out sub-regional projects, including one to promote rational and efficient use of energy and water resources in Central Asia.

More information:
Chiaka Gomi <gomi@wgc2003.gr.jp>
Marc Darras <marc.darras@gazdefrance.com>
Yannick Guerrini <yannick.guerrini@unece.org>

Greenhouse gas emissions trading: Linkages between domestic trading schemes
Presented by the International Emissions Trading Association (IETA)

Erik Haites, Margaree Consultants Inc., highlights that linking emissions trading systems will reduce the cost of achieving environmental goals.
Erik Haites, Margaree Consultants Inc., presented the findings of a recent study prepared for the IETA, the International Energy Agency, and the Electric Power Research Institute, entitled "Linking Domestic and Industry GHG Emissions Trading Systems." The study aimed to survey existing and proposed domestic and industry emissions trading systems, and analyze the possible issues related to linking such systems in advance of the commencement of international emissions trading under Article 17 of the Kyoto Protocol. The trading systems surveyed include national systems in Denmark, the UK, Norway, Sweden, Canada, and Australia, as well as systems developed by British Petroleum, Shell, and the Chicago Climate Exchange. He reported that although participation is voluntary in some trading systems and mandatory in others, the systems can be linked; however, leakage problems may occur. He said it is also possible to link systems with different monitoring requirements and penalties for non-compliance, although this may result in an increase in overall emissions. He concluded that no issues have been identified that would prevent the linking of trading systems, although serious complications could arise, and that linking trading systems could increase total emissions.
Listen to Haites' presentation

Peter Vis, European Commission.
Peter Vis, European Commission, outlined the newly proposed EU directive for an EU-wide emissions trading system. The proposal does not specify how trading will take place, although it does stipulate that: only CO2 will be traded at first; the system is mandatory; there are strong penalties for non-compliance; and the preliminary phase will begin in 2005 so that experience can be gained prior to the start of the first commitment period.
Listen to Vis' presentation (excerpt)

Johnathan Pershing, IETA.
Michael Wriglesworth, British Petroleum (BP), described BP's internal emissions trading system, its potential for replicability, and the difficulties of carbon accounting for a multinational firm
Listen to Wriglesworth' presentation

Henry Derwent, UK Department of Environment, Food and Rural Affairs, described the UK's emissions trading system and its position on the new EU directive. He affirmed that the UK strongly supports EU-wide emissions trading, although it is concerned about the narrow range of participants and the mandatory nature of the proposed scheme.
Listen to Derwent's presentation

In reaction to th previous presentations, Johnathan Pershing, IETA, said that linking trainding systems may require the harmonization of registries, penalties, banking and coverage of gases.
Listen to Pershing's presentation

Matthew Varilek, Natsource, provided his comments on the "Linking Domestic and Industry Greenhouse Gas Emission Trading Systems" paper. He said that the absence of linkages would increase the transaction costs of trading and reduce liquidity. He noted that making linkages would not be easy, but that most trading systems have expressed a willingness to explore linkages with others, provided that significant changes to their own systems were not required.

More information:
Erik Haites <ehaites@netcom.ca>
Peter Vis <peter.vis@cec.eu.int>
Henry Derwent <henry.derwent@defra.gsi.gov.uk>

Matthew Varilek <mvarilek@natsource.com>

Beyond technical solutions: Climate change, way of life and the role of NGOs
Presented by Groupe d'Etudes et de Recherches sur les Energies Renouvelables et l'Environnement (GERERE)

Philippe Staatsen stresses that lifestyle change is necessary for GHG mitigation.
Philippe Staatsen, Développement Participatif Durable Rural et Urbain, noted that fossil fuel-derived GHG emissions will increase even with significant energy efficiency improvements, due to increasing global population and rising living standards. Citing data from IPCC reports, he demonstrated that even if humans were to use all technological mitigation methods available, they would be insufficient to prevent climate change. He illustrated that the mitigation of GHG emissions through lifestyle changes is as important as technological improvement. He said that both technical and lifestyle solutions will require radical sociocultural changes, and that lifestyle changes can be consistent with economic growth.

Discussion: Participants discussed the global impacts resulting from industrialized country lifestyles, and noted that citizens and policy makers in industrialized countries are often unwilling to change their lifestyles despite awareness of their impact on developing countries and the environment. One participant remarked that citizens are often denied the opportunity to participate in political affairs, and that most citizens are not aware of the radical changes that are required in order to achieve sustainability. The need for a positive image of sustainability that can be used as a model for future progress was noted. Participants stressed the importance of addressing consumption and lifestyle issues, and expressed disappointment that these issues are not discussed more often at international climate change meetings.
More information:
Philippe Staatsen <staatsen@iam.net.ma>

The challenge of Japanese industry: Voluntary action plan for the mitigation of climate change
Presented by the Japan Federation of Economic Organizations (Keidanren)

Yasuo Hosoya, Tokyo Electric Power Company, explains that the Japanese electricity industry plans to reduce CO2 emissions by expanding non-fossil fuel energy, particularly nuclear power generation.
Yasuo Hosoya, Tokyo Electric Power Company, explained that Keidanren aims to identify solutions to major problems faced by the business community, and outlined Keidanren's concerns regarding the use of compulsory agreements, domestic emissions trading based on emissions caps, and environmental taxes to mitigate climate change.

Referring to the fourth follow-up to the Keidanren voluntary action plan for the mitigation of climate change, he highlighted: the participation of 36 industries responsible for 42.7 percent of Japan's total CO2 emissions in 1990; the reports of 23 participating industries that their CO2 emissions have declined from 1990 levels; and a declaration that Keidanren endeavors "to reduce CO2 emissions from the industrial and energy-converting sectors in fiscal year 2010 to below the levels of fiscal year 1990."

Hosoya provided examples of various industries' targets and measures to mitigate climate change. The iron and steel industry, for example, established a target of reducing energy consumption by 10 percent below 1990 levels by 2010, using measures such as energy conservation in production processes and effective utilization of waste plastics. The chemical industry aims to reduce energy consumption per unit of output to 90 percent of 1990 levels by 2010, by improving facility and equipment efficiency, streamlining operating methods, and recovering discharged energy.

Hosoya concluded by underscoring the importance and effectiveness of voluntary efforts, the need to minimize regulatory and restrictive measures, and the importance of awareness-raising.

More information:
Yasuo Hosoya <y.hosoya@tepco.co.jp>

Reforestation in the CDM: Opportunities for ecosystem restoration
Presented by The Nature Conservancy

This event addressed issues related to reforestation projects in the CDM.

Tia Nelson, TNC, underscores that land use can play an important role in addressing climate change, particularly in the short term, and that properly structured land-use projects can also generate significant additional environmental benefits.
Tia Nelson, The Nature Conservancy (TNC), emphasized that rules for forestry projects in the CDM should ensure ecosystem protection, measurability, baselines and additionality, leakage prevention, permanent reductions, and contribution to sustainable development in the host country. She highlighted that forest protection projects can generate other environmental benefits, including biodiversity conservation, flood and storm protection, watershed protection, prevention of soil erosion, and sustainable development. Regarding the definition and modalities for afforestation and reforestation project activities in the CDM, she noted that if there is no financial additionality criterion, the incentive for plantation projects would be quite high. She suggested that placing forest restoration on an equal or higher footing than plantations would enable restoration of degraded areas and protection of threatened areas, and would generate additional benefits to local communities and the environment.
Listen to Nelson's presentation

André Rocha Ferretti, Society for Wildlife Research and Environmental Education (SPVS), described three climate action projects that SPVS is undertaking with TNC in Brazil's Atlantic rainforest. The projects contain components on: land acquisition and titling; land stewardship; forest management; sustainable community development; leakage control; carbon monitoring and verification; and an endowment fund to ensure the continuation of project activities beyond the projects' lifetime. He highlighted additional benefits of the projects, including soil conservation, watershed protection, river bank restoration, biodiversity protection and enhancement, sustainable economic development for local communities, and environmental data generation. The projects are expected to have a total carbon benefit of approximately 2.5 million tons over forty years.

Márcio Santilli, Amazon Environmental Research Institute (IPAM), underscored that deforestation is a significant source of global emissions and is likely to compromise emissions reductions in the future. He reiterated IPAM's support for the inclusion of initiatives that reduce deforestation under the CDM, and expressed regret that the Bonn Agreements obviated this possibility. He hoped that afforestation and reforestation would be defined such that they create incentives for the restoration of degraded areas to permanent forests.

More information:
Tia Nelson <tnelson@tnc.org>
André Rocha Ferretti <itaqui@spvs.org.br>
Márcio Santilli <marciosantilli@terra.com.br>

For further RealVideo coverage of these and other side-events at COP-7,
please visit the UNFCCC's "On Demand" webcast page

The Earth Negotiations Bulletin (ENB) on the side is a special publication of the International Institute for Sustainable Development (IISD) in cooperation with the United Nations Framework Convention on Climate Change (UNFCCC) Secretariat. The Editor of ENB on the side is Kira Schmidt <kira@iisd.org>. This issue has been written by Fiona Koza <fiona@iisd.org>, Dagmar Lohan <dagmar@iisd.org>, and Kira Schmidt <kira@iisd.org>. The Digital Editors are Andrei Henry <andrei@iisd.org>, Leila Mead <leila@iisd.org> and Kenneth Tong <ken@iisd.org>. Funding for publication of ENB on the side at COP-7 is provided by the UNFCCC Secretariat. The opinions expressed in ENB on the side are those of the authors and do not necessarily reflect the views of IISD and funders. Excerpts from ENB on the side may be used in non-commercial publications only and only with appropriate academic citation. For permission to use this material in commercial publications, contact the Managing Editor at <kimo@iisd.org>. Electronic versions of these issues of ENB on the side from COP-6 Part II can be found on the Linkages WWW server at http://enb.iisd.org/climate/cop7/enbots/.

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