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FINANCIAL RESOURCES AND MECHANISMS: In paragraph 1 (recommendations and commitments), the EU, the US and Australia proposed a reference to domestic financing for Agenda 21. In paragraph 5 (CSD monitoring of implementation), the G-77/China proposed deleting the bracketed phrase 'by those countries that have accepted it,' referring to the target of 0.7% GNP for ODA. The US objected. The G-77/China re-submitted sub-paragraph 5(e) on international awareness and increase in real terms for IDA programmes. In paragraph 11 (increasing financial flows from IFIs), the G-77/China deleted the reference to sustainable development indicators. In paragraph 13 (GEF), the EU and Japan objected to the reference to increasing GEF resources since the CSD should not impose decisions on an independent body. The G-77/China objected. In paragraph 16 (strengthening the use of economic instruments), the G-77 preferred 'environmentally unfriendly practices' to 'subsidies.'

In paragraph 19 (innovative mechanisms), the G-77/China deleted references to joint implementation and debt-for-sustainable development swaps. There was no agreement in paragraph 20 (user charge on air transport) on whether air transport 'may be' (G-77/China) or 'is' (EU) a source of environmentally damaging emissions. In paragraph 21 (tradeable CO2 permits), the EU deleted the reference to developing countries with economies dependent on fossil fuel exports. The US supported the EU, arguing that the Climate Change Convention recognizes other categories of countries that should not be disregarded. The G- 77/China and the US changed 'joint implementation' to 'activities that are implemented jointly' to reflect the decisions of the first COP of the Climate Change Convention. Discussion on the bracketed paragraph 23 (COP to the Biodiversity Convention) was deferred pending the outcome of Drafting Group C. In paragraph 25 (financing of ESTs), the G-77/China deleted the brackets around the reference to EST rights banks. The EU wanted the phrase deleted. In paragraph 27 (biosafety proposals), the US and the EU retained the brackets around the various proposed studies, arguing that they had not been fully discussed. The G-77/China objected. No agreement was reached on retaining paragraph 32 (summary of key proposals).

DEMOGRAPHIC DYNAMICS AND SUSTAINABILITY: In paragraph 2 (links between population, poverty, production and consumption), delegates agreed to add references to health, education and technology. In paragraph 5 (research on the linkages), delegates agreed to Cairo language on the role of governments, IGOs and NGOs in researching the linkages between population, poverty, consumption and production, environment, natural resources and human health. No agreement was reached in paragraph 12 (ICPD implementation), on the term 'sustained economic growth in the context of sustainable development.'

COMBATING POVERTY: The G-77/China proposed changing the title to Poverty Eradication. The EU disagreed. In paragraph 2 (poverty eradication and sustainable development), the US and Australia proposed deleting the statement that people in poverty do not threaten the global environment. In paragraph 3 (poverty reduction), the G-77/China proposed replacing 'poverty reduction' with 'poverty eradication.' In paragraph 4 (integrated approaches to poverty reduction), the G-77/China replaced 'targeting poverty' with 'eradicating' poverty, and 'poverty- reducing projects' with 'projects aimed at eradicating poverty.'

In paragraph 5 (social and cultural rights), the US objected to a G-77/China amendment on the Covenant on Economic, Social and Cultural Rights and the Declaration on the Right to Development. In paragraph 6 (international environment), India reserved on a New Zealand proposal to emphasize links between poverty reduction and sustainability. The EU and the US objected to a G- 77/China amendment calling for private sector accountability. In the chapeau of paragraph 9 (ECOSOC), the G-77/China proposed that the CSD adopt a holistic focus on poverty and sustainable development and delete sub- paragraphs 9(a)-(g). It was bracketed.

TRADE, ENVIRONMENT AND SUSTAINABLE DEVELOPMENT: A G-77/China reference to sustained economic growth in paragraph 1 (linkages) is bracketed. In paragraph 3 (trade liberalization), a G- 77/China call for 'integrated' dispute settlement and a US amendment on 'discouraging' unilateral actions outside international trade rules are also bracketed. In paragraph 5 (positive measures), the G-77/China added a reference to transfer of technology. Paragraph 6 (trade measures) was bracketed. In paragraph 7 (regulations and standards), the G-77/China added a reference to economic costs. In paragraph 8 (product-specific policies), the G- 77/China and Malaysia questioned the reference to life-cycle approaches. The discussion continued into the night.

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