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AGENDA ITEM 3(a) — POLICIES AND MEASURES
The Secretariat introduced the document describing policies and measures identified in the national communications from Annex I Parties (FCCC/AGBM/1995/6). The Secretariat said that the synthesized list was prepared on the basis of an examination of the 27 national communications submitted. Over 1000 policies and measures are included. He added that the list was synthesized by sector, with further sub-categories that describe policy objectives and policy instruments used. The list also provides an indication of the number of Annex I Parties that reported on a specific policy or measure in their national communications.
SAMOA, on behalf of AOSIS and supported by CHILE, proposed a coordination mechanism that would create a subsidiary body to provide advice to the Parties and offer a forum for the negotiation of specific economic, administrative and other instruments. He said that regulation of the economically integral activities that emit greenhouse gases will require a coordinated approach, and added that the mechanism would be open to the participation of all Parties. He welcomed the EU proposal on a possible protocol.
JAPAN said that policies and measures should be cost effective, and that the measures should be implemented within a time frame that allows economic development to proceed in a sustainable manner. He stated that a wide variety of possible commitments could be envisaged, but such commitments should not be identical among all Annex I Parties. Regarding implementation, he said that international negotiations on legal instruments should, inter alia, appropriately reflect the principles stipulated by Article 3, and not introduce any new commitments for non-Annex I Parties
The NETHERLANDS stated that a second national memorandum on climate change will be published in January 1996. The memorandum identifies the most promising list of polices and measures, including voluntary agreements aimed at energy efficiency and improved use of new and renewable sources of energy. To narrow the focus of the analysis and assessment, he suggested criteria for selection of policies and measures, including: the potential for effective GHG reduction and for sink enhancement; the significance in addressing other problems and policies concerning globally-oriented industry sectors; and those subject to competitiveness concerns.
GERMANY said policies and measures should be driven by quantified targets in an agreed time frame. Germany's national experience shows targets are necessary for planning by governments and other actors. Delegates must focus on the most promising policies and measures, and that agriculture and forestry are missing from the Secretariat documents. She endorsed the EU proposal for three categories, with at least a small list of mandatory, legally-binding measures. Parties need to do their own analysis and should not overburden the Secretariat with analytical tasks.
ARGENTINA supported inclusion of agricultural measures and "no regrets" policies suggested by the IPCC in a revised list and ultimately in a protocol. Consideration of market forces should not block debate or adherence to the precautionary principle. International coordination of some measures is necessary to deal with competitiveness issues and trade effects. Lessons could be gleaned from deliberations of the World Trade Organization's Committee on Trade and Environment.
MALAYSIA noted the delay in formation of the TAPs will effect the AGBM's analysis work. Non-Annex I Parties do not have the financial or technical ability to analyze 1000 measures. He recommended selection of one or more sectors of policies and measures for analysis of their environmental and economic impacts. Measures in that sector should be prioritized according to their potential and effectiveness. The Annex I Experts' Group review provides a good basis for analysis and assessment.
AUSTRALIA endorsed intergovernmental groups currently developing analyses and assessments. Measures selected should be effective for reducing greenhouse warming, feasible, sustainable and cost effective. They should take account of national circumstances and equitable distribution of costs. The list of 1000 policies and measures should be narrowed, but removal of gases by sinks should be added. The AGBM should rely on the work of the IPCC, IEA, OECD and the Annex I Experts' Group, but should commission new runs of existing models with new parameters, using top-down and bottom-up approaches.
SWITZERLAND said a task force or panel should work in parallel with the AGBM to narrow the list of policies and measures. To account for different national starting points, economic growth, technology, cost effectiveness and equity, different quantitative emission reduction objectives should be assigned to different categories of Annex I countries based on criteria using indicators like per capita emissions, GDP, share of total emissions, and marginal abatement cost. Categorized countries could cluster to share emission reductions and benefits of actions, which could save costs. The Secretariat should develop indicators for objective criteria and options to group countries in categories.
The US said that prematurely specifying individual policies and measures would prejudice the ongoing consideration measures, and added that little consideration has been given to the full range of policies and measures. The list of criteria for selecting policies and measures should include: effectiveness in reducing emissions, cost effectiveness, effect on non-climate objectives, equity, ability to hedge against uncertainty, and impetus to technological progress. The Secretariat should prepare: a report that expands upon the individual effectiveness of each measure, a compilation of proposals on the most effective potential measures and how they would be implemented, and a formal discussion at AGBM 3.
IRAN said imposing the policies and measures of Annex I Parties on non-Annex I Parties will not only transfer resources from developing to developed countries, but will upset the terms of trade. He added that the analysis and assessment process should elaborate specific commitments on technology transfer and suggested raising the price of oil to help lower emissions.
CANADA supported a combined approach to policies and measures and the quantified emission reductions. A protocol must define how the reductions will be accomplished in order to be credible, and the implementation of policies and measures should be linked to the reduction objectives, rather than listed as a "menu." He noted that the AGBM needs to prioritize and narrow the policy options, suggested criteria for selecting policies and measures, and expressed willingness to assist the Secretariat in its work.
NORWAY advocated common emission targets for groups of Parties, such as the OECD, which would be achieved through equitable and appropriate contributions by each of the Parties. This would mean that the emission targets for each of the Parties would be differentiated on the basis of their different starting points and approaches, economic structures and resources. Norway also supported the development of cost-effective, coordinated economic instruments, and proposed that the AGBM review the outline of the Annex I Party Working Group Project, while considering the need for additional projects.
VENEZUELA stated that the need for all policies and measures to be submitted should be assessed for economic, trade and social impacts, that full compliance will require innovative approaches, and that the AGBM should not hastily reject options or measures. Any analysis and assessment on the taxation of coal or other energy sources should be completed by a subsidiary body and examine the effects on the reduction of GHGs.
POLAND said that in light of the broad scope of policies and measures that have already been applied, it is inappropriate to narrow the list of possibilities at this stage. He said the AGBM should agree on quantified targets and supported Switzerland on the use of clear economic and environmental indicators.
NEW ZEALAND stated that all suggested policies and measures should be given proper consideration, supported Canada's list of selection criteria, and suggested the inclusion of coal sequestration techniques and energy market reform. Emission reduction targets should be realistic and the AGBM should be prepared to examine a range of scenarios and consider variations.
SAUDI ARABIA, supporting Poland, stated that simplification should be avoided. The AGBM cannot narrow the policies and measures for implementation without analysis and assessment, and should not rush to judgment.
INDIA noted that there have been hints of opening the present regime of the BM, and reminded delegates that the BM draws its substance from the doctrine of common but differentiated responsibilities. He said the Convention recognized that the share of developing countries' emissions will grow as they take steps to eliminate poverty, and added that analysis and assessment should not become a protracted process.
BURKINA FASO objected to any deletion of subsidies to developing countries or complex tax or other provisions affecting products for developing countries. He suggested including measures for technology transfer and financial support for developing countries.
PERU said criteria should be developed to evaluate policies and measures. Three criteria are that the policies and measures would be: consistent with and targeted at quantified objectives; incorporated into a protocol; and based on international cooperation between Annex I and non-Annex I countries.
The PHILIPPINES, on behalf of the G-77 and China, said the US presentation distracts from the BM's focus on commitments by Annex I Parties. She said because developing countries can not participate in the Annex I common actions group, inputs from other groups or processes must become inputs to the AGBM process.