ENB on the side
published by IISD, the International Institute for Sustainable Development
in cooperation with the Climate Change Secretariat

Special Report on Selected Side Events at UNFCCC COP-10

6 - 17 December 2004 | Buenos Aires, Argentina

Daily Web Coverage & Daily Reports:

6 December 2004

7 December 2004

8 December 2004

9 December 2004

10 December 2004

11 December 2004

13 December 2004

14 December 2004

15 December 2004

16 December 2004

17 December 2004

Brief Analysis



Events convened on Friday, 10 December 2004

New National Communications: Presentations by Brazil and China 

Presented by the Governments of Brazil and China

Joke Waller-Hunter, UNFCCC Executive Secretary, underscored Brazil’s leadership regarding biofuels and the fact that Brazil hosts the first registered CDM project, and emphasized that China has succeeded in reducing its energy intensity by an annual average of 5.3% between 1980 and 2000

Everton Vargas, Brazilian Ministry of Foreign Affairs, opened the ceremony and said that Brazil officially approved its Initial National Communication on 8 December 2004, stressing the importance Brazil attaches to climate change. He emphasized that the first registered CDM project is located in Brazil.

Amb. Gao Feng, Chinese Ministry of Foreign Affairs, said the joint event on National Communications is a sign of positive collaboration between the two countries, noting the potential for mutual learning within various fields. He said the National Communication together with the entry into force of the Kyoto Protocol will help mainstream the topic of climate change in his country.

Joke Waller-Hunter, UNFCCC Executive Secretary, noted that COP-10 celebrates the 10th anniversary of the UNFCCC and the forthcoming entry into force of the Kyoto Protocol, as well as the National Communications of Brazil and China. She congratulated the two countries for having reached this landmark, noting that National Communications reflect a broad national policy process. She underscored Brazil’s leadership regarding biofuels and the fact that Brazil hosts the first registered CDM project, and emphasized that China has succeeded in reducing its energy

intensity by an annual average of 5.3% between 1980 and 2000. Hunter expressed her hope that the two countries will continue being leaders in the UNFCCC process.

José Miguez, Ministry of Science and Technology of Brazil, presented highlights of the Brazilian Initial National Communication, which involved 700 experts from 150 institutions and was initiated in 1994. He said carbon dioxide emissions were estimated at 1093 terra grams in 1994, mainly from the Land-Use and Forestry sector, which accounted for 75% of the emissions, followed by the energy sector with 23%.
Paulo Capobianco, Brazil’s Ministry of the Environment, reviewed the measures adopted by Brazil regarding deforestation, noting that Brazil has observed an average deforestation rate of 16.5% since 1990. He said an inter-ministerial working group was set up in 2003 to launch a plan of action to prevent and control deforestation in the Brazilian Amazon.

Gao Guangsheng, Chinese State Development Planning Commission, said the Chinese Initial National Communication followed UNFCCC Guidelines and is the result of a three-year process that involved over 400 experts.

Ma Aimin, Chinese Office to National Climate Change Coordination Committee, presented the Chinese Initial National Communication, noting that the GHG inventory for 1994 comprises 2.6 billion tons of carbon dioxide, 34.29 million tons of methane, and 0.85 million tons of nitrogen oxide. He said possible impacts of climate change include shrinking mountain glaciers, increased agricultural production costs, and the submersion of areas in South China due to a rise in sea levels. Aimin emphasized that, while the national communication process is time consuming and resource demanding, it results in high quality data, and noted that capacity building is an important part of the process.

Everton Vargas, Brazilian Ministry of Foreign Affairs and Amb. Gao Feng, Chinese Ministry of Foreign Affairs, handed over the Initial National Communication of their countries to Joke Waller-Hunter, UNFCCC Executive Secretary

Disaster reduction and climate change – opportunities for synergy

Presented by the International Strategy for Disaster Reduction (ISDR)

Madeleen Helmer, Red Cross/Red Crescent Climate Centre, stressed that climate risk reduction provides a basis for cooperation between humanitarian and environmental actors and that climate risk reduction strategies should be embedded in ongoing programmes

Amb. Michael Zammit Cutajar, Malta, stressed the need to invest in increasing communities’ resilience to natural disasters. Noting that poverty is the ultimate vulnerability, he underscored the importance of adopting poverty reduction strategies.

Madeleen Helmer, Red Cross/Red Crescent Climate Centre, gave an overview of activities aiming at integrating climate risks in community-based disaster reduction. She stressed the need to both understand hazards and address vulnerability and risk, noting that disaster management is not only about relief activities, but also preparedness and mitigation. Helmer said successful management is based on local skills and resources, and briefly outlined the Red Cross/Red Crescent’s efforts in Nicaragua and Viet Nam.

Ian Noble, World Bank, presented the activities of the Vulnerability Adaptation Resource Group (VARG), an informal group of 18 bilateral and multilateral agencies. He outlined the main conclusions of its report “Poverty and Climate Change,” including the need to integrate climate change responses with hazard reduction management and operate within

the development agenda. He reviewed similarities and differences between hazard risk management and adaptation to climate change, noting that a lack of understanding of the benefits of integration, funding and institutional silos represent obstacles to linking these issues.

Svein Tveitdal, UNEP, said at least 200 million people are affected by natural disasters annually, 97% of whom live in developing countries. He gave an overview of UNEP’s activities aimed at increasing synergies between disaster reduction and climate change, including gathering of statistics and a financial initiative with Munich Re. Stressing that an investment of US$1 in preparedness would save US$6 in the costs of recovery and reconstruction following disasters, he underscored the importance of focusing on adaptive capacity and prevention.

John Harding, ISDR, reviewed recent priorities for disaster risk reduction, which will be addressed at the World Conference on Disaster Reduction in Kobe, Japan, from 18-22 January 2005. He said the Kobe Conference aims to, inter alia: conclude the review of the implementation of the Yokohama Strategy and Plan of Action; facilitate implementation of the objectives of the World Summit on Sustainable Development and the Millennium Development Goals; and share information on good practices, shortcomings and obstacles. He briefly outlined the Conference’s thematic areas including governance, education and awareness raising, preparedness and risk identification, assessment, monitoring and early warning.

Climate witnesses challenge decision makers in industrial countries

Presented by the World Wildlife Fund (WWF)

Penina Moce, Fiji, said drought induced by climate change had caused soil erosion, pest invasions and crop disruption in her village in Fiji

Jennifer Morgan, WWF, announced the launch of the WWF Climate Witness Programme, which seeks to raise awareness of climate change impacts. She said WWF benefits from input from scientists, establishes partnerships with other organizations, and engages communities through surveys, interviews and public education. Morgan then invited four witnesses to tell their stories in order to assist politicians in recognizing the urgent need for action.

Osvaldo Bonino, Argentina, showed a video recounting the impacts of climate change in the Santa Fe province of Argentina, where increased rainfall raised the water levels in a lagoon, flooding agricultural fields and railways, and causing widespread socioeconomic disruption.

Penina Moce, Fiji, reviewed the problems encountered by her village community in Fiji. Noting that her village depends exclusively on rainfall for water supply, she said the dry season has extended in recent years

and her island has suffered from rapid soil erosion, drought, pest infestation, crop destruction and coral bleaching.

Anil Krishna Misry, India, discussed the impacts of climate change on his island in West Bengal. Noting that summers are getting longer and drier, he said many villagers have lost their land due to rising sea levels and droughts. A short film further illustrated local problems, including socioeconomic difficulties, disruption of mangrove ecosystems and loss of species caused by increased freshwater salinity resulting from sea level rise.

Norbu Sherpa, Nepal, recounted his personal experience with climate change impacts. He said glaciers in the Himalaya Mountains are melting rapidly, and noted that a glacial lake had burst and flooded his village, causing his family to lose everything they owned. He called on the international community to take action, and said climate change policy is about people and their livelihoods.

Jennifer Morgan <morgan@wwf.de>

Designing future international actions on climate change

Presented by the Center for Clean Air Policy (CCAP)

Ned Helme, CCAP, indicated that senior negotiators from 30 countries are involved in CCAP’s work on options for the post-2012 policy framework

Ned Helme, CCAP, discussed sectoral options for a post-2012 climate policy framework. Comparing a sectoral approach to the current country-based approach under the Kyoto Protocol, he said targeting individual sectors would be easier, allow countries to gain experience incrementally, and avoid transfers of industrial activities from developed to developing countries. Regarding disadvantages, he noted that a sectoral approach would be less cost effective, and warned against the possibility of “emissions leakage” outside covered sectors.

Jake Schmidt, CCAP, discussed five possible designs for a sectoral system based on: emissions growth cap; target of emissions per unit of industrial output; sector benchmarks; sector policy credit generation; and cross-national policy harmonization. He said key questions include: which sectors should be included; whether rules should be binding; how reduction targets should be set; and how a sectoral approach should 

relate to the CDM.

In a panel discussion, Fernando Tudela, Mexico’s Ministry of Environment and Natural Resources, said the policy framework of the Kyoto Protocol is not replicable in the developing world, and that sector differentiation is indispensable for any program for future action, noting that, in some sectors, certain developing countries are more energy efficient than some developed countries.

Jürgen Lefevere, European Commission, highlighted the challenges of preventing emissions leakage outside sectors, addressing cross-sectoral compatibility, and integrating the sectoral approach with the country-based approach. He said concerns with global competitiveness are greater obstacles than policy costs.

Discussion: Participants said a sectoral approach may be applied within particular regions, and suggested that lessons may be drawn from sectoral approaches in the shipping and aviation industries. It was noted that commitments must be binding on business, and that industrial associations must be liable in national courts. Lefevere said incentives for participation are essential for implementation, noting that climate policies provide business opportunities. Highlighting a lack of information and awareness among companies regarding policies, Lefevere also said governments have a major role in stimulating market mechanisms and can capitalize on business concerns about global competitiveness. One participant said the emergence of a sectoral approach on the policy horizon could create uncertainty and undermine current policies on CDM.


Ned Helme <nhelme@ccap.org>
Jake Schmidt <jschmidt@ccap.org>
Fernando Tudela <ftudela@semarnat.gob.mx>

CDM in Latin America: A way already paved for investments

Presented by the Government of Peru

Christiana Figueres, CAF, emphasized the stability of the Latin American market for CDM investment

Maria Teresa Szaur, Andean Corporation of Promotion (CAF), indicated that the Latin American region has seen a growth and strengthening of both the CDM market and the capacity to engage in CDM projects, with the creation of a robust regional institutional framework.

Christiana Figueres, CAF, noted that Latin America has demonstrated political leadership in the climate regime, with nearly all Latin American countries having ratified the UNFCCC and the Kyoto Protocol. She said Latin America is a leader in CDM projects, and outlined a number of reasons. First, she highlighted the robust CDM project portfolio in Latin America, in terms of quantity, quality and diversity. She also emphasized the expertise in developing and implementing CDM projects, and highlighted involvement of the private sector. Indicating that strong institutional backing for CDM mitigates risk, she stressed that the comprehensive coverage of Designated National Authorities (DNAs), local

verification and certification services, and the activities of the regional development bank all reduce transaction costs for CDM projects in Latin America. Figueres highlighted the contribution of the CDM to sustainable development in Latin America, identifying social and economic benefits, and stressed that Latin America has the capacity to participate in a climate regime beyond 2012.

Discussion: Participants considered how to resolve potential conflicts of interest between the public and private sectors, and stressed the importance of engaging all sectors and including CDM in national development strategies. A participant highlighted the major contribution of transport to GHG emissions, and questioned why the transport sector has been overlooked when developing CDM projects. Another participant enquired as to whether hydrofluorocarbon projects could be anticipated in Latin America, and representatives from Latin American DNAs indicated that none were expected. Figueres said funding for DNAs came from public sources, revenues from fees for project evaluation and international cooperation. A participant suggested that the experience vested in Latin American DNAs could be communicated to funding institutions in order to build their capacity to engage in CDM project development. The need to ensure the quality of project proposals in order to attract investors was stressed.

More information:


Jorge Barrigh <jbarrigh@caf.com>
Francesco Sucre <fsucre@caf.com>

Climate friendly technologies: Roles of the government, business and the finance sector

Presented by the International Center for Environmental Technology Transfer (ICETT)

Margaret Martin, EGTT, highlighted the importance of risk management and mobilizing private capital for technology transfer.

Toshi Sakamoto, Climate Technology Initiative (CTI), introduced the CTI, indicating that it is a multilateral initiative aimed at facilitating the transfer of climate technologies.

Elmer Holt, CTI, stressed the importance of partnerships, private sector engagement, enabling environments and targeted capacity building in promoting technology transfer.

Margaret Martin, Chair of the Expert Group on Technology Transfer (EGTT), reported on the EGGT workshop on innovative financing options for technology transfer held in Montreal, Canada, from 27-29 September 2004. She stressed the facilitating role of partnerships and the need for enabling environments.

Terry Carrington, CTI, reported on a workshop on technology diffusion held in Jakarta, Indonesia, on 4-5 February 2004, indicating that the

workshop had examined the current energy situation, renewable energy, possibilities for regional cooperation, governance, financial barriers and the CDM.

Morihiro Kurushima, CTI, stressed that CTI works with government and financial institutions to provide a “tool box for energy and the environment.”

Kishan Kumarsingh, EGTT, highlighted the need to develop enabling environments in developed countries to facilitate technology transfer, such as providing financial incentives.

Larisa Dobriansky, US Department of Energy, noted that mobilizing private sector investment for technology transfer requires clear, transparent and predictable regulations.

Andrej Kranjc, Slovenia’s Ministry of Environment and Spatial Planning, identified three pillars for technology transfer, namely financing, an enabling environment and the coordinating role of governments.

Nick Campbell, International Chamber of Commerce, stressed that technology transfer is ”alive and well” in the private sector, emphasizing that private companies are always seeking new markets.

Patricia Garffer, US Agency for International Development, introduced the US Climate Technology Cooperation Gateway website, which provides climate technology information in an accessible format for business and other stakeholders.

Discussion: Participants considered whether the EGTT should provide information on the adaptation of technologies for small island developing States. They role of business in diffusing climate technology to support the goals of the UNFCCC, stressing the importance of certainty.


Toshi Sakamoto <sakamoto-toshiyuki@meti.go.jp>
Elmer Holt <elmer.holt@hq.doe.gov>
Margaret Martin <memartin@nrcan.gc.ca>
Terry Carrington <terry.carrington@dti.gsi.gov.uk
Morihiro Kurushima <altene@eu-japan.gr.jp>
Kishan Kumarsingh <kkumarsingh@ema.co.tt>
Larisa Dobriansky <larisa.dobriansky@hq.doe.gov>
Andrej Kranjc <andrej.kranjc@gov.si>
Nick Campbell <nick.campbell@arkemagroup.com>
Patricia Garffer <pgarffer@usaid.gov

Legal aspects of carbon in the implementation of CDM afforestation, reforestation projects

Presented by the World Conservation Union (IUCN)

Juan Rodrigo Walsh, Fundacion Vida Silvester Argentina/WWF, indicated that the market is awaiting clarification of rules on CDM sink projects before taking action.

Heiner von Luepke, Food and Agricultural Organization of the United Nations, presented a study on national regulations concerning CDM projects in the forestry sector. He said there is pressure to find national legal frameworks before the first Kyoto commitment period starts, and outlined regulatory options including market mechanisms, subsidies, command and control legislation and information systems.

Maria Socorro Manguiat, IUCN, identified additionality, the right to Certified Emission Reductions (CERs) and environmental and socioeconomic standards as the most pressing legal challenges to national regulation regarding CDM sink projects. She said legal reform may not be the best solution to address these issues in the short term.
Juan Rodrigo Walsh, Fundacion Vida Silvester Argentina/WWF, outlined the legal and institutional framework for CDM in Argentina. He said environmental laws make public consultations a mandatory part of the CDM approval process, and noted that the fiduciary mechanism, a specific property right in Argentina’s Civil Code, could be useful for CDM

sink projects. He emphasized that economic and political stability are more important for CDM projects than legal reform, and said improved coordination between federal and provincial authorities is needed. He said the additionality of CDM sink projects is difficult to demonstrate in Chile because the forestry sector is well established.

Discussion: Participants discussed ways of sharing benefits from CDM sink projects with local communities. They said while there is no single rule, options include straight payments, CERs, trust funds, specific investment into the community, and splitting the proceeds between investors and landowners. Manguiat noted that projects with clear synergies with the Convention on Biological Diversity and the UN Convention to Combat Desertification might not be eligible under the CDM because of additionality criteria. Participants noted that the additionality requirement may also discourage countries from setting new environmental standards, but recognized that “the additionality tool” by the CDM Executive Board has addressed some of these problems. Participants suggested that the current definition of forests may be problematic for the additionality of CDM sink projects in countries with tropical forests. Walsh said while countries can decide to nationalize the right to carbon, it is unclear whether this policy yields benefits.


Heiner Von Luepke <heiner.vonluepke@fao.org>
Maria Socorro Manguiat <maria.manguiat@iucn.org>
Juan Rodrigo Walsh <rodrigowalsh@arnet.com.ar>

Mainstreaming mitigation and adaptation into German development cooperation – examples from the GTZ

Presented by the Government of Germany

Kerstin Dietrich, GTZ, referred to the publication “South-North Dialogue on Equity in the Greenhouse,” a proposal to develop an adequate and equitable global climate agreement.

Kerstin Dietrich, Gesellschaft für Technische Zusammenarbeit (GTZ), outlined the climate protection policy of Germany, noting that it is based on the principle of decoupling of economic growth and GHG emissions, through improving energy efficiency and renewable energy systems.

R.K. Sethi, Indian Ministry of Environment and Forests, overviewed CDM activities in India, underscoring auspicious factors for CDM projects in his country, including a strong economy and business community, skilled CDM consultants, and a well-established legal system. Noting that the CDM approval process is normally completed within 60 days, he said 37 Indian projects had received host country approval to date.

Pamposh Bhat, CDM-India, presented the Indo-German Bilateral Programme to institutionalize CDM by building capacity of public and private actors to foster high quality CDM projects. She emphasized that CDM-India aims to work in full cooperation with the Indian DNA

and cooperates with large Indian companies developing CDM projects.

Elisabeth Mausolf, GTZ, explained GTZ’s adaptation policy, which is based on a holistic approach that tries to mainstream adaptation to climate change into the activities of the German Development Cooperation. She said priority sectors include water resources, agriculture, terrestrial ecosystems, coastal zones, human settlements and health. Mausolf outlined GTZ’s country initiative in Mali, emphasizing, inter alia, the importance of a multi-stakeholder approach, communication among stakeholders, improvement of the agro-meteorological service, and measures against soil erosion.

Robert Dilger, GTZ, spoke on climate change in Nicaragua and the GTZ Sustainable Resource Management Program, which will build on existing projects and comprises policy assessment, land use planning and development of entrepreneurial skills.

Liana Bratasida, Indonesia’s Ministry of Environment, said her country ratified the Kyoto Protocol in October 2004, and the DNA is about to be formalized.


Kerstin Dietrich <kerstin.dietrich@gtz.de>
R.K. Sethi <rksethi@mnef.delhi.nic.in>
Pamposh Bhat <pbhat@cdmindia.com>
Elisabeth Mausolf <elisabeth.mausolf@gtz.de>
Robert Dilger <robert.dilger@gtz.de>
Liana Bratasida <ib@menlh.go.id>

Watch the UNFCCC webcast of Side Events




The Earth Negotiations Bulletin on the side (ENBOTS) � <enb@iisd.org> 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. This issue has been written by Rado Dimitrov, Ph.D., Catherine Ganzleben, D.Phil., Kati Kulovesi, Charlotte Salpin, and Christoph Sutter, Ph.D. The photographer is Leila Mead. The Digital Editor is Diego Noguera. The Director of IISD Reporting Services is Langston James “Kimo” Goree VI <kimo@iisd.org>. Funding for the publication of ENBOTS at UNFCCC COP-10 is provided by the UNFCCC Secretariat. The opinions expressed in ENBOTS are those of the authors and do not necessarily reflect the views of IISD and funders. Excerpts from ENBOTS may be used in non-commercial publications only with appropriate academic citation. For permission to use this material in commercial publications, contact the Director of IISD Reporting Services at <kimo@iisd.org>. Electronic versions of issues of ENBOTS from COP-10 can be found on the Linkages website at http://enb.iisd.org/climate/cop10/enbots/. The ENBOTS Team at COP-10 can be contacted at Pabell�n 9 and by e-mail at <charlotte@iisd.org>.





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