Esther Larrañaga, Minister for Environment and Planning, Government of the Basque Country, Spain, called for greater regional control over climate policies, allowing local specificities to be taken into account. She added that in the age of globalization, regions have an important role to play as they are aware of local realities.

Salvador Mila, Minister for Environment and Housing, Catalonia, Spain, described the Catalan Energy Plan, which intends to decouple growth from energy consumption, noting there are many gains to be achieved, especially in transportation and use of energy-efficient appliances. He described the importance of innovations in sustainable forest management and agriculture in minimizing emissions.

Bert De Wel, Flemish Environment and Nature Council, Belgium, described the participation of civil society in developing a long term strategy for climate change mitigation, including a declaration of intent and shared objectives.

Ernst Christoph Stolper, Sustainable Development Division, Government of North Rhine Westphalia, Germany, elaborated on a policy paper committing regional governments to promote renewable energy and regional instruments capable of enhancing de-carbonization, such as public procurement and education. He demonstrated the information sharing benefits achieved through the introduction of an internet portal.

Edoardo Croci, Bocconi University, Lombardy, Italy, presented the results of a study on the simulated impacts of carbon dioxide emission trading in his region. The model predicted minor emission reductions that may hinder productivity and growth, and cause fuel switching. He called for capacity building for industry on emission trading.

Moreno Muzelli, Tuscany Region, Italy, presented the San Rossore Initiative, aimed at broadening the scope of the EU ETS. He described obstacles currently precluding the participation of medium-sized firms, such as lack of industry awareness and high costs, and outlined the San Rossore Initiative’s actions in that respect.

Steve Drummond, CO₂e, presented a broker’s perspective on emissions trading, noting that price curves associated with emissions permit trading follow a predictable path once supply catches up with an initially greater demand.

Discussion: participants debated the relative merits of permit trading and carbon taxation. One panelist remarked that if a firm’s behavior does not change, the permit trading system may have the consequences of a tax, from the firm’s point of view.

Simon Carter, International Development Research Center, explained that adaptation to climate change consists of people making changes critical to their own development, and provided examples such as mangrove rejuvenation by communities in Cambodia. He then introduced an IISD-TERI project focusing on adaptive policies.

Hank Venema, IISD, described the IISD-TERI project that examines the specific characteristics and mechanisms of adaptive policies and instruments.

Stephan Barg, IISD, noted that an adaptive policy is one that is robust in the face of foreseen circumstances, and adaptable to unforeseen circumstances. He presented a Canadian case study of Crow Rates, a subsidy for grain transportation.

Ulka Kelkar, TERI, outlined changes in India’s crop insurance scheme as an example of adaptive policy.

Agus Sari, Pelangi, Indonesia, emphasized that an adaptive policy has to be process-based and bottom-up driven.

Frank Pinto, UNDP, noted some of the GEF adaptation activities, and highlighted that greater recognition has been accorded to adaptation at this COP.

Discussion: participants discussed the need for an adaptation regime within the convention that can link with national actions.

Malek Kabariti, National Energy Research Center, described the Trans-Mediterranean Renewable Energy Cooperation (TREC) as an important step towards a sustainable and peaceful world, using wind, hydro, biomass and geothermal energy optimization between Europe, north Africa and the near east.

Anwar Noaman, Ministry of Water and Environment, Republic of Yemen, discussed renewable energy potential in his country and recommended the establishment of a regional center for sustainable development.

Faouzi Senhaji, Research Group on Energy and Environment (GERER), described ongoing renewable energy development in Morocco, highlighting a solar energy project currently under CDM validation, which provided photovoltaic electricity to 110,000 houses.

Khaled Irani, Minister of Environment, Jordan, emphasized the potential of renewable energy in north Africa and the near east region, noting on-the-ground projects related to environmental, social and economic development. He encouraged regional and international cooperation in the field of renewable energy.