Issue #4 ENB on the side - UNFCCC SB-16 PUBLISHED BY THE INTERNATIONAL INSTITUTE FOR SUSTAINABLE DEVELOPMENT (IISD) in cooperation with the UNFCCC Secretariat Written by: Dagmar Lohan Kira Schmidt Editor: Kira Schmidt Digital Editors: David Fernau Andrei Henry Leila Mead Diego Noguera Managing Director: Langston James Goree VI "Kimo" Issue #4 Thursday, 13 June 2002 The WWW version of ENB on the side (with photos), can be found at http://enb.iisd.org/climate/sb16/enbots/ Events convened on Wednesday, 12 June Title: Methodological assessment of contributions to climate change Presented by the UNFCCC Secretariat and the Brazilian delegation Dennis Tirpak, UNFCCC Secretariat, explained that this event aimed to inform participants about progress made in developing methodologies for assessing the contributions of different greenhouse gas (GHG) sources to climate change. He noted that the Secretariat has promoted information sharing on this issue by inviting Parties to involve research institutions in the assessment process, establishing a web page, designating a focal point for technical questions, and organizing a workshop to be held in September 2002. The workshop's objectives include assessing comparable results on the contributions of various GHG sources to climate change, broadening participation, building scientific understanding, and identifying next steps. Tirpak noted that most institutions currently participating in the assessment process are from developed countries, and urged participants from developing countries to get their scientists involved. Sarah Raper, University of East Anglia, explained that general questions considered in the information-sharing process relate to: the feasibility and limits of calculating the contribution of various sources of GHG emissions to climate change; the influence of methodological choices when calculating contributions to climate change; and the identification of critical scientific issues, including the choice of historical data sets of GHG, GHG precursor and aerosol emissions and the treatment of uncertainties involved in the calculations. Raper said that as part of the modeling exercise's second phase, changes in GHG concentration and temperature are being calculated using an agreed set of parameters, and the sensitivity of results from a simple model analyzed. Gylvan Meira, Brazil, noted that carbon dioxide (CO2) sinks have become more saturated since the Industrial Revolution and therefore take up less excess CO2. He explained that the assessment should result in the identification of methods to determine the contribution of specific sources of emissions to climate change, underscoring that these methods are not designed to determine historical responsibilities. He expressed confidence that material for the September 2002 workshop would soon be produced and that the exercise would continue beyond the workshop. He reiterated the importance of involving developing country institutions, and offered to make data available to Brazilian modeling groups. Discussion: Participants discussed potential uses of the methodologies, including determining responsibilities for GHG emissions, improving education about climate change, and building capacity. It was noted that the upcoming workshop's results would be submitted to SBSTA-17. More information: http://unfccc.int/issues/ccc.html Contact: Dennis Tirpak Sarah Raper Gylvan Meira Title: Establishing National Authorities for the CDM: A Guide for Developing Countries Presented by the International Institute for Sustainable Development (IISD) John Drexhage, IISD, introduced the launch of the new publication, Establishing National Authorities for the CDM: A Guide for Developing Countries, which was produced by IISD in collaboration with the Center for Sustainable Development in the Americas (CSDA) and the Climate Change Knowledge Network, and funded by Canada's CDM & JI Office in the Department of Foreign Affairs and International Trade (DFAIT). Kok Kee Chow, Malaysia, welcomed the publication, noting that it translates the technical language of the CDM rules into more comprehensible terms. He stressed that the establishment of national authorities is an important next step in the CDM, and emphasized that national institutional arrangements should be simple. Mamadou Honadia, Burkina Faso, encouraged sponsors to support the translation of the guide into other languages, stressing that it would be extremely useful to African countries hoping to host CDM activities in setting up the necessary institutional framework. Eduardo Sanhueza, Chile, welcomed the book as a helpful guide to using the CDM in ways that are appropriate for both international and domestic requirements. He highlighted its usefulness particularly with regard to the significant responsibilities of host countries in the CDM and the need to consider various agreements between Chile and other countries when discussing investment in Chile, including in CDM projects. Sushma Gera, DFAIT, underscored the importance of helping developing countries in establishing national authorities and learning from those countries that have already done so. She stressed the need to build capacity in developing countries to assess project proposals and develop criteria to ensure that projects contribute to sustainable development. Helena Olivas, CSDA, emphasized that the purpose of the guide was to assist developing countries in establishing their national authorities for the CDM. She explained that the guide: describes the operation of the CDM; outlines the steps in creating a national authority; highlights the functions of national authorities, including CDM project evaluation and approval, capacity building for CDM project development, and marketing of CDM projects; and describes the types of CDM projects that could be designed. The guide also contains annexes that provide a sample of national criteria for submission of projects and sample formats for a Project Idea Note, Project Concept Note, and Project Design Document. In terms of follow up, she noted that CSDA and IISD are seeking funding for the translation of the guide into Spanish and French, and plan to develop four capacity-building workshops in Africa to discuss next steps in establishing national authorities. Discussion: In the ensuing discussion, participants highlighted, inter alia: Colombia's experience with establishing its national authority; the importance of public participation in the entire CDM project cycle, particularly in the elaboration of sustainable development criteria, to ensure that projects contribute to sustainable development; the replicability of models from other countries versus the need for national authorities to be catered to specific national conditions; the utility of learning from the weaknesses as well as the strengths of Latin American experiences; and the need to ensure that the appropriate legal structures are in place to implement international rules in specific national contexts. More information: http://www.cckn.net/pdf/cdm_national_authorities.pdf Contact: John Drexhage Kok Kee Chow Mamadou Honadia Eduardo Sanhueza Sushma Gera Helena Olivas Title: Potent industrial greenhouse gases: Climate and ozone policy at the crossroads Presented by Climate Action Network (CAN) Jason Anderson, CAN-Europe, presented the CAN report, Ozone and Climate at the Crossroads: The Other Double Phase-out. He explained that the first phase-out refers to the Montreal Protocol's required phase-out of chlorofluorocarbons (CFCs) to hydrochlorofluorocarbons (HCFCs), which in turn are slated for phase-out to hydrofluorocarbons (HFCs). He noted that the trade- offs between ozone-depleting substances (ODS) and HFCs were never considered, and consideration of global warming was not incorporated into decision making in the Montreal Protocol, despite the massive global warming potential of HFCs. He explained that the use of HFCs is expanding rapidly and will make an increasingly significant contribution to global warming in the absence of mitigation measures. He stressed the need for international measures to: incorporate consideration of global warming into projects under the Montreal Protocol's Multilateral Fund (MLF); incorporate a presumption against the use of fluorine- containing gases ("f-gases") into activities promoted by the UNFCCC and the Montreal Protocol; foster cooperation between the UNFCCC and the Montreal Protocol to facilitate additional funding, technology transfer and capacity building for HFC alternatives; and assist developing countries in moving away from HFCs. Chris Rose, Multi-sectoral Initiative on Potent Industrial Greenhouse Gases (MIPIGGs), presented a MIPIGGs report that aims to draw attention to the rapidly growing threat posed by f-gases. He noted that despite the frequent implication that f-gases are being contained, new factories are being built to manufacture HFCs, and atmospheric concentrations are rising rapidly. He stated that large amounts of public money have been channeled to promote HFCs through the MLF, with no mention that HFCs are significant GHGs. He suggested that UNEP took a wrong turn in promoting HFCs as the solution to CFCs, and called on UNEP to actively promote alternatives and bring the Montreal Protocol into line with climate protection. He emphasized the need for governments to intervene in order to, inter alia, stop the construction of new HFC plants, set phase-out dates, and require the systematic use of HFC alternatives. János Maté, Greenpeace International, highlighted the availability of HFC-free cooling technologies, particularly Greenfreeze, a hydrocarbon developed by Greenpeace that is incorporated in nearly 80 million refrigerators around the world. He described Greenpeace's success in encouraging numerous companies to utilize hydrocarbon-based equipment, including cooling systems, commercial refrigeration, and mobile air conditioning. He outlined Greenpeace's recommendations to the fluorocarbon industry to, inter alia: end the promotion of potent GHG substitutes such as HFCs to replace ODS; support market penetration of non- fluorocarbon-based technologies to replace CFCs and HCFCs; cease lobbying for the adoption of international standards to prohibit the use of fluorocarbon alternatives; agree to a global cap on HFC production and emissions levels; and pay full reparations for health and environmental damages resulting from HFC use. More information: http://www.climnet.org http://www.mipiggs.org http://www.greenpeace.org/~ozone/ Contact: Jason Anderson Chris Rose János Maté Title: Capacity-building needs and green investment schemes in Russia Presented by the Energy Carbon Facility (ECF) Marina Martynova, ECF, explained that an official position adopted by several businesses on the Kyoto Protocol notes that, inter alia: ratification is a necessary step in implementing market reforms and sustainable development; investments in JI projects can be developed through bilateral agreements prior to the Protocol's entry into force; and a Russian Emissions Market Group with representatives of large emitters, the government and NGOs should be established. Martynova explained that the ECF is a non-commercial investment environmental organization whose aim is to support the energy sector's environmentally friendly development by using market- based mechanisms to reduce GHG emissions. To this end, ECF raises awareness within the government, NGOs and the private sector, and builds capacity to prepare Russia's entry into the carbon market by: negotiating the Kyoto Protocol mechanisms on behalf of the Russian Federation; building partnerships with corporate and financial institutions; and convening meetings of large GHG emitters to discuss the development of a Russian carbon market. Martynova emphasized that a Green Investment Scheme (GIS) considered under the Kyoto Protocol should not: centralize the sale of Russian assigned amount units (AAUs); subsidize inefficient sectors; undermine the role of potential Russian market players; nor be the exclusive mechanism for the sale of Russian AAUs. Instead, it should stimulate GHG emissions reductions by the private sector, strengthen the regulatory role of the Russian Government and the role of Russian companies in GHG markets; and promote market-based mechanisms for solving environmental problems. Frank Joshua, Natsource, expressed concern regarding proposals for centralized trading under the GIS, noting that adopting economic models that have failed in the past is neither in Russia's nor in Kyoto Protocol Parties' best interest. He proposed instead to hold Russia to the same standards, rules, procedures and mechanisms as other Annex I Parties, and said it should be possible to devise a trading system that involves corporations as traders under rules and regulations designed and enforced by governments. He emphasized that failure to involve corporations in the trading system will make efforts to ensure that they reduce emissions difficult, and suggested that market returns will be maximized by involving as many players as possible in the market. Annie Petsonk, Environmental Defense, stated that re-investment of proceeds gained from emissions trading can generate further emissions reductions, highlighting the additional emissions reductions achieved through emissions trading between Niagara Mohawk, a US-based energy company, and the Canada-based Suncor Energy. She noted that minimum requirements for emissions trade transactions identified by Environmental Defense include robust emissions inventories, monitoring and reporting, clear targets, and transparent mechanisms for re-investing proceeds. More information: http://www.rao-ees.ru/en http://www.natsource.com http://www.environmentaldefense.org Contact: Marina Martynova Frank Joshua Annie Petsonk 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. This issue has been written by Dagmar Lohan and Kira Schmidt . The Digital Editors are David Fernau , Andrei Henry , Leila Mead and Diego Noguera . Funding for publication of ENB on the side at UNFCCC SB-16 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 . Electronic versions of issues of ENB on the side from UNFCCC SB-16 can be found on the Linkages website at http://enb.iisd.org/climate/sb16/enbots/.