EARTH NEGOTIATIONS BULLETIN PUBLISHED BY THE INTERNATIONAL INSTITUTE FOR SUSTAINABLE DEVELOPMENT (IISD) WRITTEN AND EDITED BY: Chad Carpenter, LL.M. Peter Doran Kira Schmidt Lynn Wagner Editor Pamela Chasek, Ph.D. Managing Editor Langston James Goree VI "Kimo" Vol. 5 No. 81 Friday, 25 April 1997 CSD-5 HIGHLIGHTS THURSDAY, 24 APRIL 1997 CSD-5 delegates met in Plenary, two Drafting Groups and numerous informal groups throughout the "last" full day of negotiations. During a brief Plenary, CSD Chair Mostafa Tolba updated delegates on the negotiations and said they could not leave the UN until they reached agreement on almost everything. DRAFTING GROUP I SECTORS AND ISSUES: On 39 (natural disasters), delegates agreed, inter alia, to the need for capacity-building for disaster planning and management (AUSTRALIA) in developing countries and economies in transition (RUSSIA). Delegates agreed to a separate paragraph on man-made disasters using revised UKRAINE text. On 24 (introduction), the G-77/CHINA added health, desertification and water as issues of widespread concern. On 25 (freshwater), the EU said the freshwater initiative should be viewed as a joint concern and proposed that the CSD take early action. The G-77/CHINA supported early action in the CSD or a world conference and said developed countries must remove their "embargo" on references to financial resources. The US reiterated that financial issues should be addressed in chapters on finance. On 25(c) (management), delegates called for continued participation of local communities, particularly women, in water resource management (G-77/CHINA). On 25(h) (international watercourses), CANADA, supported by the US, the EU and SWITZERLAND, proposed to develop "and protect" international watercourses. The G-77/CHINA objected. Delegates agreed to "sustainable utilization and protection thereof." On assisting developing countries to implement relevant agreements in 26 (oceans), the US, supported by the MARSHALL ISLANDS, ICELAND, AOSIS, PAPUA NEW GUINEA and JAMAICA, replaced "to secure fair access to marine resources" with "to participate effectively in the sustainable use, conservation and management of their fishery resources." The G-77/CHINA objected and bracketed the text. In 26(e) (overfishing), NORWAY proposed "adoption of management measures and mechanisms to ensure" sustainable management and utilization of fishery resources. On 28 (energy), the US, CANADA and AUSTRALIA proposed deleting G-77/CHINA text on finance for capacity development and transfer of technology. The G-77/CHINA objected. An EU proposal for a high-level CSD forum on environment and energy to prepare an upcoming CSD session dedicated to establishing a common strategy for a sustainable energy future was not supported by the US, CANADA, AUSTRALIA and the G-77/CHINA. CANADA’s alternative formulation, calling for expert meetings to prepare an upcoming CSD session devoted to discussing a framework for future consideration of energy issues, was supported by several delegations. The EU proposed bracketing both options. In 28(c) (renewables), the US, CANADA and the EU deleted a G-77/CHINA call for "time-bound commitments" for technology transfer. The G-77/CHINA objected. On a revised 28(e), which encourages movement towards energy pricing that better reflects economic, social and environmental costs and benefits, including reduction and gradual elimination of energy subsidies inhibiting sustainable development, taking into account specific conditions of developing countries, the G-77/CHINA said developing countries are not exempted clearly enough. ASSESSMENT OF PROGRESS SINCE UNCED: On 2 (globalization), the EU emphasized that globalization is more an opportunity than a threat. The US noted the range of developing countries and the "widening gap" is between the developed and least developed countries. The G-77/CHINA stressed the need to link globalization to environmental and development goals. BELARUS emphasized the needs of countries with economies in transition. On 3 (effects of globalization), the G-77/CHINA proposed that international political factors have contributed to the deterioration of social services in some developing countries. The US, supported by the EU, found the concept too "conspiratorial." The EU added a reference to "worsening social and environmental" conditions. The G-77/CHINA proposed deleting a reference on expecting a stabilization of population in the middle of the next century. On 4 (global environmental trends), the EU and the US objected to G-77/CHINA text noting that overemphasis on the environment would undermine development. JAPAN proposed deleting text on depletion of renewable resources. In 7 (major groups), a reference to indigenous "people/peoples" remains bracketed. PAPUA NEW GUINEA replaced EU-proposed text on limited participation of women with a call for more opportunities for women to participate as equal partners in all sectors of the economy. On 8 (agreements since UNCED), delegates disagreed on references to the GEF. On 9 (Rio Principles), the CHAIR, supported by the EU, proposed text noting that progress has been made toward incorporating the Rio Principles, including common but differentiated responsibilities (which forms the basis of international cooperation (G-77/CHINA)), the precautionary principle and the polluter pays principle (EU) into international legal instruments. On 9bis (implementation), delegates accepted text on implementing UNCED commitments through international law, but bracketed G-77/CHINA references to technology transfer and financial resources. On 12 (means of implementation), the EU and the US accepted G- 77/CHINA text stressing that the provision of adequate and predictable financial resources and transfer of ESTs are critical for Agenda 21 implementation. In 13 (ODA), delegates agreed that most developed countries have still not reached the UN target, reaffirmed "by most countries" at UNCED. CANADA’s 13bis (domestic efforts to increase resource mobilization and expansion of private flows) and 14 (debt) were bracketed pending decisions on related text in Drafting Group II. On 15 (technology transfer), the G-77/CHINA emphasized that technology does not automatically flow South and most developing countries have been left out. The EU and US stressed that developing countries have not always created favorable conditions to attract technology transfer. Delegates continued into the night. DRAFTING GROUP II MEANS OF IMPLEMENTATION: On the role of private capital in developing countries, delegations called for: mobilization of private investment (G-77/CHINA); macroeconomic stability, open trade and investment policies, well functioning legal and financial systems (EU); regulatory frameworks and incentives (G- 77/CHINA); policies and measures (CHAIR and G-77/CHINA); and ODA donor and multilateral development bank support. On 47 (external debt), delegations: acknowledge that external debt continues to "hamper" the sustainable development efforts of [many] (EU) developing countries; call for "equitable," comprehensive (G- 77/CHINA), development-oriented and durable [sustainable development-oriented] (US) solutions for the poorest and heavily indebted countries. The G-77/CHINA proposed that the World Bank and IMF collaborate with UNCTAD and the UN Secretariat on a comprehensive study on the relationship between indebtedness and sustainable development. CANADA preferred "further collaboration." The US bracketed the amended text. In 48 (domestic mobilization of resources), the G-77/CHINA preferred a general reference to fiscal and monetary policies and did not want the text directed at developing countries only. The US and the EU stressed the paragraph’s importance. The revised text notes: financing for implementation of Agenda 21 will come from countries’ own public and private sectors (G- 77/CHINA); policies could include sound macroeconomic reforms, including fiscal and monetary reforms, review and reform of subsidies, promotion of personal savings and access to credit; and such policies should be decided by each country taking into account its characteristics, especially as reflected in national sustainable development strategies, where they exist (US). On 49 (subsidies), delegations called for further research to identify and "consider the phasing out" (NORWAY) of subsidies that have market distorting, "socially" (G-77/CHINA) "and" (EU) environmentally damaging impacts. The US and CANADA preferred to delete the principle of common but differentiated responsibilities, which was bracketed. A reference to taking account of conditions "particularly in developing countries" (G- 77/CHINA) was also bracketed. On 50 (economic instruments), delegations called for information on economic instruments and pilot schemes [as appropriate] to, inter alia, demonstrate their best use [while avoiding or minimizing adverse impacts] (US) [on terms of trade and trade competitiveness] (G-77/CHINA) [particularly on developing countries] (CHAIR). A NORWAY amendment commends, inter alia, environmental taxes. In 52 (UNCED agreements), the reformulated text notes: developing countries need greater access to ESTs to meet their UNCED obligations (CHAIR); there is an urgent need to fulfill the [commitments](G-77/CHINA) [objectives](EU) in Chapter 34; current forms of cooperation should be built upon and expanded (CANADA); barriers and restrictions to transfer should be identified (G-77/CHINA); and progress in this regard should be regularly reviewed by the CSD (G-77/CHINA). The EU said barriers to transfer have been identified and the CHAIR suggested calling for their reduction. The G-77/CHINA stressed the need to identify the barriers. In 53 (governments’ role), the US said the G-77/CHINA’s proposal, noting a government role given that technology transfer to developing countries cannot be confined to market forces alone, should be "subject to IPR." The amended proposal was bracketed. On 54 (enabling environment for EST transfer), the G-77/CHINA agreed to, ad referendum, a call for the facilitation of the transfer of privately owned technology on concessional terms as mutually agreed. On 56 (public-private partnerships), the EU called for a conducive legal and policy framework. CANADA called for a "continuing" role for multilateral development banks and international development institutions (US). In a G-77/CHINA proposal regarding the creation of regional centers for technology transfer, AUSTRALIA said UNEP is establishing similar centers. Delegates called for cooperation of UN bodies for this purpose, as appropriate. On 57 (business linkages), the US included a role for multilateral development banks and international development institutions alongside governments. NORWAY added support for cleaner production. On 58 (South-South cooperation), a G- 77/CHINA amendment calls on interested donor countries and international organizations to support trilateral arrangements and contribute to the UN Voluntary Trust Fund for South-South Cooperation. A new 58bis (US) prioritizes technology needs assessment to assist identification of technology transfer projects and capacity-building activities, with environmental technology assessment. On 59 (global electronic information and telecommunications), a G-77/CHINA amendment calls for enhanced developing country capacity. JAPAN will re-draft a paragraph on information and communications technology and alleviating environmental impacts. Delegates continued into the night. INFORMAL CONSULTATIONS Informal consultations took place on a number of issues. On institutional arrangements, outstanding issues considered included: the role of the CSD within ECOSOC; IDA and GEF replenishment; reviews by and among countries within regions; and modalities to ensure greater participation of major groups’ institutions and networks. The group considering the programme of work and draft decision on streamlining national reports was to meet after 10:00 pm. Informal group discussions on an EU freshwater proposal met mid-day and were expected to continue during the night. Delegates also held informal consultations on energy and toxic chemicals and hazardous waste issues. THINGS TO LOOK FOR TODAY PLENARY AND DRAFTING GROUPS: Delegates are expected to complete their consultations and approve the CSD-5 report. Conference Rooms 1 and 2 are reserved for the morning and Conference Room 1 for the afternoon. This issue of the Earth Negotiations Bulletin is written and edited by Chad Carpenter, LL.M. , Peter Doran , Kira Schmidt and Lynn Wagner . The Editor is Pamela Chasek, Ph.D. and the Managing Editor is Langston James "Kimo" Goree VI . French translation by Mongi Gadhoum . The sustaining donors of the Bulletin are the International Institute for Sustainable Development and the Netherlands Ministry for Development Cooperation. General support for the Bulletin during 1997 is provided by the Overseas Development Administration (ODA) of the United Kingdom, the Ministry of Foreign Affairs of Denmark, the Ministry of Environment of Sweden and the Swiss Federal Office of the Environment. Specific funding for coverage of this meeting has been provided by the Ministry of Foreign Affairs of Norway. Funding for the French version has been provided by ACCT/IEPF with support from the French Ministry of Cooperation and the Department of Environment of Quebec. The ENB can be contacted at tel: +1-212-644-0204; fax: +1-212-644-0206. 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