EARTH NEGOTIATIONS BULLETIN PUBLISHED BY THE INTERNATIONAL INSTITUTE FOR SUSTAINABLE DEVELOPMENT (IISD) WRITTEN AND EDITED BY: Chad Carpenter, LL.M. Anja Janz Marybeth Long Silke Speier Editor Pamela Chasek, Ph.D. Managing Editor Langston James Goree VI "Kimo" Vol. 12 No. 44 Friday, 7 March 1997 HIGHLIGHTS FROM THE SIXTH SESSION OF THE AD HOC GROUP ON THE BERLIN MANDATE THURSDAY, 6 MARCH 1997 Delegates to the sixth session of the Ad Hoc Group on the Berlin Mandate (AGBM-6) considered a draft proposal submitted by the Chair on policies and measures (P&Ms). They commented on the organization and form of the proposal, but did not engage in substantive debate. AGBM also received the report of the non- group on elements related to advancing the implementation of existing commitments in Article 4.1. The Subsidiary Body for Implementation (SBI) reconvened to conclude its work on the review of the financial mechanism. STRENGTHENING THE COMMITMENTS IN ARTICLE 4.2 (a) and (b) - POLICIES AND MEASURES The Chair presented his draft conclusions on policies and measures (P&Ms), which represent a streamlined version of Section II of the Framework Compilation on strengthening the commitments in Article 4.2 (a) and (b). The draft conclusions contain four elements: proposals regarding policies and measures; general proposals; proposals relevant to the nature and mix of policies and measures; and lists of policies and measures. “Proposals regarding policies and measures," address: adoption of coordinated P&Ms; preparation of National Action Plans; national and regional programmes for climate change mitigation and protection; and enhancement of sinks and reservoirs. Some of the entries refer to P&Ms with different priority levels, while others cite specific items such as removal of coal subsidies, technology development and transfer and promotion of renewable energy sources. “General proposals” would support: identification of environmental and socio-economic impacts of P&Ms; compatibility between P&Ms and national development programmes; and cost effective P&Ms. Some entries in “Proposals relevant to the nature and mix of policies and measures,” call for individual, rather than coordinated fulfillment of commitments and protection for developing countries, especially oil producing states. The section on “Lists of policies and measures” begins with a proposal from the Chair that contains three lists regarding: policy objectives for all Annex I Parties; possible mechanisms for implementation of P&Ms and a menu of P&Ms from which Parties could choose according to their national circumstances. The Chair’s proposal is followed by entries from several countries including Canada, the EU, Switzerland and Japan. Each entry contains specific P&Ms. The Chair said some Parties have submitted “negative” proposals, which note that they object to inclusion of specific issues. He proposed including a general chapeau noting their objections and said that all ideas retained in the negotiating text do not have to be included in the Protocol. The proposal also contains several symbols and letters and the Chair said values would be attributed to them in future sessions. IRAN inquired about the possibility of elaborating on each proposal. The Chair noted that other proposals could be submitted later and asked delegates to refrain from making substantive statements. POLAND requested that each reference to a new Annex specify which Parties will be included. NEW ZEALAND deleted its proposal calling for compulsory phasing out of fossil fuel subsidies. The G-77/CHINA noted its intention to submit a proposal on P&Ms. The EU requested that certain P&Ms from its proposed list also be noted in the Chair’s proposed list of P&Ms. The EU said it would submit “List C,” containing P&Ms to be given priority by Parties listed in Annex X as appropriate to national circumstances. The RUSSIAN FEDERATION requested retaining its proposals; one which states that a protocol or another legal instrument should not change or replace statements of the Convention, including its principles, and one which states that Parties to the protocol are guided by principles of the Convention. Delegates also commented on the Framework Compilation (FCCC/AGBM/1997/2 and Add.1). The EU deleted several paragraphs submitted by its member states because these submissions were superseded by the common EU proposal. The Chair noted that a section on education, training and public awareness included in the Addendum would also be included in the negotiating text. CONTINUING TO ADVANCE THE IMPLEMENTATION OF EXISTING COMMITMENTS IN ARTICLE 4.1 Chair Evans King (Trinidad and Tobago) then presented a report from the non-group on “Continuing to advance the implementation of existing commitments in Article 4.1.” He said that the group held two meetings in which a collegial atmosphere facilitated frank dialogue. Discussions led to a streamlined text with narrative sections and allowed proposal authors to see how other countries viewed their proposals. The report contains a streamlined text of the section in the Framework Compilation on continuing to advance the implementation of existing commitments in Article 4.1. It consists of proposals requesting all Parties, inter alia, to implement programmes containing measures to address emissions by sources and removals by sinks of all gases. It states that the process will reaffirm and continue to advance implementation of commitments in Article 4.1 and will not introduce any new commitments for non-Annex 1 Parties. Non-Annex I Parties’ implementation of Article 4.1 is contingent upon developed country Parties fulfilling commitments related to financial resources and technology transfer for: systematic observation and research; assessment at the national level of economic and social impacts of climate change and of various response strategies; national education and training programmes; integrated plans for management of coastal zones, water resources, agriculture, conservation and enhancement of sinks; data for initial national communications; and formulation, implementation, publication and updating of programmes containing measures addressing climate change. The necessary resources for the implementation of these activities are to be provided by the operating entity of the financial mechanism. The report also contains proposals requesting all Parties to: regularly update national programmes that include P&Ms for increasing energy efficiency and improving the transport sector and industrial process efficiency; provide annual greenhouse gas inventory data on the basis of IPCC compatible methodologies; and make available to the COP strategies for mitigating climate change and national inventories of technology needs. Proposals included in the report would also require Parties to: foster bilateral, regional and global cooperation for: development of national inventories and indicators; development, application and diffusion of technologies; voluntary participation in AIJ; participation in the work of international bodies and programmes on climate change mitigation and adaptation; strengthening of legal and institutional frameworks; investment in climate- friendly technologies; and reporting on public education and participation. Proposals would also require that in-depth reviews of Annex I Parties’ communications include a formal opportunity for other Parties to ask questions. Parties proposed that non-Annex A or Annex B Parties would submit to the secretariat: annual inventories of greenhouse gas emissions; measures implemented; and quantified effects of actual and potential measures. Proposals would also require that all Parties establish a process for reviewing communications. ELECTION OF SBSTA OFFICERS The Chair then announced that progress was made on the election of officers other than the Chair for SBSTA. MOROCCO, on behalf of the African group, reported the following nominees: Mr. Soobaraj Nayroo Sok Appadu (Mauritius) as the Vice-chair of SBSTA and Mr. Alvaro Jose Rodriguez (Colombia) as Rapporteur. JAMAICA thanked the African group for this offer and requested that it be recorded. SBSTA Chair Tibor Farago noted that the official election would take place during the next SBSTA session. SUBSIDIARY BODY FOR IMPLEMENTATION SBI Vice-Chair Jose Romero (Switzerland) reconvened SBI-5 to finish its work from the previous week. He presented the draft conclusions of the informal group on financial and technical cooperation chaired by Manuel Dengo (Costa Rica). On review of the financial mechanism, SBI welcomed new information provided at this session, including the report prepared by the GEF (FCCC/SBI/1997/2) and two workshops conducted by the GEF. The conclusions also note that the Parties requested additional time for review of this information. SBI also noted that information from other sources, including Parties, would be particularly important for facilitating a fully informed review. SBI added that the report of the UNGA Special Session would be of interest for reviewing the GEF. SBI agreed to guidelines on the review process, invited Parties to submit views on the financial mechanism by 15 May 1997 and requested the secretariat to prepare a compilation and synthesis report of the submissions for SBI-6. SBI also highlighted the need for full replenishment of the GEF. The proposed guidelines note objectives, methodology and criteria for the review. The objectives will be to review the financial mechanism and to take appropriate measures regarding its: conformity with Article 11 of the Convention; conformity with the COP’s guidance; effectiveness in implementing the Convention and in providing financial resources on a grant or concessional basis, including the transfer of technology; and effectiveness in providing resources to developing country Parties under Article 4.3. Under methodology, the review shall draw upon the following sources of information: information provided by Parties on their experiences regarding the financial mechanism; annual reviews by the COP on how the financial mechanism’s activities conform with the COP’s guidance; the GEF’s annual report to the COP; reports from the GEF monitoring and evaluation programme; reports from the Commission on Sustainable Development and relevant bilateral and multilateral funding institutions; and relevant information provided by the other intergovernmental and non-governmental organizations. Under criteria, the effectiveness of the financial mechanism will be assessed taking into account the following: transparency of decision-making processes; adequacy, predictability and timely disbursement of funds for activities in developing country Parties; responsiveness and efficiency of the GEF project cycle and expedited procedures, including its operational strategy; amount of resources provided to developing country Parties, including financing for technical assistance and investment projects; amount of finance leveraged; and sustainability of funded projects. SBI also took note of the information on relevant action by the Council of the Global Environment Facility contained in document FCCC/SBI/1997/Misc.3 and requested the secretariat to provide subsequent SBI sessions with such information as it becomes available. The Vice-chair thanked delegates for their participation and adjourned SBI-6 IN THE CORRIDORS Score cards for AGBM-6 were mixed going into its final day. Some participants expressed frustration that new text still contains some widely divergent views and were underwhelmed at the state of play two sessions prior to Kyoto. Others noted that the session simply met their expectations. Although a number of participants were critical of the specifics within the EU proposal, many praised the EU for adding momentum to the process. One person observed that only a few Parties had tabled proposals for QELROS so far, but noted that the game is not over yet . THINGS TO LOOK FOR TODAY AGBM: AGBM will meet at 10:00 am in Plenary I to complete its work. This issue of the Earth Negotiations Bulletin is written and edited by Chad Carpenter, LL.M. , Anja Janz , Marybeth Long and Silke Speier. The Editor is Pamela Chasek, Ph.D. and the Managing Editor is Langston James Kimo Goree VI . The sustaining donor of the Bulletin is the International Institute for Sustainable Development . General support for the Bulletin for 1997 is provided by the Overseas Development Administration (ODA) of the United Kingdom, the Ministry of Foreign Affairs of Denmark and the Swiss Federal Office of the Environment. Partial support for coverage of this meeting has been provided by the UNFCCC secretariat. The authors can be contacted at their electronic mail addresses or at tel: +1-212-644-0204; fax: +1-212-644-0206. ˙IISD can be contacted at 161 Portage Avenue East, 6th Floor, Winnipeg, Manitoba R3B 0Y4, Canada; tel: +1-204-958-7700; fax: +1-204-958-7710. The opinions expressed in Earth Negotiations Bulletin are those of the authors and do not necessarily reflect the views of IISD and other funders. Excerpts from the Earth Negotiations Bulletin may be used in other publications with appropriate citation. Electronic versions of the Bulletin are sent to e-mail distribution lists (ASCII and PDF format) and through the Linkages WWW-server at . 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