[A2k] TWN Bali Update: DEBATE ON RUSSIAN PROPOSAL AND VOLUNTARY COMMITMENTS OF DEVELOPING COUNTRIES

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------ Forwarded Message
From: TWN News <news@twnnews.net>
Date: Sun, 09 Dec 2007 21:54:24 -0500
To: TWN Mailing List <news@twnnews.net>
Subject: TWN Bali News Update No. 6

Title : TWN Bali News Update No. 6
 Date : 10 December 2007

 Contents:
TWN BALI NEWS UPDATE  NO. 6

8 December 2007
Published by Third World Network
www.twnside.org.sg

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DEBATE ON RUSSIAN PROPOSAL AND VOLUNTARY COMMITMENTS OF DEVELOPING COUNTRIE=
S

Nusa Dua, Bali, 7 Dec (Meena Raman) =96 Among the topics pushed by develope=
d
countries at the Bali climate conference is how to increase the obligations
or contributions of developing countries in taking action against climate
change.

A major plank of this strategy is to ask developing countries to make
=93voluntary contributions=94. This is the essence of a proposal by Russia,
which was discussed on 5 December under the meeting of the Kyoto Protocol.

The Russian proposal, which is to amend the Kyoto Protocol to include
voluntary commitments by non-Annex I parties to the Convention, had been
first submitted in 2006.  It is opposed by many developing countries, but
supported by many of the developed countries which see it as a vehicle to
get developing countries to increase their commitments for mitigating
climate change.

It is clear from their submissions and statements that developed countries
also want to place the Russian proposal in the topics to be included in
negotiations or continued dialogue expected to be launched at the end of th=
e
Bali conference.

At the second session of the Kyoto Protocol, parties decided that a worksho=
p
be convened to clarify and explore the scope and implications of the
proposal. The Meeting of the Parties (CMP) further invited parties to submi=
t
their views on this matter to the secretariat.

According to the proposal, the existing framework of the UNFCCC and the
Kyoto Protocol (KP) is very strictly regulated and doesn=92t provide for
taking on voluntary commitments by countries to reduce or limit their
greenhouse gases (GHGs) emissions. Apart from the above-mentioned cumbersom=
e
bureaucratic procedures, the UNFCCC and the KP do not contain any reference
to voluntary commitments of countries, their approval and incentives
mechanisms.

It suggested to urgently launch the elaboration of a procedure for adoption
of voluntary commitments, which could prospectively become an element of a
new agreement.

Russia listed possible voluntary commitments which included the following: =
-

=E0) absolute GHGs emission reduction targets: percentage reduction in
relation to a base year in all economic sectors; setting of absolute target=
s
for specific economic sector is also possible.

b) relative GHGs emission reduction targets: more flexible are commitments
based on relative figures (e.g. energy intensity of GDP, carbon intensity o=
f
GDP, energy intensity per capita, and carbon intensity per capita). Such
commitments may be applied either to the whole country or to specified
sectors.

c) commitments based on implementation of national policies and measures:
Development of a national emissions trading system by sector with further
access to the external carbon market; Introduction of a tax or price policy=
,
which promotes energy saving and deployment of new technologies.

d) commitments based on development, deployment and expansion of low-carbon
technologies.

The proposal further stated that the voluntary commitments could be
conditional and unconditional.  For conditional commitments, =93a Party tak=
es
on commitments under the condition that it will be provided with
technologies/financing in order to achieve voluntary targets.=94

In relation to unconditional commitments, =93a Party achieves voluntary
targets using its own resources, and uses the resulting benefits to attain
its own development goals.=94

Russia also proposed that to make a framework for voluntary commitments
effective, it is important to ensure the following:
a. Determination and assessment of voluntary targets.
b. Determination of baselines and verification of the achieved emission
reductions.
c. Approval of appropriate incentives by all the UNFCCC Parties.
d. Approval of the UNFCCC decision package on adoption of the voluntary
commitments.

The proposal also suggested that in the elaboration of new procedures under
the UNFCCC provisions, =93While considering a system for voluntary
commitments, it is necessary to introduce a new differentiation principle
for countries according to the level of their economic development and
national circumstances.=94

In response to the Russian proposal, various government made written
submissions for the consideration of the CMP, in addition to making oral
statements in plenary.

Australia supported the Russian proposal, stating that appropriate
procedures be developed to enable parties to the Kyoto Protocol and the
Convention to adopt voluntary commitments. =93The proposal is consistent wi=
th
Australia=92s view that all major emitters need to be involved in future
action on climate change. It recognized the fact that action by developed
countries alone cannot fulfill the objective of the Convention.

Australia noted the relevance of the Russian proposal to Parties=92 ongoing
discussions on
future action under the Convention and the Protocol.

China in its submissions said that the contents and concepts of the
voluntary commitments proposed by the Russia have already been covered in
Article 4.1 of the UNFCCC and other relevant provisions of the Kyoto
Protocol, and all Parties are implementing their commitments under that
provision.

=93So there is no added value to develop additional procedures for taking
these commitments, said China. Any Party can take whatever policies and
measures it likes to address climate change according to Article 4.1 of the
Convention and other relevant provisions of the Kyoto Protocol.=94

India in its submissions said that the "procedural" and "substantive"
components of the proposal appear to relate to two quite different matters.
=93The "procedural" question relates to the voluntary accession of a non-An=
nex
I party to Annex I (for the purposes of the Kyoto Protocol) and the related
question of determining its quantified emission limitation and reduction
commitments. In contrast, the "substantive" component concerns other
non-Annex I parties.

=93In our view, there is no need to "simplify" procedures for accession to
Annex I (for the purposes of the Kyoto Protocol. It would be sufficient to
clarify the existing provisions. As regards the "substantive" component, ou=
r
view is that the existing provisions of Article 4 of UNFCCC require no
addition or amendment.=94 (Article 4 of the Convention refers to the
commitments of parties).

Japan in its submissions supported the Russian proposal to develop
appropriate procedures for the approval of voluntary commitments for those
Parties that are not included in Annex I of the Convention. =93The proposal
encourages global efforts to stabilize GHG concentrations.=94

On how the proposal should be addressed, Japan submitted that the adding of
Parties to Annex I of the Convention and Annex B of the Protocol by the
amendments of the Convention and the Protocol, as well as the issue of
simplification of those procedures, and the other was the issue of
identifying what should be regarded as voluntary commitments by the parties
that are not included in Annex I of the Convention.

New Zealand submitted that it supported the Russian goal.  It said the
Russian proposal be placed as a new agenda item on the COP and CMP agendas.

The EU submitted that the European Council stressed that international
collective action will be critical in driving an effective, efficient and
equitable response on the scale required facing climate change challenges.

To this end, negotiations on a global and comprehensive post-2012 agreement=
,
which should build upon and broaden the Kyoto Protocol architecture and
provide a fair and flexible framework for the widest possible participation=
,
need to be launched in Bali and completed by 2009. All countries should be
invited to contribute to the efforts under this framework according to thei=
r
common but differentiated responsibilities and respective capabilities.

The EU said that developed countries should continue to take the lead by
committing to collectively reducing their emissions of greenhouse gases in
the order of 30% by 2020 compared to 1990. They should do so also with a
view to collectively reducing their emissions by 60% to 80% by 2050 compare=
d
to 1990.

The EU said the Russian proposal has two components.  The first aims at
simplifying the procedures governing the accession of a party to Annex I.
The second component aims to explore new forms of engagement for Parties no=
t
included in Annex I to the Convention in the collective effort to protect
the climate.

It added that the voluntary actions could be of different types, for exampl=
e
aiming at achieving emission targets, implementing policies and measures, o=
r
promoting technological deployment and would not impose penalties on a non-
Annex I Party for not implementing fully the actions it had proposed.

The EU in its submission said incentives for voluntary contributions would
have to be additional to any existing benefits under the Convention. The
issue of recognizing or providing incentives for voluntary contributions
deserve to be explored further.

It also hinted that Russian proposal should be placed as an issue in the
dialogue or negotiations for a new comprehensive agreement.

South Korea in its submissions supported the Russian proposal.  It suggeste=
d
a variety of different commitments while providing incentives for
commitments. In addition, punitive aspects to the efforts of developing
countries must be avoided.

Several delegations also spoke at the plenary in addition to their
submissions. This included Belarus, Canada, India, Australia, the EU,  New
Zealand, South Korea and Japan.  They made very brief interventions. The EU
said that the Russian proposal should be dealt with seriously and asked for
the proposals to be studied further. Canada and Belarus supported the
Russian proposal.

Saudi Arabia questioned the words =93voluntary commitments=94 which it said=
 was
contradictory, as =93how can commitments be voluntary.=94

In conclusion, Indonesian Minister Rachmat Witoelar as the CMP President
invited Mr. Djismun Kasri of Indonesia to speak with parties on the issue
and provide him with advice on how to proceed on the matter.


G77-CHINA PROPOSE TECHNOLOGY FUND FOR CLIMATE CHANGE

Nusa Dua, Bali, 7 Dec (Hira Jhamtani) --  Developing countries, grouped
under the G77 and China, have proposed at the Bali climate conference that =
a
new multilateral cooperation fund be set to finance the development,
diffusion and transfer of environmentally sound technologies to developing
countries.

This was the highlight of the G77=92s paper on =93Proposed elements for a d=
raft
decision on Development and Transfer of Technologies=94 at the Bali Climate
Conference today.

The paper was presented at a contact group under the Subsidiary Body for
Implementation (SBI) of the United Nations Framework Convention on Climate
Change (UNFCCC) during its 13th session.

The proposal came after G77 and China insisted that the technology transfer
issue is very important to adapt to and mitigate climate change, and
successfully proposed that it be discussed in SBI to ensure that the
commitments of developed countries be implemented.

The paper delivered by Ghana on behalf of G77 and China referred to the fac=
t
that the current institutional, financial and monitoring arrangement under
the Convention are inadequate to deliver immediate and urgent  transfer of
technologies to developing countries.

It proposed to establish a new and additional multilateral technology
cooperation fund to finance the development, deployment, diffusion and
transfer of environmentally sound technologies for mitigation and adaptatio=
n
to developing countries. The funding arrangement will inter alia:

* support implementation of technology needs assessments;
* participate in joint research and development programmes and activities i=
n
developing new technologies;
* conducting demonstration projects;
* establishing enabling environments for technology transfer;
* providing incentives for private sector engagement;
* support North-South and South-South cooperation;
* developing and enhancing endogenous capacities and technologies;
* meeting the agreed incremental costs;
* purchasing licenses to support transfer of low carbon technologies and
infrastructure.
* provide a window for venture capital financing located in a multilateral
financial institution.

The paper also asked Parties, in particular developed countries, to provide
technical and financial assistance to support the implementation of
technology framework, that will be outlined in an annex to be attached to
the decision.

It requested the expert group on technology transfer to develop performance
indicators to support SBI in its review and assessment of the effective
implementation of Articles 4.5 and 4.1(c) of the Convention, for the SBI to
consider at its 13th session.
The proposal does not refer to arrangements about intellectual property
rights (IPR) that have previously been identified by some developing
countries as hampering transfer of technology.
In response to the proposal, Canada said it will first study the paper whil=
e
Japan asked that countries be given opportunity to discuss among themselves
before the next informal meeting. The US said the paper can become one of
the basis for discussion but reminded that other papers that may be
submitted should also be used, a point supported by Canada.

The group will meet again on 8 and 10 December and it will have to finish
its Decision by 11 December.

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