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About this deal

The following report describes the discussions held in the resumed AGBM-8, the COP-3 Plenary, the High-Level Segment and the COW, and includes an article-by-article description of the Kyoto Protocol. emissions based on fuel sold to ships or aircraft engaged in international transport should not be included in national totals, but reported separately; and AGBM-4, held from 8-19 July 1996 during the Second Conference of the Parties (COP-2) in Geneva, completed its in-depth analyses of the likely elements of a protocol or another legal instrument, and appeared ready to move forward to the preparation of a negotiating text. Most of the discussions dealt with approaches to policies and measures, QELROs, and an assessment of the likely impact of new commitments for Annex I Parties on developing countries. Upon the conclusion of COP-2, delegates noted the "Geneva Declaration," which endorsed the Intergovernmental Panel on Climate Change (IPCC) conclusions and called for legally binding objectives and significant reductions in GHG emissions. COP-2 also saw a significant shift in position by the US, which for the first time supported a legally binding agreement to fulfill the Berlin Mandate. However, even as Parties prepared to strengthen commitments, COP-2 highlighted the sharpest differences between them. In the final Plenary of the COW, KUWAIT proposed deleting subparagraphs on reduction and phasing out of market imperfections and subsidies and on controlling transport sector emissions. The Chair said there was no consensus for the deletions and the article was adopted. VENEZUELA, SAUDI ARABIA and KUWAIT objected to adopting incomplete rules. ARGENTINA and the Alliance of Small Island States (AOSIS) supported the draft decision. The EU supported the draft decision but suggested that rule 22 was already agreed. The President called for consultations and said the COP would continue to apply the draft rules except rule 42.

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At the 5 October COP Plenary, Estrada noted that agreements on sinks and coverage were necessary before QELROs could be defined. During the 6 October COW, the RUSSIAN FEDERATION said the nature of the issue's resolution would determine his view of the protocol. The US said the text might not be resolved until calculations regarding targets had been completed. Paragraphs 5 and 6 indicate that in the event of failure by the Parties to reach such an agreement to achieve their combined level of emissions reductions, each Party to such an agreement shall be responsible for its own level of emissions. There should be a sink category called "land use change and forestry" (LUCF), not to be considered for the establishment of QELROs in the first budget period, but for which the IPCC should improve methodologies geared to their inclusion during the second budget period. The COP took several other actions during the week. Several documents were noted: activities related to technical and financial support (FCCC/CP/1997/INF.3); a report on the second meeting of AGBM-8 (FCCC/AGBM/1997/8/Add.1); and administrative and financial matters (FCCC/CP/1997/INF.1), including the 1998-99 biennial programme budget.

Memes

FCCC Executive Secretary Michael Zammit Cutajar commented on the remarkable nature of the Conference given the media interest and the scale of the UN Internet broadcast, which have focused world attention on Kyoto. He said the Zen practice of breaking through mental boundaries provided a good theme for the days ahead when negotiators would have to break through the tendency to consider the short-term costs while neglecting the long-term economic opportunities. The final text on Article 12 defines the clean development mechanism (CDM). Its purpose is to assist non-Annex I Parties in achieving sustainable development and contributing to the FCCC objective, and to assist Annex I Parties in achieving QELROs. Non-Annex I Parties will benefit from project activities resulting in certified emission reductions, and Annex I Parties may use the certified reductions "to contribute to compliance with part of their" QELROs, as determined by the MOP. Delegates next considered reports from the FCCC subsidiary bodies. Tibor Farag (Hungary) introduced the report and draft decisions of the Subsidiary Body on Scientific and Technological Advice (SBSTA) (FCCC/SBSTA/1997/14). Delegates noted the report of SBSTA and adopted its draft decisions on cooperation with the Intergovernmental Panel on Climate Change (IPCC) and the development of observational networks. Joint SBSTA/SBI draft decisions were adopted on the development and transfer of technology and activities implemented jointly (AIJ). Upon adjourning, the Chair said that the rapporteur should summarize the day's session for COP-3, noting that he had planned to add conclusions to the AGBM report but no conclusions had been reached.

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The Chair of the informal group on sinks, Antonio La Via, (Philippines) reported that the group had worked on a proposal containing the following four options: AGBM-5, which met in Geneva from 9-18 December 1996, considered proposals from 14 Parties or groups of Parties regarding strengthening of commitments, advancing the implementation of Article 4.1, and possible elements of a protocol or another legal instrument. Delegates adopted conclusions that requested the Secretariat to produce a "framework compilation" of proposals for further consideration. authorization of legal entities under a Party's responsibility to participate in generation, transfer, or acquisition of ERUs; and Article 11 describes financial resources, noting that Parties shall take into account FCCC Articles 4.4-4.9 in implementing Protocol Article 10. It states that Annex II Parties' shall, in accordance with FCCC Articles 4.3 and 11, and through the FCCC financial mechanism: provide new and additional financial resources to meet agreed full costs incurred by developing country Parties in advancing commitments in Protocol paragraph 10(a); and also provide financial resources needed by developing country Parties to meet full incremental costs of activities in Article 10, including technology transfer. Implementation of existing commitments shall take into account the need for adequacy and predictability in the flow of funds. The article also permits provision of financial resources through bilateral, regional and other multilateral channels.

District B13

In the Kyoto Protocol, Parties in Annex I of the FCCC agreed to commitments with a view to reducing their overall emissions of six greenhouse gases (GHGs) by at least 5% below 1990 levels between 2008 and 2012. The protocol also establishes emissions trading, joint implementation between developed countries, and a "clean development mechanism" to encourage joint emissions reduction projects between developed and developing countries. Following further discussion, delegates agreed to Article 13, which states that the COP shall serve as the Protocol's MOP. Parties to the Convention that are not Parties to the Protocol may participate as observers in the proceedings. Decisions will be taken only by Parties to the Protocol. The COP shall perform the functions assigned to it by the Protocol and shall, inter alia, assess implementation, examine obligations and seek to mobilize additional financial resources. In the final Plenary, delegates adopted a draft decision on methodological issues related to the protocol (FCCC/CP/1997/L.5). It reaffirms that: ARTICLES 14 AND 15: These articles were agreed in the negotiating group on I&Ms. Under 14 (Secretariat) and 15 (Subsidiary Bodies), the FCCC Secretariat and Subsidiary Bodies will also serve the Protocol. Kinza Clodumar, President of Nauru, called the willful destruction of small island States with foreknowledge an "unspeakable crime against humanity." He said solving the problem requires more than stabilization of GHGs. He noted US President Clinton's pledge for significant future reductions and called for an announcement on this from Vice President Gore.

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