INTER-MINISTERIAL DIALOGUEON CLIMATE CHANGE

Cape HotelMonrovia, Liberia24-26 June 2009

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PROJECT CONTEXT

Bhujang Dharmaji, UNDP

Goals • Development of national policy options to address climate

change in key sectors

• Increased capacity to co-ordinate negotiating positions at

national level and participate in the UNFCCC process

Outcomes1. National awareness raised with capacity development

programme

2. Investment and financial (I&F) flows assessed for up to 3 key sectors

3. Web-based knowledge platform launched

Project goals & outcomes

Pre-workshop

preparation (2 months)

• Key line ministries engaged

• Key sectors identified

• National issues papers prepared

National workshop

on Bali Action Plan,

national issues

National workshop on:

Bali Action Plan

• Adaptation, mitigation, technology transfer, financing + LULUCF

Key sectors

Assessment of I&F flows to address CC mitigation/adaptation options for up to 3 key economic sectors (6-8 months)

Training on I&FF flows starts this phase

UNDP methodology on assessing I&F flows

Backstopping from regional centres of excellence

National workshop to present

results, policy

options

• Update on Bali Action Plan negotiations

• I&F flows assessments presented

• Post-2012 preparation

Sequencing of national activities

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I&FF assessment What are the adaptation/ mitigation options for up to 3 sectors

selected in the next 25 years? Who is investing in the sector / major players and sources? How I&FF are estimated to happen in next 25 years? What shifts/increase in I&FF will be needed in the sector? What will be the overall needs for additional I&FF?

I&FF work

3 Main guides Work Plan Guidance Methodological guidance Reporting guidance

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Guidance documents I&FF training & workplan development (3 days in-country with regional centre of excellence) Regional center of excellence technical backstopping (20 days) Knowledge platform – with “communities” to

exchange information

UNDP support

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I&FF team

Sector 1 Team, e.g. energy mitigation

Sector 2 Team, e.g. agriculture

adaptation

Sector 3 Team, e.g. water adaptation

Project Focal Point

Sectoral team leader Sectoral team leader Sectoral team leader

Mitigation expert(s)

Energy expert(s)

Finance expert(s)

Economic/statistics expert(s)

NGO/academic expert(s)

Private sector expert(s)

Adaptation expert(s)

Agriculture expert(s)

Finance expert(s)

Economic/statistics expert(s)

NGO/academic expert(s)

Private sector expert(s)

Adaptation expert(s)

Water expert(s)

Finance expert(s)

Economic/statistics expert(s)

NGO/academic expert(s)

Private sector expert(s)

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Establish the I&FF team Assess methodological capacities and needs Assess information availability and needs Agree the institutional arrangements Develop the overall programme of work and budget

Preparation stage (1- 2 months)

Implementation stage (5-6 months)

Reporting (~1 month)

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OVERVIEW OF THE BALI ROAD MAP

George Manful, UNEP/GEF

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Climate Change Convention initially focused on mitigation (1992)

Convention objective

Achieve stabilization of greenhouse gas

concentrations in the atmosphere at a

low enough level to prevent “dangerous

anthropogenic Interference” with the climate system

• Allow ecosystems to adapt naturally to climate change;

• Ensure food production is not threatened; and

• Enable economic development to proceed sustainably

within timeframe

sufficient to

No Binding Targets: UNFCCC signed by 191 Parties

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The Convention clusters countries in three groups

“Common, but differentiated responsibilities”

Industrialised countries &

Economies in Transition (EITs)

• Adopt policies and measures with aim of reducing GHG emissions to 1990 levels

• EITs have “flexibility” in commitments

Annex I

Industrialised countries

• Provide financial resources to enable developing countries to meet the costs of implementing measures

• Promote technology transfer to EITs and non-Annex I Parties

Annex II

Developing countries

• No quantitative obligations

• Least Developed Countries given special consideration

Non-Annex I

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Kyoto Protocol - adopted 1997, entered into force 2005, 184 parties

• International agreement linked to the United Nations Framework Convention on Climate Change

• Binding targets for 37 industrialized countries and the European community to reduce greenhouse gas (GHG) emissions

• Principle of “common but differentiated responsibilities”

• Emissions trading – known as “the carbon market”• Clean development mechanism (CDM)• Joint implementation (JI)

The Kyoto Mechanisms

• By the end of the first commitment period of the Kyoto Protocol in 2012, a new international framework needs to have been negotiated and ratified

The road ahead

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Structure of the Convention

Conference of the Parties (COP) to the

Convention

Subsidiary Body for

Implementation (SBI)

Subsidiary Body for Scientific and Technological

Advice (SBSTA)

Consultative Group of Experts on National

Communications (CGE)

Least Developed Countries Expert

Group (LEG)

Permanent subsidiary

bodies

Expert bodies, special bodies

Expert Group on Technology

Transfer (EGTT)

Bureau of the COP

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Structure of the Kyoto Protocol

Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol

(CMP)

Subsidiary Body for

Implementation (SBI)

Subsidiary Body for Scientific and

Technological Advice (SBSTA)

CDM Executive Boards

Adaptation Fund Board

Permanent subsidiary

bodies

Expert bodies, special bodies

Bureau of COP/MOP

Joint Implementation

Advisory Committee

Compliance Committee

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Bali Road Map – important outcomes

• Set deadline of COP-15 (Copenhagen), 2009

• Recognition that actions to address climate change intimately linked to economic growth and sustainable development goals and needs.

• Breakthrough in international policy -- shared vision of common efforts by both developed and developing countries (long-term global goal for emission reductions under Bali Action Plan)

• Bali Action Plan: Centres on four building blocks – adaptation mitigation, technology and financing

• Timetable to agree new emission reduction targets for Annex I Parties under Kyoto Protocol by 2009

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Bali Road Map - Breakthrough

Bali Action Plan (launched in 2007)

Process to be conducted under a new Subsidiary Body (AWG-LCA)

Focused on four “building blocks”:

• Mitigation

• Adaptation

• Technology development and transfer

• Financial resources and investment

Another critical issue is “reducing emissions from deforestation and degradation” (REDD)

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Bali Road Map – two tracks

Kyoto Protocol “track” (launched in 2005)

• Agree on further quantified developed countries emission reduction targets by 2009

• Discussions on ranges – IPCC - 450 ppm CO2-eq, GHG emissions would need to be reduced for about 25 to 40 % by 2020 compared to 1990.

• Means to achieve targets: mechanisms (CDM, AIJ, ET), national policies, accounting issues, role of LULUCF, include other gases, etc.

Process to be conducted under a new Subsidiary Body (AWG-KP)

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Results from climate talks in Bonn, June 2009 (AWG-LCA 6,)

Main objective: to discuss text prepared by Chair, based on proposals submitted by Parties (FCCC/AWG/LCA/2009/8)

Amended text will be prepared for consideration at next session in August

• “Measurable, Reportable, Verifiable” should only apply to actions enabled by financial, technological and capacity building support by developed countries

• Need to further work on text relating to registries and to the support and accreditation mechanisms

• REDD-plus should play an important role regarding Nationally Appropriate Mitigation Actions for developing countries. REDD-plus activities should receive appropriate support • Some countries stressed the need to reflect local, ancestral and

indigenous knowledge, especially for adaptation. • Public financing essential for adaptation technologies• Convergence in the establishment of at least an adaptation and a

mitigation fund, which could be complemented by market mechanisms

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BALI ACTION PLAN BUILDING BLOCK

ADAPTATIONMadeleine Diouf-Sarr, Senegal

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• Adaptation is not a new process

• As climate change become more evident, some ecosystems (e.g.: ecosystems) will not have sufficient time to adapt

• United Nations recognize the need for countries to take immediate actions (National Positions)

What we know

Adaptation: Initiatives and measures to reduce the vulnerability of natural and human systems against actual or expected climate change effects (IPCC)

Some important aspects related to adaptation

Vulnerability: the degree to which a system is unable to cope with the

Definition

adverse effects of climate change, climate variability and extreme events

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• The identification of measures and its implementation is a complicated process that presents challenges

• Will require adjustments across every aspect of society, environment & economy (i.e.: substantial financing)

• Not stand-alone issue: linked to economic development, poverty reduction, disaster management

• Requires capacity for short- and long-term planning

• Adequate institutional arrangements (systematic planning, co-operation, and regulatory frameworks)

Key challenges in adaptation

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• Initial focus of negotiations from 1995 was mitigation

Evolution of international negotiations

• Adaptation identified as issue at COP-7 in 2001 (Marrakesh Accords)• LDC Fund, Special Climate Change Fund, Adaptation

Fund• Created NAPA process and LDC Expert Group (LEG)• Identified 14 adaptation activities needing support

• COP 10 to 12 (2004 to 2006)

• Buenos Aires Programme of Action on Adaptation and Response Measures

• Nairobi Work Programme• Implementation measures on methods, activities,

technology transfer and financing

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Key issues under the Bali Action Plan

Four discussion topics identified:

Key challenges

1. National planning for adaptation2. Streamlining and scaling up of financial & technological

support3. Enhanced knowledge sharing4. Institutional frameworks for adaptation

• Current level of funding• Experience of developing countries in accessing funds• Need for additional financial flows in future

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Negotiations on adaptation issues in Bonn, June 2009

A comprehensive, action-oriented Adaptation Framework shall be established to support:

Key challenges

(a) Implementation of adaptation actions included in national adaptation plans

(b) Means of implementation, including finance, technology and capacity-building

(c) Risk reduction, management and sharing, including insurance and addressing loss and damages

• Experience of developing countries in accessing funds• Need for substantial additional financial flows

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KNOWLEDGE PLATFORM ON CLIMATE CHANGE

Bhujang Dharmaji, UNDP

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Web-based knowledge platform http://www.undpcc.org/

• This website is for use in the project

• Created because work under project (I&FF assessment, international negotiations) needs input from many people

• Every country has a public page and a private group

• All workshop and I&FF materials posted, plus updates on the negotiations

• Your participation is welcomed!

Knowledge platform

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Knowledge platformPublic space - Join the climate community here

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Member space – individual groups for each country

Knowledge platform

Space for country teams to meet, share documents, update each other

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The library – search for documents and submit your documents

Knowledge platform

You can search after title, author, year, keywords…

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BALI ACTION PLAN BUILDING BLOCK

MITIGATION

Detlfof Von Oertzen, Namibia

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What we know

• Human activity is contributing to climate change and all sectors will be impacted

• ALL countries must reduce emissions to avoid worst damages, developed and developing countries

• Significant technological progress made, but annual investment of $200-210 billion needed by 2030

• Forests and land use will be part of the solution

Mitigation: In the context of climate change, a human intervention to reduce the sources or enhance the sinks of greenhouse gases.

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Key issues under the Bali Action Plan

• MRV implies support for technology, finance, and capacity building for developing countries

• Developed countries must make commitments and take actions

• International agreement will be major challenge

Bali Action Plan calls to identify mitigation actions that are:

• Measurable• Reportable MRV• Verifiable

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At issue:

• One priority for developing countries in Bali was that all developed countries, including the US, take on QELROs.

• Comparability: how to bring Convention and Kyoto Protocol tracks together

• “Common but differentiated responsibilities”

• Outcome differs depending on: which GHGs, which sources, time frame, scale (national vs per capita emissions)

• How to match mitigation actions by developing countries with support from developed countries

Key challenges under the Bali Action Plan

Mitigation is highly contentious issue in negotiations, in danger of remaining blocked

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• Kyoto-style fixed targets: Take the form of agreed percentage reduction against annual emissions in a base year, 1990

• Per capita: Takes as starting point the equal right of each person to use the atmosphere as a global commons

• Brazilian proposal: Bases on historical responsibility for change in temperature of individual countries.

• Emissions intensity: Requires reductions of emissions relative to economic output

• Global Triptych: Focuses on 3 sectors

There is a number of ways to calculate targets, global proposals

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• Evolution of Clean Development Mechanism

• Sustainable development policies & measures (SD-PAMs)

• Sectoral approaches

Proposals relevant for developing countries

National context

Not stand-alone measures, policy mix requiredthat fits nations circumstances and goals

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LAND USE, LAND-USE CHANGE

& FORESTRYMaguette Kaire, Senegal

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Forests play a central role in climate changeForests are vulnerable

Forests emit GHG

Forests canForests canincrease resilience increase resilience

of people and of people and ecosystems, &ecosystems, &

fix and maintain fix and maintain carbon.carbon.

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• 20%-30% of total emissions

Can play relevant role in climate change mitigation

Emerging as important issue in post-2012 regime discussions

Contentious because of high uncertainties and its non-permanent nature as a mitigation option

What we know

The land-use sector, including forestry and agriculture, is an important source of GHG emissions

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Key sector for developed countries because of its mitigation potential.

Developing countries focused mostly on GHG inventories (issues of data, resources, capacity).

Two main areas for contributing to mitigation in this sector:

•Under the KP, through afforestation & reforestation project activities included in the CDM in Marrakesh (2001)

•Under the Convention, through Reducing Emissions from Deforestation & Forest Degradation (REDD), under discussion since Montreal (2005)

Evolution of international negotiations

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Key issues under the Bali Action Plan

Developing countries want:

• Financial incentives (new & additional) and support to build capacity related to REDD

• Some want a wider set of eligible activities under the CDM and means to turn some credits into permanent credits

Key mitigation options identified for developing countries:

1. Reduction of emissions from deforestation and forest degradation (REDD)

2. Conservation, sustainable forest management & forest restoration (REDD+)

3. Afforestation & reforestation (& others?) (CDM)

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BALI ACTION PLAN BUILDING BLOCK

FINANCING &TECHNOLOGY

DEVELOPMENT & TRANSFER

Bhujang Dharmaji, UNDP

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What we know: Financing

• Amounts are large in absolute terms, but small relative to global GDP and investment

• Private sector dominates investments: corporations (60%), households (24%); government (14%)

• Existing climate change funds would need to be enhanced at a greater scale

Mitigation measures will require additional I&F flows of $200-210 billion in 2030

Adaptation measures will require additional I&F flows in 2030 of several tens of billion $

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• Improved access to adequate, predictable & sustainable financial resources

• New and additional funding

• Positive incentives to implement mitigation & adaptation actions

• Innovative funding means to meet adaptation costs

• Mobilisation of public and private sector funding

• Financial and technical support for capacity building

Key issues under the Bali Action Plan: Financing

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Financing optionsIncreasing the Scale of Existing Mechanisms or extending to others (JI, ET)

CDM and Other Possible Crediting Mechanisms: $25

Adaptation Fund: $0.5-2

Contributions from Developed Countries

Financial Commitments Mechanism under the Convention: $130-260

Contributions from Developed and Developing Countries

World Climate Change Fund: $10

Multilateral Adaptation Fund: $18

More Stringent Commitments by Developed Countries

Auction of Assigned Amount Units: $5 (in billion $)

For more information, refer to paper “Negotiations on additional investment and financial flows to address climate change in developing countries”, table 6

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• Developed countries required to support transfer of technologies to developing countries

Evolution of international negotiations: Financing

• Environmentally sound-technologies• Suited to local conditions• Dissemination of technology information & networking• Strengthened research and capacity building

• Identified as key modality for mitigation and adaptation: gaining momentum in negotiations

• Kyoto Protocol: also emphasises need for financial resources, CDM

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Key issues under the Bali Action Plan: Technology

• Removal of barriers to promoting technology transfer including:

• Ways to accelerate deployment, diffusion and transfer of technologies

• Co-operation on research and development

• Effectiveness of tools & mechanisms for technology co-operation

• Financing• Intellectual property rights• Tariffs and non-tariffs• Capacity

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