INTER-MINISTERIAL DIALOGUE ON CLIMATE CHANGE Bay Gardens Hotel Castries, St Lucia 20-21 May 2009.

INTER-MINISTERIAL DIALOGUEON CLIMATE CHANGE

Bay Gardens HotelCastries, St Lucia20-21 May 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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OVERVIEW OF THE BALI ROAD MAP

Martha Perdomo, Venezuela

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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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Bali Road Map – two tracks

Conference of the Parties (COP) / 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)

COP / MOP Bureau

CDM Executive Boards

Adaptation Board Least Developed Countries Expert

Group (LEG)

Permanent subsidiary

bodies

Expert bodies, special bodies

Expert Group on Technology

Transfer (EGTT)

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How to provide inputs• Formal and informal negotiations• Friends of the chair• Submissions• Expert groups• Workshops and side events

How the process happens• Plenary meetings• Contact groups, Informal consultations, Friends of the Chair • Negotiating Groups - G77 and China, LDCs, AOSIS, the EU,

the “Umbrella” Group, etc.• Regional and other groups - the African Group, GRULAC• Means for making views known prior to the session:

formal submissions, workshops, inter-sessional consultations

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Bali Road Map - Breakthrough

Bali Action Plan (launched in 2007)

Focused on four “building blocks”:

• Mitigation

• Adaptation

• Technology development and transfer

• Financial resources and investment

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

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BALI ACTION PLAN BUILDING BLOCK

MITIGATION

Hernan Carlino, Argentina

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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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FINANCING &TECHNOLOGY

DEVELOPMENT & TRANSFER

Hernan Carlino, Argentina

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What we know

• 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


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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

• 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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• 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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LAND USE, LAND-USE CHANGE

& FORESTRYMaria Gutierrez, Mexico

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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)


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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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KNOWLEDGE PLATFORM ON CLIMATE CHANGE

Teresita Chavez, UNDP

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

• This website is for use in the project!

• Because the project work (I&FF assessment, international negotiations) needs a lot of input from many people this platform was created!

• It is part of the project and all project people will participate in it, will populate these pages!

• Every country has it’s own page here.

• The workshop and training presentations etc. will be posted here, everybody can get it from there.

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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ADAPTATIONBhujang Dharmaji, UNDP

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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


• 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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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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ASSESSING INVESTMENT & FINANCIAL FLOWS FOR

CLIMATE CHANGE

Angel Menendez, ITDT

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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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Define national objectives and goals for the assessment

Identify and agree on the key sectors 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 Define the scope of the sectors Adjustment of available scenarios and/or development of

new scenarios Develop detailed workplan Develop budget

Preparation stage (1- 2 months)

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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)




Adaptation expert(s)

Water expert(s)

Finance expert(s)




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$ support Guides I&FF training (3 days) Center of excellence technical backstopping (20

days) Knowledge platform – with “communities” to

exchange information Global workshops

UNDP support

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Conduct I&FF assessment (methodological and

reporting guidelines) Guidance and procedures for:

Documentation Spreadsheet management Quality control and quality assurance procedures Archiving

Implementation stage (5 – 6 months)

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File management control measures; Data-sharing procedures and timelines; Editorial directions (e.g., use of acronyms,

instructions on what and how to report); and Documentation and archiving procedures. Structure and content of write-ups (i.e., an outline or

description of what should be contained in each

section, examples of the required tables and style

guidelines, etc); Formatting (e.g., format for each level of heading,

procedures for use of common acronyms and units,

reference format, table formats).

Reporting stage

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ADDITIONAL MATERIAL TO BE PRESENTED ON

DEMAND TO INTERESTED PEOPLE

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OVERVIEW OF THE BALI ROAD MAP

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Bali Road Map - Breakthrough

• Shared understanding for the necessity of global efforts

• Climate change linked to economic growth and sustainable development goals and needs – recognition action fall across a variety of economic sectors

• Deadline for negotiations by 2009: to ensure entry into force of future regime by 2012

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Kyoto Protocol “track” (launched in 2005)

• Agree on 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.

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

52


Convention “track” (launched in 2007)

• Focus on four “building blocks:• Mitigation: Mitigation commitments from developed

countries, Mitigation actions from developing countries and Reducing Emissions from Deforestation and Forest Degradation (REDD)

• Adaptation • Technology development and transfer• Financial resources and investment

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The Road to Copenhagen (COP-15): Progress in 2008

• First session, Bangkok, 31 March-4 April 2008• Convention: Work programme and workshops for 2008• KP: Flexible mechanisms should continue as means to meet

targets and could be appropriately improved

Second session, Bonn, 2-12 June 2008• Convention: Initial substantive discussions of building blocks• KP: compilation of views on means of implementation (LULUCF,

CDM, JI and ET)

Third session, Accra, 21-27 August 2008

• Work programme for 2009.• Parties started submitting textual proposals on building blocks• KP: options for means to achieve and criteria to define targets

Fourth session, Poznan, 1-12 December 2008

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Half-way to Copenhagen: outcomes of PoznanConvention track:

• Assembly of ideas and proposals by the Chair• Work programme for 2009 adopted• Mandate to the Chair to issue options paper for an outcome in

February and a draft negotiating text by June• Proposals on shared vision and building blocks and long-term

targets

KP track:

• Work programme for 2009 adopted• Targets post-2012 to principally take the form of quantified emission

limitation and reduction objectives

Other outcomes:

• 2nd review of the KP under Article 9 fails over share of proceeds • Adaptation Fund finalized: ready to receive projects in 2009• GEF “Poznan Strategic Programme on Technology Transfer”• CDM governance reform

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Way ahead in 2009

• 2009 key for defining key features and crunch issues• Next session 30 March-8 April:

• Start negotiations on options for an agreed outcome• Emission reductions by Annex I Parties in aggregate• A number of submissions invited

• Second session on 1–12 June:• Draft negotiating text in the Convention• Individual and joint contributions by Annex I Parties• pick up on CDM reform

• Third session August/September• Fourth session 30 November-11 December in Copenhagen

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MITIGATION

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Evolution of Clean Development Mechanism

Proposals on table in the negotiations

• Evolving beyond a strict project basis to programmatic CDM

• Various options: expansion of the “programmatic” CDM, policy CDM, new eligible activities in the CDM, sectoral benchmarks, no major changes, etc.

• Possible expansion of use of the CDM to support larger sectoral mitigation action, suggesting a scaling up to particular national sectors, e.g. power

• Depends on the demand for credits!

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Sustainable development policies & measures (SD-PAMs)

Proposals on table in the negotiations

• Setting mitigation goals as part of sustainable development goals (e.g. to electrify rural area in country by 2030 using renewable energy)

• Financing mechanisms for these goals can vary (CDM, financial mechanism, etc…)

• Option can be implemented based on existing provisions in the Convention and KP (Convention Article 4.1 (b) and Kyoto Protocol Article 10)

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Sectoral approaches Proposals on table in the negotiations

• Setting mitigation goals for a specific economic sector within a time frame

• Different perspectives: national sectors, global sectors – different implications

• Different options for goals: goals linked to other mechanisms (i.e. programmatic CDM, SD PAMs), loose targets, fix targets

• Different options for financing depending: crediting for achievement of targets (through CDM or new market based mechanism or incentives such as financial support and technology transfer)

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FINANCING

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Finance sources under the Convention and Kyoto Protocol

GEF Trust Fund Mitigation, Adaptation Mitigation: $3.3 bil. (1991-2010)

Adaptation: $50 mil. (-2010)

Special Climate Change Mitigation, Adaptation, $74 mil. (- March 2008)Fund (SCCF) Technology cooperation

Least Developed Adaptation $173 mil. pledged (-March 2008)Countries Fund (LDCF)

Adaptation Fund Adaptation ~ $80-300 mil. p.a. (-2012)

Clean DevelopmentMitigation Estimated revenueMechanism (as per 2008): $7 bil. p.a


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Proposals by Parties on Finance and Investment

• Generating funding–Criteria and indicators for provision of finance/

contributions–The level of contribution/specific tragets–Sources of funding

• Positive incentives for developing countries–For mitigation–REDD–Adaptation–Technology

• Disbursement of and access to funding

• Innovative funding for adaptation

• Institutional arrangements for finance and investment

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TECHNOLOGY DEVELOPMENT &

TRANSFER

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What we know

• Investments in clean energy are growing fast, including new financial products and markets

• Substantial financing gap for the required scaling up

• Private sector incentives must be reinforced

• Most favoured technologies in recent years: wind, solar, biofuels (renewables increasingly relevant)

• Carbon markets (including CDM) can play important role for developing countries

• Smaller and lower-income countries still to see benefits

Stages of technology options: Research, development and demonstration / deployment / transfer

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•Institutional arrangements for a new mechanism for RDD&D and technology transfer, i.e., new body with mandate for:

Proposals from Parties

• Compulsory licensing• Patent purchase• Incentive provisions for technology transfer• Funding for technology co-operation activities• Development of indicators, monitoring, verification, etc

New policy initiatives• Specific technology or sector-based approaches• Technology & efficiency standards• Identification of breakthrough technologies• Creation of centres of excellence to promote technology• Information diffusion mechanisms (national and international)

New financial mechanisms

• Multilateral Fund• Venture Capital Initiative

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INTER-MINISTERIAL DIALOGUE ON CLIMATE CHANGE Bay Gardens Hotel Castries, St Lucia 20-21 May 2009.

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