JOYCELINE A. GOCO

Head, IACCC Secretariat

Call for Global Action:

In response to the scientific findings that the earth is getting warmer and may lead to irreversible adverse impacts, the United Nations Framework Convention on Climate Change (UNFCCC) was adopted on May 9, 1992 at the United Nations Headquarters in New York.

“Earth Summit” in Rio (June1992)United Nations Conference on Environment

and Development (UNCED)

Signing of the UNFCCC The Philippines was among the first

154 nations to sign As of Dec. 2001, 186 nations (including

the Philippines) have ratified the

Convention

THE UNITED NATIONS FRAMEWORK CONVENTION ON

CLIMATE CHANGE

The centerpiece of global efforts to combat global warming

CONVENTION’S OBJECTIVECONVENTION’S OBJECTIVE

Seeks to stabilize atmospheric concentration of greenhouse gases “ at a level that would prevent dangerous anthropogenic [human-induced] interference with the climate system”.

The Convention’s Guiding Principles

The lack of full scientific certainty should not be used as an excuse to postpone action.

The “common but differentiated responsibilities” of states assigns the lead to developed countries in combating climate change.

GENERAL COMMITMENT

All Parties to develop “national communications” containing inventories of GHG emissions by source and GHG removals by sinks.

Commitments of Parties

Annex 1 Country Parties

• Developed countries and countries whose economies are in transition

• Adopt policies and measures to limit their anthropogenic emissions of GHGs and protect/enhance their GHG sinks and reservoirs to demonstrate that they are taking the lead in modifying longer-term trends.

• Submit their national communications on regular basis with the following information:

Projected anthropogenic GHG emissions by sources and sinks with the aim of returning them to 1990 levels, individually or jointly

Policies and measures to limit GHG emissions and protect/enhance sinks and reservoirs

Annex II Country Parties

Under Article 4.2 of the UNFCCC, developed country parties included in Annex II (Annex 1 countries minus the economies in transition) have the following additional commitments:

• Provide new and additional financial resources to meet the agreed full costs incurred by developing country Parties in complying with their obligations under Article 12.

• Provide financial resources, including transfer of technology to meet the agreed full incremental costs of measures to be undertaken by developing country Parties under Article 4.

• Promote, as appropriate, the transfer of, or, facilitate and finance access to, environmentally sound technologies and know-how to other Parties, particularly the developing ones to enable them to implement the provisions of the Convention.

Non-Annex 1 Country Parties

Non-annex 1 country Parties or developing countries

Have no commitments to reduce their GHG emissions, but only to “develop, periodically update, publish and make available to the Conference of Parties, their national inventories of GHG emissions by sources and removals by sinks”.

Institutional Bodies Conference of Parties (CoP)

- supreme decision-making body of the Convention

- primary task is to promote and review the implementation of the Convention and any related legal instruments (such as the Kyoto Protocol, etc.)

- has convened six meetings since the Convention’s entry into force on March 21, 1004

- 1st Session of the COP was held in Berlin in 1995 which agreed on the “Berlin Mandate” calling for the strengthening of Annex 1 commitments through the adoption of a protocol or another legally binding instrument.

Institutional Bodies

Subsidiary Bodies

- Subsidiary Body for Scientific and Technological Advise (SBSTA) - provides the CoP with information and advice on scientific and technological concerns

- Subsidiary Body for Implementation (SBI) - assists the CoP in the assessment and review of the implementation of the Convention.

Institutional Bodies

UNFCCC Secretariat: tasked with administrative functions, taking charge of arrangements for sessions, facilitate assistance to parties, etc.

Global Environmental Facility (GEF): interim financial mechanism (Art. 11-21 [3])

THE KYOTO PROTOCOLTHE KYOTO PROTOCOL

The Kyoto Protocol is an international agreement of 159 countries, which attended the 3rd Session of the Conference of the Parties to the UNFCCC held in December 1997 in Kyoto, Japan.

This formalized the adoption of the results of the Berlin Mandate (CoP 1) to reduce worldwide emissions in GHGs.

Objective of the Kyoto ProtocolObjective of the Kyoto Protocol

The protocol was developed to meet the ultimate objective of the UNFCCC which is to “stabilize GHG concentrations in the atmosphere at a level that would prevent anthropogenic interference with the climate system”, through quantified emission targets within a specified time frame.

Significant Provisions of the Significant Provisions of the Kyoto ProtocolKyoto Protocol

Annex 1 Country Parties, individually or jointly, ensure that their aggregate anthropogenic CO2 equivalent emissions of GHG do not exceed their assigned amounts.

Reduction of their overall emissions by at least 5% below 1990 levels in the commitment period 2008 to 2012.

The Protocol commits Annex B countries that ratify the Protocol to reduce GHG emissions below 1990 levels by the first commitment period (2008-2012)

The Protocol will be legally binding when it enters into force. It must be signed and ratified by at least 55 countries, whose total emissions represent 55% of the emissions of the Annex I countries in 1990.

Incorporation by Annex 1 Parties in its annual inventory of anthropogenic emissions the sources and removals by sinks of GHG gases.

Expert review process, providing a thorough and comprehensive technical assessment of the implementation of this protocol.

No introduction of new commitments for Parties not included in Annex 1.

The Kyoto Protocol reinforces the principle of “common but “common but differentiated responsibilities”differentiated responsibilities”..

THE KYOTO PROTOCOL FLEXIBILITY MECHANISMS

EMISSIONS TRADING

JOINT IMPLEMENTATION

CLEAN DEVELOPMENT

MECHANISM

Emissions Trading (ET)Article 17

- Permits countries to transfer parts of their “allowed emissions” (assigned amount units)

Joint Implementation (JI)Article 6

- Allows countries to claim credit for emission reductions that arise from investment in other industrialized countries, which result in a transfer of equivalent “emission reduction units” between the countries.

Clean Development Mechanism (CDM)

Article 12 KP

Allows emission reduction projects that assist in creating sustainable development in developing countries to generate “certified emission reductions” (CERs) for use by the investor.

Greenhouse Gasescovered by the Kyoto Protocol

Carbon dioxide (CO2)

Methane (CH4)

Nitrous Oxide (N2O)Hydrofluorocarbons (HFCs)Perflourocarbons (PFCs)Sulphur hexafluoride (SF6)

ANNEX BANNEX 1 PartyANNEX 1 Party Quantified EmissionQuantified Emission

Limitation or ReductionLimitation or ReductionCommitment (fr. BaseCommitment (fr. Baseyear or period)year or period)

Australia 108European Community 92Japan 94Netherlands 92Russian Federation 92USA 93

Achievements on the Achievements on the International LevelInternational Level

Conference of Parties Conference of Parties (COP)(COP)::

Convention’s ultimate authorityConvention’s ultimate authority

COP 1: Adopted the Berlin MandateCOP 1: Adopted the Berlin Mandate

December 1:December 1: Parties should protect the climate system for the benefit of present and future generations of humankind, on the basis of equity and in accordance with their common but differentiated responsibilities and respective capabilities

1995: IPCC published its Second Assessment Report (SAR) and concluded that “the balance of evidence suggests that there is discernible human influence on global climate” and that the overall impact of this influence will be negative

COP 3: Adopted the Kyoto ProtocolCOP 3: Adopted the Kyoto Protocol

The Kyoto Protocol, when it goes into force, will legally bind participating industrialized countries to reduce their aggregated greenhouse gas emissions by 5.2% compared to the 1990 baseline, by the end of the First Commitment Period (2008-2012)

COP 4: Adopted the Buenos Aires COP 4: Adopted the Buenos Aires Plan of Action (BAPA) Plan of Action (BAPA)

The BAPA was worked out with the goal of finalizing the Kyoto Protocol by the year 2000. The BAPA also established a prompt beginning for the Clean Development Mechanism (CDM), eventually leading to a start in the year 2000.

COP 6COP 6

July 2001July 2001: IPCC published its Third Assessment Report (TAR). The TAR concluded that the new scientific findings provided evidence that global warming is, indeed, brought about by human-induced activities.

COP 7: Adopted the Marrakech COP 7: Adopted the Marrakech AccordsAccords

Delegates from over 170 countries agreed on the package of decisions, which elaborate a finely drawn structure for the implementation of the Kyoto Protocol. The “Marrakech Accords” completed the 1998 Buenos Aires Plan of Action and paved the way for the ratification of the Protocol.

THE CLEAN DEVELOPMENT THE CLEAN DEVELOPMENT MECHANISMMECHANISM

(CDM)(CDM)Art. 12 KP

Objectives of the CDM

• Assists non-Annex 1 countries in achieving their sustainable development objectives

• Enables Annex 1 parties in achieving compliance with their quantified emissions limitation and reduction commitments (QELRC)

• Investors benefit by obtaining GHG emission reduction credits

Objectives of the CDM• Host countries benefit in the form of investment,

access to better technology, and local sustainable development

• Contribute to the ultimate objective of the Framework Convention on Climate Change

• Developing countries will benefit from the project activities resulting in certified emission reductions (CERS) and developed countries will benefit by using the CERs to meet their commitments.

Principal Requirements for CDM Principal Requirements for CDM ProjectsProjects

Only Parties to the Protocol could participate;

Participation is voluntary and approved by each Party;

National CDM authority to be set up;

Non-Annex I Parties (host country) must benefit from project activities resulting in certified emission reductions (CERs);

Principal Requirements for CDM Projects

Projects must assist host countries in achieving sustainable development and contributing to the ultimate objective of the Convention;

Projects must result in real, measurable and long-term benefits related to the mitigation of climate change;

Projects must result in reductions in emissions that are additional to any that would occur in the absence of the certified project activity.

Principal Requirements for CDM Projects

The COP/MOP shall elaborate modalities and procedures that ensure transparency. Efficiency and accountability through independent auditing by operating entities and verification of project activities;

A share of proceeds from the CERs will be collected from the CERs issued to meet the administrative costs of the secretariat maintaing CDM activities as well as adaptation fund set up to assist developing countries that are seriously affected by climate change.

Principal Requirements for CDM Projects

Projects formally initiated under the Activities Implemented Jointly are eligible to be converted into CDM effectively from January 2000 if they meet the criteria.

Additionalities Environmental additionality - long-term real

and measurable reduction

Technology additionality - Transfer of environmentally safe and sound technology

Investment additionality - no diversion of ODAs

Some countries require foreign investment in CDM activities

Some other countries allow locally funded CDM projects (unilateral CDM projects)

Decision 15/CP.7

Principles, Nature and Scope of thePrinciples, Nature and Scope of theMechanism (Article 16, 12 & 17 ofMechanism (Article 16, 12 & 17 of

the Kyoto Protocol)the Kyoto Protocol)KP has not created or bestowed any right,

title and entitlements of any kind on Annex I Parties.

Annex I Parties implement domestic action to reduce emissions in a manner conducive to narrowing per capita differences between developed and developing countries.

Use of mechanism shall be supplemental to domestic action.

Environmental integrity to be achieved.

Decision 17/CP.7

Modalities and Procedure for a Clean Development Mechanism

Host Party’s prerogative to confirm whether a CDM project activity assists in achieving sustainable development

Refrain from using CERs generated from nuclear facilities

Need to promote equitable geographic distribution of CDM project activities

Public funding for CDM should not result in the diversion of ODA

CDM should lead to the transfer of environmentally safe and sound technology and know-how

The CDM Executive Board (EB)

Supervises the CDM

Operates under the authority

of the COP/MOP

Composed of 10 members:

- 1 representative from each of the 5 official UN Regions:

Africa Asia Latin America and the Caribbean Central and Eastern Europe OECD

- 1 from the small island developing state

- 2 each from Annex I and non-Annex I

Parties

Executive Board Tasks

Recommend to the COP/MOP on further modalities and procedures for the CDM

Approve new methodologies related to baselines, monitoring plans and project

boundaries

Review provisions on simplified modalities, procedures and the definitions

of small scale project activities

Accredit operational entities

Develop and maintain CDM registry

Report regional and subregional

distribution of CDM project activities

Updates

Procedural guidelines for accrediting

operational entities Simplified modalities and procedures for

small-scale CDM project activities Guidelines for methodologies for baselines

and monitoring plans

- Meth Panel was organized

- Drafted and posted the CDM-PDD (project design document)

National factors affecting the successful National factors affecting the successful implementation of CDM activitiesimplementation of CDM activities

Capacity building for government officials, private sectors and financial institutions

Clear guidance on CDM activities’ eligibilities

National institutional arrangements to consider CDM applications

- simple process and quick processing vs. multi-channel and lengthy processing procedures

Some concerns of CDM activities

• Uncertainties in the ratification of the Kyoto Protocol

• Many prospectors but no real investors

• “Investors” that promised millions have not came back

• Many held “wait and see” attitude

• Low CER price may not even be enough for administrative costs

Some concerns of CDM activities

• High cost of accreditation of operating entities

• The spirit of Article 12 is missing.

• The focus of CDM is to assist developing countries in achieving their sustainable development or to procure CERs at unreasonable low prices??

• “CER buying house” or CDM investor?

• Risk management is not clear.