Transcript UN CLimate Change Conference, Bali Indonesia - VUFO

UNFCCC COP13/MOP3 Bali
Report for Vietnam NGO climate change
forum
What is COP/MOP
• United Nations Framework Convention on
Climate Change (UNFCCC) holds annual
Conference of Parties (COP)
– includes all UN member states
– encourages members to combat climate
change
• Kyoto Protocol signatories hold annual
meetings (MOP) alongside COPs
– obliges members to combat climate change
• Bali 2007 was 13th COP and 3rd MOP
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Key points of the Kyoto Protocol
• Only ‘annex 1’ (developed) parties have
commitments to reduce GHG emissions
• ‘Commitment period’ from 2008-12
• ‘Non-annex 1’ countries participate through
the CDM
• Certified Emission Reductions (CERs) produced
by CDM projects can be sold and exchanged
• Additionality - would the project have been
implemented without CDM?
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Bali conference in context:
4th IPCC report
• IPCC produces 5-yearly reports on the state of
the global climate and anthropogenic influence
• 2007 report most unequivocal yet - global GHG
emissions must be reduced 25-40% below
1990 levels before 2020.
• Atmospheric GHG concentrations must be
stablised at 450-550 ppm
• This will not be sufficient to avoid indundation
of small island states and low lying cities
(HCMC)
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Bali conference in context:
UNFCCC agenda
• A post-2012 successor to the Kyoto Protocol which:
– Includes all parties to UNFCCC
– Includes firm targets based on findings of IPCC4
– Consists of four elements: mitigation, adaptation,
technology transfer, financing
• Bali to reach unanimous agreement on a negotiation
framework and timetable (roadmap)
• Sign post-2012 agreement in 2009 (Copenhagen)
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Bali conference in context:
Political environment
• G8 meeting - US admission of human-induced
climate change
– Launches ‘top emitters’ club
– Gives WB remit to devise FCPF
• Australian election - climate change a key issue
• Nobel Peace prize (award ceremony during Bali
conference)
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Key players
• USA
– Blocking agreement - insisted on
commitments for developing nations and no
specific targets
– Technology transfer entails risk for domestic
industry
– John Kerry led parallel delegation
– Al Gore advised leaving USA out of
agreement, with an opt-in for new
administration
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Key players
• Canada, Japan and Australia - key US allies
• EU
– Insisted on inclusion of IPCC targets - roadmap must
have a destination
– More robust CDM mechanism
• China
– Unofficial rep of non-annex 1 parties
– Highlighted contrast with US position
– Favours looser regulation of CDM
• Brazil - REDD mechanism to be deforestation only
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Key Decisions:
Bali Roadmap
• Unanimous agreement after an extra day
• IPCC targets reduced to a footnote but
roadmap ‘recognises that deep cuts will be
required’
• G77 pressure forced USA into a humiliating last
minute u-turn but they still managed to remove
all meaningful content
• However, nothing is ruled out and there is
every chance that Copenhagen 2009 will
include commitments from all major emitters
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Key decisions:
REDD
• Reduced Emissions from Deforestation and
Forest Degradation (REDD) - the major
success story of the conference
• Brazil dropped objections
• Unexpectedly broad parameters - may include
payments for conservation and restoration
as well as reduced degradation
• Previous objections to forestry mechanism
(poor scientific basis and difficulty of
monitoring) expected to be overcome by 2012
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Key decisions:
REDD
• CERs will be long-term (unlike ARCDM)
• Outstanding concerns (highlighted on ‘Forestry
day’):
– National accounting, not project-based - how
to distribute benefits?
– Local/indigenous use rights - not adequately
addressed in the decision
– Baselines - simple for avoided deforestation,
complex for other scenarios
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Key decisions:
REDD
• The next two years of negotiations will address
these concerns
• Non-annex 1 Countries with an interest in
REDD have until 2013 to prepare
• COP13 encouraged annex 1 parties to
contribute to REDD preparedness
• WB’s Forest Carbon Partnership Facility
(FCPF) was created to channel such
contributions in two stages: Readiness
mechanism and Carbon Finance mechanism
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Key decisions:
New CDM guidelines - Biogas
• MOP3 reinstated the mechanism that enables
biogas projects to generate CERs under CDM
• The mechanism was previously abolished
because it was considered a proxy ‘avoided
deforestation’ measure - substituting firewood
• Reinstated mechanism assumes biogas plants
substitute for kerosene
• Generates less CERs per plant than previous
mechanism
• REDD may allow revival of original mechanism
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Key decisions:
New CDM guidance - Energy efficiency
• Allows for projects which result in
improvements in energy efficiency of existing
technologies - such as wood-fired stoves
• Biogas and energy efficiency projects were
lobbied for by G77 nations (especially Nepal),
with the support of EU. Brazil dropped their
initial opposition
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Key decisions:
New CDM guidance - ARCDM
• Limit on small-scale ARCDM projects doubled to
16,000 tCO2. This was pushed by African
countries
• But still many obstacles to ARCDM projects:
– High risk for buyers
–
–
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Temporary CERs - low value
Outlawed by EU Emission Trading System
Stringent monitoring requirements
High technical capacity required
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Key decisions:
Adaptation Fund
• Adaptation fund created from 2% levy on sale
of CERs from all CDM projects - made
operational at Bali conference
• $36 million currently amassed - future
revenues will be > $100 million annually
• This is not sufficient to meet non annex 1
countries demands for adaptation projects
• Additional funds available from Global
Environment Facility (GEF), World Bank (eg
FCPF) and regional bodies e.g. ADB
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