Outline of the Paper 1. 1. Introduction 2 Current commitments under the UNFCCC and the Kyoto Protocol 3 History of negotiations on a future agreement 4 Current activities relevant to a future agreement 5. Conclusions

History of negotiation process

Current activities Current activities Open ended ad-hoc working group (AWG) for new reduction targets for Annex I countries Review of the Kyoto Protocol Dialogue on future steps for cooperative action under the Convention Future system Reducing emissions from deforestation in developing countries 2005 2006 2007 2008 G8 plus 5: Ministerial dialogue, IEA and World Bank Asia Pacific Partnership on Development and Climate

Ad-hoc working group (AWG) Participation: Under the Kyoto Protocol, USA and Australia are observers Objective: New commitments for Annex I countries Deadline: no gap between the first and second commitment periods Content: Entering an analysis phase, where countries have been invited to present information relevant to reduction commitments including mitigation potentials. Indicative, non-exhaustive list of issues: 1. Scientific basis for determining the level of ambition of further commitments by Annex I Parties 2. Emission trends and mitigation potential of Annex I Parties 3. Experience gained and lessons learned in implementing the Kyoto Protocol 4. Architecture of further commitments for Annex I Parties 5. Legal matters

Dialogue on future steps for cooperative action under the Convention For all UNFCCC Parties Informal Two year process with 4 workshops Major issues: Sustainable development Adaptation Technology potential Market-based opportunities “Will not open any negotiations leading to new commitments” First meeting (May 2006): Open exchange of views. “Positive incentives for action in developing countries” was heard often In August 2007,last workshop held and the co-facilitators will present their report at COP13

Reducing deforestation in developing countries New upon initiative by Papua New Guinea, who initially proposed a national cap for deforestation Discussed under SBSTA, to report back to COP in December 2007 Several workshops last was in mid August 2007

Positions Gaps in positions: Many gaps and areas of disagreement before a new universal agreement can be agreed. It is unlikely that countries have solid positions on all topics necessary to form a full regime Ambition level: EU and others favour 2°C, AOSIS calls it unacceptably high, but many countries are silent Only EU calls for a 15% to 50% reduction of global emissions in 2050 below 1990 levels Necessary reductions by 2020 by Annex I countries are only provided by the EU (15% to 30%) and the environmental NGOs (30% to 35%) Positive incentives: All countries seem to agree, but no country has specified exact details Participation: No country has mentioned a list of countries or a way to determine which countries participate at which levels Adaptation: All countries agree on adaptation as a major element Small deforestation countries: New flexible initiative on avoided deforestation Large number of discussion processes enhanced consideration of climate change on the international level but has yet to lead to accelerated pace of decisions

Article 2 UNFCCC: Medium and Long Term Goals Long term goals to be framed in terms of contributions to sustainable development goals rather than solely in terms of GHG emission reductions Sao Paulo proposal suggests a basket of goals comprising Temperature limit GHG concentration limit Range of millennium development/sustainable development related goals

Commitments of Annex I/Annex B Parties Deep reductions of emissions by Annex I Parties Legally binding commitments and compliance mechanisms Strong support CDM Domestic action should form the principal basis for achievement of Annex I Parties’ targets CDM should only be used to meet “a part “of Annex I Parties’ commitments. Extension of the CDM levy (2% of the share of the proceeds) to JI and to ET

Enhanced Implementation of Adaptation African countries are vulnerable We must take a lead role in highlighting vulnerability and adaptation issues Adaptation issues have, however, been most strongly followed by AOSIS and the LDC group. Focus on integrating adaptation issues with sustainable development and disaster risk reduction activities

Technology Transfer, Technology Research and Development The G77 has always emphasized the importance of technology research, development and modalities for technology transfer Idea of a Technology Fund financed by Annex I Parties put forward by Brazil in 1997 During the seminar of Government Experts, India put forward The technology Transfer Acquisition Fund Sao Paulo proposal advances collaborative forms of research, development and deployment, through a Technology Fund financed by Annex I Parties