1. Upcoming Issues for COP-11/MOP 1 ______________ M.J. Mace, FIELD ECBI Pre-COP Workshop to Strengthen Capacity of LDC Negotiators to Negotiate and Implement The UNFCC and Kyoto Protocol 24-25 November 2005 Casa de Mateo Montréal, Canada

2. 2 Historic Session First Meeting of the Parties to the Kyoto Protocol Adoption of decisions on Kyoto flexible mechanisms, including international emissions trading, CDM, JI, compliance system Initiation of a process for discussing future commitments to address climate change

3. 3 Four Agendas Under Article 15 of the KP, COP Subsidiary Bodies serve as KP Subsidiary Bodies. COP-11 (Convention issues) COP/MOP-1 (KP issues) SBSTA-23 (Convention and KP issues) SBI-23 (Convention and KP issues)

4. 4 Sunday 20 November Monday 21 November Tuesday 22 November Wednesday 23 November Thursday 24 November Friday 25 November Saturday 26 November Expert Group on Technology Transfer 23, 24, 25 Nov. CDM Executive Board 23, 24, 25 Nov. Expert meeting on response measures 23-24 Nov. Consultative Group of Experts 24-25 Nov. LDC Workshop Junior Negotiators 24-25 Nov. Pre-COP Activities

5. 5 Sunday 27 November Monday 28 November Tuesday 29 November Wednesday 30 November Thursday 1 December Friday 2 December Saturday 3 December Welcoming ceremony SBSTA 23 opens SBI 23 opens SBSTA 23 SBI 23 COP 11 plenary COP 11 opens COP/MOP 1 opens COP/MOP 1 plenary SBSTA 23 SBI 23 Informal Groups Informal Groups Informal Groups G-77 & China Week 1 Source: www.unfccc.int

6. 6 Sunday 4 December Monday 5 December Tuesday 6 December Wednesday 7 December Thursday 8 December Friday 9 December Opening ceremony National statements National statements COP 11 decisions and conclusions and closing COP/MOP 1 decisions and conclusions and closing Informal Groups SBSTA 23 closes SBI 23 closes Joint High-level Segment Week 2 Source: www.unfccc.int

7. 7 COP Agenda

8. 8 A. COP will adopt draft decisions forwarded from SB-22, SB-23: Submission of 2 nd and 3 rd Nat Comms for NA1 Parties Further Guidance for LDC Fund Flexibility for Croatia under Article 4.6 Programme budget for 2006-2007 Draft conclusions on internal review of Secretariat Research needs relating to the Convention Adjustments under Article 5.2

9. 9 B. Certain COP agenda items will be referred to SBI and SBSTA 1.Development and transfer of technologies (SBSTA) 2.Five-Year Work Programme on Adaptation (SBSTA) 3.Scientific, technical and socio-economic aspects of mitigation (SBSTA) 4.Implementation of the Buenos Aires Programme of Work on adaptation and response measures (1/CP.10) (SBI) 5.Financial Mechanism - Special Climate Change Fund; Report of the GEF (SBI) 6.Matters Relating to LDCs (SBI)

10. 10 C. COP Issues for ‘appropriate action’ National Communications from Annex I, NAI Countries –Annex I Party GHG inventories, trends –Non-Annex I Synthesis Reports from 122 First National Communications Reducing emissions from deforestation in developing countries (COP, PNG agenda item) Adequacy of Commitments under Arts 4.2(a) and (b) (COP- 4’s outstanding agenda item) Implications of establishment of new HCFC-22 facilities seeking CERs for destruction of HFC-23 (SBSTA) Special Report of the IPCC on carbon dioxide capture and storage (SBSTA)

11. 11 1. Technology Transfer At COP-7, a technology transfer framework was agreed with 5 elements: (1) technology needs; (2) technology information; (3) enabling environments; (4) capacity building; (5) mechanisms EGTT to prepare recommendations for enhancing this framework. EGTT itself will be reviewed at COP-12. Outcomes of Seminar on development and transfer of environmentally sound technologies for adaptation - held in Trinidad and Tobago in June 2005 – to be considered.

12. 12 2. Five Year Work Programme on Adaptation COP 10 requested SBSTA to develop structured 5-year programme of work on scientific, technical, and socio-economic aspects, vulnerability and adaptation to climate change Negotiations began in May 2005 Heavily bracketed draft text produced Informal Workshop held in Bonn October 17-19 Secretariat prepared discussion paper (Working paper No. 1 (2005)) for the informal workshop Decision expected at COP-11

13. 13 Significant issues Content and structure of work programme Process for implementation of the WP and modalities (Ad Hoc Group?) Possible initial action areas, longer-term actions Possible partners (e.g., WMO, FAO, UNDP, UNEP, GCOS, GEOSS, CBD, IUCN, ISDR, development agencies)

14. 14 3. Scientific, technical and socio- economic aspects of mitigation Three in-session workshops have been held under this agenda item (SBSTA 20, 21, 22). Secretariat has prepared a report on the topics presented at these workshops, for discussion. Parties have submitted views on lessons learned from workshops and future steps under this agenda item. EU seeks a structured work programme on mitigation SBSTA will report on its work at COP 11.

15. 15 4.Financial Mechanism Special Climate Change Fund –Negotiations on adaptation, tech transfer resolved; mitigation, econ. diversification negs continue - Draft text (FCCC/SBI/2005/10) Report of GEF to COP 11 –how adaptation activities under decision 1/CP.10 have been supported, and barriers, obstacles and opportunities presented under GEF, SPA, SCCF, LDCF, SGP; Resource Allocation Framework Matters relating to the implementation of decision 5/CP.8 –Financial needs associated with developing country fulfilment of Convention commitments –3 rd review of effectiveness of the financial mechanism

16. 16 COP/MOP-1 Agenda

17. 17 COP/MOP-1 Agenda 1.Adoption of KP decisions – forwarded by COP to COP/MOP 2.Report of CDM Executive Board 3.Approval of Compliance System 4.Adaptation Fund 5.Election of members of 1.Compliance Committee 2.JI Supervisory Committee 3.CDM Executive Board 6.Future Actions – Art. 3.9 – consideration of commitments for subsequent periods

18. 18 1. Adoption of Package of Kyoto Decisions Four ‘compendia’ of decisions for adoption by COP/MOP-1: Add. 1 – Land use and land use change (inventory accounting) Add. 2 – Articles 5, 7 and 8 (national systems for tracking emissions in Annex I Parties) Add. 3 – Articles 6, 12 and 17 (flexible mechanisms) Add. 4 – Modalities and procedures for CDM (incl. small scale CDM, afforestation, reforestation etc.) Compliance decision is not included within these groups Decisions come from COP-7, COP-8, COP-9, COP-10

19. 19 COP 7 - Marrakech Decision 15/CP.7principles, nature and scope of all three mechanisms Decision 16/CP.7operational rules for joint implementation Decision 17/CP.7rules for CDM Decision 18/CP.7rules for international emissions trading Decision 19/CP.7basic rules for a system of national registries for assigned amounts and traded units Decision 20/CP.7guidelines for national systems for the estimation of emissions from sources and removals by sinks. Decision 21/CP.7good practice guidance for adjustments to national inventories Decision 22/CP.7supplemental information required under Article 7 of the Protocol for participation in emissions trading.

20. 20 COP 8 – New Delhi Decision 19/CP.8UNFCCC guidelines for the technical review of greenhouse gas inventories from Parties included in Annex I to the Convention Decision 20/CP.8Revised uniform reporting format for activities implemented jointly under the pilot phase Decision 21/CP.8Guidance to the Executive Board of the CDM Decision 22/CP.8Additional sections to be incorporated in the guidelines for the preparation of the information required under Article 7, and in the guidelines for the review of information under Article 8, of the Kyoto Protocol Decision 24/CP.8Technical standards for data exchange between registry systems under the Kyoto Protocol

21. 21 COP 9 – Milan Decision 13/CP.9Good practice guidance for land use, land-use change and forestry in the preparation of national greenhouse gas inventories under the Convention Decision 18/CP.9Guidance to the Executive Board of the CDM Decision 19/CP.9Modalities and procedures for afforestation and reforestation project activities under the CDM in the first commitment period of the KP Decision 20/CP.9Technical guidance on methodologies for adjustments under Article 5.2 of the KP Decision 21/CP.9Issues relating to the implementation of Article 8 of the KP

22. 22 COP 10 – Buenos Aires Decision - /CP.10Continuation of Activities implemented jointly under pilot phase Decision - /CP.10Guidance relating to the CDM Decision - /CP.10Incorporation procedures for afforestation and reforestation project activities under the CDM into guidelines under KP Articles 7 and 8 Decision -/CP.10Simplified procedures for small-scale afforestation and reforestation activities under the CDM in first commitment period Decision -/CP.10Issues relating to registry systems under KP Article 7.4 Decision -/CP.10Issues relating to the technical review of GHG inventories for Annex I Parties and implementation of KP Article 8 Decision -/CP.10Standard electronic format for reporting KP units

23. 23 2. Report of CDM Executive Board COP/MOP-1 will –adopt decisions related to modalities for CDM as part of the Add.3 compendium. –consider the report of the CDM Executive Board, which may open the door to a discussion of how the CDM has been operating so far (potential to unravel the package of decisions). –elect new members of CDM Executive Board

24. 24 Significant CDM issues Governance, staffing, budget –Secure funding needed –Full-time Meth Panel Staff? Consultants? Methodologies –Consolidated methodologies reduce cost, workload v. new meth for each project Additionality tool –Clarify role – voluntary or mandatory CERs for HFC-3 reduction – new and existing HCFC-22 facilities –Perverse incentives – Montreal Protocol phase out of ODS –Massive number of CERs possible – low hanging fruit –Impacts on market price of CERs –Ideally who should fund reduction? CDM? GEF?

25. 25 3. KP Compliance System COP/MOP-1 required to “approve” procedures and mechanisms to determine and address cases of non-compliance with KP At COP-7, procedures and mechanisms agreed (decision 24/CP.7) But legal form of adoption not agreed –Decision? Amendment? Other approach?)

26. 26 4. Adaptation Fund COP-7 agreed to establish an Adaptation Fund “to finance concrete adaptation projects and programmes” in developing country Parties to KP AF to be financed through a 2% share of the proceeds of CDM project credits (certified emission reductions or CERs) COP/MOP-1 will be asked to elaborate modalities for operation of fund.

27. 27 5. Post-2012 Issues Article 3.9 of KP: COP required to “initiate the consideration” of commitments for subsequent commitment periods “at least 7 years before the end of the first commitment period” [in 2005] –Article 3.9 anticipates binding commitments for Annex I Parties; –does not address future commitments for Non-Annex I Parties, or non- Kyoto Parties (i.e, US, Australia) Issue: how to engage non-KP Parties in Post-2012 discussions? (Australia, US)? Mechanism for considering future commitments has not yet been agreed, and will be discussed at COP/MOP-1 (e.g. process, milestones, timeframes, Ad Hoc Group?)

28. 28 FIELD www.field.org.uk mj.mace@field.org.uk Tel: +44 20 7388-2117 Fax: +44 20 7388-2826 3 Endsleigh Street London WC1H 0DD United Kingdom