1. CHALLENGES AHEAD Daniela Stoycheva Climate change and emissions trading consultant 13-14 March, Budapest, Hungary, REC

2. CEE countries & Turkey  Diverse status  Annex I; Non Annex I – 12+1:3  Annex B, Non Annex B – 12:3+1  Bellow and above the KP target - 10:2  KP ratification; acceptance; non ratification 12:3:1  EU members – older and newer, accession and candidate countries 9+2:5  EITs and Developing countries – 11:4 + Turkey?  Eligible or implementing different emissions trading – 11 JI : 3 CDM; ~ 8 GIS; 11 EU ETS; hosts and buyers; 1 Voluntary market  Different - commitments, affiliation to different negotiation blocks, and different situation in terms of capacities

3. Main characteristics of the n ew KP stage The First commitment period has started -More stringent reporting -Compliance regime for Annex I -More measures to be implemented -More pressure on the institutions - The Mechanisms are operational -CDM EB and JISC; EC Directives; -national procedures in place; -coming GIS and JI track 1 -co-existence of diversity of Mechanisms Negotiations for the post-Kyoto regime ongoing -Positions -More intense and frequent -More complicated

4. The First commitment period for Annex I More stringent reporting for Annex I Parties and especially the EU members Compliance and eligibility, meeting the target More mechanisms to handle Financing mainly state budget Stronger Institutions needed, more experts and better coordination Large range of policies and measures to be developed and implemented Monitoring of PaMs Special case of Turkey

5. The First commitment period for non Annex I National communications – FNC or SNC Data gathering Public awareness and governmental priorities for CC low Effective participation in CDM – from establishment of procedures to real projects Institutional capacities – from project based DNA to state budget CC departments Financing of activities still mainly depends on donors However have to develop national policies for mitigation and especially adaptation Need further support

6. UNFCCC two tracks Bali Road map A new process on long term cooperation under the Convention was set up with negotiations to: Define, in a measurable, reportable and verifiable way, nationally appropriate emission limitation commitments for developed countries and mitigation actions for developing countries; Determine essential actions to adapt to the inevitable impact of climate change and to promote climate-resilient development; and Mobilise the necessary finance and technology cooperation to support these action in a measurable, reportable and verifiable way. Under the KP, Parties established a timetable with detailed steps to be taken to complete negotiations on the new emission reduction targets for industrialized countries by 2009.

7. Consequences for JI/CDM Will remain, but will be reviewed: - Complexity of CDM => simplified? - CDM project’s eligibility => HFC-23; CCS not eligible or under specific conditions? What about JI? Additional questions: What about Voluntary markets? How much JI/CDM will be accepted in the EU ETS? JI track 2 or switching to track 1? GIS absorbing JI?

8. Post Kyoto and CEE The Bali Conference is over, but the fight against climate change has only just begun Whatever form of the future CC regime is negotiated/adopted more efforts will be needed from all Parties, including: - Develop and defence positions; -More PaMs must be implemented (integrated) as deeper emissions cuts are needed; -More effective use of the mechanisms; -More detailed reporting will be required; -More institutions will be involved, better coordination amongst them; -More human capacity will be needed; -More financial recourses for CC activities must be envisaged => Constant capacity building and strengthening and improvement of the CC

9. Thank you! danielast11@yahoo.com