1. 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

2. History of negotiation process

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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