15 MARCH 2016

1. CONFIDENTIAL OUTCOMES OF THE 21ST SESSION OF THE CONFERENCE OF PARTIES (COP 21) TO THE UNITED NATIONS CONVENTION ON CLIMATE CHANGE (UNFCCC) AND THE 11TH SESSION OF THE CONFERENCE OF PARTIES SERVING AS THE MEETING OF PARTIES TO THE KYOTO PROTOCOL (CMP 11) PORTFOLIO CPMMITTEE ON ENVIRONMENTAL AFFAIRS: 15 MARCH 2016

2. CONFIDENTIAL PURPOSE • To provide feedback to the Portfolio Committee on Environmental Affairs on the Outcomes 21st Session of the Conference of Parties (COP 21) to the United Nations Convention on Climate Change (UNFCCC), and the 11th Session of the Conference of Parties serving as the Meeting of Parties to the Kyoto Protocol (CMP 11. CONFIDENTIAL

3. CONFIDENTIAL BACKGROUND UNFCCC COP 17in Durban Set up a four-year negotiation process for a new agreement to be reached in 2015, to apply to global emissions after 2020, and increase the international effort to limit emissions up to 2020 – the Durban Platform CONFIDENTIAL

4. Progress Towards Paris 2015 Information required to complete an INDC, A breakthrough on the attainment of over USD 10 billion pledges for the Green Climate Fund (GCF), agreement on differentiation and the principle of common but differentiated responsibilities and respective capabilities.

5. CONFIDENTIAL KEY ISSUES IN UNFCC COP21 / CMP 11 NEGOTIATIONS[1] Key issues in the negotiations at COP 21 in Paris, France included: • To fulfil the Durban mandate by adopting a new legally binding Agreement for implementation from the year 2020; • To address the ambition gaps in the pre-2020 period; • How to reflect the principle of common but differentiated responsibility and respective capabilities; • Parity between mitigation and adaptation; and • How to addressing the means of implementation (finance, technology and capacity building). CONFIDENTIAL

6. CONFIDENTIAL KEY ISSUES IN UNFCC COP21 / CMP 11 NEGOTIATIONS[2] • Strengthen and enhance the effectiveness and efficiency of climate action through provisions to strengthen institutional linkages between various mechanisms created under the UNFCCC, for example: • between the Adaptation Committee and the Technology Executive Committee with the Standing Committee on Finance and the Green Climate Fund (GCF) and other operating entities of the Convention’s Financial Mechanism. • Conclude the rules for second commitment of the Kyoto Protocol. • How to locate Response Measure Forum & Warsaw International Mechanism on Loss & Damage. CONFIDENTIAL

7. CONFIDENTIAL SA POSITION [1] As the originator of the Durban Mandate, under which the Paris negotiations took place, South Africa sought to contribute constructively towards the success of the Paris COP: • had a clear mandate to defend the Convention core principles of equity and differentiation, in line with South Africa’s national interest as an African developing country that requires support post-2020. • as the Chair of the G77 and China comprising of 134 countries, South Africa sought to maintain and strengthen the unity of developing countries. CONFIDENTIAL

8. CONFIDENTIAL SA POSITION[2] • Give equal priority to adaptation and mitigation with balanced provision of means of implementation. • South Africa as a vulnerable country was to adopt an Agreement in Paris that is fair, ambitious and science-based and that protects the development space of developing countries. • Adopt adequate-to keep temperature increase below 2 degrees Celsius. • Agreement that is equitable by reflecting differentiation through designing effective commitments and actions, by following the structure of the Convention for formulation of common and individual commitments. • Ensuring pathways to reaching US$100 billion climate finance by 2020 address post 2020 Finance. CONFIDENTIAL

9. CONFIDENTIAL SA POSITION[3] • Ensure that the Warsaw International Mechanism on Loss & Damage to the impacts of climate change receive a mandate to continue beyond 2017. • Adoption of KP2 rules to enable ratification of the KP2 and entry into force. • Ensure that the continuation of the Forum on Response Measures - to develop a system for more cooperation where developed countries cannot take unilateral measures in their decisions to address climate change with negative consequences on developing countries, just transitions for the work force that will be affected. • Establishment of a permanent institutional arrangement under the Convention for effective implementation and monitoring of all the activities on capacity-building including linkage between adaptation, mitigation, technology and financial system. CONFIDENTIAL

10. CONFIDENTIAL KEY OUTCOMES • COP 21 in Paris is universally regarded as a seminal point in the development of the international climate change regime under the UNFCCC, concluding as it did with the Paris Agreement (PA). • The PA is a comprehensive framework which will guide international efforts to limit GHG emissions and to meet all the associated challenges posed by climate change. • PA does not provide much of the detail necessary for its implementation. This detail will instead be negotiated by Parties over the next five years - through Ad Hoc Working Group on the Paris Agreement (APA). • SA played a central and constructive role in its capacity as Chair of the Group of 77 and China, member of the AGN, BASIC, as well as in its national capacity. CONFIDENTIAL

11. Paris Outcome • Strong political signal – 187 countries submitted INDC’s covering some 97% or global GHG emissions – 150 leaders attended opening session • Internationally binding Agreement. However, follows a hybrid model; Global goals • Well below 2 degrees C, pursuing efforts toward 1,5 degrees C • Global peaking ASAP • Linked to costs of adaptation. Increasing adaptation capability • International climate finance levels consistent with LEDS and resilience • Implemented to reflect equity and CBDR&RC, inlight of national circumstance For Mitigation • Based on Nationally Determined Contributions (bottom-up) • With legal commitment to submit NDC’s every 5 years (top-down) • Public registry of NDC’s • Principle of progressive increase in levels of ambition (top-down)

12. Paris Outcome For Mitigation (Cont • DC’s QEERT’s (top-down) • DingC’s move to QEERT’s over time (bottom-up) • REDD+ continuation (tools) • Cooperative market & non market mechanisms (tools) For Adaptation • Global challenge of adaptation linked to mitigation ambition levels • Recognition of adaptation as a global contribution • “Should” strengthen adaptation cooperation • NAP’s and communicate these internationally (bottom-up like NDC’s) • Public registry of Adaptation contributions • Report internationally (top-down) Loss & Damage • Continuation and enhancement of the Warsaw L&D mechansim • International cooperation and support for L&D

13. Paris Outcome Finance • DC’s “shall” provide finance for mitigation and adaptation (top-down) • Others (DingC’s) encouraged • All sources • Biennial communication of finance contributions Technology • Continuation of the Technology mechanism • Overarching Technology Framework • Finance for innovation • Commitment to international technology cooperation Capacity Building • Adopted at CMA 1 the Paris Committee on Capacity Building or other institiutional arrangement • International capacity building cooperation • Enhanced EE and public awareness • Communication of capacity building action

14. Paris Outcome Transparency • Enhanced transparency framework based on existing reporting • Tracking mitigation, adaptation and support provided and received • Country performance reports undergo technical review • Country reports subject to multilateral consideration • Still to negotiate detailed rules prior to 2020 (top-down) Review of adequacy – Global Stock Take • Assess collective progress to inform NDC’s every 5 years • Covers mitigation, adaptation and MoI Compliance • Facilitative Compliance mechanism • Comprised of experts • Still to negotiate detailed modalities, procedures and rules prior to 2020 (top-down) Entry into force • 55 countries and 55% of world emissions

15. CONFIDENTIAL THE DECISIONS- PRE 2020 • CMP 11 concluded the rule set for the second commitment period of the Kyoto Protocol- 4 year negotiations; • CMPalso concluded Review of the modalities and procedures for the clean development mechanism. This will make it easier for countries in Africa to implement the CDM; • Establish a technical process on Adaptation to identify concrete opportunities for strengthening resilience, reducing vulnerabilities and increasing the implementation of adaptation actions in the pre-2020 period; • Financial pledges made to the Adaptation Fund to the tune of $75 million; and • Financial pledges also made to Least Developed Countries Fund to the tune of $248 million. CONFIDENTIAL

16. CONFIDENTIAL IMPLICATIONS[1] • The Paris Agreement represents a turning point in global climate governance and strengthens rules-based multilateralism. • The Agreement does not rewrite or reinterpret the UN Framework Convention on Climate Change. • The Agreement serves as a model for consensus based multilateral decision making. • The Paris Agreement will be opened for signature from the 22 April 2016, thereafter Parties will ratify it between 21 April 2017 and 2020. • It will enter into force, 30 days after 55 Parties covering 55% of the total global greenhouse gas emissions have ratified it. CONFIDENTIAL

17. CONFIDENTIAL IMPLICATIONS[2] • SA is already acting, and has long been doing so, to build the nation’s resilience to the impacts of climate change, and to accelerate our transition to a lower carbon economy and society. • Invest significantly in renewable energy, public transport, energy efficiency, waste management and land restoration initiatives country wide, in order to reduce the greenhouse gas emissions intensity of our economy. • All spheres of Government are refining their strategies for adapting to the impacts of climate change, and for enhancing the capacity of institutions, services, infrastructure, human settlements and ecosystem services to respond and bounce back from the impacts of climate change. CONFIDENTIAL

18. CONFIDENTIAL IMPLICATIONS[3] • The Paris Agreement requires South Africa to implement the 5 year emission reduction cycle that: (i) sets carbon budgets for companies whose production processes are carbon intense; (ii) requires such companies to submit plans that demonstrate how they will meet their targets, and (iii) requires companies to report regularly on their greenhouse gas emissions, for the compilation of the national greenhouse gas emissions inventory. • SA and all other countries will have to report on implementation of NDC. • Update or communicate new NDC every 5 years. • Formulate, and communicate, by 2020, mid-century, long-term low greenhouse gas emission development strategies. CONFIDENTIAL

19. CONFIDENTIAL IMPLICATIONS[4] • The Paris Agreement also requires South Africa to: (i) strengthen its work on developing a national strategy for adapting to the impacts of climate change; (ii) strengthen our early warning systems, and (iii) strengthen our institutional capacity to respond to extreme events, such as droughts and floods, and slow onset events, such as shifting rainfall patterns that have an impact on crop production. • SA will also have to submit adaptation communications periodically, which includes national priorities, implementation, plans and support needed. • Finally we needs to increase the pace of implementation as agreed during the National Climate Change Dialogue that we hosted in 2014- through flagship programmes. • All of this work is well underway, in collaboration with the relevant sector departments and research institutions, in consultation with all stakeholders. CONFIDENTIAL

20. CONFIDENTIAL RECOMMENDATIONS It is recommended that PCEA note of the outcomes of the 21st Session of the Conference of Parties (COP 21) to the United Nations Convention on Climate Change (UNFCCC), and the 11th Session of the Conference of Parties serving as the Meeting of Parties to the Kyoto Protocol (CMP 11). CONFIDENTIAL