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UNFCCC COP13/MOP3 Bali

UNFCCC COP13/MOP3 Bali. Report for Vietnam NGO climate change forum. What is COP/MOP. United Nations Framework Convention on Climate Change (UNFCCC) holds annual Conference of Parties (COP) includes all UN member states encourages members to combat climate change

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UNFCCC COP13/MOP3 Bali

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  1. UNFCCC COP13/MOP3 Bali Report for Vietnam NGO climate change forum

  2. What is COP/MOP • United Nations Framework Convention on Climate Change (UNFCCC) holds annual Conference of Parties (COP) • includes all UN member states • encourages members to combat climate change • Kyoto Protocol signatories hold annual meetings (MOP) alongside COPs • obliges members to combat climate change • Bali 2007 was 13th COP and 3rd MOP Title of presentation (change in master layout)

  3. Key points of the Kyoto Protocol • Only ‘annex 1’ (developed) parties have commitments to reduce GHG emissions • ‘Commitment period’ from 2008-12 • ‘Non-annex 1’ countries participate through the CDM • Certified Emission Reductions (CERs) produced by CDM projects can be sold and exchanged • Additionality - would the project have been implemented without CDM? Title of presentation (change in master layout)

  4. Bali conference in context:4th IPCC report • IPCC produces 5-yearly reports on the state of the global climate and anthropogenic influence • 2007 report most unequivocal yet - global GHG emissions must be reduced 25-40% below 1990 levels before 2020. • Atmospheric GHG concentrations must be stablised at 450-550 ppm • This will not be sufficient to avoid indundation of small island states and low lying cities (HCMC) Title of presentation (change in master layout)

  5. Bali conference in context:UNFCCC agenda • A post-2012 successor to the Kyoto Protocol which: • Includes all parties to UNFCCC • Includes firm targets based on findings of IPCC4 • Consists of four elements: mitigation, adaptation, technology transfer, financing • Bali to reach unanimous agreement on a negotiation framework and timetable (roadmap) • Sign post-2012 agreement in 2009 (Copenhagen) Title of presentation (change in master layout)

  6. Bali conference in context:Political environment • G8 meeting - US admission of human-induced climate change • Launches ‘top emitters’ club • Gives WB remit to devise FCPF • Australian election - climate change a key issue • Nobel Peace prize (award ceremony during Bali conference) Title of presentation (change in master layout)

  7. Key players • USA • Blocking agreement - insisted on commitments for developing nations and no specific targets • Technology transfer entails risk for domestic industry • John Kerry led parallel delegation • Al Gore advised leaving USA out of agreement, with an opt-in for new administration Title of presentation (change in master layout)

  8. Key players • Canada, Japan and Australia - key US allies • EU • Insisted on inclusion of IPCC targets - roadmap must have a destination • More robust CDM mechanism • China • Unofficial rep of non-annex 1 parties • Highlighted contrast with US position • Favours looser regulation of CDM • Brazil - REDD mechanism to be deforestation only Title of presentation (change in master layout)

  9. Key Decisions:Bali Roadmap • Unanimous agreement after an extra day • IPCC targets reduced to a footnote but roadmap ‘recognises that deep cuts will be required’ • G77 pressure forced USA into a humiliating last minute u-turn but they still managed to remove all meaningful content • However, nothing is ruled out and there is every chance that Copenhagen 2009 will include commitments from all major emitters Title of presentation (change in master layout)

  10. Key decisions:REDD • Reduced Emissions from Deforestation and Forest Degradation (REDD) - the major success story of the conference • Brazil dropped objections • Unexpectedly broad parameters - may include payments for conservation and restoration as well as reduced degradation • Previous objections to forestry mechanism (poor scientific basis and difficulty of monitoring) expected to be overcome by 2012 Title of presentation (change in master layout)

  11. Key decisions:REDD • CERs will be long-term (unlike ARCDM) • Outstanding concerns (highlighted on ‘Forestry day’): • National accounting, not project-based - how to distribute benefits? • Local/indigenous use rights - not adequately addressed in the decision • Baselines - simple for avoided deforestation, complex for other scenarios Title of presentation (change in master layout)

  12. Key decisions:REDD • The next two years of negotiations will address these concerns • Non-annex 1 Countries with an interest in REDD have until 2013 to prepare • COP13 encouraged annex 1 parties to contribute to REDD preparedness • WB’s Forest Carbon Partnership Facility (FCPF) was created to channel such contributions in two stages: Readiness mechanism and Carbon Finance mechanism Title of presentation (change in master layout)

  13. Key decisions:New CDM guidelines - Biogas • MOP3 reinstated the mechanism that enables biogas projects to generate CERs under CDM • The mechanism was previously abolished because it was considered a proxy ‘avoided deforestation’ measure - substituting firewood • Reinstated mechanism assumes biogas plants substitute for kerosene • Generates less CERs per plant than previous mechanism • REDD may allow revival of original mechanism Title of presentation (change in master layout)

  14. Key decisions:New CDM guidance - Energy efficiency • Allows for projects which result in improvements in energy efficiency of existing technologies - such as wood-fired stoves • Biogas and energy efficiency projects were lobbied for by G77 nations (especially Nepal), with the support of EU. Brazil dropped their initial opposition Title of presentation (change in master layout)

  15. Key decisions:New CDM guidance - ARCDM • Limit on small-scale ARCDM projects doubled to 16,000 tCO2. This was pushed by African countries • But still many obstacles to ARCDM projects: • High risk for buyers • Temporary CERs - low value • Outlawed by EU Emission Trading System • Stringent monitoring requirements • High technical capacity required Title of presentation (change in master layout)

  16. Key decisions:Adaptation Fund • Adaptation fund created from 2% levy on sale of CERs from all CDM projects - made operational at Bali conference • $36 million currently amassed - future revenues will be > $100 million annually • This is not sufficient to meet non annex 1 countries demands for adaptation projects • Additional funds available from Global Environment Facility (GEF), World Bank (eg FCPF) and regional bodies e.g. ADB Title of presentation (change in master layout)

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