INTER-MINISTERIAL DIALOGUE ON CLIMATE CHANGE

1. INTER-MINISTERIAL DIALOGUE ON CLIMATE CHANGE Bay Gardens Hotel Castries, St Lucia 20-21 May 2009

2. Bhujang Dharmaji, UNDP PROJECT CONTEXT

3. Project goals & outcomes • Goals • Development of national policy options to address climate change in key sectors • Increased capacity to co-ordinate negotiating positions at national level and participate in the UNFCCC process • Outcomes • 1. National awareness raised with capacity development programme • 2. Investment and financial (I&F) flows assessed for up to 3 key sectors • 3. Web-based knowledge platform launched

4. Sequencing of national activities National workshop on Bali Action Plan, national issues National workshop to present results, policy options Assessment of I&F flows to address CC mitigation/adaptation options for up to 3 key economic sectors (6-8 months) Pre-workshop preparation (2 months) • Update on Bali Action Plan negotiations • I&F flows assessments presented • Post-2012 preparation • Key line ministries engaged • Key sectors identified • National issues papers prepared • National workshop on: • Bali Action Plan • Adaptation, mitigation, technology transfer, financing + LULUCF • Key sectors Training on I&FF flows starts this phase UNDP methodology on assessing I&F flows Backstopping from regional centres of excellence

5. Martha Perdomo, Venezuela OVERVIEW OF THE BALI ROAD MAP

6. Climate Change Convention initially focused on mitigation (1992) Convention objective • Allow ecosystems to • adapt naturally • to climate change; • Ensure food production • is not threatened; and • Enable economic development to • proceed sustainably Achieve stabilization of greenhouse gas concentrations in the atmosphere at a low enough level to prevent “dangerous anthropogenic Interference” with the climate system within timeframe sufficient to No Binding Targets: UNFCCC signed by 191 Parties

7. The Convention clusters countries in three groups “Common, but differentiated responsibilities” Annex II Non-Annex I • Industrialised countries • Provide financial • resources to enable • developing countries to • meet the costs of • implementing measures • Promote technology • transfer to EITs and non-Annex I Parties • Developing countries • No quantitative obligations • Least Developed Countries given special consideration Annex I • Industrialised countries & Economies in Transition (EITs) • Adopt policies • and measures with • aim of reducing GHG • emissions to 1990 • levels • EITs have “flexibility” • in commitments

8. Bali Road Map – two tracks Conference of the Parties (COP) / Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol (CMP) Permanent subsidiary bodies Subsidiary Body for Implementation(SBI) Subsidiary Body for Scientific and Technological Advice (SBSTA) COP / MOP Bureau CDM Executive Boards Adaptation Board Expert Group on Technology Transfer (EGTT) Least Developed Countries Expert Group (LEG) Expert bodies, special bodies

9. How to provide inputs • Formal and informal negotiations • Friends of the chair • Submissions • Expert groups • Workshops and side events • How the process happens • Plenary meetings • Contact groups, Informal consultations, Friends of the Chair • Negotiating Groups - G77 and China, LDCs, AOSIS, the EU, the “Umbrella” Group, etc. • Regional and other groups - the African Group, GRULAC • Means for making views known prior to the session: formal submissions, workshops, inter-sessional consultations

10. Bali Road Map - Breakthrough • Bali Action Plan (launched in 2007) • Focused on four “building blocks”: • Mitigation • Adaptation • Technology development and transfer • Financial resources and investment • Process to be conducted under a new Subsidiary Body (AWG-LCA)

11. BALI ACTION PLAN BUILDING BLOCK MITIGATION Hernan Carlino, Argentina

12. What we know Mitigation:In the context of climate change, a human intervention to reduce the sources or enhance the sinks of greenhouse gases. • Human activity is contributing to climate change and all sectors will be impacted • ALL countries must reduce emissions to avoid worst damages, developed and developing countries • Significant technological progress made, but annual investment of $200-210 billion needed by 2030 • Forests and land use will be part of the solution

13. Key issues under the Bali Action Plan • Bali Action Plan calls to identify mitigation actions that are: • Measurable • Reportable MRV • Verifiable • MRV implies support for technology, finance, and capacity building for developing countries • Developed countries must make commitments and take actions • International agreement will be major challenge

14. Key challenges under the Bali Action Plan Mitigation is highly contentious issue in negotiations, in danger of remaining blocked • At issue: • One priority for developing countries in Bali was that all developed countries, including the US, take on QELROs. • Comparability: how tobring Convention and Kyoto Protocol tracks together • “Common but differentiated responsibilities” • Outcome differs depending on: which GHGs, which sources, time frame, scale (national vs per capita emissions) • How to match mitigation actions by developing countries with support from developed countries

15. There is a number of ways to calculate targets, global proposals • Kyoto-style fixed targets: Take the form of agreed percentage reduction against annual emissions in a base year, 1990 • Per capita: Takes as starting point the equal right of each person to use the atmosphere as a global commons • Brazilian proposal: Bases on historical responsibility for change in temperature of individual countries. • Emissions intensity: Requires reductions of emissions relative to economic output • Global Triptych: Focuses on 3 sectors

16. Proposals relevant for developing countries • Evolution of Clean Development Mechanism • Sustainable development policies & measures (SD-PAMs) • Sectoral approaches National context • Not stand-alone measures, policy mix required that fits nations circumstances and goals

17. BALI ACTION PLAN BUILDING BLOCK FINANCING & TECHNOLOGY DEVELOPMENT & TRANSFER Hernan Carlino, Argentina

18. What we know Mitigation measures will require additional I&F flows of $200-210 billion in 2030 Adaptation measures will require additional I&F flows in 2030 of several tens of billion $ • Amounts are large in absolute terms, but small relative to global GDP and investment • Private sector dominates investments: corporations (60%), households (24%); government (14%) • Existing climate change funds would need to be enhanced at a greater scale

19. Key issues under the Bali Action Plan Improved access to adequate, predictable & sustainable financial resources New and additional funding Positive incentives to implement mitigation & adaptation actions Innovative funding means to meet adaptation costs Mobilisation of public and private sector funding Financial and technical support for capacity building

20. Financing options Increasing the Scale of Existing Mechanisms or extending to others (JI, ET) CDM and Other Possible Crediting Mechanisms: $25 Adaptation Fund: $0.5-2 Contributions from Developed Countries Financial Commitments Mechanism under the Convention: $130-260 Contributions from Developed and Developing Countries World Climate Change Fund: $10 Multilateral Adaptation Fund: $18 More Stringent Commitments by Developed Countries Auction of Assigned Amount Units: $5(in billion $) For more information, refer to paper “Negotiations on additional investment and financial flows to address climate change in developing countries”, table 6

21. Evolution of international negotiations • Developed countries required to support transfer of technologies to developing countries • Environmentally sound-technologies • Suited to local conditions • Dissemination of technology information & networking • Strengthened research and capacity building • Identified as key modality for mitigation and adaptation: gaining momentum in negotiations • Kyoto Protocol: also emphasises need for financial resources, CDM

22. Key issues under the Bali Action Plan • Removal of barriers to promoting technology transfer including: • Financing • Intellectual property rights • Tariffs and non-tariffs • Capacity • Ways to accelerate deployment, diffusion and transfer of technologies • Co-operation on research and development • Effectiveness of tools & mechanisms for technology co-operation

25. LAND USE, LAND-USE CHANGE & FORESTRY Maria Gutierrez, Mexico

26. Forests play a central role in climate change Forests are vulnerable Forests can increase resilience of people and ecosystems, & fix and maintain carbon. Forests emit GHG

27. What we know The Land-use sector, including forestry and agriculture, is an important source of GHG emissions • 20%-30% of total emissions • Can play relevant role in climate change mitigation • Emerging as important issue in post-2012 regime discussions Contentious because of high uncertainties and its non-permanent nature as a mitigation option

28. Evolution of international negotiations Key sector for developed countries because of its mitigationpotential. Developing countries focused mostly on GHG inventories (issues of data, resources, capacity). Two main areas for contributing to mitigation in this sector: • Under the KP, through afforestation & reforestation project activities, included in the CDM in Marrakesh (2001) • Under the Convention, through Reducing Emissions from Deforestation & Forest Degradation (REDD), under discussion since Montreal (2005)

29. Key issues under the Bali Action Plan • Key mitigation options identified for developing countries: • Reduction of emissions from deforestation and forest degradation (REDD) • Conservation, sustainable forest management & forest restoration (REDD+) • Afforestation & reforestation (& others?) (CDM) • Developing countries want: • Financial incentives (new & additional) and support to build capacity related to REDD • Some want a wider set of eligible activities under the CDM and means to turn some credits into permanent credits.

30. KNOWLEDGE PLATFORM ON CLIMATE CHANGE Teresita Chavez, UNDP

31. Knowledge platform • Web-based knowledge platform http://www.undpcc.org/ • This website is for use in the project! • Because the project work (I&FF assessment, international negotiations) needs a lot of input from many people  this platform was created! • It is part of the project and all project people will participate in it, will populate these pages! • Every country has it’s own page here. • The workshop and training presentations etc. will be posted here, everybody can get it from there.

32. Knowledge platform Public space - Join the climate community here

33. Knowledge platform Member space – individual groups for each country Space for country teams to meet, share documents, update each other

34. Knowledge platform The library – search for documents and submit your documents You can search after title, author, year, keywords…

35. BALI ACTION PLAN BUILDING BLOCK ADAPTATION Bhujang Dharmaji, UNDP

36. What we know Definition Adaptation: Initiatives and measures to reduce the vulnerability of natural and human systems against actual or expected climate change effects (IPCC) Vulnerability: the degree to which a system is unable to cope with the adverse effects of climate change, climate variability and extreme events Some important aspects related to adaptation • Adaptation is not a new process • As climate change become more evident, some ecosystems (e.g.: ecosystems) will not have sufficient time to adapt • United Nations recognize the need for countries to take immediate actions (National Positions)

37. Key challenges in adaptation • The identification of measures and its implementation is a complicated process that presents challenges • Will require adjustments across every aspect of society, environment & economy (i.e.: substantial financing) • Not stand-alone issue: linked to economic development, poverty reduction, disaster management • Requires capacity for short- and long-term planning • Adequate institutional arrangements (systematic planning, co-operation, and regulatory frameworks)

38. Evolution of international negotiations • Initial focus of negotiations from 1995 was mitigation • Adaptation identified as issue at COP-7 in 2001 (Marrakesh Accords) • LDC Fund, Special Climate Change Fund, Adaptation Fund • Created NAPA process and LDC Expert Group (LEG) • Identified 14 adaptation activities needing support • COP 10 to 12 (2004 to 2006) • Buenos Aires Programme of Action on Adaptation and Response Measures • Nairobi Work Programme • Implementation measures on methods, activities, technology transfer and financing

39. Key issues under the Bali Action Plan Four discussion topics identified: • National planning for adaptation • Streamlining and scaling up of financial & technological support • Enhanced knowledge sharing • Institutional frameworks for adaptation Key challenges • Current level of funding • Experience of developing countries in accessing funds • Need for additional financial flows in future

40. ASSESSING INVESTMENT & FINANCIAL FLOWS FOR CLIMATE CHANGE Angel Menendez, ITDT

41. I&FF work • I&FF assessment • What are the adaptation/ mitigation options for up to 3 sectors selected in the next 25 years? • Who is investing in the sector / major players and sources? • How I&FF are estimated to happen in next 25 years? • What shifts/increase in I&FF will be needed in the sector? • What will be the overall needs for additional I&FF? • 3 Main guides • Work Plan Guidance • Methodological guidance • Reporting guidance

42. Preparation stage (1- 2 months) • Define national objectives and goals for the assessment • Identify and agree on the key sectors • Establish the I&FF team • Assess methodological capacities and needs • Assess information availability and needs • Agree the institutional arrangements • Develop the overall programme of work and budget • Define the scope of the sectors • Adjustment of available scenarios and/or development of new scenarios • Develop detailed workplan • Develop budget

43. Project Focal Point Sectoral team leader Sectoral team leader Sectoral team leader Sector 1 Team, e.g. energy mitigation Sector 2 Team, e.g. agriculture adaptation Sector 3 Team, e.g. water adaptation Mitigation expert(s) Adaptation expert(s) Adaptation expert(s) Energy expert(s) Agriculture expert(s) Water expert(s) Finance expert(s) Finance expert(s) Finance expert(s) Economic/statistics expert(s) Economic/statistics expert(s) Economic/statistics expert(s) NGO/academic expert(s) NGO/academic expert(s) NGO/academic expert(s) Private sector expert(s) Private sector expert(s) Private sector expert(s) I&FF team

44. UNDP support • $ support • Guides • I&FF training (3 days) • Center of excellence technical backstopping (20 days) • Knowledge platform – with “communities” to exchange information • Global workshops

45. Implementation stage (5 – 6 months) • Conduct I&FF assessment (methodological and reporting guidelines) • Guidance and procedures for: • Documentation • Spreadsheet management • Quality control and quality assurance procedures • Archiving

46. Reporting stage • File management control measures; • Data-sharing procedures and timelines; • Editorial directions (e.g., use of acronyms, instructions on what and how to report); and • Documentation and archiving procedures. •  Structure and content of write-ups (i.e., an outline or description of what should be contained in each section, examples of the required tables and style guidelines, etc); • Formatting (e.g., format for each level of heading, procedures for use of common acronyms and units, reference format, table formats).

48. ADDITIONAL MATERIAL TO BE PRESENTED ON DEMAND TO INTERESTED PEOPLE

49. OVERVIEW OF THE BALI ROAD MAP

50. Bali Road Map - Breakthrough • Shared understanding for the necessity of global efforts • Climate change linked to economic growth and sustainable development goals and needs – recognition action fall across a variety of economic sectors • Deadline for negotiations by 2009: to ensure entry into force of future regime by 2012