Australia Dropping the Second Commitment Period?

~by Joe Perullo

In a contact group for the Kyoto Protocol, Australia announced that it has not yet taken a decision on taking on the second commitment period (CP2). This would be the third country to not adopt the second commitment period, after Japan and Russia. note: The US never ratified the KP and Canada dropped out of it completely. Staying in the KP but not adopting the second commitment period means that these parties can participate in the KP negotiations but have no obligation to its mandate of emission reductions. Australia said that whether or not it joins CP2, it will participate in KP discussion constructively. Constructive for who?

Australia said it didn’t know where it put its target: in the KP or the Convention (LCA), as if it was a choice. This is particularly dangerous since developed countries may win in the LCA discussions, deleting much of its commitments to equity.

Australia defended itself, mentioning its faith in market based mechanisms. It claimed that it will soon have a price on carbon, which was a hard fought domestic reform passed in legislation. “We will soon transition to a cap and trade scheme. It will decouple our prosperity from pollution. Cap and trade will deliver us to make our targets—a 23 percent decline in emissions.” This reduction in emissions is very unlikely with simply market mechanisms.

Talks on Trade and Tech Transfer lead to Distrust in Process

~by Joe Perullo

The Ad Hoc Working Group on Long-term Cooperative Action under the Convention (AWG-LCA) opened their meeting this morning on the issue of trade.

The big fight was whether or not to continue discussions of trade in the LCA. The LCA is wrapping up its last year, tasked with developing a new legal outcome of some kind. The outcome will have to address the five items agreed as major issues in Bali: Mitigation, Adaptation, Technology Transfer, Finance, and the Shared Vision (the articulation of the underpinning goals of all decisions for the UNFCCC).

The bigger fight yet is still about equity. Developing countries want to mitigate, as the developed countries are demanding, but can only do so with the help of finance, adaptation, and technology transfer—much of which is provided through trade. Trade, specifically unilateral trade, is an implementation tool to finally get aid moving to the global south. As such, developed countries have been going out of their way to keep it out of the Convention.

One of the first speakers, China, saw what was coming and suggested to continue talking about trade instead of ignoring the issue.

Venezuela, having facilitated issue in Durban, referred to a decision made that there were two parts: First, the establishment of a forum to discuss implementation, and second, the consolidation of all discussions under convention.

Developing countries quickly came to consensus that a spin off group on the item should be established to talk about incompleted work. They also pointed out that a mandate from the Bali Action Plan (BAP), the origin of the five issues above, included a mandate in 1b6 to continue and complete the work.

Developed countries, including the EU, Switzerland, the US, and Japan, supported by Mexico and Singapore, responded by urging parties to “move forward” by dropping this issue for the sake of saved negotiating time. They are trying to jump ship from their commitments in the LCA. Partly with the use of the five building blocks, the LCA differentiates developed and developing countries. If developed countries can undermine the LCA, they will be able to put themselves on par with developing countries in what they would like to see as the “new LCA,” the Ad Hoc Working Group for the Durban Platform for Enhanced Action (ADP). In other words, equity is squandered and developed countries can be less ambitious.

The most common defense used by developed countries was the fact that other bodies are already in place to take care of trade, notably… (ready for it?)… the WTO.

The US exercised its skill in using the words of developing countries against them: “We agree with what has been said by others. Venezuela noted that a forum decided in Durban would consider all response measures. Yesterday, China noted on the importance of efficiency. Parties are already making measures on trade. We don’t see the need to open a spin off group. There is no prospect to agreeing on it. We have the WTO.”

Cuba rebutted saying that “in real life, nothing is coming from WTO to help climate measures. This is a climate related issue.”

The Chair shifted discussions to Technology Transfer itself, which underwent a similar battle: While developed countries claim that progress has indeed been made with the establishments of the Technology Executive Committee (TEC) and the Climate Technology Centre and Network (CTCN), the Philippines turned it around by pointing out that although these mechanisms are established they are not yet operationalized. The Philippines continued on a strong speech, outlining the essential nature of the five BAP building blocks, and the clearness of the BAP agreement itself.

The Philippines shed light on how these discussions have shifted from committing to the LCA to sweeping it under the rug. She exposed a lot of the transparency issues in the process. Referring to the exclusive backroom decisions made in Copenhagen, Cancun, and Durban, she pointed out how an elite group of negotiators have been put on a certain level, and how the LCA chair (then Daniel Reifsnyder) has allowed that. “I’m only at sea level.” She then continued to criticize the role of the chair, bringing up how parties were not allowed to speak out about the Durban decision because of how the LCA chair took his own responsibility by passing the decision to the next COP. Under tech transfer, there were items bracketed under chair’s responsibility that were crucial to developing countries. “All of our options for finance,” said the Philippines, “were dropped off table in Cancun without us knowing what happened. You cannot just drop my options of the table. I will not accept someone to do so without not letting me know about it.”

The Philippines finished with noting the ambiguity of the ADP. It’s launch and period of when to plan its work is still under negotiation.

The Convention cannot be just swepped under the table. Parties agreed to finish its work. Developing countries claim that trying to do so would be stalling process, when in actuality ignoring these issues will only lead to further negotiation and lack of real action.

Finance Inadequate!

~by Joe Perullo

The word Philippine negotiator Bernarditas de Castro-Muller wouldn’t let go unnoticed in yesterday’s small negotiating group meeting on finance was “inadequate.”

The contact group met to discuss possible guidelines on the Global Environment Facility (GEF) and how to manage it’s two sub-funds: the Special Climate Change Fund (SCCF) and the Least Developed Countries Fund (LDCF).

The GEF is the financial mechanism of the UNFCCC, allocating and disbursing about $250 million dollars per year in projects in energy efficiency, renewable energies, and sustainable transportation. The Least Developed Countries Fund (LDCF), established under the United Nations Framework Convention on Climate Change (UNFCCC) at it seventh session in Marrakech, addresses the special needs of the 48 Least Developed Countries (LDCs), which are especially vulnerable to the adverse impacts of climate change. This includes financing National Adaptation Programmes of Action (NAPAs) which address urgent and immediate needs of LDCs to adapt to climate change.

In the contact group, developing countries insisted that financial support for both funds needs to be more predictable and adequate. ‘Predictable,’ means that right now funding for the funds is voluntary, not legally mandatory for developed countries—so nobody knows how much (or little) developing countries can expect to work with. ‘Adequate,’ means two things: there is not enough money in the funds right now, and far too little is expected with voluntary contributions.

So far the GEF has mobilized voluntary contributions of about $172 million for the LDCF. As developed countries keep pointing out, its target in the next 4 years is to reach $500 million, which is the amount estimated by the UNFCCC needed to finance NAPA implementation. The EU claimed this will be reached and is enough. The Philippines wasn’t so sure.

As the meeting time came to a close, the Chair decided to move discussions on the funds to a spin off group, which will include presentations by countries—not just negotiating, but longer prepared speeches.