This summary was prepared by the International Institute for Sustainable Development
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A brief analysis of COP-7
Things to look for before COP-8
High-level Segment
The High-Level Segment took place from 7-8 November, attended by ministers and other heads of delegation. Participants heard statements from over 70 Parties as well as from UN bodies and specialized agencies, observer states, youth representatives, intergovernmental organizations and NGOs.
WELCOMING CEREMONY: On Wednesday morning, 7 November, an official welcoming ceremony for participants at the High-Level Segment was held. UNEP Executive Director Klaus Töpfer, on behalf of UN Secretary-General Kofi Annan, highlighted the environment and development elements of climate change, noted the need for significant long-term changes in social and economic behaviors, expressed appreciation for the work of COP-6 President Pronk, noting that Pronk would serve as his special envoy to the WSSD, and underlined the importance of multilateralism.
Prince Moulay Rachid of Morocco, speaking on behalf of King Mohammed VI, underlined the need for internationally-shared ethical values, and urged international solidarity in addressing environmental concerns, calling for technology transfer, new and additional financial resources, and reducing external debt burdens.
In his final speech in a High-Level Segment, UNFCCC Executive Secretary Michael Zammit Cutajar congratulated the Secretariat staff on their dynamism and commitment, and thanked Parties for their trust and for not engaging in micro-management. He wished delegates well in moving the UNFCCC forward. Delegates thanked him for his contribution with a standing ovation.
STATEMENTS BY PARTIES: In their statements, many Parties highlighted the importance of maintaining the environmental integrity of the Protocol. They also drew attention to success in the negotiations on compliance, and called for completion at COP-7 of work under the BAPA, with many stating that this would support ratification and entry into force in time for the WSSD in September 2002. In addition, several speakers noted that the events of 11 September 2001 demonstrate the need for multilateral solutions to those global problems that cannot be tackled by only one country. A number of delegates drew attention to the IPCC TAR that demonstrates the need for urgent action to address climate change.
On the current negotiations at COP-7, Switzerland said it could not accept changes that weaken the Bonn Agreements, and stated that no country can shirk its responsibilities. Iran, for the G-77/China, stated that neither COP-7 nor the WSSD was the appropriate forum for raising the issue of new commitments for developing countries. Canada highlighted the need to be responsive to those whose participation is critical to entry into force of the Protocol. On ratification of the Protocol, New Zealand said it was currently the only Umbrella Group Party to have made a commitment to ratify in time for WSSD, although he predicted that he "will be in good company before too long."
On mechanisms, the Republic of Korea said the full potential of the mechanisms should be realized, including unilateral CDM. Ukraine said JI should be given priority and that the main goal should be the reduction, rather than the redistribution, of emissions.
Regarding the circumstances and needs of developing countries and LDCs, many speakers underscored the need for capacity building, adaptation and technology transfer. Tanzania, Benin and Djibouti noted that LDCs will be most affected by climate change and have the least capacity to cope. Regarding assistance to countries highly dependent on fossil fuel exports, Kuwait proposed removal of tax incentives and exemptions relating to emissions, and assistance for diversifying economies.
On next steps in the climate change process, Samoa, for AOSIS, said that once work on the BAPA is completed, Parties should review commitments under this regime, and suggested that they be stronger and more extensive. The US said it would continue to play a leading role in addressing climate change and is moving ahead with science-based measures. Brazil said it looked forward to negotiations on the second commitment period, taking into account the "Brazilian proposal" based on the share of responsibility for causing climate change. Bangladesh supported the speedy application of the Adaptation and LDC Funds, and highlighted the particular vulnerability of low lying and small island States.
STATEMENTS BY OBSERVER STATES, UN BODIES, AND INTERGOVERNMENTAL AND NON-GOVERNMENTAL ORGANIZATIONS: Turkey, an observer State, said it was looking forward to COP-7’s adoption of a decision removing Turkey from the Annex II list and recognizing its special circumstances as an Annex I Party.
The WMO highlighted the IPCC’s TAR, noting new and stronger evidence of the contribution of human activities to climate change. UNEP underlined the need to address the global crises of ecological degradation and extreme poverty. The GEF underlined its commitment to supporting capacity building, technology transfer and adaptation, acknowledged the need for a more consultative process in the GEF Council, and undertook to address the concerns raised in the recent evaluation of its performance. Emphasizing the links between development and climate change, UNDP noted, inter alia, that its country-office presence is being reinforced. The IPCC summarized key findings of the TAR, noting that developing countries will suffer disproportionate impacts.
Morocco’s Children’s Parliament, Francophone Young People’s Parliament, and the World Youth Organization on Climate Change gave presentations, with the final speaker urging a move toward a low carbon-emitting future, entry into force of the Protocol as the start of a "long path" in combating climate change, and completion at COP-7 of decision texts without weakening the Bonn Agreements.
The International Energy Agency highlighted market-based solutions to achieve realistic climate change objectives. He highlighted renewable energy options in combating climate change, while advocating that no possible fuel or technology solution be excluded. OPEC highlighted the impacts of climate change response measures on economies dependent on fossil fuel exports, and suggested that the "entire philosophy of energy taxation" be reconsidered.
Climate Action Network South called for clear commitments to the various funds agreed at COP-6 Part II, labeling current financial undertakings as "pathetic." The International Chamber of Commerce advocated early negotiations on second and third commitment periods, and implementation of the UNFCCC in a manner that would allow full business participation. The Indigenous Peoples’ Organizations requested a COP decision to grant indigenous peoples a specific status in the climate change process, and said it should create an ad hoc intersessional open-ended working group. Global Legislators Organization for a Balanced Environment supported a rigorous compliance system, limits on the use of sinks, and a CDM that involves as many developing countries and LDCs as possible and includes small-scale projects. Climate Action Network North linked climate change to health and poverty issues.
The US and European Business Councils For Sustainable Energy supported a fast track for CDM projects, early crediting, full transferability of CERs, and a binding compliance regime. The International Confederation of Free Trade Unions, Trade Union Advisory Committee to the OECD and European Confederation of Free Trade Unions highlighted the potential for job creation resulting from climate change measures and called for employment transition programmes.
Closing plenary
COP-7 President Elyazghi opened the final Plenary on Saturday morning, 10 November 2001 after a long night of negotiations. The COP adopted decisions relating to a number of agenda items, including on the implementation of the Buenos Aires Plan of Action and input to the World Summit on Sustainable Development.
In their closing statements, many Parties expressed satisfaction that consensus had been achieved on all outstanding work under the BAPA, thus bringing to a close this stage of negotiations, and preparing the way for ratification and entry into force of the Protocol. Parties also noted that COP-7 was the first COP held in Africa, a developing country region highly vulnerable to climate change. Saudi Arabia, Kuwait, the United Arab Emirates and Nigeria drew attention to Protocol Article 2.3 (adverse effects of P&Ms) and said this should be on the agenda for substantive consideration at SB-16. Canada, the EU and Japan expressed the view that this issue did not require a separate process, as it was considered under other relevant agenda items.
The EU said COP-7 had marked an important milestone in making the Kyoto process irreversible. The Russian Federation said COP-7 had opened up the path for the ratification of the Protocol by all countries. The Republic of Korea, noted its view that the decision on the CDM does not exclude any particular projects, including unilateral ones. The G-77/China said the agreement marked the "end of a long journey" toward achieving ratification of the Protocol, and said there had been many sacrifices made to gain agreement, particularly on the part of developing countries. Japan said climate negotiations will now enter a new stage, and looked forward to consideration of ways to take further steps at COP-8. Australia said it did not intend to make use of Article 3.4 as it believes it can rely on relevant activities under Article 3.3. Noting the events of 11 September, Argentina observed that work on the BAPA had been completed at a time some might not have thought ideal, and said terrorism had not stood in the way of the momentum to complete this cycle of negotiations.
The COP then adopted the report of the session (FCCC/CP/2001/ L.16 Adds.1-3), as well as a decision expressing great appreciation to Michael Zammit Cutajar, the Executive Secretary of the UNFCCC, for his ten years of "excellent service" to the climate change process. The decision was adopted by standing ovation. The COP also adopted a resolution thanking Morocco and Marrakesh for hosting COP-7.
In his closing remarks, President Elyazghi said COP-7 had sent a message of hope for combating climate and for the WSSD, and declared the meeting closed at 6:45 am.
CDM Executive Board
Following the conclusion of COP-7, the newly elected Executive Board of the Clean Development Mechanism held its first meeting. The Board elected John Ashe (Antigua and Barbuda) as its first Chair and Sozaburo Okamatsu (Japan) as Vice Chair. The Board also set the agenda for its second meeting, which will be held from 21-23 January 2002 in Bonn.
A BRIEF ANALYSIS OF COP-7
The climate change caravan moves to Marrakesh
Not far from the Palais des Congrès de Marrakech, site of the COP-7 climate negotiations, is Jemaa el-Fna, the centuries old market square that forms the heart of Marrakesh. This is the place where traders and artists, storytellers and acrobats, carpet-sellers and snake charmers come together to entertain, and -- amidst great wringing of hands and shaking of heads -- to close a good deal. For the last two weeks the spirited performers and wily traders that dominate this historic square have been competing for attention with the seasoned negotiators of the climate change caravan. Although not quite as accessible -- or as entertaining -- to the general public, the antics of the climate negotiators have nevertheless provided a good lesson to those seeking to understand the art of driving a hard bargain.
Clinching a deal...
Delegates came to Marrakesh with the aim of building on the historic -- although at times seemingly fragile -- political deal concluded at Bonn, and to resolve the outstanding "technical" issues relating to the structure of the Kyoto Protocol, thereby clearing the way for the Protocol’s "timely" entry into force. Despite what the world media seems to have thought, the conclusion of the Bonn Agreements did not imply that all the political issues had been sufficiently resolved. Indeed, during the final days of the Bonn negotiations it had become apparent not only that some of the Parties were seeking to re-interpret the Agreements, but also that many of the remaining "technical" issues themselves had significant political undertones. The stakes at Marrakesh were thus high, and the threat of failure remained a distinct possibility.
Aware of these concerns, the EU and the G-77/China arrived in Marrakesh determined to "sell" a deal that would ensure sufficient ratifications for entry into force of the Protocol, preferably in time for the Johannesburg Summit in September 2002. In the early hours of Saturday, 10 November, it became apparent that such a deal had indeed been struck, as a result of which ratification of the Protocol is now a more realistic possibility. But it was apparent that in making this deal, the EU and the G-77/China had been compelled to concede to many of the demands of key Umbrella Group countries. The market for a ratifiable Kyoto Protocol was very much a buyer’s market.
...but at what price?
In the knowledge that their participation was essential for entry into force of the Protocol, the Russian Federation, Japan, Australia, and Canada used this leverage -- both collectively and individually -- to drive down the "price" of ratification. Playing the ratification card on a number of occasions, they sought to weaken the compliance system, lower the eligibility requirements for mechanisms, undermine opportunities for public participation and transparency, and minimize requirements for providing information on sinks.
The true extent of their bargaining power, as well as the level of their determination to protect national interests, became most apparent as the three years of negotiating the implementation of the Buenos Aires Plan of Action drew to a climax. Late on the evening of Thursday, 8 November, Ministers Moosa and Roch presented a global package deal aimed at addressing the stalemate in negotiations. The deal, which proved acceptable to all other Parties, was rejected by members of the Umbrella Group, with the following five areas of contention proving the greatest stumbling blocks:
- whether Annex I Parties’ use of the mechanisms should be "subject to the procedures and mechanisms on compliance";
- whether Annex I Parties’ use of the mechanisms should be dependent upon the reporting of LULUCF data;
- whether the newly created "removal units" could be carried over to subsequent commitment periods;
- the extent to which Parties should be required to report on the implementation of Article 3.14 (adverse effects); and
- whether and how the principles governing the use of sinks should be operationalized.
The best part of Friday, and the early hours of Saturday morning, found ministers and high-level negotiators behind closed doors, seeking to find a compromise solution on these and related issues. Although the nature of these discussions remains unclear (transparency was not a distinguishing feature of Marrakesh), the final outcome suggests a remarkable level of intransigence amongst certain Parties, most notably the Russian Federation, Japan and Canada, all of whom secured favorable deals as a precondition for their ratification.
Belligerent bargaining
Throughout the two weeks in Marrakesh, many observers expressed despair with the intransigent negotiating style of the Russians. Despite the insistence of almost all Parties that the Bonn Agreements were sacrosanct, the Russian Federation succeeded -- through sheer belligerence -- in renegotiating its "Appendix Z" sinks allowances from 17 to 33 megatons of carbon. They were persistent, too, in seeking to remove two key eligibility requirements for use of the mechanisms (submission of sinks inventories, and adoption of the compliance regime), as well as in striving to limit procedures for public scrutiny and participation.
The negotiating tactics of the Japanese delegation -- which numbered over 80 delegates -- was further cause for comment. In the negotiating group on Articles 5, 7 and 8, for example, they proved to be particularly stubborn. At one point, the G-77/China responded to a Japanese request with a deeply felt "you must be joking!" But they were not, and their stubbornness paid off, as evidenced in particular by their success in securing an expedited procedure for the reinstatement of mechanisms’ eligibility.
Australia and Canada, in addition to supporting various interventions by Japan and the Russian Federation, were themselves vocal on a number of key issues. Australia, for example, was the driver in seeking to delete reference to a Party-to-Party trigger in the compliance regime, while Canada sought to undermine the reporting requirements on sinks issues.
Frustration with the negotiating tactics of different Parties extended to the Chairs of the negotiating groups. Chair Dovland, for example, was prompted to express "extreme disappointment" with the lack of progress within the group on Articles 5, 7 and 8, while, in a similar vein, Co-Chair of the mechanisms group, Raúl Estrada, felt compelled to interject in his group’s proceedings. Following a request from Japan and Canada for clarity on the meaning of "sound" rules, he called on them to define "filibuster."
A cheap deal, better than no deal
Although the final deal will leave many observers understandably disappointed, it is suggested that there is nevertheless room for cautious optimism, tempered in particular by a healthy dose of realism as to what is politically and economically feasible. Notwithstanding the obduracy of Umbrella Group countries on the final deal, useful progress was made on a number of key issues.
Cameroon, speaking for the African Group, reflected some of the positive achievements when he expressed pride in the results, arguing that the Marrakesh Accords would result in the prompt implementation of the Protocol, and declaring high hopes regarding access to funds for LDCs and to the fruits of CDM projects. Important steps in this regard include the election of the CDM Executive Board, and agreement on the prompt start of certain CDM projects. (The extent to which CDM projects will actually have a meaningful impact within Africa remains to be seen).
On the issue of compliance, too, significant progress was made. This was the only "crunch-issue" that was fully resolved at a technical level, a fact that was warmly welcomed by observers who were pleasantly surprised not only with the swift completion of the compliance negotiations, but also in their outcome: the adoption of the most innovative and elaborate non-compliance procedure for any existing multilateral environmental agreement. Although the deal struck on the compliance text provides all Parties with cause for satisfaction, it is the EU and the G-77/China that gained the most, with almost all of their demands adopted. A key issue that will make or break the compliance regime -- and one that has bedevilled the negotiations -- relates to the legal nature of the decisions adopted by the enforcement branch. A number of observers expressed support for the outcome reached in Marrakesh, arguing that it provides a sophisticated construction that ensures that the consequences will in fact be legally binding. Two reasons for this have been cited. First, UNFCCC Parties have agreed that only Parties to the Kyoto Protocol will decide on the mode of adoption, which, given the overwhelming majority of Parties in favor of legally binding consequences, suggests that such adoption is expected to be made by an amendment, thus enabling the enforcement branch to decide legally binding consequences. Second, by providing that a Party’s eligibility to participate in the mechanisms is dependent on "its being subject to the procedures and mechanisms on compliance," the agreement provides a clear incentive for Parties to ratify the compliance amendment. From a wider perspective, it should not be forgotten that the strength of the compliance regime ultimately depends on the robustness of the reporting requirements.
Other positive and innovative developments include: the consideration of gender balance in future bodies established under the UNFCCC; integration of Principles on LULUCF in the Article 7 guidelines; and the establishment of the new "removal unit" (RMU) on the basis of a G-77/China proposal.
COP-7: Finding wisdom and moderation in the bargaining process?
In his address to the plenary, Morocco’s Prince Moulay Rachid, speaking on behalf of King Mohammed VI, expressed the hope that "out of your blessed conference may emerge a message of optimism, of wisdom, of moderation and of hope, a message that is so badly needed by mankind today." In the negotiators’ world of driving a hard bargain, particularly where the stakes are so high, seeking to find moderation in negotiating styles was perhaps unduly optimistic. But, in having successfully secured a deal -- albeit one that many will find disappointing -- it is possible that Marrakesh will serve as the foundation for a comprehensive multilateral approach.
To many observers, the real value of the Kyoto Protocol lies not in its direct impact on limiting greenhouse gas levels, but rather in serving as a precedent for concerted and coordinated global action on climate change. In this regard, the outcome of the COP-7 negotiations bodes well, as few Parties now have an excuse not to ratify the Protocol. Furthermore, as Jan Pronk was overheard saying at the close of the meeting, "COP-7 now provides the US with a suitable legal structure to join the process of combating global climate change."
It remains to be seen whether Marrakesh will be remembered for its wisdom and moderation in providing the first steps for a multilateral response to climate change, or whether it will be remembered for the belligerent bargaining tactics that many believe have unduly undermined the environmental integrity of the Kyoto Protocol.
THINGS TO LOOK FOR BEFORE COP-8
SOLAR WORLD CONGRESS OF THE INTERNATIONAL SOLAR ENERGY SOCIETY: This congress will be held from 25 November to 2 December 2001, in Adelaide, Australia. The technical programme will cover various aspects of renewable energy and energy sustainability. For more information, contact: ISES 2001; tel: +61-8-8363-4399; fax: +61-8-8363-4577; e-mail: ises2001@hartleymgt.com.au; Internet: http://www.unisa.edu.au/ises2001congress/home.html
MEETING OF THE EXECUTIVE BODY FOR THE CONVENTION ON LONG-RANGE TRANSBOUNDARY AIR POLLUTION: This meeting will take place from 26-30 November 2001, in Geneva. For more information, contact: Yves Berthelot, UNECE; tel: +41-22-917-2670; fax: +41-22-917-0107; e-mail: yves.berthelot@unece.org; Internet: http://www.unece.org/env/lrtap/
INTERNATIONAL SYMPOSIUM ON THE MANAGEMENT AND TECHNOLOGY OF ENERGY AND ENVIRONMENT: This meeting will be held from 7-8 December 2001, in Vancouver, BC, Canada. It will seek to address energy, environmental management and technology issues, and provide a forum for information exchange among representatives of industry, government, and academia. For more information, contact ICEEE: tel. and fax: +1-714-898-8416; e-mail: inquiries@iceee.org; Internet: http://www.iceee.org
INTERNATIONAL CONFERENCE ON RENEWABLE ENERGY FOR RURAL DEVELOPMENT: This conference will be held from 19-21 January 2002, in Dhaka, Bangladesh, and will consider the technical scope of power generation from offshore wind, waves, current and tidal schemes. The conference will also consider technologies for the medium- to long-term and will address technical challenges in developing renewable energy sources. For more information, contact: A.K.M. Sadrul Islam; fax: +880-2-861-3046; e-mail: sadrul@me.buet.edu
THIRD INTERNATIONAL SYMPOSIUM ON NON-GREENHOUSE GASES: This symposium will be held from 21-23 January 2002, in Maastricht, the Netherlands. For more information, contact: Symposium Secretariat; tel: +31-73-621-5985; fax: +31-73-621-6985; e-mail: vvm@wxs.nl; Internet: http://www.milieukundigen.nl
EARTH TECHNOLOGIES FORUM: This conference and exhibition on global climate change and ozone protection technologies and policies will be held from 25-27 March 2002, in Washington, DC. The conference is being sponsored by the international Climate Change Partnership and the Alliance for Responsible Atmospheric Policy. Participants will discuss current technologies and efforts to bring them into the marketplace. For more information, contact: tel: +1-703-807-4052; fax: +1-703- 528-1734; e-mail: earthforum@alcalde-fay.com; Internet: http://www.earthforum.com
16TH SESSION OF THE UNFCCC SUBSIDIARY BODIES: SB-16 is provisionally planned to be held in Bonn, Germany, from 3-14 June 2002. For more information, contact: UNFCCC Secretariat; tel: +49-228-815-1000; fax: +49-228-815-1999; e-mail: secretariat@unfccc.de; Internet: http://www.unfccc.de
2002 WORLD SUMMIT ON SUSTAINABLE DEVELOPMENT (WSSD): The World Summit on Sustainable Development will take place ten years after the Rio Earth Summit (UNCED) in Johannesburg, South Africa, from 2-11 September 2002. The Preparatory Committee will meet from 28 January - 8 February and 25 March - 5 April 2001 at UN headquarters in New York, and from 27 May - 7 June 2001 in Indonesia. For more information, contact: Andrey Vasilyev, DESA, New York; tel: +1-212-963-5949; fax: +1-212-963-4260; e-mail: vasilyev@un.org; Major groups contact: Zehra Aydin-Sipos, DESA; tel: +1-212-963-8811; fax: +1-212-963-1267; e-mail: aydin@un.org; Internet: http://www.johannesburgsummit.org/
EIGHTH CONFERENCE OF THE PARTIES TO THE UNFCCC: COP-8 is provisionally planned to take place from 23 October - 1 November 2002, at a location to be determined. For more information, contact: the UNFCCC Secretariat, Bonn, Germany; tel: +49-228-815-1000; fax: +49-228-815-1999; e-mail: secretariat@unfccc.int; Internet: http://www.unfccc.int/
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