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The COW was reconvened at 1:15 am on Thursday, 11 December. The Chair introduced FCCC/CP/1997/CRP.6, the final draft of the Protocol. Discussion began with Article 3. On aggregating emissions of Annex I Parties (paragraph 1), RUSSIA noted that its previously introduced quantitative indicators for limitation of GHG emissions were omitted from Annex B and stated that the Russian target should say 100% of the 1990 base level. UKRAINE also specified 100% for itself. Paragraphs 10 and 11 refer to how reduction units acquired or transferred among Annex I Parties can be applied by such Parties to reach their reduction or limitation targets. Paragraphs 12 refers to acquisition of certified emissions reductions among Parties as a means of meeting QELROs by Annex I Parties. Paragraph 13 allows Annex I Parties to "credit" GHG emissions reduction, below assigned amounts, from one commitment period to the next. Paragraph 14 indicates that Annex I Parties shall strive to implement their commitments under paragraph 1, in such a way as to minimize the adverse social, environmental and economic impacts on developing country Parties, particularly those identified in Article 4, paragraphs 8 and 9 of the Convention. It also establishes that the Meeting of the Parties at its first meeting, shall consider what actions are necessary to minimize the adverse effects of climate change and/or the impact of response measures on developing country Parties. Funding, insurance and transfer of technology are among the issues to be considered for this purpose. ARTICLE 16 (Multilateral Consultative Process): This article was discussed in the I&Ms negotiating group. The COP shall, as soon as practicable, consider the application of the multilateral consultative process to the Protocol. The establishment of QELROs excluded the LUCF category, but allowed GHG removal by "new activities" to be counted towards compliance if "verifiable." The "new activities" would be defined on the basis of advice from the IPCC and agreed upon by the COP.
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The US favored a target based on all GHGs, sources and sinks, flexibility, and meaningful participation of key developing countries. She offered flexibility on limited, carefully bounded differentiation and proposed a working group to examine differentiation, including the Russian proposal. She noted concerns regarding the EU proposal for restrictions on emissions trading, the EU's target in light of its economic advantage under their bubble proposal, the breadth of differentiation implied, and EU Member State accountability. She favored different targets for developing countries, such as emissions growth targets. Developing countries that assume voluntary commitments under the proposed Article 10 could gain new resources and technology through emissions trading. AUSTRALIA said the bulk of ESTs are privately developed and owned. Governments can create enabling conditions for technology development and recipient countries must have appropriate policies for successful transfers. The REPUBLIC OF KOREA said his country was in consultation with UNEP, UNDP and the Commission on Sustainable Development with a view to scheduling an expert group meeting on technology transfer in Seoul in February 1998. ZIMBABWE outlined her country's difficulties with basic economic development and the financial impact of El Nio. She said technology transfer had become a critical issue. VENEZUELA, SAUDI ARABIA and KUWAIT objected to adopting incomplete rules. ARGENTINA and the Alliance of Small Island States (AOSIS) supported the draft decision. The EU supported the draft decision but suggested that rule 22 was already agreed. The President called for consultations and said the COP would continue to apply the draft rules except rule 42. INDIA, on behalf of the G-77/CHINA, and supported by CHINA and INDONESIA, reiterated its objection to the concept of emissions trading, stating that it is extraneous to the Berlin Mandate and would not lead to GHG emissions limitation and reduction.
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The UK, supported by HUNGARY, TUVALU, GRENADA, SEYCHELLES, ZIMBABWE, the CZECH REPUBLIC, CHILE, URUGUAY, the PHILIPPINES, SLOVENIA, AOSIS, ZAMBIA and COLOMBIA, proposed amending the paragraph to clarify that trading would not be allowed until appropriate rules and guidelines were agreed by the COP. The Chair noted the existence of a draft decision for COP-3 to that effect. Differentiation: The QELROs negotiating group discussed possible parameters for differentiation on 2 December, on the basis of the US offer to be flexible on differentiation. Delegates discussed approaches to and concerns over differentiation. The group later considered a proposal by JAPAN establishing three categories of Annex I countries. On 3 December, delegates discussed the review of information and possible decisions under Article 4.2(f)(FCCC/CP/1997/L.3). They agreed to the proposal that the Czech Republic and Slovakia replace Czechoslovakia in Annex I and that Croatia be added. Delegates debated at length a proposal by Azerbaijan and Pakistan to delete Turkey from Annex I and Annex II. IRAN, TURKEY and KUWAIT supported the proposal. The EU and AUSTRALIA maintained that Turkey should indicate willingness to undertake Protocol obligations under Article 10 before its deletion from the Annexes. The US suggested continuing consideration of this proposal and other OECD members' relationship to Annex I at COP-4. TURKEY noted that questions remain unanswered on the Protocol's proposed Article 10 and requested that ministers discuss the matter on 10 December. The Chair proposed that Luis Herrera (Venezuela) conduct consultations on these amendments. The issue was not resolved and will be discussed at COP-4. The first meeting of the COW convened on 1 December. The COW established three negotiating groups on: institutions and mechanisms; advancing the implementation of FCCC Article 4.1 and the financial mechanism; and P&Ms. COW Chair Ral Estrada Oyuela conducted negotiations on QELROs. In addition, a number of informal groups considered other issues.
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FCCC Executive Secretary Michael Zammit Cutajar commented on the remarkable nature of the Conference given the media interest and the scale of the UN Internet broadcast, which have focused world attention on Kyoto. He said the Zen practice of breaking through mental boundaries provided a good theme for the days ahead when negotiators would have to break through the tendency to consider the short-term costs while neglecting the long-term economic opportunities. You can be ready to fall into the line of duty with our amazing selection of police costumes and accessories. Whether you're interested in funny and sexy costumes or prisoner costumes, these fun and unique police costumes and accessories will have you laying down the law in no time. At the 5 October COP Plenary, Estrada noted that agreements on sinks and coverage were necessary before QELROs could be defined. During the 6 October COW, the RUSSIAN FEDERATION said the nature of the issue's resolution would determine his view of the protocol. The US said the text might not be resolved until calculations regarding targets had been completed. Article 2, as adopted, describes policies and measures that each Annex I Party shall implement or elaborate in achieving its QELROs, in accordance with national circumstances. A subparagraph lists measures "such as:" energy efficiency; protection and enhancement of sinks; sustainable agriculture; new and renewable forms of energy, carbon sequestration and advanced technology; phasing out of subsidies and incentives that run counter to the FCCC objective; sectoral reform; GHG emission limitation and reduction; and methane recovery and use. Parties shall cooperate to enhance the effectiveness of P&Ms. Annex I Parties shall pursue limitation of emissions from aviation and marine bunker fuels, working through the International Civil Aviation Organization and the International Maritime Organization. Parties shall strive to minimize the adverse effects on other Parties, especially developing country Parties and those identified by FCCC Articles 4.8 and 4.9. The COP shall consider ways to elaborate coordination, if it decides coordination would be beneficial.The US stressed its change in position to support for very deep reductions and, with CANADA, ARGENTINA and NEW ZEALAND, proposed that COP-4 define relevant rules and guidelines. However, Estrada, noting that certain Annex I countries require flexibility mechanisms to take on significant legally binding commitments, urged delegates to adopt a decision allowing COP-4 to determine modalities and guidelines for emissions trading, in particular for verification, reporting and accountability. This was supported by KENYA and COSTA RICA. ARTICLE 8 (Expert Review of Implementation): Article 8 calls for review by expert review teams of the information submitted under Article 7 by Annex I Parties, as part of an annual compilation and accounting of emissions inventories and assigned amounts and the review of communications. The review teams shall be coordinated by the Secretariat and composed of experts selected from those nominated by the Parties to the Convention and intergovernmental organizations, as appropriate. The review process shall provide a comprehensive technical assessment of all aspects of implementation of the Protocol, and the teams shall prepare a report for the MOP assessing the implementation and identifying any potential problems in the fulfillment of commitments. The Secretariat shall circulate the reports and list questions of implementation for further consideration by the MOP. The MOP shall: adopt at its first session, and review periodically, guidelines for the review; with the assistance of SBI and, as appropriate, SBSTA, consider the Parties' information, the expert review reports, the questions listed by the Secretariat, and any questions raised by Parties; and take decisions on any matter required for the implementation of the Protocol. BURKINA FASO proposed deleting language in paragraph 3.10 allowing Parties to engage in emissions trading and on the supplementary nature of such trading as pertains to domestic actions toward meeting commitments, along with the two subsequent paragraphs, and proposed a reference to the decision to be taken by COP-3 to have COP-4 determine the modalities, rules and guidelines for emissions trading. The GAMBIA, MALAWI, KIRIBATI, SAUDI ARABIA, ZAMBIA and IRAN supported deletion of paragraphs 3.11 and 3.12, if COP-4 was to further consider emissions trading.
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Paragraph 8 establishes that Annex I Parties may use 1995 as their base year for HFCs, PFCs and SF6, for the purposes of calculating their reduction or limitation targets in accordance to paragraph 7. Paragraph 9 determines that reduction or limitation targets for subsequent commitment periods shall be established through amendments to Annex B in accordance with procedures set out in the protocol to that effect (Article 20, paragraph 7).
On 9 December, Estrada introduced a new draft text (FCCC/CP/1997/CRP.4) at an evening session of the COW. He indicated that the proposed text on Article 3 would be treated as a take it or leave it offer. The proposal was the "big bubble," as suggested at various moments during the negotiations, in particular by Russia. The Chair's text contained a global reduction of 5% in emissions of CO2, CH4, NO2 from 1990 levels, for the commitment period between 2006 and 2010, with the possibility that Parties fulfill the commitment individually or jointly. He said the global reduction commitment had been distributed in a differentiated way, with some countries possibly increasing emissions, others keeping their current levels, and most reducing. BRAZIL said the question is: what are man-made activities for which credits should be given to increase emissions? He compared the 6 gigatonnes (Gt) of carbon emitted from fossil fuels and 1 Gt from land-use change to natural uptake of 2 Gt by oceans and 2 Gt on continental surfaces. Given deep economic limitations and the inclusion of all countries, if all forests were considered managed this would grant a license for 30 percent more emissions. Because the FCCC includes an obligation to conserve and maintain sinks and reservoirs, he suggested a separate article to restate the obligation on all Parties to sustainably manage their sinks.
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Dr. Johny Lahure (Luxembourg), on behalf of the EU, rejected differentiation that makes targets weaker. Instead, it must guarantee comparable commitments for major economies at least. Flexibility resulting in environmentally detrimental loopholes is unacceptable. He supported: the "three plus three" gas proposal; trading along with strong targets and domestic action, monitoring, sanctions and market safeguards; and JI with rules and safeguards. He said mandatory, internationally coordinated P&Ms are indispensable. Suggestions that developing countries should take up new commitments are not helpful to the negotiations and contrary to the Berlin Mandate. Mobilizing new and additional resources through the financial mechanism could foster voluntary limitation of developing country GHG emissions. Kim Potter -- the MN cop on trial for shooting and killing Daunte Wright -- just broke down during her testimony about the second she realized what she had done. The CDM shall be subject to the authority and guidance of the MOP and supervised by an executive board of the CDM. Each project's emission reductions shall be certified by operational entities designated by the MOP based on: voluntary participation by each Party involved; real, measurable and long-term climate change mitigation benefits; and emission reductions additional to any occurring in the absence of the certified project activity. The CDM shall assist in arranging project funding as necessary. Following a proposal by CROATIA, delegates discussed the status of Yugoslavia in relation to the Convention. The Executive Secretary reported on the results of his request for information on Yugoslavia's status within the UN and the FCCC. The President asked Yugoslavia to refrain from participation in the meeting.
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CHINA drew attention to the fact that budget periods appeared under each option, and recalled the G-77/China's objection to this concept. BRAZIL and ICELAND indicated that the issue of sinks needed to be sorted out before settling targets for QELROs. BRAZIL noted the value of the third option as a basis for compromise. It was agreed that consultations on the matter would continue during COP-3.
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