Source: JOYCELINE A. GOCO Head, IACCC Secretariat.

Source: JOYCELINE A. GOCOHead, IACCC Secretariat

Call for Global Action:Call for Global Action:

In response to the scientific findings that the earth is getting warmer and may lead to irreversible adverse impacts, the United Nations Framework Convention on Climate Change (UNFCCC) was adopted on May 9, 1992 at the United Nations Headquarters in New York.

“Earth Summit” in Rio (June 1992)United Nations Conference on Environment and

Development (UNCED)

Signing of the UNFCCCSigning of the UNFCCC The Philippines was among the first The Philippines was among the first

154 nations to sign 154 nations to sign As of Dec. 2001, 186 nations (including As of Dec. 2001, 186 nations (including

the Philippines) have ratified thethe Philippines) have ratified the

ConventionConvention

THE UNITED NATIONS THE UNITED NATIONS FRAMEWORK CONVENTION ON FRAMEWORK CONVENTION ON

CLIMATE CHANGECLIMATE CHANGE

The centerpiece of global efforts to The centerpiece of global efforts to combat global warmingcombat global warming

CONVENTION’S OBJECTIVECONVENTION’S OBJECTIVE

Seeks to stabilize atmospheric Seeks to stabilize atmospheric concentration of greenhouse gases concentration of greenhouse gases “ “

at a level that would prevent at a level that would prevent dangerous anthropogenic dangerous anthropogenic [human-[human-

induced]induced] interference with the interference with the climate system”.climate system”.

The Convention’s Guiding The Convention’s Guiding PrinciplesPrinciples

The lack of full scientific certainty should The lack of full scientific certainty should not be used as an excuse to postpone action.not be used as an excuse to postpone action.

The The “common but differentiated “common but differentiated responsibilities”responsibilities” of states assigns the lead of states assigns the lead to to developed countriesdeveloped countries in combating climate in combating climate change.change.

GENERAL COMMITMENTGENERAL COMMITMENT

All Parties to develop All Parties to develop “national “national communications”communications” containing containing inventories of GHG emissions by inventories of GHG emissions by source and GHG removals by sinks.source and GHG removals by sinks.

Commitments of PartiesCommitments of Parties

Annex 1 Country PartiesAnnex 1 Country Parties

Developed countries and countries whose Developed countries and countries whose economies are in transitioneconomies are in transition

Adopt policies and measures to limit their Adopt policies and measures to limit their anthropogenic emissions of GHGs and anthropogenic emissions of GHGs and protect/enhance their GHG sinks and protect/enhance their GHG sinks and reservoirs to demonstrate that they are reservoirs to demonstrate that they are taking the lead in modifying longer-term taking the lead in modifying longer-term trends.trends.

• Submit their national communications on Submit their national communications on regular basis with the following information:regular basis with the following information:

Projected anthropogenic GHG emissions Projected anthropogenic GHG emissions by sources and sinks with the aim of by sources and sinks with the aim of returning them to 1990 levels, returning them to 1990 levels, individually or jointlyindividually or jointly

Policies and measures to limit GHG Policies and measures to limit GHG emissions and protect/enhance sinks and emissions and protect/enhance sinks and reservoirsreservoirs

Annex II Country PartiesAnnex II Country Parties

Under Article 4.2 of the UNFCCC, developed Under Article 4.2 of the UNFCCC, developed country parties included in Annex II (Annex 1 country parties included in Annex II (Annex 1 countries minus the economies in transition) countries minus the economies in transition) have the following additional commitments:have the following additional commitments:

Provide Provide new and additionalnew and additional financial resources financial resources to meet the agreed full costs incurred by to meet the agreed full costs incurred by developing country Parties in complying with developing country Parties in complying with their obligations under Article 12.their obligations under Article 12.

Provide financial resources, including transfer Provide financial resources, including transfer of technology to meet the agreed full of technology to meet the agreed full incremental costs of measures to be undertaken incremental costs of measures to be undertaken by developing country Parties under Article 4.by developing country Parties under Article 4.

Promote, as appropriate, the transfer of, or, Promote, as appropriate, the transfer of, or, facilitate and finance access to, facilitate and finance access to, environmentally sound technologies and know-environmentally sound technologies and know-how to other Parties, particularly the how to other Parties, particularly the developing ones to enable them to implement developing ones to enable them to implement the provisions of the Convention.the provisions of the Convention.

Non-Annex 1 Country PartiesNon-Annex 1 Country Parties

Non-annex 1 country Parties or developing Non-annex 1 country Parties or developing countries countries

Have no commitments to reduce their GHG Have no commitments to reduce their GHG emissionsemissions, but only to “develop, periodically , but only to “develop, periodically update, publish and make available to the update, publish and make available to the Conference of Parties, their national Conference of Parties, their national inventories of GHG emissions by sources and inventories of GHG emissions by sources and removals by sinks”.removals by sinks”.

Institutional BodiesInstitutional Bodies Conference of Parties (CoP)Conference of Parties (CoP)

-- supreme decision-making body of the Conventionsupreme decision-making body of the Convention

-- primary task is to promote and review the primary task is to promote and review the implementation of the Convention and any related legal implementation of the Convention and any related legal instruments (such as the Kyoto Protocol, etc.)instruments (such as the Kyoto Protocol, etc.)

-- has convened six meetings since the Convention’s has convened six meetings since the Convention’s entry into force on March 21, 1004entry into force on March 21, 1004

-- 1st Session of the COP was held in Berlin in 1995 1st Session of the COP was held in Berlin in 1995 which agreed on the “Berlin Mandate” calling for the which agreed on the “Berlin Mandate” calling for the strengthening of Annex 1 commitments through the strengthening of Annex 1 commitments through the adoption of a protocol or another legally binding adoption of a protocol or another legally binding instrument.instrument.

Institutional BodiesInstitutional Bodies

Subsidiary BodiesSubsidiary Bodies

-- Subsidiary Body for Scientific and Subsidiary Body for Scientific and Technological Advise (SBSTA)Technological Advise (SBSTA) - provides - provides the CoP with information and advice on the CoP with information and advice on scientific and technological concernsscientific and technological concerns

-- Subsidiary Body for Implementation Subsidiary Body for Implementation (SBI)(SBI) - assists the CoP in the assessment - assists the CoP in the assessment and review of the implementation of the and review of the implementation of the Convention.Convention.

Institutional BodiesInstitutional Bodies

UNFCCC SecretariatUNFCCC Secretariat: tasked with : tasked with administrative functions, taking charge of administrative functions, taking charge of arrangements for sessions, facilitate assistance arrangements for sessions, facilitate assistance to parties, etc.to parties, etc.

Global Environmental Facility (GEF)Global Environmental Facility (GEF): : interim financial mechanism (Art. 11-21 [3])interim financial mechanism (Art. 11-21 [3])

THE KYOTO PROTOCOLTHE KYOTO PROTOCOL

The Kyoto Protocol is an international The Kyoto Protocol is an international agreement of 159 countries, which agreement of 159 countries, which attended the 3rd Session of the attended the 3rd Session of the Conference of the Parties to the UNFCCC Conference of the Parties to the UNFCCC held in December 1997 in Kyoto, Japan.held in December 1997 in Kyoto, Japan.

This formalized the adoption of the This formalized the adoption of the results of the Berlin Mandate (CoP 1) to results of the Berlin Mandate (CoP 1) to reduce worldwide emissions in GHGs. reduce worldwide emissions in GHGs.

Objective of the Kyoto ProtocolObjective of the Kyoto Protocol

The protocol was developed to meet The protocol was developed to meet the ultimate objective of the UNFCCC the ultimate objective of the UNFCCC which is to which is to “stabilize GHG concentrations “stabilize GHG concentrations in the atmosphere at a level that would in the atmosphere at a level that would prevent anthropogenic interference with prevent anthropogenic interference with the climate system”,the climate system”, through through quantified quantified emission targets within a specified time emission targets within a specified time frameframe..

Significant Provisions of the Kyoto Protocol

Annex 1 Country Parties, individually or jointly, ensure that their aggregate anthropogenic CO2 equivalent emissions of GHG do not exceed their assigned amounts.

Reduction of their overall emissions by at least 5% below 1990 levels in the commitment period 2008 to 2012.

The Protocol commits Annex B countries The Protocol commits Annex B countries that ratify the Protocol to reduce GHG that ratify the Protocol to reduce GHG emissions below 1990 levels by the first emissions below 1990 levels by the first commitment period (2008-2012)commitment period (2008-2012)

The Protocol will be legally binding when it The Protocol will be legally binding when it enters into force. It must be signed and enters into force. It must be signed and ratified by at least 55 countries, whose total ratified by at least 55 countries, whose total emissions represent 55% of the emissions of emissions represent 55% of the emissions of the Annex I countries in 1990.the Annex I countries in 1990.

Incorporation by Annex 1 Parties in its Incorporation by Annex 1 Parties in its annual inventory of anthropogenic emissions annual inventory of anthropogenic emissions the sources and removals by sinks of GHG the sources and removals by sinks of GHG gases.gases.

Expert review process, providing a thorough Expert review process, providing a thorough and comprehensive technical assessment of and comprehensive technical assessment of the implementation of this protocol.the implementation of this protocol.

No introduction of new commitments for No introduction of new commitments for Parties not included in Annex 1.Parties not included in Annex 1.

The Kyoto Protocol reinforces the principle of “common but differentiated responsibilities”.

THE KYOTO PROTOCOL FLEXIBILITY THE KYOTO PROTOCOL FLEXIBILITY MECHANISMSMECHANISMS

EMISSIONS TRADINGEMISSIONS TRADING

JOINT IMPLEMENTATIONJOINT IMPLEMENTATION

CLEAN DEVELOPMENTCLEAN DEVELOPMENT

MECHANISMMECHANISM

Emissions Trading (ET)Emissions Trading (ET)Article 17Article 17

-- Permits countries to transfer Permits countries to transfer parts of their “allowed emissions” parts of their “allowed emissions” (assigned amount units)(assigned amount units)

Joint Implementation (JI)Joint Implementation (JI)Article 6Article 6

-- Allows countries to claim credit Allows countries to claim credit for emission reductions that arise from for emission reductions that arise from investment in other industrialized investment in other industrialized countries, which result in a transfer of countries, which result in a transfer of equivalent “emission reduction units” equivalent “emission reduction units” between the countries.between the countries.

Clean Development Mechanism Clean Development Mechanism (CDM)(CDM)

Article 12 KPArticle 12 KP

Allows emission reduction Allows emission reduction projects that assist in creating projects that assist in creating sustainable development in sustainable development in developing countries to generate developing countries to generate “certified emission reductions” “certified emission reductions” (CERs) for use by the investor.(CERs) for use by the investor.

Greenhouse GasesGreenhouse Gasescovered by the Kyoto Protocolcovered by the Kyoto Protocol

Carbon dioxide (COCarbon dioxide (CO22))

Methane (CHMethane (CH44))

Nitrous Oxide (NNitrous Oxide (N22O)O)Hydrofluorocarbons (HFCs)Hydrofluorocarbons (HFCs)Perflourocarbons (PFCs)Perflourocarbons (PFCs)Sulphur hexafluoride (SFSulphur hexafluoride (SF66))

ANNEX BANNEX BANNEX 1 PartyANNEX 1 Party Quantified EmissionQuantified Emission

Limitation or ReductionLimitation or ReductionCommitment (fr. BaseCommitment (fr. Baseyear or period)year or period)

AustraliaAustralia 108108EuropeanEuropean CommunityCommunity 92 92JapanJapan 94 94NetherlandsNetherlands 92 92Russian FederationRussian Federation 92 92USAUSA 93 93

Achievements on the Achievements on the International LevelInternational Level

Conference of Parties (COP)Conference of Parties (COP)::

Convention’s ultimate authorityConvention’s ultimate authority

COP 1: Adopted the Berlin MandateCOP 1: Adopted the Berlin Mandate

December 1:December 1: Parties should protect the climate system for the benefit of present and future generations of humankind, on the basis of equity and in accordance with their common but differentiated responsibilities and respective capabilities

1995: IPCC published its Second Assessment Report (SAR) and concluded that “the balance of evidence suggests that there is discernible human influence on global climate” and that the overall impact of this influence will be negative

COP 3: Adopted the Kyoto ProtocolCOP 3: Adopted the Kyoto Protocol

The Kyoto Protocol, when it goes into force, will legally bind participating industrialized countries to reduce their aggregated greenhouse gas emissions by 5.2% compared to the 1990 baseline, by the end of the First Commitment Period (2008-2012)

COP 4: Adopted the Buenos Aires COP 4: Adopted the Buenos Aires Plan of Action (BAPA) Plan of Action (BAPA)

The BAPA was worked out with the goal of finalizing the Kyoto Protocol by the year 2000. The BAPA also established a prompt beginning for the Clean Development Mechanism (CDM), eventually leading to a start in the year 2000.

COP 6COP 6

July 2001July 2001: IPCC published its Third Assessment Report (TAR). The TAR concluded that the new scientific findings provided evidence that global warming is, indeed, brought about by human-induced activities.

COP 7: Adopted the Marrakech COP 7: Adopted the Marrakech AccordsAccords

Delegates from over 170 countries agreed on the package of decisions, which elaborate a finely drawn structure for the implementation of the Kyoto Protocol. The “Marrakech Accords” completed the 1998 Buenos Aires Plan of Action and paved the way for the ratification of the Protocol.

THE CLEAN THE CLEAN DEVELOPMENT DEVELOPMENT

MECHANISMMECHANISM(CDM)(CDM)Art. 12 KPArt. 12 KP

Objectives of the CDMObjectives of the CDM

Assists non-Annex 1 countries in achieving Assists non-Annex 1 countries in achieving their sustainable development objectivestheir sustainable development objectives

Enables Annex 1 parties in achieving Enables Annex 1 parties in achieving compliance with their quantified emissions compliance with their quantified emissions limitation and reduction commitments limitation and reduction commitments (QELRC)(QELRC)

Investors benefit by obtaining GHG Investors benefit by obtaining GHG emission reduction creditsemission reduction credits

Objectives of the CDMObjectives of the CDM Host countries benefit in the form of investment, Host countries benefit in the form of investment,

access to better technology, and local access to better technology, and local sustainable developmentsustainable development

Contribute to the ultimate objective of the Contribute to the ultimate objective of the Framework Convention on Climate ChangeFramework Convention on Climate Change

Developing countries will benefit from the project Developing countries will benefit from the project activities resulting in certified emission reductions activities resulting in certified emission reductions (CERS) and developed countries will benefit by (CERS) and developed countries will benefit by using the CERs to meet their commitments.using the CERs to meet their commitments.

Principal Requirements for Principal Requirements for CDM ProjectsCDM Projects

Only Parties to the Protocol could participate;Only Parties to the Protocol could participate;

Participation is voluntary and approved by each Participation is voluntary and approved by each Party;Party;

National CDM authority to be set up;National CDM authority to be set up;

Non-Annex I Parties (host country) must benefit Non-Annex I Parties (host country) must benefit from project activities resulting in certified from project activities resulting in certified emission reductions (CERs);emission reductions (CERs);


Projects must assist host countries in achieving Projects must assist host countries in achieving sustainable development and contributing to the sustainable development and contributing to the ultimate objective of the Convention;ultimate objective of the Convention;

Projects must result in real, measurable and Projects must result in real, measurable and long-term benefits related to the mitigation of long-term benefits related to the mitigation of climate change;climate change;

Projects must result in reductions in emissions Projects must result in reductions in emissions that are additional to any that would occur in the that are additional to any that would occur in the absence of the certified project activity.absence of the certified project activity.


The COP/MOP shall elaborate modalities and The COP/MOP shall elaborate modalities and procedures that ensure transparency. Efficiency procedures that ensure transparency. Efficiency and accountability through independent auditing by and accountability through independent auditing by operating entities and verification of project operating entities and verification of project activities;activities;

A share of proceeds from the CERs will be A share of proceeds from the CERs will be collected from the CERs issued to meet the collected from the CERs issued to meet the administrative costs of the secretariat maintaing administrative costs of the secretariat maintaing CDM activities as well as adaptation fund set up to CDM activities as well as adaptation fund set up to assist developing countries that are seriously assist developing countries that are seriously affected by climate change.affected by climate change.


Projects formally initiated under the Activities Projects formally initiated under the Activities Implemented Jointly are eligible to be converted Implemented Jointly are eligible to be converted into CDM effectively from January 2000 if they into CDM effectively from January 2000 if they meet the criteria. meet the criteria.

AdditionalitiesAdditionalities Environmental additionalityEnvironmental additionality - long-term real - long-term real

and measurable reductionand measurable reduction

Technology additionalityTechnology additionality - Transfer of - Transfer of environmentally safe and sound technologyenvironmentally safe and sound technology

Investment additionalityInvestment additionality - no diversion of - no diversion of ODAsODAs

Some countries require foreign investment in CDM Some countries require foreign investment in CDM activitiesactivities

Some other countries allow locally funded CDM Some other countries allow locally funded CDM projects (unilateral CDM projects)projects (unilateral CDM projects)

Decision 15/CP.7Decision 15/CP.7

Principles, Nature and Scope of Principles, Nature and Scope of thethe

Mechanism (Article 16, 12 & 17 ofMechanism (Article 16, 12 & 17 ofthe Kyoto Protocol)the Kyoto Protocol)

KP has not created or bestowed any KP has not created or bestowed any right, title and entitlements of any right, title and entitlements of any kind on Annex I Parties.kind on Annex I Parties.

Annex I Parties implement domestic Annex I Parties implement domestic action to reduce emissions in a action to reduce emissions in a manner conducive to narrowing per manner conducive to narrowing per capita differences between developed capita differences between developed and developing countries.and developing countries.

Use of mechanism shall be Use of mechanism shall be supplemental to domestic action.supplemental to domestic action.

Environmental integrity to be Environmental integrity to be achieved.achieved.

Decision 17/CP.7Decision 17/CP.7

Modalities and Procedure for a Clean Modalities and Procedure for a Clean Development MechanismDevelopment Mechanism

Host Party’s prerogative to confirm Host Party’s prerogative to confirm whether a CDM project activity assists whether a CDM project activity assists in achieving sustainable developmentin achieving sustainable development

Refrain from using CERs generated Refrain from using CERs generated from nuclear facilitiesfrom nuclear facilities

Need to promote equitable geographic Need to promote equitable geographic distribution of CDM project activitiesdistribution of CDM project activities

Public funding for CDM should not Public funding for CDM should not result in the diversion of ODAresult in the diversion of ODA

CDM should lead to the transfer of CDM should lead to the transfer of environmentally safe and sound environmentally safe and sound technology and know-howtechnology and know-how

The CDM Executive BoardThe CDM Executive Board (EB)(EB)

Supervises the CDMSupervises the CDM

Operates under the authorityOperates under the authority

of the COP/MOPof the COP/MOP

Composed of 10 members:Composed of 10 members:

-- 1 representative from each of the 5 1 representative from each of the 5 official UN Regions:official UN Regions:

AfricaAfrica AsiaAsia Latin America and the CaribbeanLatin America and the Caribbean Central and Eastern EuropeCentral and Eastern Europe OECDOECD

-- 1 from the small island developing 1 from the small island developing statestate

-- 2 each from Annex I and non-Annex I2 each from Annex I and non-Annex I

PartiesParties

Executive Board TasksExecutive Board Tasks

Recommend to the COP/MOP on further Recommend to the COP/MOP on further modalities and procedures for the modalities and procedures for the CDMCDM

Approve new methodologies related to Approve new methodologies related to baselines, monitoring plans and baselines, monitoring plans and

project project boundariesboundaries Review provisions on simplified Review provisions on simplified

modalities, procedures and the modalities, procedures and the definitionsdefinitions

of small scale project activitiesof small scale project activities

Accredit operational entitiesAccredit operational entities

Develop and maintain CDM Develop and maintain CDM registryregistry

Report regional and subregionalReport regional and subregional

distribution of CDM project distribution of CDM project activitiesactivities

UpdatesUpdates Procedural guidelines for accreditingProcedural guidelines for accrediting

operational entitiesoperational entities Simplified modalities and procedures Simplified modalities and procedures

forfor

small-scale CDM project activitiessmall-scale CDM project activities Guidelines for methodologies for Guidelines for methodologies for

baselines and monitoring plansbaselines and monitoring plans

-- Meth Panel was organizedMeth Panel was organized

-- Drafted and posted the CDM-PDD Drafted and posted the CDM-PDD (project design document)(project design document)

National factors affecting the National factors affecting the successful implementation of successful implementation of

CDM activitiesCDM activities Capacity building for government officials, Capacity building for government officials,

private sectors and financial institutionsprivate sectors and financial institutions

Clear guidance on CDM activities’ Clear guidance on CDM activities’ eligibilitieseligibilities

National institutional arrangements to National institutional arrangements to consider CDM applicationsconsider CDM applications

-- simple process and quick processing simple process and quick processing vs. multi-channel and lengthy processing vs. multi-channel and lengthy processing proceduresprocedures

Some concerns of CDM Some concerns of CDM activitiesactivities

Uncertainties in the ratification of the Uncertainties in the ratification of the Kyoto ProtocolKyoto Protocol

Many prospectors but no real Many prospectors but no real investorsinvestors

““Investors” that promised millions Investors” that promised millions have not came backhave not came back

Many held “wait and see” attitudeMany held “wait and see” attitude Low CER price may not even be Low CER price may not even be

enough for administrative costsenough for administrative costs

Some concerns of CDM Some concerns of CDM activitiesactivities

High cost of accreditation of operating High cost of accreditation of operating entitiesentities

The spirit of Article 12 is missing.The spirit of Article 12 is missing. The focus of CDM is to assist The focus of CDM is to assist

developing countries in achieving their developing countries in achieving their sustainable development or to procure sustainable development or to procure CERs at unreasonable low pricesCERs at unreasonable low prices????

““CER buying houseCER buying house” or CDM investor?” or CDM investor? Risk management is not clear.Risk management is not clear.

Source: JOYCELINE A. GOCO Head, IACCC Secretariat.

Documents

Transcript of Source: JOYCELINE A. GOCO Head, IACCC Secretariat.