TWN Info Service on Intellectual Property Issues (Dec07/05)

10 December 2007


Please find below the latest update on what is happening in Bali on Climate Change.

Sangeeta Shashikant
Third World Network
email: ssangeeta@myjaring.net

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TWN BALI NEWS UPDATE NO. 2


5 December 2007
Published by Third World Network
www.twnside.org.sg


SOUTH CRITICIZES NORTH FOR NOT FULFILLING CLIMATE COMMITMENTS


Nusa Dua, Bali, 4 Dec (Martin Khor) -- Differences of views on what are the priorities in tackling climate change and for the Bali climate meetings were evident when the major groupings of countries presented their initial statements on 3 November the first day of the Conference of Parties of the UN Framework Convention on Climate Change (UNFCCC).

The Group of 77 and China called for “immediate, deeper and effective cuts” in Greenhouse Gas emission by developed countries, without which all efforts to address climate change will remain fruitless.

The group also criticized the lack of fulfillment of commitments by developed countries to reduce their emissions, and to provide finance and technology needed by developing countries to address climate change.

The G77 and China also said additional financial resources for climate change are needed by developing countries, estimated at US$200 billion for emission reduction and hundreds of billions of dollars more for adaptation activities.

The Africa Group, represented by Nigeria, gave a sharp rebuke to developed countries for failing to live up to their commitments, especially in assisting developing countries. “Africa believes that walking into a new regime with all the present difficulties in implementing already agreed commitments is totally unacceptable. It will mean only one thing, that nothing is going to happen in the future, and the suffering of our people continues.”

The major developed countries made clear they wanted the Bali meetings to lead to formal negotiations for a new climate regime in which developing countries have to make commitments. The European Union wanted a global comprehensive post-2012 agreement, which includes “further, fair and effective contributions” from non-Annex I members, which are the developing countries.

The United States, Japan, Australia, Canada, Norway and other members of the Umbrella Group went into further details. The group referred to the mandated negotiations of developed countries to further reduce their emissions, and said more action is needed by “all major economies.”

They said that in a post-2012 agreement, “its components must contribute to a single post-2012 outcome”, and the negotiations on all issues must end at the same time, i.e. by the end of 2009.

This proposal seems to be for negotiating modalities similar to those of the World Trade Organisation’s Uruguay and Doha Rounds, in which there is a “single undertaking” in which all issues are inter-connected through the conclusion of negotiations on all issues at the same time.

In the UNFCCC and Kyoto Protocol, the only mandated negotiation at present is for Annex I developed countries to commit to a second period (starting in 2013) of emission reductions. The developed countries are attempting through the Bali meetings to draw the developing countries into a negotiation towards a “comprehensive agreement” in which these developing countries have to take on new commitments as a concession to the developed countries in exchange for the second-commitment period commitments they are already mandated to make.

The key concerns of developing country governments were highlighted by Pakistan’s Ambassador Attiva Mahmood on behalf of the G77 and China at the opening session of the 13th session of the conference of parties (COP) of the UN Framework Convention on Climate Change (UNFCCC).

The group said recent scientific findings irrefutably show climate change is posing a very serious and immediate challenge to developing countries which are least equipped and most vulnerable.

It highlighted the findings of the intergovernmental panel on climate change, that in Africa 75-250 million people will be exposed to water stress and reduced agriculture yields by 50%; in Asia freshwater availability will decrease and coastal areas will risk being flooded; in Latin America, there will be biodiversity loss and reduced agricultural productivity; and small islands face inundation, storm surges and coastal hazards.

In such a bleak scenario, said Pakistan, our task is even more daunting and developing countries which were historically not responsible have rights and priorities in meeting their present and future development needs.

The G77 listed the following as the most formidable challenges in addressing climate change:

• Lack of fulfillment of commitments during the Kyoto Protocol’s first commitment period by Annex I (developed) countries in reducing emissions.
• Provision of finance and technology transfer to developing countries.
• Inadequacy of financial resources for adaptation and mitigation efforts;
• Insufficient national institutional capacity in developing countries to participate in carbon market mechanisms.

The group said the best way to address climate threats is to have an integrated sustainable development approach.

Without immediate and effective cuts in emissions by developed countries, all efforts to address climate change will remain fruitless. The early completion of the ad hoc working group on further commitments of Annex I parties is an “absolute imperative.” It must complete its work by 2009.

The group called on Annex I countries to undertake ambitious commitments for emission reduction in the second commitment period. Deeper reductions by them will provide greater opportunities for developing countries to move onto a sustainable development pathway.

The group looked forward to the launch of the Adaptation Fund. Effective mitigation and adaptation policies must take account of commitments at various conference and summits, especially the binding commitments under UNFCCC and Kyoto Protocol.
In addition, the adverse impacts of response measures, as it relates to the unintended consequences of mitigation, must be addressed as a distinct priority.

According to the G77 and China, during this session the most important issues include mustering the political will to agree on an approach based on key principles of Rio, the UNFCCC and its Kyoto Protocol, especially (a) common but differentiated responsibilities and respective capabilities; (b) the polluter pay principle; (c) protection of the vulnerable; (d) equal treatment of mitigation and adaptation, including legally binding instruments for adaptation and technology transfer.

The bigger challenge, said the group, is to overcome the “trust deficit” between developed and developing countries on financial and technological cooperation and commitments of annex I countries. Good faith engagement will help address this deficit.

The group also stressed that UNFCCC and the Kyoto Protocol serve as the multilateral agreed structure to address climate change. Any other effort will distract and further compound the challenge.

The G77 and China called for new institutional and financial mechanisms to enhance technology cooperation, development and transfer and meet the incremental costs, which are fundamental to the climate agenda.

The group called for moving beyond current institutional and financial arrangements. The UNFCCC estimates an additional $200-210 billion by 2030 is needed to achieve emission reductions. In addition, hundreds of billions are needed to support adaptation activities. It is thus essential that an investment pathway is designed to secure additional finances for developing countries in accordance with their national plans.

Capacity building is also a high priority for the G77 as it has not received enough attention. The group hoped the scope of activities and replenishment will be decided soon regarding the LDCs Fund and that steps are soon taken to implement it through concrete projects.

As climate change is most pressing, it is absolutely necessary that policies made in other areas and fora have to be looked at through the fresh lens of addressing climate change, and made consistent with the aims and measures we are trying to implement in combating climate change.

The G77 and China said technology transfer is an enormous challenge, keeping in view the issue of incremental costs and capacity building. Addressing the climate system depends on early development, deployment, transfer and diffusion of environmentally sound technology.

A key question is the treatment of intellectual property rights over climate-friendly technologies. Developing countries must be helped, on affordable, preferential and concessional terms, through technology transfer, directed R and other assistance, to acquire and build capacity for applying technologies.

The G77 and China also expressed disappointment about the progress made on this item. It suggested the development of performance indicators to monitor if commitments have been honoured.

On emissions from deforestation, the group said that implementation of policy approaches and positive incentives will require new and additional finance. It recognized the interests of the Parties to consider policy approaches and positive incentives that address compensated forest conservation and also forest degradation.

Nigeria, on behalf of the Africa Group, said climate change is a growing threat and Africa is at the receiving end due to its increased vulnerability. “Yet we gather year in and year out, making commitments, which are far from being fulfilled.
The Africa Group observed that the process is characterized by a catalogue of unfulfilled commitments by the developed countries under the Convention as well as the Protocol. The development and transfer of technology, since the convention and protocol came into force years ago, remains unfulfilled and complicated by issues of intellectual property rights, market incentives and enabling environment.

The group said that the question of inadequate capacity building of developing countries has been a major impediment to implementing both mitigation and adaptation activities in Africa.

“This issue, fundamental to implementation of climate change activities, has not been adequately addressed as stipulated in the convention and protocol,” said Nigeria. “There is too much emphasis on seminars, workshops and needs assessment. For how long will our needs continue to be assessed?”

Nigeria added: “The way adaptation is currently addressed is ad hoc and lacks coordination, and is totally inadequate. In essence and so far, the matter of adaptation has not received the desired priority in the implementation of the convention and the protocol.

“Whatever fund, and in whatever magnitude available in the process for implementing climate change activities remains inaccessible due to conditionality of co-financing. It is important that discussions on the adaptation fund should be finalized in this session to enable concrete decisions by the COP to address adaptation in Africa and developing countries in general.”

Discussions should also consider the present lack of implementation in adaptation, development and technology transfer and capacity building. Said the Africa Group: “We find it absolutely incomprehensible that the future can be adequately considered and predicted without due reference to the past and the present.

“Africa believes that walking into a new regime with all the present difficulties in implementing the already agreed commitments is totally unacceptable. It will mean only one thing, that nothing is going to happen in future, and the suffering of our people continues.

“The way forward is for the developed countries to now act with respect to fulfilling their commitments. The developed countries more than ever before should be committed to aggressive emission reductions domestically rather than passing the buck to the developing countries.

“Africa believes the process should set targets for the developed countries to provide financial resources within a specific time frame. It is time for practical implementation of all these issues of adaptation, technology transfer, and capacity building among others.”

Maldives, representing the LDC Group, said that the devastating impact upon the most vulnerable group of countries (LDCs and SIDS) of recent natural disasters have only shown an immediate snapshot of a long term process.

It said the adaptation fund should have a suitable and enabling governance methodology and a matching management structure. An extension of adaptation levy to the other mechanisms of the Kyoto Protocol (possibly at a higher rate) and the inclusion of bunker fuel based emitting activities such as air and maritime travel should be explored to improve the situation.

The Adaptation Fund has to be made available as soon as possible and the LDCs and SIDS should get top priority under this fund. Funds made available after the horse has bolted, i.e., irreversible changes have taken place, would lose their effectiveness.

Climate funding to LDCs/SIDS must be fast tracked, often at short notice with simplified procedure for allocation and disbursement has to be introduced. Low-lying coastal LDCs have specific vulnerabilities and thus deserve special attention and priorities.


Nations many be categorized and grouped on vulnerability scales so that global effort levels are distributed on the basis of priority, said the LDC Group. Timing is a critical factor, as climate change effects are becoming worse and worse over the years. Innovative sustainable technology development and its widespread use through international cooperation is critical for long-term emission reductions.

The scope and urgency for investment in low carbon energy technology globally are immense. In this context the international regime on technology transfer (TRIPS and IPR) need to be revisited, said the group.

Sea-level rise is an inevitable reality on our current trajectory and the people who will be affected are most likely to become refugees of climate change due to riverbank erosion, prolonged drought and permanent inundation due to sea level rise.

Said the LDC Group: “We cannot afford to remain idle until this misfortune actually unfolds. The time to act cannot be deferred. All nations must recognize their responsibility towards the victims of climate change. In particular, the post-Kyoto regime should ensure that such refugees are granted the legal rights required to provide for their recovery and rehabilitation.”

Portugal, for the EU, reiterated the EU targets of limiting global temperature rise to 2 degrees, halting the growth of global emissions in 10-15 years and a global emission cut of at least 50% by 2050 (compared to 1990).

It put forward many elements of building blocks for the future. These comprised (1) further developing a shared vision to reach the Convention’s ultimate objective; (2) deeper emission reduction commitments by developed countries, (3) further fair and effective contributions by other counties, (4) extending carbon markets, including innovative and enhanced flexile mechanisms; (5) increased technology cooperation, (6) enhanced efforts on adaptation, (7) addressing emissions of the maritime and aviation sectors, (8) further use of the expertise, experience and work of relevant international organizations; and (9) reduction of emissions from deforestation and enhancing sinks by sustainable forest management and land use practices.

The EU said it would discuss these building blocks in the negotiating process in Bali. It said that Bali needs the engagement of all parties in a negotiation process to reach a global and comprehensive post-2012 agreement by 2009.

Australia made a statement at the opening on behalf of the Umbrella Group (which also includes Canada, Iceland, Japan, Kazakhstan, New Zealand, Norway, Russia, Ukraine). It quoted the recent Commonwealth communiqué calling for a comprehensive post-2012 agreement that includes a long term global goal for emissions reduction to which all countries would contribute. The highest priority of the COP is to set out a road map in line with this, said Australia.

Later, at the opening meeting of the ad hoc working group on further commitments of Annex I parties under the Kyoto Protocol, Australia (for the Umbrella Group) said the main task of Bali is to put in place a roadmap or the development of an effective climate change framework.

While the ad hoc working group is important for the Roadmap, more comprehensive action is necessary, particularly by all major economies. The group also believes that for the roadmap to produce an effective and comprehensive agreement for the period beyond 2012, its components must contribute to a single post-2012 outcome. They must therefore end at the same time. The task must be completed by the end of 2009.

In his opening speech the Indonesian Environment Minister Mr. Rachmat Witoelar said the scientific debate on climate change has been laid to rest, its severest impact is on the poor and this is a landmark year for the climate issue. A stumbling block is fear of economic hardship, but the cost to address climate change is less than the damage what climate change will wreak.

UNFCCC executive secretary Mr. Yvo de Boer said many important decisions can be made before the Ministerial segment, including practical adaptation actions, the framework for the adaptation fund so it can start funding projects, the framework for technology cooperation, the initial phase of actions to reduce emissions from deforestation, support to adaptation action in LDCs, support to national communications by developing countries and to enhance capacity building.

Shaping the future can be done if four corners are turned: (1) leadership by industrial countries must continue, especially towards a new energy future; (2) action in the North to fuel clean growth in the South; (3) fossil fuels are here to stay but they should be used through new technologies without destroying the environment; (4) a comprehensive framework for adaptation.

He also called for a breakthrough in Bali through the formal adoption of a negotiating agenda.