8/4/2019 ECO 1 - October 1st

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CLIMATENEGOTIATIONSPANAMAOCTOBER’11NGONEWSLETTER

ECOhasbeenpublishedbyNon-GovernmentalEnvironmentalGroupsatmajorinterna:onalconferencessincetheStockholmEnvironment

Conferencein1972.ECOisproducedco-opera:velybytheClimateAc:onNetworkattheUNFCCCmee:ngsinPanama,October2011.

ECOemailadministra:on@climatenetwork.org–ECOwebsitehp//climatenetwork.org/eco-newsleers–Editorial/Produc:onJoshuaDarrach

1

October

TheKeyIssues

Issue

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Durban is shaping up as a criticalmoment in the 20-year history of theclimate regime. The world can eitherbuild on what has been created in theKyoto Protocol, raise the level of ambitionas demanded by the science, and providesufficient finance to meet developing countr ie s ’ needs for adaptat ion ,mitigation, and REDD. Or it risksrelegating the UNFCCC to a side showwith little legitimacy to meaningfullyaddress the climate crisis.

Let’s review what’s needed to avoid atrain wreck in Durban:

M i t i g a t i o n : In the CancunAgreements, developed countries acceptedthat their aggregate level of ambitionshould be in the range of 25-40%. Evenwhile this range does not guarantee thatglobal temperature rise will stay below 2degrees Celsius, current developed countryemission reduction pledges will result inreductions of only 12-18% going down to~2% if currently existing and proposedloopholes are taken into account. ECOsuggests four critical elements in theDurban mitigation package for developedcountries:: clarify what the net emissionswould be based on current pledges andassumptions; close the loopholes; move tothe high end of current pledges; and agree

on a process to increase ambition beyond40%, for adoption at COP18/CMP8.

Panama can and must reachagreements on closing the loopholes. Therecent Review of proposals on forestmanagement under LULUCF clarifies thesize of the forestry loophole. Now, Partiesmust adopt forest management referencelevels that are comparable and that don’tsignificantly undermine Annex I Partytargets. Overall, LULUCF rules shouldencourage Parties to achieve ambitiousmitigation from land and forests.  Oncarry-forward of AAUs, Parties muste l iminate the ri sk of “hot air”undermining the environmental integrityof future reduction commitments.

Kyoto Protocol: As acknowledgedby both Executive Secretary Figueres andincoming COP President Nkoana-Mashabane, the future of the KyotoProtocol will be decided at Durban. Whilesome developed country Parties wouldprefer to overlook the KP or at best, makea second commitment period conditionalon what happens in the LCA over the nextfour years, it is essential that in Durban,we cement a second commitment periodof the KP. The alternative – a pledge andreview world – just won’t cut it.

Panama: Progress or Paralysis?

Charting a New Course on Shipping

EmissionsPanama could not be a more fittin

place to reboot the negotiations ocontrolling the high and rising emissiofrom international shipping. Last monthG20 finance ministers’ discussions on raisiclimate finance from international transposuggest there is a huge opportunity to do so

The magnificent sight of the Panamcanal is a reminder of the scale of emissiofrom the international maritime fleShipping is already responsible for 3% global emissions – more than those Germany, and twice those of AustralWithout urgent action, emissions coutriple by 2050, likely ruining any chance keeping global warming below the 2°target agreed in Cancun, let alone the 1.5target needed. Tackling the emissions frothis sector is a vital part of the effoneeded to close the emissions gap.

A step in the right direction was takthis June when governments in tInternational Maritime Organization (IMOestablished energy efficiency desigstandards for new ships. But welcomthough this was, it will only reduce shippinemissions by around 1% below business-ausual levels by 2020.

It is clear that weak efficiency standaralone are not enough. A carbon price fshipping is needed to drive emissiocuts at the scale needed – applied eiththrough a bunker fuel levy or the auctioniof emissions allowances in a new sectoremissions trading scheme.

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8/4/2019 ECO 1 - October 1st

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ECO just found (under a delegate’sdesk) the draft final decision on LULUCFfor Durban. In the interest of fulltransparency, we reproduce it here.

Decision -/CMP.7 Acknowledging  that we have been

working on this subject far too long and

may have lost all sense of proportion, Recalling that we made a real mess of 

this last time as well, Affirming  the need to generate credits

and hide debits from LULUCF activities, Recognizing the need to change jargon

frequently, as with force majeure naturaldisturbance,

 Hiding  forest management emissionsbeneath unrealistically inflated referencelevel projections,

 Forgetting  Article 4, paragraph 2 (a) of the Convention, which states that “Each of these [Annex I] Parties shall adopt national policies and take corresponding measuresto mitigate climate change, by limiting itsanthropogenic emissions of greenhousegases and protecting and enhancing its greenhouse

 gas sinks and reservoirs,”Overlooking  the urgent need to reduce

emissions in all sectors,Undermining  the ultimate objective of 

the Convention,Wondering if we will get away with this,

 Decides that each Party in Annex B canaccount for LULUCF activities however itlikes,

 Further  d ecides that other Parties shallnot use this transparent accounting scamas an excuse to fiddle their own LULUCFor REDD accounting.

CLIMATENEGOTIATIONSPANAMAOCTOBER’11NGONEWSLETTER

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Convention Mandate: Given theurgency of the climate catastropheunfolding daily before our eyes, nothing less than the greatest level of commitmentis needed from all parties. Therefore, inaddition to preserving the Kyoto Protocol,

Durban must agree that by 2015 at thelatest, the commitments and actions of allParties should be inscribed in legallybinding instrument[s], whilst fullyrespecting the principles of the Con-

 vention.Finance: The last session on finance

in Bonn was dominated by discussions onthe Standing Committee. Negotiationsneed to also focus on the critical issue of where the money is going to come from.Urgent attention on scaling up sources of climate finance from 2013 to 2020 isneeded. In addition to expanding direct

finance from national treasuries, Partiesshould commit to raise significant revenuefor the Green Climate Fund frominnovative sources, implemented in a waythat has no net incidence for poorcountries. Progress on a mechanism tolevy bunker fuels would be an especiallynoteworthy achievement here in Panama,which licenses so much of the world’sshipping.

Technology: CAN urges Parties todecide here in Panama on the criteria forthe Climate Technology Center host, sothat the Center and Network can be

operationalized in 2012 as envisioned inthe Cancun Agreement.

Adaptation: Parties aren’t far awayfrom a good decision text on the

Adaptation Committee. Here in Panama,they should agree on the composition of the Committee with equitable rep-resentation, direct reporting to the COP,and linkages to other institutions,particularly on finance and technology.

Capacity Building: Parties shouldwork with the Facilitator's notes and hisnew and h i gh ly comprehens i vebackground paper to begin drafting textfor a Durban decision. This paper shouldfocus on the vital question of how todesign effective and comprehensive co-ordination of new, additional and scaled-up capacity-building within the emerging new architectures for finance, technology,adaptation, MRV and mechanisms.

MRV: Parties should build on theMRV architecture agreed in Cancun bymoving forward on common accounting 

rules for emission reduction targets and anenhanced common reporting format onfinance. Parties should also adoptguidelines on the content, timing andstructure of biennial reports, and agreeprocedures for strong InternationalAssessment and Review (IAR) fordeveloped countries and InternationalConsultation and Analysis (ICA) fordeveloping countries.

On all these fronts, Parties need toagree here in Panama what text they willwork from – and begin to constructivelywork on that text. It’s time for all Parties

to show they are serious about theUNFCCC, and serious about theircommitment to prevent catastrophicclimate change; small steps won’t cut it.

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As the preliminary report of the WorBank and IMF shows, a carbon price of $per tonne would raise the cost of globtrade by approximately 0.2% - or $2 fevery $1000 traded – and would raise $billion per year by 2020. The report sugge

that to make a global agreement stick, threvenue should be used to compensadeveloping countries for the economimpact of higher shipping costs – ensurithey face no net incidence as a result – anas climate finance.

Even after some revenues are used compensation, this should still leave at lea$10 billion per year to be directed to thGreen Climate Fund. That would be significant step towards the $100 billion p

 year that developed countries have promisto mobilise by 2020, which – unlike FaStart Finance pledged to date – should

genuinely new and additional to existipromises of development assistance.The World Bank and IMF report show

the way to a new approach to tacklishipping emissions which Parties meeting Panama must seize. Building on the work the G20, a decision in Durban on the kprinciples of this approach would give tIMO all the guidance needed to get to woon designing and implementing a schemthat delivers a double dividend for tclimate. By helping to close the emissiogap, and fill the Green Climate Fund, suchdeal on could be a flagship of success

Durban.

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¡BIENVENIDOS A PANAMÁ! / WELCOME TO PANAMA!

ECO thanks the government anpeople of Panama for hosting the finnegotiation session before COP 17 Durban. For the first time in 20+ years negotiations, Central America is hostingUNFCCC meeting. Delegates should knothat the region is severely threatened climate change impacts: four CentrAmerican countries are among the 10 mo

affected countries worldwide, according the Global Climate Risk Index 2011 Germanwatch. ECLAC (the EconomCommission for Latin America and tCaribbean) estimates that the cumulaticosts induced by climate change for CentAmerica by 2100 will be as much as billion dollars. Climate change is clearlyproblem relevant to all of Latin Americthe region’s negotiators should do theutmost to make this meeting in Panamasuccess.

Leaked LULUCF Loophole Text