UN Climate Change Talks: New rules for CP2 of the Kyoto Protocol including transitional issues
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1 1 UN Climate Change Talks: New rules for CP2 of the Kyoto Protocol including transitional issues 19 November 2012 CCIM/CCPIE Stakeholder meeting Brussel Nathalie Boucquey and Sophie Closson FPS Health, Food Chain Safety and Environment Climate Change Section
2 2 Part 1 - Transition to CP2 AMENDMENTS TO THE KP Annex B: New QELRCs for Text of the Protocol: Level of ambition Procedure CMP DECISIONS Provisional application Ratification Legal continuity Operational continuity Eligibility to the flexible mechanisms 2
3 Amendments to Annex B to the Kyoto Protocol Party Quantified Quantified Reference emission emission year SPF SANTE PUBLIQUE, SECURITE DE LA CHAINE ALIMENTAIRE ET ENVIRONNEMENT limitation or limitation or reduction reduction commitment commitment ( ) ( ) (percentage of (percentage base of year or period) base year or period) Australia 108 Quantified emission limitation or reduction commitment ( ) (expressed as percentage of reference year) Pledges for the reduction of greenhouse gas emissions by 2020 (percentage of reference year) Austria NA NA Belarus % Belgium NA NA Bulgaria NA NA Croatia* NA NA -20% / -30% Cyprus 80 NA NA Czech Republic* NA NA Denmark NA NA Estonia* NA NA European Union NA -20% / -30% Finland NA NA France NA NA Germany NA NA Greece NA NA Hungary NA NA Iceland NA NA Italy NA NA
4 4 Review: Proposed amendment to Art.3(1) KP Parties at the latest by (2015) with a view to strengthening these commitments in line with an overall reduction of emissions of such gases by Annex I Parties of at least 25 to 40 per cent below 1990 levels in 2020
5 5 Adjustment Proposed amendment to Art. 21 KP 8. As an exception to paragraph 7 above, a proposal by a Party included in Annex B to increase the ambition of its QELRCs inscribed in the third column of the table contained in Annex B through an amendment decreasing this percentage shall be considered adopted The adopted amendment shall be communicated by the Secretariat to the Depository and
6 6 Written consent United Nations Climate Change Secretariat Nations Unies Secrétariat sur les changements climatiques WRITTEN CONSENT I, the undersigned, duly accredited and authorized representative of to the eighth session, of the Conference of the Parties serving as the meeting ofthe Parties to the Kyoto Protocol (CMP), hereby provide on behalf of written consent under Article 21, paragraph 7, of the Kyoto Protocol to the adoption of an amendment to Annex B of the said Protocol to be adopted by the CMP at its eighth session. Name: Title: Place and Date:
7 9 Council conclusions 25/10/2012 The Council of the European Union ( ) 17. EMPHASIZES the need for the second commitment period to be implemented with immediate effect through pragmatic solutions pending ratification, in order to ensure continuity of the Kyoto Protocol rules and institutions and continued access to the Kyoto Protocol mechanisms for Parties with a QELRO for the second commitment period during the period prior to the entry into force of the amendments to the Kyoto Protocol;
8 10 Timing of eligibility For AI MECHANISM ACTION WHEN JI Issue/Transfer/Acquire From OR: From provisional application/ratification IET Transfer/acquire From provisional application/ratification OR: From for CERs OR: From for ALL UNITS CDM/JI Use for compliance with CP2 QELRO When a Party needs to demonstarte compliance with its CP2 target following the entry into force for that Party and issuance of AA
9 11 Timing of eligibility (ctd) For NAI CDM Participate From for all NAI Parties REGARDLESS OF: Whether or not they provisionnally apply or ratify the amendments Whether or not those amendments have entered into force
10 12 Part 2 New rules for CP2 2.1 Broader access to KP mechanisms? 2.2 Review of the CDM 2.3 Review of JI Guidelines 2.4 Surplus from CP1
11 Broader access to KP mechanisms? New Zealand, Japan, Russia No QELRC during CP2 but want access to CDM and IET Pros Broader use of KP accounting system also post 2020 Less domestic offset mechanisms outside UNFCCC Increased demand for CDM and support for its infrastructure Cons No incentive to join CP2 KP mechanisms were initially a mean to reach a KP target
12 Boader access to KP mechanisms? (ctd) EU: see merit in broader access if : Application of all KP accounting and reporting system (registries connected to ITL, annual inventories, etc.) No double counting of same units inside and outside KP system No transfer of CP1 AAU and ERU to Parties with CP2 QELRC AOSIS, African Group, LDC, some DCs: against Norway, Swizz, Australia: support
13 Review of CDM No later than one year after the end of CP2 (Decision 3/CMP.1) Establishment of a High-Level Panel to conduct a CDM Policy Dialogue 28 official meetings, 22 research, many informal consultations 51 recommendations across 12 areas A CALL TO ACTION because The Earth climate system is on a precipice Nations are doing only slightly more than half of what the world needs Carbon market are collapsing with potentially devastating consequences
14 Review of CDM (ctd) The CDM has mitigated about one billion tons of GHG emissions realized USD 3.6 billion in saving for AI Parties mobilized USD 215 billion in investment in non-ai Parties But the CDM is imperiled Price have declined by 70% Mitigation target are too modest No more incentive for investment Potential new instrument will take years to be operational For this decade CDM is the sole means for truly global market
15 Review of CDM (ctd) A CALL FOR ACTIONS to the international community Intervene forcefully to address the immediate crisis Substantially increase mitigation ambition Establish funds to stabilize carbon prices (use contribution to long term finance or reserves from the EB or establish reserve bank for CERs) Adapt the CDM to new political and market conditions Test sectoral approaches (including REDD+) Assist the design of new financing instruments (GCF) Use CDM standards and methodologies for accounting for payment of verified results
16 Review of CDM (ctd) HLP also recommends Evolution toward a more decentralized system Strengthening and restructuring CDM governance HFC23 and N2O projects should graduate from the CDM An appeal mechanism against positive and negative decisions Improving regional distribution (suppressed demand, ) Standardized methods to assess additionality (positive list, performance benchmarks, ) Better contribution to sustainable development (declaration by project participants, withdrawal of Letter of Approval, ) Strengthening co-benefits
17 Review of JI Guidelines No later than one year after the end of CP2 (Decision 9/CMP.1) Recommendations from the JISC to CMP.8 One single unified track Supervised by a new governing body Mandatory standards defined by the governing body Unified accreditation process Centralized issuance model Ambitious baseline - discounting possible Positive lists for evaluation of additionality (possibility)
18 Surplus from CP1 State of play Highly political and controversial challenge for Doha About 13Gt of CP1 surplus Could seriously undermine ambition of CP2 but No demand during CP2 (EU: no use under ETS or ESD) Two official proposals currently on the table G77 + China Switzerland
19 Surplus from CP1 Two proposals G77 and China Surplus of AAU and ERU -> in a Reserve Only for domestic use no limit but only if emissions > QELRC Switzerland Surplus of AAU, ERU and CER -> in a Reserve Only for domestic use with a limit (2.5% of AA) Cancellation at the end of CP2 No new surplus at the beginning of CP2 Cancellation at the end of CP2 /-
20 Surplus from CP1 Other positions Russia, Ukraine, Belarus No change of the rules (full carry-over, no limit on trade nor on use and CP2 is a transition to new agreement) EU (Council conclusions) Equal treatment of EU and non-eu countries with CP2 QELRC No carry-over or use of CP1 AAU if no CP2 QELRC Ambitious level of environmental integrity Incentive for overachievement and ambitious target
21 23 Thank you!
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