Tag: global warming UNFCCC

Fast Start Needed for 1,5 Review

Earlier this week during a SBSTA contact group, a group of countries particularly vulnerable to climate change requested a workshop and technical report by Cancun on the costs and opportunities of mitigation to limit global temperature rise to below 1.5 o C. The report could draw on recent scientific studies in advance of forthcoming IPCC scenarios, and equip Parties with an early look well ahead of 2015 at the options available when they deliberate the long-term temperature goal under the LCA. Since many governments with a view to adopting 1.5o C as the long-term goal agreed the Copenhagen Accord in part because of the promised review of 1.5 by 2015, there should be a lot of support for getting the ball rolling. Perhaps not to our surprise, however, there are quite few a developed countries coming up with all sorts of excuses why such a report can or should not be done by Cancun – we don’t have enough time, the UNFCCC can't do this, it is in the wrong agenda item, etc. But ECO has to ask this: Why would parties raise excuses against assessing the most recent scientific research? Could such a report present some inconvenient truths? The UNFCCC cannot be serious about a long-term goal unless it is informed about the underlying science and all the resulting options.  A study on actions associated with limiting temperature rise to 1.5 o C would be well in line with the precautionary principle under the Convention.  But therein lies the problem -- that would involve Parties agreeing to align ongoing deliberations more firmly with the principles of the Convention, which has been a bit of a challenge lately.  We eagerly await the draft conclusions from the SBSTA contact group on Agenda Item 9, and for evidence that vulnerable countries' pleas wont fall on deaf ears again.

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LCA Finance Comes Alive

After a unexciting first couple of days, today out of the blue in the LCA contact group on finance, delegates picked up the pace. It was a pleasure to see negotiators giving thoughtful and creative responses to the Chair's questions and to each other's proposals. The Chair chose wisely in selecting finance, which underpins progress on many other areas, for the first deep engagement with the new negotiating text. Parties responded by presenting new ideas and arguments on the complex linkages between institutions as well as the need for effectiveness and accountability to the UNFCCC and its governing bodies. There is a clear consensus about the establishment of a new fund, and some new and creative thinking about how an overarching Finance Board could provide an oversight or coordinating function. But no institutional framework for financing can be effective without sufficient funding. To ensure rapid progress on scaling up finance, the LCA must also continue its discussion of sources, in parallel with the discussions under the Advisory Group on Climate Finance (AGF), which is holding a workshop on Saturday to report on progress and receive input. The AGF has an opportunity to make rapid progress on identifying sources of funding for climate actions in developing countries. However, the LCA cannot just wait until the AGF presents its final report in November to take up the issue of sources, if it hopes to move from analysis to action this year. Parties should start actively discussing sources of public funds in the LCA now, and incorporate and build on the analyses and recommendations of the AGF, starting with the interim report expected in July. Avenues to explore include new and innovative sources of public finance, including bunkers mechanisms, financial transaction taxes (FTTs), Special Drawing Rights (SDRs) and international auctioning of AAUs. Then in Cancun, the LCA can be in a position to adopt substantial decisions and provide clear guidance for the work of the UNFCCC and other bodies in the coming year. This can lead to adoption of a comprehensive set of decisions on financing sources and institutions as part of an ambitious comprehensive agreement in Cancun.  All this is possible if leaders have the political will; but short of that, Parties can agree a more modest but still ambitious package of decisions to demonstrate the viability of the UNFCCC process and support the scaling up of mitigation and adaptation actions on the ground.

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Shared Vision Must Be Clear Vision

As parties walk into the LCA contact group on Shared Vision this morning, ECO will be thinking ahead to a final destination does not yet look clear. Nearly all Parties agree to a global goal of staying below 2o C, and even so, more than 100 parties call for stabilizing temperature rise at well below 1.5o C compared to pre-industrial levels.   But the current path Parties are taking us towards is a close to a 4o path. So we hope the contact group proceeds with the right motivation and a visionary mindset. The Shared Vision discussions can help avoid the 4o path only if parties engage in a constructive and trust-building dialogue today that will advance the text in substance, move towards convergence of views and provide clarity to both.

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How Biodiversity Supports Climate Resilience

This is the International Year of Biodiversity.  ‘So what’ ECO hears you say. ‘Nothing to do with us – we just deal with climate change.’ That would be wrong! Biological diversity supports ecosystems essential for human life, including climate regulation, water, food security and protection from natural disasters. Climate change is an increasing cause of biodiversity loss that in turn adds to the impacts of climate change.  Healthy ecosystems are particularly important for people living in poverty – they depend far more directly on natural resources for their livelihoods and survival.  Ah, now you’re seeing the connection to our agenda . . . The starting point is that mitigation and adaptation must be based on sound science. An important new report, ‘Global Biodiversity Outlook 3’ (Convention on Biological Diversity, May 2010) supports this. GEO3 is also a wake up call.  In many places across the world, natural systems supporting economies, lives and livelihoods are at risk of rapid degradation and collapse.  While the poorest people suffer disproportionately from deteriorating ecosystems, ultimately, everyone stands to lose.  Climate change and biodiversity are inextricably linked. Government policy and our personal choices determine how human drivers of both will shape our future. Time is short.  The challenge to stay below 2o C of warming looms ever larger. The current Copenhagen pledges add up to a 3o to 4o C world by 2100 at best. At the same time, we have massively failed to meet the CBD’s target to significantly reduce the rate of biodiversity loss globally by 2010 (agreed by world leaders at the Johannesburg World Summit in 2002 and integrated into the Millennium Development Goals, MDGs). Catastrophic changes to our planet could happen well within the lifetime of our children. One planet.  Unabated, these crises will change our planet’s unique human-life supporting conditions.  Above 2o C of warming, ecosystem capacity to meet the needs of present and future generations will be severely compromised.  In fact, even at a 1.5o C increase, lives in vulnerable places such as small island developing states and communities in the polar regions will be tremendously difficult, and for some, impossible. Costs increase the more we delay.  TEEB (The Economics of Ecosystems and Biodiversity, 2009) is providing an economic evidence base for decision-makers, as Stern did for climate change. Addressing these challenges together will reduce costs and secure multiple benefits. But we must not steal from one pot to put money into another.  New, not recycled, public money is essential. Money promised in the CBD process in the past should not be counted towards satisfying fast-start finance promises. Adaptation can support or harm nature and people. Supporting natural and social resilience is cost effective, locally appropriate and our insurance mechanism for the future. Mitigation.  Nature can help. Ecosystems such as forests and peatlands absorb and store carbon, as do oceans and water bodies.  If our mitigation choices harm natural systems, such as biofuels replacing natural forest, we risk releasing stored carbon into the atmosphere. 190 Parties engaged in the UNFCCC are also signatories to the Convention on Biological Diversity. Meeting the MDGs by 2015 is the international commitment to tackle poverty. This year through to Rio+20 in 2012 provides an opportunity not to be missed. Governments will meet to discuss biodiversity in New York this September and Nagoya in October, international development at the MDG Summit in New York in September and climate change in Cancun at the end of 2010. Parties in the UNFCCC have a crucial role to play in encouraging cooperation and ensuring effective opportunities to make sure the links are made at national and international levels.  Addressing these interconnected crises in a mutually reinforcing way is the only realistic and cost effective way forward for our modern world.

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Fiddling while the world burns

As delegates negotiate here in Bonn, northern parts of India are suffering through a record heat wave pushing thermometers to nearly 50o C and setting new temperature records – a hallmark of climate change.  Hundreds have died, a tragic reminder that adaptation has its limits.  Pakistan, too, has lost lives to the heat wave gripping South Asia. Elsewhere this week other countries also suffered through events that fit the grim trend of ever more extreme weather driven by global warming.  Tropical storm Agatha ravaged Central America, forcing the evacuation of tens of thousands and taking over a hundred lives in epic flooding driven by record heavy rains, another likely fingerprint of global warming which drives more moisture into storms.  In Alaska, temperature records are tumbling and wildfires rage in an unprecedented early start to the fire season that has already witnessed 193 fires and emptied every smokejumper base in the state. With negotiators now staring at each other over the tables in Bonn, already six months removed from Copenhagen, the question of the day is whether they have a political mandate from their home capitals to get moving, or whether we will witness two weeks of rhetoric and no action.  The climate has already delivered its mandate, but will politics trump science?

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Taking Stock of the Gigatonne Gap

ECO is deeply concerned that the planet is on a fast track to dangerous climate change. The lack of ambition and plain inaction by the world's richest countries has created a negative spiral that needs to be broken. So-called 'political realism' and current lifestyles will use up the global carbon budget by the early 2020s. Not unlike the financial crisis, an emergency bail-out package is needed to prevent a climate collapse.

There is a widely-acknowledged ‘gigatonne gap’ from the mitigation pledges made at Copenhagen to a global carbon budget and realistic pathway that will be consistent with avoiding dangerous warming of 2º C or more, not to mention 1.5º C, above pre-industrial levels.

On the current path, science tells us we are facing a world that is at least 3º to 4º C warmer. What does that mean?  The answers are shocking. This could spell the extinction of countries, ecosystems and species. People will perish. It is already starting to happen. Parties need to urgently take ownership of this gap and acknowledge the responsibility they share in closing it.

ECO has highlighted before that the complexity of the climate problem has instilled fear and mistrust – particularly between industrialized and developing countries. Without fairness and respect we will never have trust. The reality of historic responsibility, the difference in per capita emissions, the primary importance of development for countries whose populations struggle with the crisis of poverty – these are very real. The dynamic of fear and division is obscuring the urgency of the disaster we face.

The fundamental reason why the world is heading for a climate disaster is the feeble ambition on reduction targets and finance coming from all industrialized countries. In particular, the excessive emissions from the US now and to 2020 and beyond are stretching the world’s carbon budget beyond the breaking point.

Whatever else we could say about Copenhagen, it certainly underlined the need for a Fair, Ambitious and Binding agreement which combines the environmental security of a robust emissions cap with a much-needed energy and economic transformation spurred by policies, measures and innovation. Given the size of the gap, we urgently need creative thinking and courageous action.

Further work by SBSTA can support the analysis of available solutions and taking the necessary decisions. ECO proposes that Parties agree, here in Bonn, to hold a workshop under SBSTA Article 9 (‘Scientific, technical and socio-economic aspects of mitigation of climate change’) in the first inter-sessional before Cancún, to come to a common understanding of the scale of the gap, and for steps that could and must be taken to address it.

Developed countries have not adequately reduced their emissions since agreeing the Convention in 1992. The aggregate target of -5% agreed in Kyoto may have been a political success, but it was far from consistent with the scientific realities even at that time. And in the event, many Annex I countries haven't achieved those modest targets, and some have barely even tried. They need to do more.

And still, ECO also notes that fingerpointing is not a survival strategy. We will only stay afloat with a concerted effort from all, according to their abilities.

Climate realism requires action, not new accounting tricks.  So another problem is the loopholes that were built into the Kyoto architecture . . . LULUCF rules that hide increased forestry emissions, prodigious offsetting with little additionality (and not even targeted towards sustainable low carbon development), and AAU banking that has become an increasing concern as the end of the first commitment period approaches. The Secretariat’s technical paper recalculated the levels of effort pledged and sheds a clear light on the assumptions behind the targets. While these issues are part of the KP negotiations, they must also be put in a consolidated context.

Finally, ECO suggests that the workshop explore the potential of new sources, sectors and approaches to reduce radiative forcing in the atmosphere and generate funds to support action. Such innovative approaches could include, inter alia:

* International aviation and shipping, a large and rapidly growing source of emissions (business-as-usual would result in 2.2 Gt CO2 by 2020), and one that can be a significant source of climate finance.

* Designing REDD, market mechanisms, NAMAs, etc., to avoid double-counting of both developed country mitigation and financial support obligations, all relevant to the MRV agenda item.

* Reducing emissions of black carbon.

* Inclusion of new F-gases in the climate regime, as technically feasible.

* Taking industrial GHGs (N2O, HFCs and NF3) out of the CDM. Their abatement costs can be better met through a fund. The CDM can be better targeted at transformational measures.

A comprehensive and realistic approach to closing the gigatonne gap is needed now. The inclusion of new sources and sectors should not replace efforts in existing sectors, but be additional so as to bridge the gigatonne gap and peak global emissions by 2015.

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Adaptation Fund Review

The Adaptation Fund (AF) is a self-standing fund established under the Kyoto Protocol in order to finance concrete adaptation projects in the most vulnerable countries. It has several unique and innovative features, including 'direct access', a new level of developing country participation, a new revenue source, and an equitable governance composition. These elements give the Fund the potential to contribute significantly to exploring new ways in international cooperation on adaptation.

The AF Board has also developed a transparent working mode and allows observers to publicly comment on project proposals before their adoption. Furthermore, the strategic priority that the particular needs of the most vulnerable communities and people should be given special attention is an important new step.

ECO has been closely following the development of the AF and recognises that establishing a proper framework for the AF Board has been quite an achievement. With the accreditation of the first National Implementing Entity, the Centre de Suivi Ecologique (CSE) from Senegal, the direct access modality became a reality. The recent call for project proposals by AF for funding through the AF marks the beginning of the long-awaited implementation phase.

It is remarkable that interventions in yesterday´s SBI plenary uniformly supported the Adaptation Fund, across both developing and developed countries. This is a clear sign of progress.  In addition, Spain’s contribution of 45 million and Germany´s pledge of 10 million euro to the AF will help set up the ground-breaking facility under the Kyoto Protocol.  Other developed countries ought to immediately follow this positive example of fast-start finance.

During the SBI session here, Parties will consider the Terms of Reference for the review of the Adaptation Fund. ECO considers that the review should be based on the positive development of the Fund, the importance of its innovative features and particularly its direct access pilot. The Fund is now just becoming fully operational, so some of the necessary lessons will not be fully captured in the next six months. But the review should in particular look at the following aspects:

* In order to play out its full potential, the resources for the Adaptation Fund have to be increased, and the review should consider how to raise those funds as soon as possible.

* The current set-up has improved significantly compared to early days, but the review should nevertheless address quality, cost-effectiveness and options for further improvement.

* The appropriate role of the AF in the broad finance architecture now being shaped must be discussed.

Overall, the review should seek to strengthen the Adaptation Fund's innovative features and help overcome operational barriers.

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Deja vu? Or a renewed focus...

And now we’re all here again, what is it that needs to be accomplished?

Clearly, on the KP track lamentably little progress has bee made over the past four years. ECO suggests that the following issues must be agreed this year, as a priority:

  • LULUCF accounting rules – Annex I countries must stop trying to hide emissions from forest management and commit to reduce them instead.
  • CDM/JI/emissions trading modalities – These must be revamped to avoid double counting of mitigation and financial support obligations, and to keep inappropriate sectors, such as nuclear and CCS, out of the CDM.
  • New sources and sectors and other accounting rules around them (the “other issues”) should include new gases to the extent that is technically possible, and use the new IPCC AR4 global warming potential (GWP) measures over the 100 year timescale.
  • The commitment period length, base year and the other modalities that will define the calculation of the quantified emission reduction obligation (QERO) and assigned amount from country pledges (here's a free hint! correct answers for the first two are: 5 years, 1990).

When the KP was first negotiated, Parties agreed targets first, and the following years turned into excruciating negotiation exercises that ended up agreeing a series of loopholes. ECO has long maintained that the rules should be negotiated first, so that the science-indicated reduction target of at least 40% on 1990 levels by 2020 can be fairly shared between the Annex B Parties.

For this reason, negotiating time in Bonn and for the intersessionals should be concentrated on clearing these issues, so that the targets and then the discussion on QEROs can be resolved rationally and equitably, based on a clear and common understanding of the underlying scope and rules of accounting. In the short term, then, negotiating time should be concentrated on resolving the issues listed above.

In the LCA track, a balanced agreement is needed by Cancún, with each of the Bali Action Plan building blocks being addressed. In Copenhagen, the LCA negotiating texts on adaptation, technology and REDD+ were well advanced, and agreement should be possible on these issues this year. Additionally, finance, MRV and low carbon development plans should be among the agreements reached this year.

Adaptation

Most Parties seem to agree that progress can be made in Bonn on the design of an adaptation framework for implementation. However, developed countries should stop resisting a firm institutional link that ensures the provision of regular, reliable and truly additional grant-based finance needed to make this framework a real implementation action tool.

Bonn II could also achieve greater clarity on the enhancement, establishment, composition and role of regional centres and initiatives as well as the proposed establishment of an adaptation committee. Another issue that must advance is how to address unavoidable loss and damage from climate change impacts when adaptation is not longer a viable option, e.g., when water resources disappear due to shrinking glaciers and livelihoods become untenable. Progress in Bonn would be achieved if Parties clearly recognise the need for an international mechanism to address loss and damage, and identify key substantive issues to be addressed in subsequent sessions.

Technology

Technology negotiations have progressed enough that areas of clear convergence can be identified, especially regarding the establishment of a technology mechanism. More clarity is required to ensure that it operates within UNFCCC authority and principles. Other areas to be further clarified are the role of regional innovation centres, as well as criteria for MRV for technology support and actions that may take place outside the UNFCCC mechanism. Negotiators should be willing to show more flexibility regarding intellectual property issues, acknowledging the valid concerns of all parties, while focusing on a solution that will preserve incentives for innovation and ensure and expand production of, and access to, climate technologies for mitigation and adaptation.

REDD+

While ECO understands and agrees that reliable and adequate long-term funding is essential, goals for REDD and the conservation and enhancement of carbon stocks remain essential. There should also be a finance goal for support, either a specific range – a number of studies have indicated that halving emissions by 2020 would cost $15-35 billion in 2020 – or simply an agreement to finance achievement of the carbon-related goals. It is crucial to move on this now given the speed of REDD negotiations and the launch of the REDD+ partnership for fast-start financing last week.

Successful mitigation outcomes from REDD+ activities by developing countries,  supported by developed countries, depends on using improved methodological guidance for estimating emissions by sources and removals by sinks. SBSTA needs to progress this issue.

Climate integrity is not the only concern for REDD+ activities; safeguards not only need to be agreed, but the LCA text needs to operationalize them.

Finance

Climate finance can be a valuable opportunity to build some momentum in a process that needs a shot in the arm. Here in Bonn, parties should set ambitious goals for finance outcomes in Cancún, whether or not a comprehensive deal is agreed by then. To be more precise, by Cancún parties can finalize decisions covering finance MRV, governance and institution, and make substantial progress on operationalizing sources of finance to mobilize funding at the scale needed.

But it must be decided here in Bonn to achieve this by Cancún, and that means a negotiating text must be developed that will result in this outcome. ECO gives fair warning: for any parties thinking of blocking progress on finance because they didn’t get what they want in other areas, it's time to open eyes to the bright light of negotiating reality.

MRV

ECO recognizes the crucial role of gathering, in a consistent and comparable way, accurate information relating to emission reduction activities undertaken by Parties, as well as the support provided. Indeed, this is central to the integrity of the climate regime. Thus, it is vital to continue discussions on the nature of MRV, in particular its scope and architecture, that is tailored to Parties’ differentiated obligations.  In so doing, Parties should agree a process at this meeting to elaborate the main issues associated with MRV. Additionally, Parties should give the Chair a mandate to develop text on MRV for this and future negotiations. Parties should also consider how to provide capacity building and support to construct and maintain domestic reporting and verification systems in non-Annex I countries.

Zero- and Low-Carbon Action Plans

As part of the essential process to build trust among Parties through transparency of action, ECO would like to highlight the need to agree by Cancún that both developed and developing countries (with optional participation by LDCs and SIDS) will produce national plans showing how developed countries can get their emissions to near-zero by 2050, and how developing countries can reduce their emissions -- with support from developed countries as defined and agreed previously, including the Convention and the Bali Action Plan -- in line with the required overall global carbon budget.

Time for action is so short, there is no time to lose, and actions are needed now in line with the scientific imperative. There is much that can progress at the multilateral level this year. In Bonn, Parties must build upon progress in the LCA and KP tracks to date and define the expectations for a balanced and ambitious outcome in Cancún.

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Developed countries should produce Zero Carbon Action Plans (ZCAPs) to map out the institutions and policies needed for them to achieve their targets under a five-year commitment period, with the longer-term aim of near-total decarbonization by 2050.  ZCAPs would also serve to document how each country proposes to achieve their support obligations to developing countries.  Both parts of the ZCAP would be subject to MRV procedures to help ensure the environmental integrity of the deal and also to give all countries increased confidence that others will not free-ride.  The long-term component allows countries to begin to develop a long-term vision for their economies and to plan for related socioeconomic transition. The reporting, review and compliance components of the ZCAP proposal are therefore essential to the integrity of the overall deal and giving confidence that targets will be met.

Developing countries, over the short to medium run and depending on capacity, will produce visionary low-carbon action plans (LCAPs) that provide a road map and outline a trajectory for their pathway to a low-carbon and climate-resilient economy, clearly linking development and climate goals to achieve sustainable development.  These plans should be developed through a bottom-up, country-driven process and should build upon national plans for adaptation and mitigation, recognizing the linkages already in place in many countries between these issues.  They should provide an integrated framework where a country's NAMAs can form a coherent package.  These NAMAs would then form essential building blocks of a LCAP, and together their cumulative impact should result in the long-term objective of a low-carbon economy as well as stay within atmospheric limitations.  Mitigation efforts together with adaptation all contribute towards the overall LCAP.

ZCAPs and LCAPs link to a number of existing agenda items.  They are in the LCA text and are also relevant in the MRV discussions (MRV mitigation on non-Annex I, Annex I, the “firewall” between them, and MRV finance).  Because ECO sees them as being related to national communications, but forward- rather than backward-looking, SBI agenda items 3 and 4 (national communications for developed and developing countries) are also relevant.

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EU study says -30% within reach... but how much will it grasp?

Go Europe! It’s been a while since the EU came up with anything new on the climate front, so ECO is delighted to reveal that the Commission published a paper just last week, demonstrating unequivocally that a -30% target (from 1990 levels) is not only possible, but easily possible for Europe. All the same, the paper doesn’t go anywhere as far as is achievable.  The -40% target, which would finally push the agenda toward real ambition, has not even been analyzed (for shame!).  And the -30% target is based on the assumption that a mere 50-50 chance of staying below a rather uncomfortably balmy 2º C increase is adequate -- but let’s not quibble too much. At least the EU, unlike, say, Canada, is looking at the option of increasing its pledge, and that is progress. Even though the Commission's economic analysis does not take into account all additional benefits, it is still very clear that there is no reason at all why the EU cannot increase its pledge. Even better, it should agree that the -30% should be done completely through domestic action, so that it is on its way to becoming a near-zero carbon society by 2050. The Commission’s paper provides the facts on which Member States will base their decisions on whether or not to unilaterally take on the higher target. This should happen at the EU Heads of State summit in September. If you, like us, want to see the EU break away from business as usual at -20%, here are a couple items to mention to any EU delegate you pass in the hallway here in Bonn. * First, ask them to ensure that every European Head of State reads the Commission analysis. The figures in the paper show that there is no real impediment, financial or otherwise, to a unilateral EU move to -30%. * Second, since the most recent data show current emissions already at 14% below 1990 levels, the EU is already halfway to reaching -30%. * Finally, EU international climate leadership has always had the most impact when leading from the front, as demonstrated with EU-led initiatives like the 2o C limit and fast-start finance. ECO expects EU delegates will be delighted to express their commitment to EU leadership on climate change, so don’t be shy!

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All Aboard?

The industrialised countries are pushing forward a model for a Copenhagen agreement based firmly around carbon markets coupled with weak targets. By and large, developing countries are not boarding any train headed to weak targets. Ever stopped to wonder why?

Industrialised countries talk about carbon markets and offset mechanisms in particular as if they are doing developing countries a favour, by providing financial flows from North to South. In fact, at least under the Clean Development Mechanism, it is more accurate to say that developing countries are the ones doing the favour – by giving Annex I countries a way of meeting their targets on the cheap.

The carbon markets question is emerging as one of the key fault lines in the negotiations. It cuts across discussions on Annex I targets, finance and Nationally Appropriate Mitigation Actions. Until the discussion is reframed, it will be hard to make the progress we urgently need to see.

Part of the problem is that Annex I negotiators may be too busy to read the analysis by their own technical experts. Take the European Commission’s recent Communication on climate finance. Put aside for the moment the fact that the Commission’s model would give high probability of exceeding 2oC warming. The Commission says that developing countries will need around Euros 100 billion per year by 2020 for adaptation and mitigation. Carbon markets would provide around 40% of this total – and public finance from international sources would be some Euros 22-50 billion per year.

However, the Commission’s headline figures are based on an assumption that cumulative Annex I targets are 31% below 1990 levels by 2020. Has anyone seen that sort of ambition actually on the table here in Bangkok?

The EU has been less keen to draw attention to perhaps the most important line in the Communication. This concludes that if cumulative Annex I reductions end up at around 10% below 1990 levels, this “would require an increase in the transfer of international public finance to developing countries of around Euros 120 billion per year in 2020.”

Such “radical” voices as McKinsey, in its recent analysis for Project Catalyst, give the same simple message – weak targets require much, much higher levels of public finance from Annex I countries for mitigation in developing countries. There is no free lunch.

Unfortunately a lot of industrialised countries’ negotiators can’t get their heads round the simple maths, and are trying to have it both ways. ECO is clear – if markets are to play a role, enabling conditions must first be in place. Low Annex I targets do not enabling conditions make.

At Bonn III, developing countries called for a fundamental debate on the role of carbon markets in the Copenhagen agreement, and have strongly repeated the call here in Bangkok. An honest discussion of the conditions under which carbon markets could contribute to keeping warming well below 2oC is long overdue. Let’s strip out double, triple and quadruple counting and concentrate on what the atmosphere sees. And address the concern that the rich world is picking all of developing countries’ “low hanging fruit.”

The EU and other industrialised countries are sitting in the carbon market train wanting to discuss the colour of the seats, and wondering why developing countries won’t jump on board. The developing countries are on the platform waiting for the engine to turn up.

[Article published in Climate Action Network's Eco Newspaper, Oct. 5, 2009 from Bangkok, Thailand UNFCCC negotiations - full PDF version here]

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