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JOYCELINE A. GOCO Head, IACCC Secretariat



Call for Global Action:

In response to the scientific findingsthat the earth is getting warmer and may

lead to irreversible adverse impacts, theUnited Nations Framework Conventionon Climate Change (UNFCCC) was

adopted on May 9, 1992 at the UnitedNations Headquarters in New York.



“Earth Summit” in Rio (June1992)

United Nations Conference on Environment and Development (UNCED)

Signing of the UNFCCC The Philippines was among the first

154 nations to sign

As of Dec. 2001, 186 nations (includingthe Philippines) have ratified the

Convention



THE UNITED NATIONSFRAMEWORK CONVENTION ON

CLIMATE CHANGE

The centerpiece of global efforts to

combat global warming



CONVENTION’S OBJECTIVE

Seeks to stabilize atmospheric

concentration of greenhouse gases “

at a level that would prevent

dangerous anthropogenic [human-

induced] interference with theclimate system”.



The Convention’s Guiding

Principles

The lack of full scientific certainty should

not be used as an excuse to postpone action.

The “common but differentiated

responsibilities” of states assigns the leadto developed countries in combating climate

change.



GENERAL COMMITMENT

All Parties to develop “national

communications” containing

inventories of GHG emissions by

source and GHG removals by sinks.



Commitments of Parties

Annex 1 Country Parties • Developed countries and countries whose

economies are in transition

• Adopt policies and measures to limit their

anthropogenic emissions of GHGs and

protect/enhance their GHG sinks andreservoirs to demonstrate that they are

taking the lead in modifying longer-term

trends.



• Submit their national communications on

regular basis with the following information:

Projected anthropogenic GHG emissions

by sources and sinks with the aim of returning them to 1990 levels,

individually or jointly

Policies and measures to limit GHG

emissions and protect/enhance sinks and

reservoirs



Annex II Country Parties

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

• Provide new and additional financial resources

to meet the agreed full costs incurred bydeveloping country Parties in complying withtheir obligations under Article 12.



• Provide financial resources, including transfer

of technology to meet the agreed fullincremental costs of measures to be undertaken

by developing country Parties under Article 4.

• Promote, as appropriate, the transfer of, or,

facilitate and finance access to, environmentally

sound technologies and know-how to other

Parties, particularly the developing ones to

enable them to implement the provisions of the

Convention.



Non-Annex 1 Country Parties

Non-annex 1 country Parties or developing

countries

Have no commitments to reduce their

GHG emissions, but only to “develop,

periodically update, publish and makeavailable to the Conference of Parties, their

national inventories of GHG emissions by

sources and removals by sinks”.



Institutional Bodies

Conference of Parties (CoP)- supreme decision-making body of the Convention

- primary task is to promote and review the

implementation of the Convention and any related legal

instruments (such as the Kyoto Protocol, etc.)

- has convened six meetings since the Convention’s

entry into force on March 21, 1004

- 1st Session of the COP was held in Berlin in 1995which agreed on the “Berlin Mandate” calling for the

strengthening of Annex 1 commitments through the

adoption of a protocol or another legally binding

instrument.




Subsidiary Bodies

- Subsidiary Body for Scientific and

Technological Advise (SBSTA) - provides theCoP with information and advice on scientific

and technological concerns

- Subsidiary Body for Implementation (SBI) -

assists the CoP in the assessment and review of

the implementation of the Convention.




UNFCCC Secretariat: tasked with

administrative functions, taking charge of arrangements for sessions, facilitate assistance

to parties, etc.

Global Environmental Facility (GEF):

interim financial mechanism (Art. 11-21 [3])



THE KYOTO PROTOCOL

The Kyoto Protocol is an international

agreement of 159 countries, which

attended the 3rd Session of the Conferenceof the Parties to the UNFCCC held in

December 1997 in Kyoto, Japan.

This formalized the adoption of the

results of the Berlin Mandate (CoP 1) to

reduce worldwide emissions in GHGs.



Objective of the Kyoto Protocol

The protocol was developed to meet

the ultimate objective of the UNFCCC

which is to “stabilize GHG concentrations

in the atmosphere at a level that would

prevent anthropogenic interference with

the climate system”, through quantified

emission targets within a specified time

frame.



Significant Provisions of the

Kyoto Protocol

Annex 1 Country Parties, individually or

jointly, ensure that their aggregate

anthropogenic CO2 equivalent emissionsof 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

that ratify the Protocol to reduce GHG

emissions below 1990 levels by the first

commitment period (2008-2012)

The Protocol will be legally binding when

it enters into force. It must be signed and

ratified by at least 55 countries, whose

total emissions represent 55% of the

emissions of the Annex I countries in 1990.



Incorporation by Annex 1 Parties in its

annual inventory of anthropogenic

emissions the sources and removals by

sinks of GHG gases.

Expert review process, providing athorough and comprehensive technical

assessment of the implementation of this

protocol.

No introduction of new commitments for

Parties not included in Annex 1.



The Kyoto Protocol reinforces the

principle of “common but

differentiated responsibilities”.



THE KYOTO PROTOCOL

FLEXIBILITY MECHANISMS

EMISSIONS TRADING

JOINT IMPLEMENTATION

CLEAN DEVELOPMENT

MECHANISM



Emissions Trading (ET)

Article 17

- Permits countries to transfer

parts of their “allowed emissions” (assigned amount

units)



Joint Implementation (JI)

Article 6

- Allows countries to claim credit

for emission reductions that arisefrom investment in otherindustrialized countries, which

result in a transfer of equivalent“emission reduction units” betweenthe countries.



Clean Development Mechanism(CDM)

Article 12 KP

Allows emission reductionprojects that assist in creatingsustainable development in

developing countries to generate“certified emission reductions” (CERs) for use by the investor.



Greenhouse Gasescovered by the Kyoto Protocol

Carbon dioxide (CO2)

Methane (CH4)Nitrous Oxide (N2O)

Hydrofluorocarbons (HFCs)

Perflourocarbons (PFCs)

Sulphur hexafluoride (SF6)



ANNEX B ANNEX 1 Party Quantified Emission

Limitation or ReductionCommitment (fr. Baseyear or period)

Australia 108EuropeanCommunity 92

Japan 94

Netherlands 92Russian Federation 92

USA 93



Achievements on the

International Level

Conference of Parties (COP):

Convention’s ultimate authority



COP 1: Adopted the Berlin Mandate

December 1: Parties should protect the climate systemfor 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 Repor

(SAR) and concluded that “the balance of evidenc

suggests that there is discernible human influence o

global climate” and that the overall impact of thi

influence will be negative



COP 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

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 CleanDevelopment Mechanism (CDM),

eventually leading to a start in the year

2000.



COP 6

July 2001: IPCC published its Third

Assessment Report (TAR). The TARconcluded that the new scientific findings

provided evidence that global warming is,

indeed, brought about by human-inducedactivities.



COP 7: Adopted the Marrakech

Accords

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 DEVELOPMENTMECHANISM

(CDM)Art. 12 KP



Objectives of the CDM

• Assists non-Annex 1 countries in achievingtheir sustainable development objectives

• Enables Annex 1 parties in achievingcompliance with their quantified emissionslimitation and reduction commitments(QELRC)

• Investors benefit by obtaining GHGemission reduction credits



Objectives of the CDM

•Host countries benefit in the form of investment,access to better technology, and localsustainable development

• Contribute to the ultimate objective of theFramework Convention on Climate Change

• Developing countries will benefit from the projectactivities resulting in certified emission reductions(CERS) and developed countries will benefit byusing the CERs to meet their commitments.



Principal Requirements for CDMProjects

Only Parties to the Protocol could participate;

Participation is voluntary and approved by eachParty;

National CDM authority to be set up;

Non-Annex I Parties (host country) must benefitfrom project activities resulting in certifiedemission reductions (CERs);



Principal Requirements for CDM

Projects

Projects must assist host countries in achievingsustainable development and contributing to theultimate objective of the Convention;

Projects must result in real, measurable andlong-term benefits related to the mitigation ofclimate change;

Projects must result in reductions in emissionsthat are additional to any that would occur in the

absence of the certified project activity.




Projects

The COP/MOP shall elaborate modalities andprocedures that ensure transparency. Efficiencyand accountability through independent auditing byoperating entities and verification of projectactivities;

A share of proceeds from the CERs will becollected from the CERs issued to meet theadministrative costs of the secretariat maintaingCDM activities as well as adaptation fund set up toassist developing countries that are seriously

affected by climate change.




Projects

Projects formally initiated under the Activities

Implemented Jointly are eligible to be convertedinto CDM effectively from January 2000 if theymeet the criteria.



Additionalities

Environmental additionality - long-term realand measurable reduction

Technology additionality - Transfer ofenvironmentally safe and sound technology

Investment additionality - no diversion ofODAs

Some countries require foreign investment in CDM

activities

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



Decision 15/CP.7

Principles, Nature and Scope of theMechanism (Article 16, 12 & 17 of

the Kyoto Protocol)

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

I Parties.

Annex I Parties implement domestic actionto reduce emissions in a manner conducive

to narrowing per capita differences between

developed and developing countries.



Use of mechanism shall be supplemental to

domestic action.

Environmental integrity to be achieved.



Decision 17/CP.7

Modalities and Procedure for a Clean

Development Mechanism

Host Party’s prerogative to confirm whether

a CDM project activity assists in achievingsustainable development

Refrain from using CERs generated from

nuclear facilities

Need to promote equitable geographic

distribution of CDM project activities



The CDM Executive Board

(EB)

Supervises the CDM

Operates under the authority

of the COP/MOP



Composed of 10 members:

- 1 representative from each of the 5 officialUN Regions:

Africa

Asia

Latin America and the Caribbean

Central and Eastern Europe

OECD

- 1 from the small island developing state

- 2 each from Annex I and non-Annex I

Parties



Executive Board Tasks

Recommend to the COP/MOP on further

modalities and procedures for the CDM

Approve new methodologies related tobaselines, monitoring plans and project

boundaries

Review provisions on simplifiedmodalities, procedures and the definitions

of small scale project activities



Accredit operational entities

Develop and maintain CDM registry

Report regional and subregional

distribution of CDM project activities



Updates

Procedural guidelines for accrediting

operational entities

Simplified modalities and procedures for

small-scale CDM project activities

Guidelines for methodologies for baselines

and monitoring plans

- Meth Panel was organized

- Drafted and posted the CDM-PDD

(project design document)

National factors affecting the successful



National factors affecting the successful

implementation of CDM activities

Capacity building for government officials,

private sectors and financial institutions

Clear guidance on CDM activities’ eligibilities

National institutional arrangements to consider

CDM applications- simple process and quick processing vs.

multi-channel and lengthy processing

procedures



Some concerns of CDM activities

• Uncertainties in the ratification of the Kyoto

Protocol

• Many prospectors but no real investors• “Investors” that promised millions have not

came back

• Many held “wait and see” attitude• Low CER price may not even be enough for

administrative costs



Some concerns of CDM activities

• High cost of accreditation of operating entities

• The spirit of Article 12 is missing.

• The focus of CDM is to assist developingcountries in achieving their sustainable

development or to procure CERs at

unreasonable low prices?? • “CER buying house” or CDM investor?

• Risk management is not clear.

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