Outcome of COP6bis

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Outcome of COP6bis
Philippe Tulkens Federal Planning Bureau Task
Force Sustainable Development Brussels Belgium
GECS meeting- Sevilla 09-2001
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General observations

• A political text was agreed upon, but the legal
  text has not been adopted.
• The agreement remains fragile and needs to be
  confirmed during COP 7
• Reaching an agreement was a political sucess
• This achievement was attained at the expense of
  the environmental objective of the Protocol

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The political deal (FCCC/CP/2001/L.7)

• FINANCE 3 new funds
• 2 Under the Convention (voluntary contributions)
• Special climate change fund
• Least developped countries fund
• 1 Under the Protocol
• adaptation fund (CDM levy and voluntary
  contributions)
• Need for new and additional funding aknowledged,
  but no legal requirement.
• Pledges by EU, Canada, Iceland, Norway, NZ,
  Switz., up to 410 million /year by 2005
• No pledge from Australia or USA

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The political deal (FCCC/CP/2001/L.7)

• COMPLIANCE
• decision deferred but important elements defined
• this postponement to COP7 or COP/MOP 1 is the
   Achilles heal  of the agreement
• Restoration rate set to 1.3
• Suspension of eligibility to trade
• Compliance action plan

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The political deal (FCCC/CP/2001/L.7)

• MECHANISMS
• - No limit to trade. Domestic action shall
  constitute a significant element but no
  particular review provision adopted.
• Commitment Period Reserve Provisions
• No limit to  hot air  trading
• Fungibility for AAU, ERU but not CERs
• Possible early crediting for JI projects

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The political deal (FCCC/CP/2001/L.7)

• Mechanisms Clean Development Mechanism
• Prompt start and simplified modalities fror small
  scale projects
• 2 levy on CERs except for projects in LDCs (to
  be confirmed)
•  Annex I parties are to refrain from using CERs
  generated from nuclear facilities to meet their
  commitments 
• 1 of base year emission of afforestation and
  reforestation sinks allowed. No LULUCF.
• SBSTA process for sinks projects terms of
  reference

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The political deal (FCCC/CP/2001/L.7)

• Mechanisms Joint Implementation
• No levy
•  Annex I parties are to refrain from using ERUs
  generated from nuclear facilities to meet their
  commitments 
• Sinks projects possible
• More discussions ahead on eligibility criteria

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The political deal (FCCC/CP/2001/L.7)

• Mechanisms Emission Trading
• No levy
• CPR min 90 of the AA or 5 x (last reviewed
  inventory)

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The political deal (FCCC/CP/2001/L.7)

• SINKS
• Full compensation of 3.3 debit up to 8.2
  MtC/year.
• Beyond the debit compensation, afforestation and
  reforestation activities under art. 3.3 uncapped
• Under 3.4, forest management is capped in
  appendix Z
• No cap on cropland management, grazing land
  management and revegetation but requirement that
  these additional activities took place after 1990
  and are human-induced.
• No crediting for avoiding deforestation.

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Perspective for COP7

• Long negotiations ahead to adopt a legal text
• Compliance and Art. 5, 7 8 (reporting
  requirements and methodologies) most difficult
  parts
• Some worries about USA and Russian positions