a synthesis of information from Annex I national communications on sources and sinks in the land-use change and forestry sector (FCCC/TP/1997/5). The first MOP shall elaborate modalities and procedures to ensure transparency, efficiency and accountability through independent project auditing and verification. The MOP shall also assure that a share of proceeds from certified projects is used to cover administrative expenses and to assist meeting adaptation costs of those developing country Parties particularly vulnerable to climate change effects. Participation may involve private and/or public entities, subject to guidance provided by the CDM executive board. Certified emission reductions obtained between 2000 and 2008 can be used to achieve compliance in the first commitment period. The COP serving as the MOP shall, at its fourth session, analyze the implications of the paragraph on reductions between 2000 and 2008. FCCC Executive Secretary Michael Zammit Cutajar noted that, at an estimated 10,000 attendants, COP-3 surpassed all records for participation in a meeting on climate change. He stressed that the focus of the Conference should be its end product. He noted that in a recent exchange of views with a group of business people, one of them had suggested that there should be "no fudge" in the Kyoto agreement. One of the paragraphs determines that the Meeting of the Parties shall regularly review and, as appropriate, revise such methodologies and adjustments, based on the work of the IPCC and SBSTA. Any revision to methodologies or adjustments shall be used only for the purposes of ascertaining compliance with commitments under Article 3 in respect of any commitment period adopted subsequent to that revision. BRAZIL said the question is: what are man-made activities for which credits should be given to increase emissions? He compared the 6 gigatonnes (Gt) of carbon emitted from fossil fuels and 1 Gt from land-use change to natural uptake of 2 Gt by oceans and 2 Gt on continental surfaces. Given deep economic limitations and the inclusion of all countries, if all forests were considered managed this would grant a license for 30 percent more emissions. Because the FCCC includes an obligation to conserve and maintain sinks and reservoirs, he suggested a separate article to restate the obligation on all Parties to sustainably manage their sinks.

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On 3 December, the COP President introduced a discussion on the development and transfer of technologies. CHINA, supported by INDIA and IRAN, observed two tendencies: developed countries are only interested in transfer of technical information, while developing countries deem technology transfer on non-commercial and preferential terms most important; and some countries emphasize market mechanisms. She called for action from developed countries consistent with Agenda 21, the FCCC and previous COP resolutions, and recommended that that the issue be taken up as a separate item at COP-4. SOUTH AFRICA said access to technology and transfer of technical know-how would play a crucial role in meeting the energy implications of moving towards sustainable development. JAPAN outlined the Kyoto Initiative to strengthen assistance for developing countries in their efforts to combat global warming, to be operated through the national Official Development Assistance programme. The programme will offer concessional loans to promote training, cooperation on energy-saving technology, new and renewable energy sources, forest conservation and afforestation, and will establish information networks and workshops. INDIA, supported by IRAN, called for the operationalization of FCCC provisions relating to state-of-the-art environmentally sound technologies (EST), in the new legal instrument.

GIFs

Paragraph 7 states that for the first commitment period (from 2008 to 2012), QELROs for Annex I Parties shall be equal to the percentage of their 1990 or chosen base year emissions inscribed in Annex B, multiplied by 5. It determines that Parties shall include in their 1990 emissions base year or period, GHG emissions minus removals in 1990 from land use change for the purposes of calculating their assigned amount, if land use change and forestry constituted a net source of GHGs in 1990. Under Kuwait's proposed amendment, Parties would provide financial resources, including the transfer of technology, to the extent that the COP decides they are needed by the developing country Parties. KUWAIT said the developing countries can only lower emissions through technology, but resources made available to date have been inadequate. The EU, supported by the US and JAPAN, said donors should not place their resources in the hands of the COP. SAUDI ARABIA said the amendment came in reaction to the EU proposal, which upsets the Convention's "delicate balance." Sergio Selaya Bonilla (Honduras) conducted consultations on the EU's proposal and Bakary Kante (Senegal) on Kuwait's proposal throughout the week. The EU proposal was later withdrawn. The Kuwait proposal was not accepted. AGBM-7 met from 28 July - 7 August 1997 in Bonn. A total of 145 Parties and Observer States participated in the session, as well as 691 representatives from NGOs and the media. AGBM-7 further streamlined the negotiating text. In the absence of initial formal proposals for emissions reduction targets by the US and Japan, there was a widespread sense that most of the progress achieved at this session was limited to a reduction in the number of proposals. further elaboration of guidelines for its implementation, including for verification and reporting;

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ARTICLE 16 (Multilateral Consultative Process): This article was discussed in the I&Ms negotiating group. The COP shall, as soon as practicable, consider the application of the multilateral consultative process to the Protocol. ARTICLE 6 (Joint Implementation): Article 6 covers some of the material from Article 7 of the AGBM-8 negotiating text, on transfer and acquisition of emission reduction units (ERUs) between Annex I countries that result from projects aimed at reducing anthropogenic emissions by sources or enhancing anthropogenic removals by sinks of GHGs. Criteria include that the project: The final meeting of the COW began on Wednesday, 10 December, at approximately 7:00 pm. The meeting was suspended to allow for distribution of the Chair's final draft (FCCC/CP/1997/CRP.6) and further informal consultations. At 1:00 am, delegates began an article-by- article review of the text, discussing the provisions related to QELROs, emissions trading and voluntary non- Annex I commitments at length. On behalf of the G-77 and China, Bakari Mbonde (Tanzania) said decisive action would be needed to strengthen developed country obligations. He underlined the Berlin Mandate to achieve QELROs and advance implementation of commitments under Article 4.1 without new commitments for developing country Parties. Developing countries had undertaken their own measures and the success of these was predicated on Annex I country fulfillment of their commitments including transfer of technology. He rejected offshore extra-territorial implementation of targets and welcomed the Clean Development Fund initiative. a note on measures by non-Annex I Parties to reduce the growth of their emissions (FCCC/AGBM/1997/CRP.5);On 3 December, delegates discussed the review of information and possible decisions under Article 4.2(f)(FCCC/CP/1997/L.3). They agreed to the proposal that the Czech Republic and Slovakia replace Czechoslovakia in Annex I and that Croatia be added. Delegates debated at length a proposal by Azerbaijan and Pakistan to delete Turkey from Annex I and Annex II. IRAN, TURKEY and KUWAIT supported the proposal. The EU and AUSTRALIA maintained that Turkey should indicate willingness to undertake Protocol obligations under Article 10 before its deletion from the Annexes. The US suggested continuing consideration of this proposal and other OECD members' relationship to Annex I at COP-4. TURKEY noted that questions remain unanswered on the Protocol's proposed Article 10 and requested that ministers discuss the matter on 10 December. The Chair proposed that Luis Herrera (Venezuela) conduct consultations on these amendments. The issue was not resolved and will be discussed at COP-4. On 5 December in the COW Plenary, the Chair of the negotiating group on institutions and mechanisms (I&Ms), Takao Shibata (Japan), reported progress in discussions on articles on the MOP/COP. He said Parties agreed that the FCCC COP shall serve as the meeting of the Parties (MOP), having agreed to the principle of functional integration but legal distinction between the bodies. Delegates spent a considerable portion of the final debate on Article 3 debating newly inserted paragraphs in the Chair's text related to emissions trading. Delegates agreed to place the text to a separate article (see Article 16 bis) of the protocol and including a reference to future work on trading in a COP decision. On 3 December, AOSIS, CHINA and ZIMBABWE stated that deliberation of this item was premature given that it was unclear what the actions taken under the Berlin Mandate process would accomplish. AOSIS predicted that the visible effects of climate change will have to become devastating before the Annex I countries pushing mediocre proposals take real action.

Summary report 1–11 December 1997 - IISD Earth Negotiations Summary report 1–11 December 1997 - IISD Earth Negotiations

AGBM Chair Ral Estrada Oyuela (Argentina) noted that there were many unresolved issues regarding QELROs and delegates must decide at some point the number of gases to be included in the protocol. He proposed that delegates work from the presumption that the protocol would cover six gases: carbon dioxide (CO2), nitrous oxide (N2O), methane (CH4), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6).Article 2, as adopted, describes policies and measures that each Annex I Party shall implement or elaborate in achieving its QELROs, in accordance with national circumstances. A subparagraph lists measures "such as:" energy efficiency; protection and enhancement of sinks; sustainable agriculture; new and renewable forms of energy, carbon sequestration and advanced technology; phasing out of subsidies and incentives that run counter to the FCCC objective; sectoral reform; GHG emission limitation and reduction; and methane recovery and use. Parties shall cooperate to enhance the effectiveness of P&Ms. Annex I Parties shall pursue limitation of emissions from aviation and marine bunker fuels, working through the International Civil Aviation Organization and the International Maritime Organization. Parties shall strive to minimize the adverse effects on other Parties, especially developing country Parties and those identified by FCCC Articles 4.8 and 4.9. The COP shall consider ways to elaborate coordination, if it decides coordination would be beneficial. In the resumed COW meeting early on 10 December, Estrada noted a possibility to reach agreement covering six gases from the beginning, rather than the three-plus-three coverage included earlier that night. Different base years would be needed for each group of gases: 1990 for CO2, CH4, NO2; and 1995 in some cases for other gases. He said this required careful drafting to provide the necessary transparency. At the COW session at 3:20 am on 10 December, Estrada said intense negotiations and consultations had been conducted within and between groups since the introduction of the draft protocol. He said the text needed refinement to indicate that each Party would be responsible for its respective number in an annex. At AGBM-3, held in Geneva from 5-8 March 1996, delegates heard a number of specific proposals on new commitments for Annex I Parties, including a two-phase CO2 emissions reduction target proposed by Germany. They also discussed how Annex I countries might distribute or share new commitments, and whether those should take the form of an amendment or protocol. Delegates agreed to compile proposals for new commitments for consideration at AGBM-4, and to hold informal roundtable discussions on policies and measures as well as on QELROs.