JOYCELINE A.

GOCO
Head, IACCC Secretariat

In response to the scientific findings
that the earth is getting warmer and may
lead to irreversible adverse impacts, the
United Nations Framework Convention
on Climate Change (UNFCCC) was
adopted on May 9, 1992 at the United
Nations 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 (including
the Philippines) have ratified the
Convention

THE UNITED NATIONS
FRAMEWORK CONVENTION ON
CLIMATE CHANGE

The centerpiece of global efforts to
combat global warming
CONVENTIONS OBJECTIVE
Seeks to stabilize atmospheric
concentration of greenhouse gases
at a level that would prevent
dangerous anthropogenic [human-
induced] interference with the
climate system.
The Conventions Guiding
Principles
vThe lack of full scientific certainty should
not be used as an excuse to postpone action.

vThe common but differentiated
responsibilities of states assigns the lead
to 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 and
reservoirs 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, developed
country parties included in Annex II (Annex 1
countries minus the economies in transition)
have the following additional commitments:

Provide new and additional financial resources
to meet the agreed full costs incurred by
developing country Parties in complying with
their obligations under Article 12.
Provide financial resources, including transfer
of technology to meet the agreed full
incremental 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 make
available 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 Conventions
entry into force on March 21, 1004
- 1st Session of the COP was held in Berlin in 1995
which agreed on the Berlin Mandate calling for the
strengthening of Annex 1 commitments through the
adoption of a protocol or another legally binding
instrument.
Institutional Bodies
: Subsidiary Bodies

- Subsidiary Body for Scientific and
Technological Advise (SBSTA) - provides the
CoP 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.
Institutional Bodies
: 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
q The Kyoto Protocol is an international
agreement of 159 countries, which
attended the 3rd Session of the Conference
of the Parties to the UNFCCC held in
December 1997 in Kyoto, Japan.

q 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
qAnnex 1 Country Parties, individually or
jointly, ensure that their aggregate
anthropogenic CO
2
equivalent emissions
of GHG do not exceed their assigned
amounts.

qReduction of their overall emissions by at
least 5% below 1990 levels in the
commitment period 2008 to 2012.
qThe Protocol commits Annex B countries
that ratify the Protocol to reduce GHG
emissions below 1990 levels by the first
commitment period (2008-2012)

qThe 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.
qIncorporation by Annex 1 Parties in its
annual inventory of anthropogenic
emissions the sources and removals by
sinks of GHG gases.

qExpert review process, providing a
thorough and comprehensive technical
assessment of the implementation of this
protocol.

qNo 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
4 EMISSIONS TRADING

4 JOINT IMPLEMENTATION

4 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 arise
from investment in other
industrialized countries, which
result in a transfer of equivalent
emission reduction units between
the countries.


Clean Development Mechanism
(CDM)
Article 12 KP
Allows emission reduction
projects that assist in creating
sustainable development in
developing countries to generate
certified emission reductions
(CERs) for use by the investor.
Greenhouse Gases
covered by the Kyoto Protocol


Carbon dioxide (CO
2
)
Methane (CH
4
)
Nitrous Oxide (N
2
O)
Hydrofluorocarbons (HFCs)
Perflourocarbons (PFCs)
Sulphur hexafluoride (SF
6
)
ANNEX B
ANNEX 1 Party Quantified Emission
Limitation or Reduction
Commitment (fr. Base
year or period)
Australia 108
European
Community 92
Japan 94
Netherlands 92
Russian Federation 92
USA 93

Achievements on the
International Level
Conference of Parties
(COP):
Conventions ultimate authority
COP 1: Adopted the Berlin Mandate
December 1: Parties should protect the climate system
for 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 Report
(SAR) and concluded that the balance of evidence
suggests that there is discernible human influence on
global climate and that the overall impact of this
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 Clean
Development Mechanism (CDM),
eventually leading to a start in the year
2000.
COP 6
July 2001: IPCC published its Third
Assessment Report (TAR). The TAR
concluded that the new scientific findings
provided evidence that global warming is,
indeed, brought about by human-induced
activities.
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 DEVELOPMENT
MECHANISM
(CDM)
Art. 12 KP
Objectives of the CDM
Assists non-Annex 1 countries in achieving
their sustainable development objectives

Enables Annex 1 parties in achieving
compliance with their quantified emissions
limitation and reduction commitments
(QELRC)

Investors benefit by obtaining GHG
emission reduction credits

Objectives of the CDM
Host countries benefit in the form of investment,
access to better technology, and local
sustainable development

Contribute to the ultimate objective of the
Framework Convention on Climate Change

Developing countries will benefit from the project
activities resulting in certified emission reductions
(CERS) and developed countries will benefit by
using the CERs to meet their commitments.
Principal Requirements for CDM
Projects
4Only Parties to the Protocol could participate;

4Participation is voluntary and approved by each
Party;

4National CDM authority to be set up;

4Non-Annex I Parties (host country) must benefit
from project activities resulting in certified
emission reductions (CERs);
Principal Requirements for CDM
Projects
4Projects must assist host countries in achieving
sustainable development and contributing to the
ultimate objective of the Convention;

4Projects must result in real, measurable and
long-term benefits related to the mitigation of
climate change;

4Projects must result in reductions in emissions
that are additional to any that would occur in the
absence of the certified project activity.
Principal Requirements for CDM
Projects
4The COP/MOP shall elaborate modalities and
procedures that ensure transparency. Efficiency
and accountability through independent auditing by
operating entities and verification of project
activities;

4A share of proceeds from the CERs will be
collected from the CERs issued to meet the
administrative costs of the secretariat maintaing
CDM activities as well as adaptation fund set up to
assist developing countries that are seriously
affected by climate change.

Principal Requirements for CDM
Projects
4Projects formally initiated under the Activities
Implemented Jointly are eligible to be converted
into CDM effectively from January 2000 if they
meet the criteria.
Additionalities
>Environmental additionality - long-term real
and measurable reduction

>Technology additionality - Transfer of
environmentally safe and sound technology

>Investment additionality - no diversion of
ODAs

>Some countries require foreign investment in CDM
activities

>Some other countries allow locally funded CDM
projects (unilateral CDM projects)
Decision 15/CP.7
Principles, Nature and Scope of the
Mechanism (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 action
to 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 Partys prerogative to confirm whether
a CDM project activity assists in achieving
sustainable development
Refrain from using CERs generated from
nuclear facilities
Need to promote equitable geographic
distribution of CDM project activities
Public funding for CDM should not result in
the diversion of ODA

CDM should lead to the transfer of
environmentally safe and sound technology
and know-how
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 official
UN Regions:

4 Africa
4 Asia
4 Latin America and the Caribbean
4 Central and Eastern Europe
4 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 to
baselines, monitoring plans and project
boundaries
Review provisions on simplified
modalities, 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
implementation of CDM activities
4Capacity building for government officials,
private sectors and financial institutions

4Clear guidance on CDM activities eligibilities

4National 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 developing
countries in achieving their sustainable
development or to procure CERs at
unreasonable low prices??
CER buying house or CDM investor?
Risk management is not clear.