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AUSTRALIA proposed another option for a fully comprehensive net approach and suggested that the other options would introduce inequities between countries, along with uncertainty. The Australian text stated that the verifiable net GHG emissions from sources and removals by sinks in terms of carbon dioxide equivalents resulting from direct human-induced activities shall be used to meet the QELROs commitments of each Party in Annex I. It provided for reporting in a transparent and verifiable manner. AGBM-5, which met in Geneva from 9-18 December 1996, considered proposals from 14 Parties or groups of Parties regarding strengthening of commitments, advancing the implementation of Article 4.1, and possible elements of a protocol or another legal instrument. Delegates adopted conclusions that requested the Secretariat to produce a "framework compilation" of proposals for further consideration. On Agenda Item 2, organizational matters, a Committee of the Whole (COW) was established to take decisions on the Berlin Mandate, with Ral Estrada Oyuela elected as Chair. ARTICLE 2 (Policies and Measures): The negotiating group on Article 2 discussed a revised draft text prepared by Chair Mohamed Ould El Ghaouth (Mauritania). There was some agreement on the kind of policies and measures to be considered and on their inclusion in the protocol. There were differences over whether policies and measures should apply to non-Annex I Parties and whether their application should be adjusted according to national circumstances. A related discussion concerned the issue of "comparability." The options for coordination were also discussed.

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The COW was reconvened at 1:15 am on Thursday, 11 December. The Chair introduced FCCC/CP/1997/CRP.6, the final draft of the Protocol. Discussion began with Article 3. On aggregating emissions of Annex I Parties (paragraph 1), RUSSIA noted that its previously introduced quantitative indicators for limitation of GHG emissions were omitted from Annex B and stated that the Russian target should say 100% of the 1990 base level. UKRAINE also specified 100% for itself.Slutty cop and a prisoner costumes?" I said as she held the costumes up for me to see, "Don't you think the prisoner costume is a little big for me though?" Kinza Clodumar, President of Nauru, called the willful destruction of small island States with foreknowledge an "unspeakable crime against humanity." He said solving the problem requires more than stabilization of GHGs. He noted US President Clinton's pledge for significant future reductions and called for an announcement on this from Vice President Gore.

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Following a proposal by CROATIA, delegates discussed the status of Yugoslavia in relation to the Convention. The Executive Secretary reported on the results of his request for information on Yugoslavia's status within the UN and the FCCC. The President asked Yugoslavia to refrain from participation in the meeting. In the Kyoto Protocol, Parties in Annex I of the FCCC agreed to commitments with a view to reducing their overall emissions of six greenhouse gases (GHGs) by at least 5% below 1990 levels between 2008 and 2012. The protocol also establishes emissions trading, joint implementation between developed countries, and a "clean development mechanism" to encourage joint emissions reduction projects between developed and developing countries. The PHILIPPINES, supported by the MARSHALL ISLANDS, FRANCE, UGANDA, SAUDI ARABIA, TRINIDAD and TOBAGO, the EU and the NETHERLANDS, proposed deletion of a paragraph stating that certified emissions reductions from 2000 to the beginning of the first commitment period can be used to achieve compliance during that commitment period. FRANCE said COP-4 should consider the paragraph. RUSSIA, COSTA RICA, HUNGARY, the US, CROATIA, JAPAN, PERU and POLAND opposed the deletion, as did CANADA, who said joint implementation with credit was an important notion to retain. Estrada asked delegates to adopt the revised Annex B, reflected in document FCCC/CP/1997/L.7/Add.1, in light of the text agreed for the Protocol. Annex B presents each Annex I country's commitment target. Combined, these equal a global 5.2% reduction of six GHGs. Estrada pointed out that on a graph it could be seen that a 5% reduction from 1990 emission levels would equal a 10% reduction in emissions of six gases from projected 2000 levels and was 30% below business-as-usual projections for 2010.The COP took several other actions during the week. Several documents were noted: activities related to technical and financial support (FCCC/CP/1997/INF.3); a report on the second meeting of AGBM-8 (FCCC/AGBM/1997/8/Add.1); and administrative and financial matters (FCCC/CP/1997/INF.1), including the 1998-99 biennial programme budget. Commitment Periods: On 2 December, the Article 3 negotiating group focused on emission budgets. Meira Filho reported to the COW on 5 December on the consultations on "multi-year targets," formerly known as "budgets." He stated that problems arose from confusion between the terms "emission budgets" and "budget periods." These were replaced with "total emissions" and "commitment periods," respectively. He said there was increasing agreement that the range for "commitment periods" should be five years. Dr. Johny Lahure (Luxembourg), on behalf of the EU, rejected differentiation that makes targets weaker. Instead, it must guarantee comparable commitments for major economies at least. Flexibility resulting in environmentally detrimental loopholes is unacceptable. He supported: the "three plus three" gas proposal; trading along with strong targets and domestic action, monitoring, sanctions and market safeguards; and JI with rules and safeguards. He said mandatory, internationally coordinated P&Ms are indispensable. Suggestions that developing countries should take up new commitments are not helpful to the negotiations and contrary to the Berlin Mandate. Mobilizing new and additional resources through the financial mechanism could foster voluntary limitation of developing country GHG emissions. a note on measures by non-Annex I Parties to reduce the growth of their emissions (FCCC/AGBM/1997/CRP.5); TANZANIA, on behalf of the G-77/CHINA, noted that developing countries are the most vulnerable to climate change and the least able to adapt. He also said that they are committed to modify trends in human-induced emissions through the principle of common but differentiated responsibilities. The delay between production of emissions and their effects requires Annex I countries to take the first steps. Developed countries should be blamed if Kyoto fails. He objected to the proposed "post-Kyoto evolutionary process" and to threats to aid unless developing countries accept it.

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BRAZIL said the paragraph provided an incentive for an early start. He said he felt it would be important to say explicitly that reductions obtained from 2000 to the first commitment period could be used in the first commitment period. Estrada said he saw no consensus to delete the paragraph. ARTICLE 5 (Methodologies): Article 5 refers to the obligation by Annex I countries to have in place, no later than one year prior to the start of the first commitment period, a national system for the estimation of emissions by sources and removals by sinks of all GHGs not controlled by the Montreal Protocol. Guidelines for such national systems shall incorporate methodologies accepted by the IPCC and shall be decided upon by the COP acting as the MOP at its first session. SWITZERLAND, supported by the US, said that GEF should be established as the permanent FCCC financial mechanism. The G-77/CHINA referred to the provision of financial resources and the transfer of technology as fundamental to implementation of the Convention by non-Annex I Parties. He pointed out that both were developed countries' obligations under the Convention and should not be used to push developing countries to accept new commitments or to accept a market-based approach under the protocol. The PHILIPPINES mentioned problems experienced with implementing agencies and said that they should be more aware of decisions taken by the GEF Council. INDIA, BHUTAN, BANGLADESH and KIRIBATI highlighted the importance of obtaining GEF financing for national communications. The US said GEF had made an effort to meet the needs of FCCC Parties and expressed disappointment that the review of the financial mechanism had not concluded. He also pointed to the need for finding innovative sources of financing involving the private sector. The GEF's report was noted.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.

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Ryutaro Hashimoto, Prime Minister of Japan, urged developed countries to agree on meaningful, realistic and equitable emissions reduction targets that are legally binding. He called on all Parties, including developing countries, to voluntarily enhance their measures. He noted that regulation could trigger innovation, promote capital investment and give rise to new industry. 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.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. The CDM shall be subject to the authority and guidance of the MOP and supervised by an executive board of the CDM. Each project's emission reductions shall be certified by operational entities designated by the MOP based on: voluntary participation by each Party involved; real, measurable and long-term climate change mitigation benefits; and emission reductions additional to any occurring in the absence of the certified project activity. The CDM shall assist in arranging project funding as necessary. The EU asked for a footnote that the European Community and its Member States will implement their respective commitments in accordance with the provisions of Article 4, on the European "bubble." ICELAND stated that actions taken before 1990 make its 110% target unattainable. Developing countries rejected the concept of voluntary commitments as they linked the output of emissions with development and progress, which they said was their highest priority. They stressed that the Berlin Mandate had not called on developing countries to take responsibility for what was essentially the result of industrialized countries' action. They stressed that developed countries should take the lead and follow the principle of "common but differentiated responsibilities." AOSIS called for the strongest emissions cuts as they spoke of certain disaster in the face of political paralysis. Oil-producing countries called for establishment of a compensation mechanism should full implementation be carried out.



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