Forum on Climate Change: Setting Priorities after Kyoto, Paris, 12-13 March 1998

Major challenges and priorities for next steps

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The Kyoto Protocol is a step forward, demonstrating leadership by Annex I Parties to reduce greenhouse gas emissions as part of an international effort to respond to climate change. The Protocol establishes an overall target for Annex I Parties to limit greenhouse gas emissions by at least 5% below 1990 emission levels in the first commitment period (2008-2012). It is estimated that this will require a reduction of 25-30% compared to business as usual projections of emissions for these Parties. Such reductions will only be achievable if Parties can successfully integrate climate change objectives into overall national economic and social policy frameworks.

Clarification and implementation of the Kyoto Protocol is a near term priority for the international community. In the lead up to COP-4, and beyond to the first Meeting of the Parties to the Kyoto Protocol, a number of items of unfinished business are high on the agenda:

• creation of a framework for reporting, accounting, monitoring and verification;
• establishment of a compliance system;
• methodology questions and future inclusion of additional sink activities in the coverage of the Protocol;
• elaboration of the new mechanisms (emission trading, joint implementation and the clean development mechanism);
• evaluating the impact of single big projects on emission commitments (the "Iceland question");
• review of Articles 4.2.a and b (progress by Annex I Parties in meeting commitments to return greenhouse gases to 1990 levels by the end of the decade) and of Article 4.2.f (membership in Annexes I and II) of the UN Framework Convention on Climate Change;
• consideration of voluntary commitments for developing countries.
  
  

The COP-4 agenda should not be overcrowded to ensure that decisions are taken in Buenos Aires to effectively advance the understanding and implementation of the Protocol.

Despite the progress made in Kyoto, the Kyoto targets alone will not achieve the objectives of the UN Framework Convention on Climate Change. Therefore, as a priority Parties should continue to pursue implementation of their commitments under the Convention. A number of these commitments challenge the capabilities of countries. Improving technology co-operation with developing countries remains a critical problem. Another key is to strengthen co-operation and input from all stakeholders, including the private sector, which is responsible for the majority of the technology transfer that occurs world-wide. For developing countries, challenges include building institutional and human capacities to respond to climate change, better outlining the meaning of common but differentiated responsibilities under the Convention, and identifying approaches that contribute both to the objectives of local, national and regional development and to the objectives of the Convention.

12 March 1998

1. Welcome and review of forum objectives

Opening remarks by Thorvald Moe, Deputy Secretary General of the OECD
Chair of the Forum: Cornelia Quennet Thielen, Germany

Keynote Address: Raúl Estrada-Oyuela, Ambassador, Argentina

2. Kyoto Protocol -- key elements and views on next steps

Presentations:

• Michael Zammit Cutajar , Executive Secretary of the UN FCCC
• Bob Watson , Chairman of the Intergovernmental Panel on Climate Change
• Robert Priddle , Executive Director of the International Energy Agency

3. Making new mechanisms work: joint implementation, emission trading and the clean development mechanism [COM/ENV/EPOC/DCD/DAC/IEA(98)1/REV1]

This session aims to address necessary features of the mechanisms to ensure cost-effectiveness, equity and environmental performance. These mechanisms include: "joint implementation" or project level crediting (Article 6), and emission trading (Article 17) among Annex I countries. The discussion should also address the relationship of these implementation mechanisms to the Clean Development Mechanism (Article 12). Discussion should lead to insights that could contribute to further discussions and decision-making under the UNFCCC.

Presentations:

• Joke Waller Hunter , Director, OECD Environment Directorate, Key Issues in the Design of Implementation Mechanisms
• Tahar Hadj-Sadok , Co-ordinator, Science and Technology Programme, UNFCCC Secretariat, Clean Development Mechanism
• Juan F. Rada , Managing Director of The Environmental Partnership, representing the Earth Council, The Experience of the Creation of Carbon Certifiable Tradable Offsets (CTOs).

Panel Discussants:

• José Domingos Gonzales Miguez , Co-ordinator Global Change Research, Ministry of Science and Technology, Brazil
• Peter Unwin , Head, Global Atmosphere Division, Department of the Environment, Transport and the Regions, United Kingdom

13 March 1998

4. Collaborative approaches to application of climate-friendly technologies [COM/ENV/EPOC/DCD/DAC/IEA(98)2]

• Chair: James Michel, Chair of the OECD Development Assistance Committee
• Briefing: Abe Haspel, Deputy Assistant Secretary for Energy, Environment and Economic Policy Analysis, US Department of Energy, Chair of the Climate Technology Initiative, Recent developments under the Climate Technology Initiative

This session aims to explore the possibilities for stimulating greater collaboration amongst the range of actors involved in technology cooperation activities that are relevant to the effective application of climate-friendly technologies in developing countries. These actors include government bodies and local institutions, bilateral and multilateral donor agencies, ministries of industry and energy of OECD (and other) countries and private sector entities.

Presentations:

• Erik Arkesteijn , University of Amsterdam, Frameworks for effective application of climate-friendly technologies, and opportunities for collaboration
• David Wallace , IEA, and Alan Heyes, vice-Chair, IEA Working Party on Fossil Fuel Technologies, Opportunities for collaboration through the IEA/OECD: The Technology Co-operation Agreement Pilot Activity
• Jeff Seabright , Director, Office of Energy and Environment Technology, USAID, USA
• Edsil Dilla , Supervising Research Scientist, Philippines National Oil Corporation, Technology Co-operation Frameworks: towards a national forum for collaboration?

Panel Discussants:

• KokKee Chow , Director, Malaysian Meteorological Service; Chair, UNFCCC Subsidiary Body on Scientific and Technological Advice
• Yann Peng Gui , Director, Foreign Affairs Department, State Planning Commission, China
• Alan Miller , Senior Environmental Specialist - Climate Change, Global Environment Facility

5. Development finance and the response to Kyoto [COM/ENV/EPOC/DCD/DAC/IEA(98)3]

The session aims to stimulate new ideas and areas for the energy, environment and development communities to work together to implement the Protocol and the Convention.

Presentations:

• Richard Carey , Deputy Director of the Development Co-operation Directorate, OECD, Development co-operation and the response to Kyoto
• Ken Newcombe , Global Manager of New Products and Partnerships, World Bank, World Bank Group initiatives
• Bernard Jamet , Director of the Energy Efficiency Department, European Bank for Reconstruction and Development, Experience with energy efficiency investment in the EBRD

Panel Discussants:

• Henry Okolo , Chief Executive and Managing Director, Aluminium Technology Products, Nigeria
• Edith Kürzinger , Counsellor, Federal Ministry for Economic Co-operation and Development (GTZ), Germany

6. Strengthening the contributions of the OECD and the IEA [Room Document 1]

• Chair: Mr. Akihiko Furuya, Minister, Japanese Delegation to the OECD

Panel Discussion with representatives from the OECD Secretariat and its affiliates

The session aims to provide participants with an overview of the relevant work of the OECD and its affiliates and to provide an opportunity for the audience to advise the secretariat on priorities for its programme through the year 2000. Views will be sought on the character of the work and possible changes and/or new directions in light of evolving needs of OECD Members, especially considering the results of Kyoto, COP-3.

7. Closing Remarks

• Chair: Cornelia Quennet Thielen