Article 3, paragraph 14, of the Kyoto Protocol, requires that each Party included in Annex I to the Convention (Annex I Party) shall strive to implement the commitments mentioned in Article 3, paragraph 1, of the Kyoto Protocol, in such a way as to minimize adverse social, environmental and economic impacts on developing country Parties, particularly those identified in Article 4, paragraphs 8 and 9, of the Convention.
In accordance with decision 15/CMP.1, Annex I Parties shall provide the supplementary information on ways to minimize adverse social, environmental and economic impacts on developing country Parties . Parties included in Annex II to the Convention, and other Annex I Parties that are in a position to do so, shall incorporate information in their submissions on how they give priority, in implementing their commitments under Article 3, paragraph 14, of the Kyoto Protocol, to the following actions, based on the relevant methodologies referred to in decision 31/CMP.1:
- The progressive reduction or phasing out of market imperfections, fiscal incentives, tax and duty exemptions, and subsidies in all greenhouse-gas-emitting sectors, taking into account the need for energy price reforms to reflect market prices and externalities; The progressive reduction or phasing out of market imperfections, fiscal incentives, tax and duty exemptions, and subsidies in all greenhouse-gas-emitting sectors, taking into account the need for energy price reforms to reflect market prices and externalities;
- Removing the subsidies associated with the use of environmentally unsound and unsafe technologies;
- Cooperating in the technological development of non-energy uses of fossil fuels and supporting developing country Parties to this end;
- Cooperating in the development, diffusion and transfer of lower-greenhouse-gas-emitting advanced fossil-fuel technologies and/or technologies relating to fossil fuels that capture and store greenhouse gases, encouraging their wider use, and facilitating the participation of least developed countries and other Parties not included in Annex I to the Convention in this effort;
- Strengthening the capacity of developing country Parties identified in Article 4, paragraphs 8 and 9, of the Convention to improve efficiency in upstream and downstream activities relating to fossil fuels, taking into consideration the need to improve the environmental efficiency of these activities;
- Assisting developing country Parties, which are highly dependent on the export and consumption of fossil fuels, in diversifying their economies.
The following are the compilation reports of information on minimization of adverse impacts in accordance with Article 3, paragraph 14, of the Kyoto Protocol: