UNITED NATIONS
			Distr. GENERAL
			FCCC/CP/2000/INF.3 (Vol. II)
			6 April 2001
			ENGLISH ONLY

CONFERENCE OF THE PARTIES

Sixth session

The Hague, 13-25 November 2000

 1. This information document contains the negotiating texts forwarded by the subsidiary bodies to the Conference of the Parties at the first part of its sixth session under agenda item 3.*

2. The revised negotiating texts prepared by the President of the Conference are contained in the report of the Conference (FCCC/CP/2000/5/Add.3 (Volumes I – V)).

_______________

* FCCC/SBSTA/2000/CRP.11 and FCCC/SB/2000/CRP.15/Rev.2 are contained in part three of the report of the Conference (FCCC/CP/2000/5/Add.3 (Volume IV)).

REVIEW OF THE IMPLEMENTATION OF COMMITMENTS AND OF OTHER PROVISIONS OF THE CONVENTION
(Agenda item 4)

PREPARATIONS FOR THE FIRST SESSION OF THE CONFERENCE OF THE PARTIES SERVING AS THE MEETING OF THE PARTIES

TO THE KYOTO PROTOCOL (DECISION 8/CP.4)

(Agenda item 7)

1. IMPLEMENTATION OF ARTICLE 4, PARAGRAPHS 8 AND 9, OF THE CONVENTION (DECISION 3/CP.3 AND ARTICLE 2, PARAGRAPH.3, AND ARTICLE 3, PARAGRAPH 14, OF THE KYOTO PROTOCOL) ……………………………………………………… 3
   (Agenda item 4 (f))
   
   MATTERS RELATING TO ARTICLE 3, PARAGRAPH 14, OF THE KYOTO PROTOCOL ………………………………………………………. 3
   (Agenda item 7 (f))
   
   Draft decision(s) - /CP.6 (and -/CMP.1). Implementation of Article 4.8 and 4.9 of the Convention (decision 3/CP.3 and Articles 2.3 and 3.14 of the
   Kyoto Protocol); Matters relating to Article 3.14 of the Kyoto Protocol …… 3
   
   I. IMPLEMENTATION OF ARTICLE 4, PARAGRAPHS 8 AND 9, OF THE CONVENTION (DECISION 3/CP.3 AND ARTICLE 2,
   PARAGRAPH.3, AND ARTICLE 3, PARAGRAPH 14, OF THE KYOTO PROTOCOL
   (Agenda item 4 (f))
   
   MATTERS RELATING TO ARTICLE 3, PARAGRAPH 14, OF THE KYOTO PROTOCOL
   (Agenda item 7 (f))

Preambular paragraphs relating to Article 4.8 and 4.9 of the Convention:

The Conference of the Parties,

Determined to protect the climate system for present and future generations,

Reaffirming the commitment of the Parties to [achieve the ultimate objective of the Convention, as defined in Article 2 of the Convention] [implement Articles 2 and 3 of the Convention],

[Recalling its decision 11/CP.1, paragraph 1 [(a) and] (d) on policies, programme priorities and eligibility criteria regarding adaptation, particularly the matter of funding stages I, II and III [of implementation],]

Recalling also its decision 1/CP.4, paragraph 1 (c), on the implementation of Article 4.8 and 4.9 of the Convention (covering also Articles 2.3 and 3.14 of the Kyoto Protocol),

Recalling further its decisions 3/CP.3, 5/CP.4 [, 8/CP.4] and 12/CP.5,

Recognizing the specific needs and concerns of developing country Parties referred to in Article 4.8 of the Convention, and the specific needs and special situations of the least developed countries referred to in Article 4.9,

Recognizing further that low-lying and other small island countries, countries with low-lying coastal, arid and semi-arid areas or areas liable to floods, drought, and desertification, and developing countries with fragile mountainous ecosystems are particularly vulnerable to the adverse effects of climate change,

Recognizing the special difficulties of those countries, especially developing countries, whose economies are particularly dependent on fossil fuel production, use and exportation, as a consequence of action taken to limit greenhouse gas emissions,

Reaffirming that Parties should [strive to] 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, and that accordingly, the developed country Parties should take the lead in combating climate change and the adverse effects thereof,

Reaffirming that the specific needs and special circumstances of developing country Parties, especially those that are particularly vulnerable to the adverse effects of climate change, and of those Parties, especially developing country Parties, that would have to bear a disproportionate or abnormal burden under the Convention, should be given full consideration,

Affirming that responses to climate change should be coordinated with social and economic development in an integrated manner with a view to avoiding adverse impacts on the latter, taking into full account the legitimate priority needs of developing countries for the achievement of sustained economic growth and the eradication of poverty,

Acknowledging the efforts already made by Parties to meet the specific needs and concerns of developing country Parties, in particular the least developed countries, with regard to adaptation,

[Acknowledging the need to sensitize policy makers and the general public in non-Annex I countries to climate change and its effects, in accordance with Article 6 (a) of the Convention,]

Having considered the report, in two parts, on the two workshops referred to in decision 12/CP.5,

Noting the [many persistent] uncertainties highlighted by those workshops, particularly in regard to the impact of response measures,

Insisting that the extent to which developing country Parties will effectively implement their commitments will depend on the effective implementation by the developed country Parties of their commitments related to financial resources and transfer of technology and will take fully into account that economic and social development and poverty eradication are the first and overriding priorities of the developing country Parties,

Acknowledging that the [adverse] impacts of response measures will differ significantly from country to country, depending on each country’s unique national circumstances, including the structure of its economy, trade and investment [flows], natural resource endowment, social system, legal regime, and population growth rate,

Recognizing that the least developed country Parties are among the most vulnerable to the adverse effects of climate change, and in particular that widespread poverty limits their adaptive capacity,

Acknowledging that the human, infrastructural and economic conditions of the least developed countries severely limit their capacities to participate effectively in the climate change process,

Noting that many of the least developed country Parties do not have the capacity to prepare and submit national communications in the foreseeable future,

Preambular paragraphs relating to Article 3.14 of the Kyoto Protocol:

Determined to protect the climate system for present and future generations,

Having considered matters relating to Article 3.14 of the Kyoto Protocol,

Recalling its decision 8/CP.4, particularly as it refers to decision 5/CP.4,

[Recognizing that its decision -/CP.6 establishes [an appropriate process] [appropriate mechanisms for implementing actions] for information gathering and exchange on issues relating to the adverse effects of climate change and/or the impact of response measures,]

[Insisting that the extent to which developing country Parties will effectively implement their commitments will depend on the effective implementation by the developed country Parties of their commitments related to financial resources and transfer of technology and will take fully into account that economic and social development and poverty eradication are the first and overriding priorities of the developing country Parties,]

[Reaffirming that Parties should [strive to] 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, and that accordingly, the developed country Parties should take the lead in combating climate change and the adverse effects thereof,]

Recognizing that developing country Parties that would have to bear a disproportionate or abnormal burden under the Convention should be given full consideration,

[Noting in particular the [request] [invitation] contained in its decision -/CP.6 to the Intergovernmental Panel on Climate Change to prepare a special report on all aspects, including methodological aspects, related to impacts of response measures on developing countries, particularly the least developed countries,]

Recognizing the special difficulties of those countries, especially developing countries, whose economies are particularly dependent on fossil fuel production, use and exportation, as a consequence of action taken to limit greenhouse gas emissions,

[Recognizing the [key] role that cost-effective and transparent flexibility mechanisms of the Kyoto Protocol could have in minimizing the impacts of response measures on non-Annex I Parties,]

[Reaffirming the environmental benefits of protecting and enhancing sinks and reservoirs of greenhouse gases, in accordance with Article 2.1(a)(ii) of the Kyoto Protocol, taking into account commitments under other relevant international environmental agreements,]

Reaffirming the importance of domestic policies and measures to reduce anthropogenic emissions of greenhouse gases in each Party included in Annex I, in minimizing the adverse effects of climate change,

Acknowledging the [need for] [role that can be played by] the progressive reduction or phasing out of market imperfections, fiscal incentives, tax and duty exemptions and subsidies in all greenhouse gas emitting sectors that run counter to the objective of the Convention and application of market instruments, in accordance with Article 2.1(a)(v) of the Kyoto Protocol,

Section A

1. Asserts the importance of a country-driven approach that allows developing country Parties to pursue the specific activities most appropriate to their unique national circumstances;

    

2. Insists that action related to adaptation follow an assessment and evaluation process, based on national communications [and] [and/or] other relevant information, so as to prevent maladaptation and to ensure that adaptation actions are environmentally sound and will produce real benefits in support of sustainable development [, taking into account the specific concerns of the least developed countries];

    

3. Encourages Parties not included in Annex I to the Convention (non-Annex I Parties) to provide information, including in their national communications, [and] [and/or] any other relevant information sources, on their specific needs and concerns arising from the adverse effects of climate change;

    

4. Stresses the need for Parties included in Annex II to the Convention (Annex II Parties) to provide detailed information, including in their national communications, on support programmes to meet the specific needs and circumstances of developing country Parties arising from the adverse effects of climate change;

    

5. Encourages Parties to exchange information on their experience regarding the adverse effects of climate change and on measures to meet their needs arising from these adverse effects;

    

6. Underlines the importance of the ongoing work of the secretariat in compiling and disseminating information on methods and tools to evaluate impacts and adaptation strategies;

    

   Section B

7. [Encourages Annex II Parties, bilaterally and/or in cooperation with international and/or multilateral organizations such as the Global Environment Facility, as appropriate, to continue to cooperate and to provide further financial and technological support for specific activities listed below, in accordance with the national circumstances and sustainable development priorities of non-Annex I Parties, where these have been identified as mutual priorities for sustainable development assistance through established dialogues:]

[Decides that Annex II Parties shall provide developing country Parties with new, additional, and sufficient financial resources and technical support on a timely, ongoing basis for the activities listed below; these resources may be provided through new and existing financial and funding mechanisms, including the Global Environment Facility:]

Alternative proposal for a chapeau, in two parts, by Canada and France on behalf of the European Community and its member States (the two chapeaux would appear in two separate paragraphs if agreed):

Part I: Applies to subparagraph (a) and subparagraph (b)(i) to (b)(iv)

[[Encourages] [Decides that] Annex II Parties, bilaterally and/or in cooperation with international and/or multilateral organizations as appropriate, [to] [shall] continue to cooperate and to provide [further] [new, additional and sufficient] financial and technological support through [new and] existing [relevant] mechanisms, including the Global Environment Facility, [on an ongoing basis for] [for the full period of projects relating to the] specific activities listed below, in accordance with the national circumstances and sustainable development priorities of non-Annex I Parties, [where these have been identified as mutual priorities for sustainable development assistance through established dialogues:]]

Part II: Applies to subparagraph (b)(v) to (b)(xi):

[[Encourages] [Decides that] Annex II Parties, bilaterally and/or in cooperation with international and/or multilateral organizations as appropriate, [to] [shall] continue to cooperate and to provide [further] [new and additional and sufficient] financial and technological support through [new and existing] [relevant] mechanisms, including where appropriate the Adaptation Fund established under decision ../CP.6, [on an ongoing basis for] [for the full period of projects relating to the] specific activities listed below, in accordance with the national circumstances and sustainable development priorities of non-Annex I Parties, [where these have been identified as mutual priorities for sustainable development assistance through established dialogues:]]

1. Information and methodologies:
   1. Improving data collection and information gathering, as well as the analysis, interpretation and dissemination to end-users;
   2. Integrating climate change considerations into sustainable development planning;
   3. Providing training in specialized fields relevant to adaptation such as climate and hydroclimate studies, geographical information systems, environmental impact assessment, modelling, integrated coastal zone management, soil and water conservation and soil restoration;
   4. Strengthening existing and, where needed, establishing national and regional systematic observation and monitoring networks (sea level, climate and hydrological monitoring stations, fire hazards, land degradation, floods, cyclones and droughts);
   5. Strengthening existing and, where needed, establishing national and regional centres and institutions for the provision of research, training, education and scientific and technical [support][information][training] in specialized fields relevant to climate change, utilizing information technology as much as possible;
   6. Strengthening existing and, where needed, establishing national and regional research programmes on climate variability and climate change, oriented towards improving the knowledge of the climate system on the regional scale, and creating national and regional scientific capability;
   7. [Increasing financial and technical support for] [Supporting] education and training in, and public awareness of, climate change related issues, for example through workshops, and information dissemination;
2. Vulnerability and adaptation:
   1. Supporting enabling activities for vulnerability and adaptation assessment;
   2. Enhancing technical training for integrated climate change impact, vulnerability and adaptation assessments, across all relevant sectors, and environmental management related to climate change;
   3. Enhancing capacity, including institutional capacity, to integrate adaptation into sustainable development programmes;
   4. Promoting the transfer of adaptation technologies;
   5. [Establishing pilot or demonstration projects to show how adaptation planning and assessment can be practically translated into projects that will provide real benefits, and may be integrated into national policy and sustainable development planning, on the basis of information provided in the national communications from non-Annex I Parties, and other relevant sources, and of the staged approach endorsed by the Conference of the Parties in its decision 11/CP.1;]
   6. [Implementing adaptation activities [immediately] where sufficient information is available to warrant such activities, inter alia, in the areas of water resources management, land management, agriculture, health, infrastructure development, [fragile] ecosystems, [including mountainous ecosystems,] and integrated coastal zone management;]
   7. Improving monitoring of diseases and vectors affected by climate change, and related forecasting and early-warning systems [, and in this context, improving disease control and prevention];
   8. [Supporting] [Providing additional financial and technical support for] capacity-building, including institutional capacity, for preventive measures, planning, preparedness and management of disasters related to climate change, including contingency planning, in particular, for droughts and floods in areas prone to extreme weather events;
   9. Strengthening existing and, where needed, establishing early warning systems for extreme weather events in an integrated and interdisciplinary manner to assist developing country Parties, in particular those most vulnerable to climate change;
   10. [Strengthening existing and, where needed, establishing national and regional centres and information networks for rapid response to extreme weather events, utilizing information technology as much as possible;]
   11. [Establishing a disaster fund for climate-induced disaster relief for vulnerable developing country Parties under Article 4.8 and 4.9 of the Convention;]

[Further improving readiness for climate-induced disaster relief for vulnerable countries as well as non-climate related disaster relief;]

8. Requests the Subsidiary Body for Scientific and Technological Advice and the Subsidiary Body for Implementation to review, at their subsequent sessions, the progress of the above-mentioned activities and make recommendations thereon to the Conference of the Parties at its [seventh] [eighth] session;

Section C

 

<Attached to this text is a submission on the specific needs and special situations of the least developed countries; however, the Group of 77 and China indicated that they would advise on how this text would best be integrated in the decision early in the week>

 

 

II

 

IMPACT OF THE IMPLEMENTATION OF RESPONSE MEASURES

 

 

9. Stresses that Parties should take action consistent with the provisions of the Convention;

 

10. [Decides that, in order to minimize the impacts of response measures, Annex II Parties shall provide developing country Parties with new, additional and sufficient financial resources and technical support on a timely, [ongoing] [continuing] basis for the activities listed in paragraphs xx below; these resources shall be provided through new and existing financial and funding mechanisms;]

 

Section A

 

11. Encourages non-Annex I Parties to provide information in their national communications and/or other relevant reports, on their specific needs and concerns arising from the impact of the implementation of response measures;

 

12. [Urges] [Requests] [Invites] [Decides that] Annex II Parties [and other [Annex I] Parties that are in a position to do so] [to] [shall] [should] provide detailed information, in their national communications [and] [and/or] any other relevant reports, on their existing and planned support programmes to meet the specific needs and concerns of developing country Parties arising from the impact of the implementation of response measures;

 

13. [Reiterates, as stated in decision 12/CP.5, sixth preambular paragraph, that the identification of initial actions needs "to be based on sufficient information and analysis within a clearly-defined process";]

 

14. [Decides that the above information should be provided and analysis conducted within the following clearly-defined process:

(a) First, methodologies for assessing, and case studies describing, the impact of response measures since the Convention entered into force must be developed in the following manner:

(i) Consistent with Article 4.8 of the Convention, these methodologies should provide for the separation of the impact of other unrelated policies and measures from that of policies and measures [undertaken] [applied] specifically to address climate change;
(ii) Where policies and measures are [undertaken] [applied] for multiple reasons, these methodologies should recommend means to determine what proportion of the policies and measures were [undertaken] [applied] for climate change mitigation purposes;

(iii) These methodologies should also disaggregate the effect of climate change policies and measures from that of other factors, such as technology development, macroeconomic variability, cultural or consumer changes, structural economic shifts, and exogenous changes in other markets, such as those for fuels;

(iv) The counterfactual scenario underlying any assessment of the impact of response measures should include any actions which developing countries could have taken to minimize the impact of response measures, focusing particularly on the time period since the Convention entered into force. The counterfactual scenario should include, inter alia, any trade or investment liberalization, structural adjustment or balance of payments stabilization plans agreed to with international financial institutions;

(v) These methodologies should also provide the means to assess the uncertainty surrounding the impacts of specific climate change response measures on specific countries;

(b) Using these methodologies, developing country Parties which believe that they have been harmed by the impacts of response measures should demonstrate via a formal reporting process, as a prerequisite to any further discussion of the impact of response measures, the actions that they have taken under Article 4.8 to reduce their vulnerability to response measures. These communications should include:

1. The circumstances and the legal, economic and social structures that determine the country’s vulnerability to response measures;
2. The specific climate policies and measures that have impacted on them, the extent of the impact, and the uncertainty surrounding the quantification of that impact. This information should be disaggregated from the effect of other policies and measures and other factors, such as technology development, macroeconomic variability, cultural or consumer changes, structural economic shifts, and exogenous changes in other markets, such as those for fuels;
3. An assessment of all other actions, including the promotion of self-diversification of economies and creation of an enabling environment for investment, that they have taken to minimize the impacts of response measures on themselves;
4. A description of gross and net revenue flows, showing net profits, and an indication of how these revenues were spent or saved to promote diversification of economies or otherwise minimize the impact of response measures;

(c) When the methodologies for post facto assessment of the impact of response measures have been fully refined, the development of methodologies for assessing possible effects of alternative future response measures can begin. These methodologies should provide the means for assessing, inter alia:

1. Impacts under a variety of assumptions regarding technology development and transfer;
2. Impacts under a variety of investment, trade and legal regimes;
3. Impacts under a variety of policy scenarios. These scenarios should incorporate different mixes of policies and measures that developing country Parties might take to minimize the impact of response measures on them. These scenarios should also incorporate different mixes of climate policies and measures that Annex I Parties might take;
4. The effect of policies and measures [undertaken] [applied] for climate change mitigation purposes disaggregated from those [undertaken] [applied] for other reasons;]

15. [Invites the Intergovernmental Panel on Climate Change to prepare a special report on all aspects related to the assessment of the impact of response measures on developing countries, particularly the least developed countries. In this report, the Intergovernmental Panel on Climate Change should address the following methodological issues that are relevant to the assessment of the impacts on developing countries of response measures taken by Annex I Parties:

(a) Ways and means to separate the impact of policies and measures specifically [undertaken] [applied] to address climate change from the impact of other policies and measures;

(b) Ways and means to determine how the impact on developing countries of policies and measures specifically [undertaken] [applied] to address climate change can be separated from the effects of other factors such as technological advances, macroeconomic variability and domestic economic priorities, as well as exogenous changes in markets;

(c) Ways and means to determine how other actions taken by the developing country Parties themselves could reduce any impacts of response measures, including a historical perspective on how such actions have been taken in the past;]

16. Encourages Annex I and non-Annex I Parties to cooperate in creating favourable conditions for investment in sectors where such investment can contribute to economic diversification;

17. [Requests the Subsidiary Body for Scientific and Technological Advice and the Subsidiary Body for Implementation to review, at their [xx] [subsequent] sessions, the [information related to the impacts of response measures in the Third Assessment Report of the Intergovernmental Panel on Climate Change and the special report referred to in paragraph xx with a view to making recommendations as appropriate to COP 7] [progress of the above-mentioned activities [and to make recommendations thereon] [with a view to making recommendations] to [COP 7] [COP 8] [COP/MOP x]];]

Section B

18. [Decides to establish a fund to provide financial resources and insurance to developing country Parties impacted by the implementation of response measures;]

19. [Urges] [Requests] [Decides that] Annex II Parties [to] [shall] assist developing countries, in particular those most vulnerable to the impact of the implementation of response measures, in meeting their capacity-building needs for the implementation of programmes which address these impacts;

20. Urges Parties to consider appropriate technological options in addressing the impact of response measures, consistent with national priorities, and indigenous resources;

21. Encourages Parties to cooperate in the technological development of non-energy uses of fossil fuels, and requests Annex II Parties to support developing country Parties to this end;

22. Encourages Parties to cooperate in the development, diffusion and transfer of less greenhouse gas emitting advanced fossil-fuel technologies, and/or technologies relating to fossil fuels, that capture and store greenhouse gases, and requests Annex II Parties to facilitate the participation of the least developed countries and other non-Annex I Parties in this effort;

23. Urges Annex II Parties to provide financial and technological support for strengthening the capacity of developing country Parties identified in Article 4.8 and 4.9 of the Convention for improving efficiency in upstream and downstream activities relating to fossil fuels, taking into consideration the need to improve the environmental efficiency of these activities;

24.

Option 1:

[Encourages Annex II Parties to support developing country Parties in the development, production, distribution and transport of, and investment in, indigenous, less greenhouse gas emitting, environmentally sound (footnote referring to Agenda 21: that "environmentally sound" also implies "environmentally safe"), energy sources, in particular natural gas, according to the national circumstances of each of these Parties;]

Option 2:

[Encourages Annex II Parties to promote investment in, and cooperate with, developing country Parties in the development and use of indigenous, less greenhouse gas emitting, environmentally sound (footnote referring to Agenda 21: that "environmentally sound" also implies "environmentally safe"), energy sources, in particular natural gas, according to the national circumstances of each of these Parties;]

Option 3:

[Encourages Annex II Parties to promote investment in, and support, developing country Parties in the development, production, distribution and transport of indigenous, less greenhouse gas emitting, environmentally sound (footnote referring to Agenda 21: that "environmentally sound" also implies "environmentally safe"), energy sources, including natural gas, according to the national circumstances of each of these Parties;]

25. [Decides that Annex II Parties shall provide support for] [Urges Annex II Parties to promote cooperation and] research into, and the development and use of, renewable energy, including solar and wind energy, in developing country Parties;

26. Requests the Subsidiary Body for Scientific and Technological Advice and the Subsidiary Body for Implementation to consider, at their subsequent sessions, the response by Parties to the actions listed in paragraphs [xx] above;

27. [Requests [Annex II Parties to provide funding for] [the secretariat to organize] regional workshops in order to facilitate information exchange and integrated assessments, including for adaptation and technology transfer;]

28. Requests the secretariat to organize a workshop [when?] on the status of modelling activities to assess the adverse effects of climate change [, and the impact of response measures already implemented,] on individual developing country Parties, including on how to enhance the participation of developing country experts in such efforts;

29. [Requests the secretariat to organize a workshop [when?] on the needs and options of non-Annex I Parties for economic diversification, and on support programmes by Annex II Parties to address these needs;]

30. Requests the secretariat to organize a workshop [when?] on insurance-related actions to address the specific needs and concerns of developing country Parties arising from the adverse effects of climate change and from the impact of the implementation of response measures;

31. [Requests the secretariat to organize a workshop [when?] on the special issues of concern to landlocked developing countries;]

32. [Requests the secretariat to organize a workshop, before [SB 14] [COP 7], on the possible synergies and joint action with the other multilateral environmental conventions and agreements such as the Convention to Combat Desertification, and to report the results of this workshop to the Conference of the Parties at its seventh session;]

33. Requests the secretariat to organize a workshop, before [SB 14] [COP 7], on insurance and risk assessment in the context of climate change and extreme weather events, and to report the results of this workshop to the Conference of the Parties at its seventh session;

34.

Option 1:

[Invites the Intergovernmental Panel on Climate Change, in cooperation with other relevant international organizations, to cooperate in developing methodologies to distinguish climate change related impacts from other impacts;]

Option 2:

[Invites the relevant international organizations to cooperate in promoting methodologies to distinguish the climate change related costs of actions from other costs of such actions, as a necessary tool for, inter alia, the integration of climate change into national sustainable development strategies;]

Option 3:

Delete altogether.

xx. Recommends that the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol, at its first session after entry into force of the Protocol, adopt the following decision.

The Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol,

Determined to protect the climate system for present and future generations,

Having considered matters relating to Article 3.14 of the Kyoto Protocol,

Recalling decision 8/CP.4 of the Conference of the Parties, particularly as it refers to decision 5/CP.4 of the Conference of the Parties,

[Recalling also decisions 5/CP.4 and 12/CP.5 of the Conference of the Parties,]

[Recognizing that decision -/CP.6 of the Conference of the Parties establishes [an appropriate process] [appropriate mechanisms for implementing actions,] for information gathering and exchange on issues relating to the adverse effects of climate change and/or the impact of response measures,]

[Insisting that the extent to which developing country Parties will effectively implement their commitments will depend on the effective implementation by the developed country Parties of their commitments related to financial resources and transfer of technology and will take fully into account that economic and social development and poverty eradication are the first and overriding priorities of the developing country Parties,]

[Reaffirming that Parties should [strive to] 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, and that accordingly, the developed country Parties should take the lead in combating climate change and the adverse effects thereof,]

Recognizing that developing country Parties that would have to bear a disproportionate or abnormal burden under the Convention should be given full consideration,

[Noting in particular the [request] [invitation] contained in decision -/CP.6 of the Conference of the Parties to the Intergovernmental Panel on Climate Change to prepare a special report on all aspects, including the methodological aspects, related to [the adverse] impacts of response measures on developing countries, particularly the least developed countries,]

Recognizing the special difficulties of those countries, especially developing countries, whose economies are particularly dependent on fossil fuel production, use and exportation, as a consequence of action taken to limit greenhouse gas emissions,

[Recognizing the [key] role that cost-effective and transparent flexibility mechanisms of the Kyoto Protocol could have in minimizing the impacts of response measures on non-Annex I Parties,]

[Reaffirming the environmental benefits of protecting and enhancing sinks and reservoirs of greenhouse gases, in accordance with Article 2.1(a)(ii) of the Kyoto Protocol, taking into account commitments under other relevant international environmental agreements,]

Reaffirming the importance of domestic policies and measures to reduce anthropogenic emissions of greenhouse gases in each Party included in Annex I, in minimizing the adverse effects of climate change [and the impact of the implementation of response measures],

Acknowledging the [need for] [role that can be played by] the progressive reduction or phasing out of market imperfections, fiscal incentives, tax and duty exemptions and subsidies in all greenhouse gas emitting sectors that run counter to the objective of the Convention and application of market instruments, in accordance with Article 2.1(a)(v) of the Kyoto Protocol,

1. [Decides to establish [a process] [mechanisms] that include[s] a programme of action to address matters related to Article 3.14 of the Kyoto Protocol, including information exchange and the development of methodologies related to the minimization of adverse social, environmental and economic impacts on developing country Parties, particularly those identified in Article 4.8 and 4.9 of the Convention, in all aspects, including methodologies related to the establishment of funding, insurance and transfer of technology;]

    

   [Decides to [continue the] [establish a] process for the implementation of Article 3.14 of the Kyoto Protocol, including information exchange [and the development of methodologies relating to the minimization of] [relating to what actions are necessary to minimize the] adverse social, environmental and economic impacts on developing country Parties, particularly those identified in Article 4.8 and 4.9 of the Convention;]

    

   Section A

   2. <The following options would replace paragraphs 4 to 8>

    

   Option 1:

   [Invites Annex I Parties to] [Decides that Annex I Parties shall] provide information, [as part of the necessary supplementary information to their annual inventory report, in accordance with guidelines developed under Article 7.1 of the Kyoto Protocol, including the relevant information identified in the appendix to the guidelines for the preparation of information required under Article 7 of the Kyoto Protocol (FCCC/SBSTA/2000/CRP.17), to demonstrate compliance with their commitments under Article 3.14 of the Kyoto Protocol] on [their actions in] [how they are] striving, under Article 3.14 of the Kyoto Protocol, [to implement their commitments arising from the implementation of Article 3.1] [to implement their commitments mentioned in Article 3.1] 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 4.8 and 4.9 of the Convention; this information should be provided by the time of COP/MOP xx;]

    

   Option 2:

   [[Invites Annex I Parties to] [Decides that Annex I Parties shall] provide information on their action in striving, under Article 3.14 of the Kyoto Protocol, to implement their commitments mentioned in Article 3.1 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 4.8 and 4.9 of the Convention; this information should be provided by the time of COP/MOP xx;

   Requests the secretariat to compile and synthesize the information requested in paragraph xx above in a report;

   Decides to consider at its second session the compilation and synthesis report referred to in paragraph xx above and take appropriate action;]

    

   Option 3:

   [[Invites Annex I Parties to] [Decides that Annex I Parties shall] provide information, as part of the necessary supplementary information to their annual inventory report, in accordance with the guidelines under Article 7.1 of the Kyoto Protocol, on their actions in striving, under Article 3.14 of the Kyoto Protocol, to implement their commitments mentioned in Article 3.1 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 4.8 and 4.9 of the Convention;]

   3.

    

   Option 1:

   [[Invites non-Annex I Parties to] [Decides that non-Annex I Parties shall] provide information in their national communications [in accordance with Article 4.1 of the Convention and taking into account Article 4.3 and 4.7 of the Convention] and [any] other reports, on their specific needs and concerns related to the minimization of adverse social, environmental and economic impacts [arising from the implementation of response measures taken by Annex I Parties] on developing country Parties under Article 3.14 of the Kyoto Protocol;]

    

   Option 2:

   [Decides that Annex II Parties shall provide assistance to non-Annex I Parties to enable them to provide information on their specific needs and concerns related to the adverse social, environmental and economic impacts [that may arise] [that have occurred] from the implementation of commitments under Article 3.1 of the Kyoto Protocol;]

    

   Option 3:

   [Invites non-Annex I Parties to provide information on their specific needs and concerns related to the adverse social, environmental and economic impacts arising from the implementation of commitments under Article 3.1 of the Kyoto Protocol, and encourages Annex I Parties to provide support for that purpose;]

   4. [[Invites non-Annex I Parties to] [Decides that non-Annex I Parties shall] provide information on actions they have taken, and plan to take, to address their concerns under Article 3.14 of the Kyoto Protocol;]

   5. [[Invites Annex I Parties to] [Decides that Annex I Parties shall] provide information [, by [date], to the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol, through the secretariat,] on their [intended] policies and measures, their impacts, and suggested ways to minimize these impacts;]

   6. [Decides that Annex I Parties shall provide information, including the relevant information identified in the appendix to the guidelines for the preparation of information required under Article 7 of the Kyoto Protocol (FCCC/SBSTA/2000/CRP.17) [, by the time of COP/MOP 2], to the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol, in accordance with guidelines developed under Article 7 of the Kyoto Protocol through the secretariat,] on their [intended] policies and measures, their impacts, and measures taken to minimize these impacts;]

   7. [[Invites Annex I Parties to] [Decides that Annex I Parties shall] provide information [, by [date], to the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol, through the secretariat,] on, inter alia, their progress in the reduction and phasing out of existing market imperfections, fiscal incentives, tax and duty incentives and subsidies in their energy sector, and on their plans to reduce or phase out such distortions];]

    

   [Decides that Annex I Parties shall provide information in their annual inventory report in accordance with guidelines developed under Article 7.1 of the Kyoto Protocol by [COP/MOP 2], to the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol through the secretariat, on, inter alia, progress on their reduction and phasing out of existing market imperfections, fiscal incentives, tax and duty incentives and subsidies in their energy sector, and on their plans to reduce or phase out such distortions;]

   8. [Affirms that the consideration of actions under Article 3.14 to address the impact of response measures must be conditioned upon the actions taken by both developed and developing country Parties pursuant to Article 4.8 and 4.9 of the Convention;]

    

   [Aware that the consideration of actions under Article 3.14 to address the impact of the implementation of response measures must meet the specific needs and concerns of developing country Parties;]

   9. [Decides to develop guidelines to help determine if Annex I Parties are striving to minimize adverse effects, including the adverse effects of climate change, effects on international trade, and social, environmental and economic impacts on other Parties, especially developing country Parties, and in particular those identified in Article 4.8 and 4.9 of the Convention;]

    

   [Decides to develop, by the time of COP/MOP 2, mandatory criteria to determine if Annex I Parties are in compliance with their commitments to minimize adverse effects, including the adverse effects of climate change, effects on international trade, and social, environmental and economic impacts on other Parties, especially developing country Parties, and in particular those identified in Article 4.8 and 4.9 of the Convention;]

   10. Invites the Intergovernmental Panel on Climate Change, in cooperation with other relevant organizations, to prepare a technical paper on geological carbon storage technologies, covering current information, and report on it for its consideration at its xx session;

    

   Section B

   11.

    

   Option 1 (Proposal by the Group of 77 and China, as amended by Saudi Arabia):

    

   [Decides, by the time of COP/MOP 2, that Annex I Parties shall start to implement the actions listed below, and shall report, in their annual inventory report, on actions related to subparagraphs (a) to (c) below, and in their national communications on actions related to subparagraphs (d) and (e) below, in accordance with guidelines developed under Article 7:

   1. Restructuring their tax systems to reflect the greenhouse gas content in all greenhouse gas emitting sectors, and removing subsidies;
   2. Discouraging the production of fossil fuels in Annex I Parties, and concentrating on domestic actions that will not negatively impact their fossil fuel imports from developing country Parties;
   3. Discouraging the use of environmentally unsafe and unsound technologies, in particular nuclear energy, by reflecting their huge externalities, and ensuring that existing nuclear energy plants are constantly monitored to guarantee optimal safety;
   4. Removing the existing barriers (political and regulatory) to the use and import of oil, particularly in relation to the electricity sector;
   5. Encouraging wider use of carbon dioxide emission reduction, and carbon capture and storage technologies;]

Option 2 (Proposal by Canada, France on behalf of the European Community and its member States, Japan, Poland, Switzerland and the United States):

[Invites Annex II Parties, and any other Annex I Parties in a position to do so, to consider the actions listed in subparagraphs (a) to (e) below:

1. Assisting developing countries, in particular those most vulnerable to the impact of the implementation of response measures, in meeting their capacity-building needs for the implementation of programmes which address these impacts;
2. Considering appropriate technological options in addressing the impact of response measures, consistent with national priorities and indigenous resources;
3. Cooperating in the technological development of non-energy uses of fossil fuels, and supporting developing country Parties to this end;
4. Cooperating in the development, diffusion and transfer of less greenhouse gas emitting advanced fossil-fuel technologies, and/or technologies, relating to fossil fuels, that capture and store greenhouse gases, facilitating the participation of the least developed countries and other non-Annex I Parties in this effort;
5. Strengthening the capacity of developing country Parties identified in Article 4.8 and 4.9 of the Convention for improving efficiency in upstream and downstream activities relating to fossil fuels, taking into consideration the need to improve the environmental efficiency of these activities;]

    

   Option 3 (Proposal by Australia):

   [[Decides that Annex I Parties shall] [Invites Annex I Parties to] [start to implement] [consider] the actions listed below:

   1. Removing subsidies on all greenhouse gas emitting [sources] [industries] and undertaking energy price reform to reflect market prices and externalities, including greenhouse gas content;
   2. Encouraging a wider use of carbon dioxide emission reduction, and carbon capture and storage technologies;]

   12.

Option 1 (Group of 77 and China proposal as amended by Saudi Arabia):

[Decides that Annex II Parties shall start to implement the actions listed in subparagraphs (a) and (b) below, and shall report back in their [national communications] [annual inventory in accordance with guidelines developed under Article 7.1] on their minimization efforts, by the time of COP/MOP 2:

1. Assisting developing country Parties which are highly dependent on the export and consumption of fossil fuels in diversifying their economies;
2. Providing prompt, adequate and just compensation to developing country Parties adversely impacted by the implementation of response measures by Annex I Parties;]

    

   Option 2 (Proposal by Canada, Japan and the United States):

   [Invites Annex II Parties, and Annex I Parties in a position to do so, to assist developing countries which are highly dependent on the export and consumption of fossil fuels in diversifying their economies;]

   13. Encourages Annex I Parties to adopt policies and measures that will result in reductions in emissions of greenhouse gases, as an effective contribution to minimizing the adverse effects of climate change, and to provide information on these policies and measures in their national communications;

    

   14.

    

   Option 1:

    

   [Decides, on the basis of the output of the workshops referred to in this decision, and in accordance with Article 3.14 of the Kyoto Protocol, the relevant provisions of the Convention, and the general principles of international law, to consider issues related to compensation, funding, insurance and technology transfer, for proven adverse impacts of response measures on developing country Parties;]

    

   or

   [Decides, on the basis of the output of the workshops referred to in this decision, and in accordance with Article 3.14 of the Kyoto Protocol, and the relevant provisions of the Convention, to take actions related to compensation, funding, insurance and technology transfer, for proven adverse impacts of response measures on developing country Parties;]

    

   Option 2 (Proposal by Australia, Canada, Poland and the United States):

   [Decides to review the actions taken by all Parties pursuant to Article 4.8 and 4.9 of the Convention and decision x/CP.6, and the information provided by the Intergovernmental Panel on Climate Change on these issues in its Third Assessment Report, and, pursuant to Article 3.14 of the Kyoto Protocol, consider further what actions are necessary to minimize the proven adverse effects of climate change and/or the impacts of response measures on developing country Parties;]

    

   Option 3 (Co-chair):

   [Decides to review the actions taken by Annex I Parties, in accordance with this decision, and consider at its xx session what further actions are necessary, including the establishment of funding, insurance and transfer of technology, pursuant to Article 3.14;]

   15. [Invites oil producing and exporting Parties not included in Annex I to the Convention to consider setting up investment funds to promote economic diversification, and to undertake joint action aimed at minimizing any potential impacts of response measures on their economies, and to report progress made to the subsidiary bodies at their subsequent sessions;]

    

   Section C

   16. [Requests the secretariat to organize a workshop [when?] on methodological issues related to the [possible] [net] adverse impacts of response measures on developing country Parties under Article 3.14 of the Kyoto Protocol;]

   17. [Requests the secretariat to organize a workshop [when?] on the choice of policies and measures that Annex I Parties intend to adopt to meet their commitments under the Kyoto Protocol, on how these may adversely impact developing countries under Article 3.14, and on ways to minimize these impacts;]

   18. [Requests the Subsidiary Body for Scientific and Technological Advice and the Subsidiary Body for Implementation, at their [xx] sessions, to [consider] [forward] the output of the workshops referred to in this decision, and to make recommendations thereon to [the COP/MOP] at its [xx] session.]]

    

    

    

   Draft text submitted by the Least Developed Countries

    

    

   Additions to Preamble

    

   Recognizing that the least developed country (LDC) Parties are among the most vulnerable to the adverse effects of climate change, particularly that widespread poverty limits their adaptive capacity,

    

   Acknowledging that the human, infrastructural and economic conditions of the LDC severely limit their capacities to participate effectively in the climate change process,

    

   Noting that many of the LDC Parties do not have the capacity to prepare and submit national communications in the foreseeable future,

    

   Operative Paragraphs within a new Part III

    

    

   Implementation of Article 4.9 of the Convention

    

   1. Decides to:

   (a) [Establish a least developed countries climate change institutional development fund, to be managed by the secretariat, to assist least developed country Parties overcome basic institutional limitations which impede their effective participation in the climate change process, including through the following]:

   (i) Strengthening existing and where needed establishing national climate change secretariats/focal points to enable the effective implementation of the Convention and the Kyoto Protocol, including preparation of national communications, in least developed country Parties;

    

   (ii) Strengthening the capacity of meteorological and hydrological services to collect, analyse, interpret and disseminate weather and climate information to support implementation of national adaptation programmes of action.

    

   (iii) Providing training, on an ongoing basis, in negotiating skills and language, where needed, to develop the capacity of negotiators from the least developed countries to participate effectively in the climate change process;

    

   (b) Provide support for the development, by the least developed countries, of national adaptation programmes of action (NAPAs), which will serve as a simplified and direct channel of communication of information relating to the vulnerabilities and adaptation needs of the least developed countries [; the information contained in NAPA [may] [will] form the initial steps in the preparation of initial national communications];

    

   (c) [Establish a long-term LDC climate change adaptation fund, based on the adaptation needs communicated to the COP, through their NAPA and/or their national communications, to implement the NAPA. The discussions on the modalities for the establishment of this fund shall be initiated at the seventh session of the Conference of the Parties;]

   (d) [Establish a group of experts, to assist LDCs in formulating simple guidelines for preparation of NAPA and provision of technical advice, in accordance with the annex to this decision;]

   [Expand the consultative group of experts on NAI communications to include experts from the LDCs with the objective of formulating simple guidelines, and report the result of their work at a subsequent SBSTA session;]

   (e) [Provide technical advice, on an ongoing basis, through the expanded group of experts, to the developing countries concerned;]

   2. Invites least developed country Parties to provide information on their specific needs, related to subparagraphs 1(a) to 1(c) above, to the secretariat before SB 14 [for consideration by SB 14];

    

   3. Requests the secretariat to:

   1. Compile this information in a report [, which should also provide a preliminary [estimate] [assessment] of the amount of funding needed to implement the above-mentioned activities, for consideration by the subsidiary bodies at their fourteenth sessions];

(b) Co-ordinate and facilitate the activities of the least developed countries group of experts in accordance with the terms of reference included in the annex to this decision;

 

(c) Organize a workshop before 1 October 2001, to enable least developed country Parties to:

 

• Engage in a dialogue, [with the least developed countries expert group,] on progress related to the development of guidelines for the preparation of the national adaptation programmes of action;
• Exchange experience on local practices to assess and address vulnerability to climate change;
• Discuss future multilateral activities that would further promote the exchange of views among the least developed countries, both on a regional and thematic basis;

<Move 3 c) to Further Multilateral Work>

4. Invites Annex II Parties to support LDC Parties to promote:

1. Public awareness programmes to ensure the dissemination of information on climate change issues;
2. Development and transfer of technology, particularly adaptation technology, as per Decision n/CP.6;

5. Decides to assess, at its seventh session, the status of implementation of Article 4.9 of the Convention and to consider further action thereon.

1. The objective of the least developed countries group of experts is to recommend guidelines to the subsidiary bodies for the preparation of national adaptation programmes of action (NAPAs), which should serve as a simplified avenue for the least developed countries, in the absence of national communications, to communicate their vulnerabilities and their adaptation needs arising from the adverse effects of climate change. The group will also be responsible for providing advice, through regional workshops, to least developed country Parties during the process of preparation of their national adaptation programmes of action.

2. The group shall be composed of nationals of countries that are least developed, drawn from the roster of experts.

3. Taking into account equitable geographical distribution reflecting the composition of the group of least developed countries, the group shall be composed of x experts from small -island developing States, y experts from Africa, and z experts from Asia. (note: there are 44 LDCs that are Parties to the UNFCCC, 10 of which are SIDS, 27 of which are African non-SIDS, and 7 of which are Asian non-SIDS).

4. The group shall meet once during each intersessional period.

5. The group shall be mandated as follows:

(a) To develop simple guidelines for the preparation of national adaptation programmes of action by the least developed countries, which should serve as a simplified channel for the provision of information relating to the vulnerabilities and the adaptation needs of the least developed countries arising from the adverse effects of climate change, taking into consideration the financial and technical needs identified in table x below;

(b) To provide recommendations thereon to the subsidiary bodies at their fourteenth and fifteenth sessions;

(c) To continue to serve, in an advisory capacity to the least developed countries, during the actual preparation of the national adaptation programmes of action, through regional workshops in which technical advice would be given to those least developed countries experiencing difficulty in completing their national adaptation programmes of action.

6. The secretariat shall co-ordinate the above-mentioned activities and facilitate the preparation of the relevant reports by the group, which will be made available to the Parties at subsequent sessions of the subsidiary bodies.]

Table x: Title………………..

	Areas identified for funding	Technology needs
Water resources	Water management and harvesting Water resource allocation Water storage management Water catchment management Waste management	Provide technologies and technical assistance for better distribution of water and better water storage Provide energy efficient desalination and water purification technologies Develop systems of information exchange on appropriate systems for human and domestic animal waste management Provide appropriate technical assistance and technology to monitor water quality
Food security	Agricultural systems (including livestock and fisheries management) that are better adapted to climate change Effective food storage and processing	Develop technologies and technical assistance for improving sustainability of agriculture systems and maintaining productivity in adverse climatic situations Develop technologies and technical assistance to improve food storage and processing
Human health	Medical expertise to manage climate related health effects, e.g. spread of insect-borne diseases, diseases associated with water contamination. Public awareness programmes	Provide basic medical technologies and technical assistance for managing climate related health effects Provide technical support for public awareness programmes
Energy management	Management of renewable energy and energy efficiency systems Appropriate hydropower production Enhancing the efficient use of fuelwood energy	Provide viable and affordable renewable energy and energy efficiency systems Provide appropriate hydropower systems Improve indigenous renewable energy technologies Provide technologies and technical assistance in efficient fuelwood usage for energy
Climate change prediction, severe weather forecasting and risk management	Climate change prediction Severe weather forecasting Monitoring risks Communicating weather forecasting and risks Data analysis	Provide technology in climate change prediction Provide improved meteorological equipment Provide early-warning communications equipment Develop regional centres on risk management Develop communication systems on climate prediction and risk management Provide technology for better data analysis
Impacts on coastal zones and low-lying islands	Managing the coastal zone Monitoring health of coral reefs Management and protection of coral reef ecosystems Managing sand dune erosion	Develop appropriate coastal management systems Provide technologies and technical assistance to monitor health of coral reefs Provide technology for the management and protection of coral reef ecosystems

	Areas identified for funding	Technology needs
Impacts on fragile mountain ecosystems	Flood Control Irrigation water management Developing appropriate hydropower production Fragile mountain ecosystem management	Provide technologies and technical assistance in disaster management Provide technologies and technical assistance in flood control Provide technologies and technical assistance in irrigation water management
Impacts on arid and semi-arid ecosystems	Fire management Arid vegetation management and desertification control	Build fire control systems Provide technologies and technical assistance in arid vegetation management and desertification control
Impacts on wetland ecosystems	Wetland management	Provide technologies and technical assistance in wetland management
Forest management and utilization	Sustainable forest management	Provide technologies and technical assistance in sustainable forest management
Infrastructure to respond to severe weather events	Developing transport and communications infrastructure capable of coping with adverse climatic conditions or severe weather events.	Provide appropriate transport and communications infrastructure that is capable of coping with adverse climatic conditions or severe weather events.
Legal and institutional frameworks	Developing national legislation for climate change Negotiating skills for participating in climate change negotiations Participation in climate change processes, including the IPCC Developing national environmental policy frameworks	Provide technical assistance to develop national legislation associated with climate change Provide technical assistance in the development of national environmental policy frameworks
Public Education and Awareness	Strengthening public education and awareness of climate change related issues	Provide technology and technical assistance to help in providing public education and awareness on climate change related issues