Distr.
GENERAL
FCCC/SBSTA/1996/19
5 December 1996
Original: ENGLISH
SUBSIDIARY BODY FOR SCIENTIFIC AND TECHNOLOGICAL ADVICE
Fourth session
Geneva, 16-18 December 1996
Item 6 of the provisional agenda
1. At its third session, the Subsidiary Body for Scientific and
Technological Advice (SBSTA) considered the progress report prepared
by the secretariat (FCCC/CP/1996/14 and Add.1) containing, in section
V on a proposed work plan, some suggestions for methodological work,
and requested the secretariat to prepare a list of methodological
issues for consideration by the SBSTA at its fourth session
(FCCC/SBSTA/1996/13, para. 38 (a)).
2. The secretariat has received inputs from Parties for the
preparation of the list and has also solicited advice from experts.
Drawing on these inputs, the secretariat has prepared an indicative
list of issues whose investigation and resolution could help Parties
in conducting the comprehensive review and in taking the conclusive
decision envisaged in decision 5/CP.1, para. 3 (b)
(FCCC/CP/1995/7/Add.1).
3. The following issues are proposed for the attention of the
SBSTA:
(a) Additionality of environmental benefits related to the
mitigation of climate change that are achieved by an activity
implemented jointly (AIJ) vis à vis a reference
case.
GE.96-
Under this issue, the following aspects could, inter
alia, be given consideration: determining the reference case,
assessing the additionality of benefits; ascertaining the
sustainability of benefits; choice of appropriate system boundaries
to take possible "leakage" into account; need for sector or
technology-specific approaches, and the static or dynamic character
of the reference case;
(b) Modalities for monitoring, reporting and verification of
benefits resulting from AIJ.
Under this issue, the following aspects could, inter
alia, be given consideration: identification of key parameters
for monitoring and reporting; the respective frequencies of
monitoring; reporting and verification; the role of internal and
external activities in monitoring and verification. It should be
noted that work with respect to reporting has already been undertaken
by the SBSTA;
(c) Identifying capacity-building processes in order to help
host countries participate in an AIJ regime.
Under this issue, the following aspects could, inter
alia, be given consideration: identification of generic needs
for capacity-building host countries, arrangements for building the
required capacities, and information requirements for integrating
activities implemented jointly with national development
strategies;
(d) Enhancing the transfer and diffusion of
environmentally-sound technologies to host countries of
AIJ.
Under this issue, consideration will be given to those aspects of
technology transfer and diffusion which are specific to activities
implemented jointly. Consideration of this issue would be related to
on-going work on transfer of technology carried out by the SBI and
the SBSTA;
(e) The cost-effectiveness of a regime for activities
implemented jointly.
Under this issue, consideration could be given, inter
alia, to the following aspects: identification of costs,
including transaction costs, related to a regime for activities
implemented jointly; implications for reporting; search for
least-cost arrangements; identification of host country costs and
comparison of global climate change mitigation costs under an AIJ
regime vis à vis no regime;
(f) Modalities for crediting emissions reductions resulting
from AIJ in the event of a decision by the Parties to establish a
regime in which credits can be earned.
Under this issue, the following aspects could, inter alia, be given consideration: ex-ante,
ex-post or periodical crediting, sector-specific and
technology-specific arrangements for crediting, allocation of credits
among Parties, impact of project failure on credits and compensation
thereof;
(g) Identifying appropriate institutional arrangements to
implement AIJ while minimizing transaction costs.
Under this issue, the following aspects could, inter
alia, be given consideration: institutional arrangements for
monitoring, reporting and verification, institutional requirements of
capacity building, institutional requirements for networking and
dissemination of technical information, institutional requirements
for ensuring compliance or resolving disputes related to AIJ project
arrangements and meeting the costs of such arrangements.
4. In preparing the above list of issues, it was found that
methodologies were closely interrelated with institutional
arrangements for implementing them. An important objective in this
regard would be the minimization of transaction costs while ensuring
a credible regime. This would be achieved through the identification
of appropriate sets of methodologies and of institutional
arrangements for their implementation. It would also be important to
identify what rules and standards would need to be set by the Parties
and what would be left for implementation by specialists. It would
also be useful to envisage options for meeting unavoidable minimum
costs.
5. The SBSTA may wish to:
(a) Consider the issues listed above;
(b) Determine whether they require methodological analysis and
institutional design; and
(c) Request the secretariat to develop practical proposals or options with respect to the identified relevant issues and to report progress thereon, taking into account the relevant SBSTA deliberations.