5 May 1997

ENGLISH/SPANISH/RUSSIAN ONLY

UNITED NATIONS FRAMEWORK CONVENTION ON CLIMATE CHANGE

AD HOC GROUP ON THE BERLIN MANDATE

Seventh session

Bonn, 31 July - 7 August 1997

Item 3 of the provisional agenda

At its sixth session, the Ad Hoc Group on the Berlin Mandate (AGBM), invited Parties to submit, by 1 April 1997, any further proposals to be included in the negotiating text (FCCC/AGBM/1997/3/Add.1) which is to be made available to Parties by 1 June 1997 (FCCC/AGBM/1997/3, para. 16).

Twenty-two new submissions have been received. In accordance with the procedure for miscellaneous documents, these submissions are attached and are reproduced in the languages in which they were received and without formal editing.

Although additional proposals may still be submitted, these should be clearly derived from the basic concepts already contained in the negotiating text. Any such submissions will be issued as a further addendum.

FCCC/AGBM/1997/MISC.1/Add.2

GE.97-

Paper No. Page

1. Armenia 4

(Submission dated 28 March 1997)

2. Australia 6

(Submission dated 27 March 1997)

3. Canada 14

(Submission dated 1 April 1997)

4. Costa Rica

(Submission dated 19 March 1997) 19

5. Czech Republic 28

(Submission dated 27 March 1997)

6. Georgia 29

(Submission dated 28 March 1997)

7. Hungary 30

(on behalf of Bulgaria, Estonia, Hungary, Latvia, Lithuania,

Poland, Romania, Slovakia, and Slovenia)

(Submission dated 27 March 1997)

8. Iceland and Norway 31

(Submission dated 5 March 1997)

9. Japan 32

(Submission dated 4 March 1997)

10. Kenya 34

(Submission dated 26 March 1997)

11. Netherlands 35

(on behalf of the European Community and its Member States)

(Submission dated 1 April 1997)

Paper No. Page

12. New Zealand 52

(Submission dated 1 April 1997)

13. Norway 57

(Submission dated 19 March 1997)

14. Peru 59

(Submission dated 7 March 1997)

15. Philippines 60

(Submission dated 25 March 1997)

16. Poland 61

(on behalf of Bulgaria, Estonia, Hungary, Latvia,

Lithuania, Poland, Romania, Slovakia and Slovenia)

(Submission dated 27 March 1997)

17. Russian Federation 63

(Submission dated 26 March 1997)

18. Slovakia 66

(on behalf of Bulgaria, Estonia, Hungary, Latvia,

Lithuania, Poland, Romania, Slovakia and Slovenia)

(Submission dated 27 March 1997)

19. Switzerland 67

(Submission dated 25 March 1997)

20. Trinidad and Tobago 69

(on behalf of the Alliance of Small Island States (AOSIS))

(Submission dated 1 April 1997)

21. United Republic of Tanzania 71

(on behalf of the Group of 77 and China)

(Submission dated 19 March 1997)

22. Uzbekistan 76

(on behalf of Armenia, Azerbaijan, Georgia, Moldova

and Turkmenistan)

(Submission dated 28 March 1997)

An electronic version of this text was not available.

1. We submit below Armenia's proposal for inclusion in the next compilation

of the elements of the Protocol or another legal instrument.

Voluntary application of commitments by non-Annex I Parties (Strengthening

the commitments in Article 4.2(a) and (b)

Should a Party not included in Annex I to the Convention submit a proposal to implement a specific climate change mitigation programme, the Conference of the Parties may request the appropriate entity or entities entrusted with the operation of the financial mechanism referred to in Article 11 of the Convention, to make available, as a matter of priority, the necessary financial, technical or technological assistance for the implementation of such a programme.

Additional assistance for the fulfilment of the commitments referred to in

Article 4.1

Having regard to the special situation of developing countries and developing countries with economies in transition, which lack financial resources and expertise, in order to accelerate the development, application, dissemination and transfer of environmentally friendly technology, methods and processes, the Conference of the Parties may request the entity or entities entrusted with the operation of the financial mechanism referred to in Article 11 of the Convention to make available, as a matter of priority, financial assistance for the widespread introduction of the know-how and technology developed in these countries.

2. We would add that our proposal on the purpose of the Protocol has been transmitted to Uzbekistan for joint submission with a view to its inclusion in the next compilation. The text of this proposal is as follows:

Recognizing that the purpose of this Protocol is to facilitate the achievement of the ultimate objective indicated in Article 2 of the Convention, by the adoption of specific new commitments by the Parties included in Annex I, and also by the implementation of voluntary measures, which could be taken by all Parties, to set quantitative emission limitation and reduction objectives, and enhance greenhouse gas sinks and reservoirs within specified time-frames beyond 2000.

AMENDMENTS AND ADDITIONS TO AUSTRALIA'S JANUARY 1997 SUBMISSION, AS RECORDED IN THE AGBM 6 CHAIRMAN'S DRAFT TEXT

1. Under Strengthening the Commitments in Article 4.2(a) and (b), QELROs, C. Level and Timing (text of 6 March at 5.00 pm):

Remove italics from Paragraph 9.1.

2. Under Strengthening the Commitments in Article 4.2(a) and (b), QELROs, C. Level and Timing (text of 6 March at 5.00 pm), substitute the following for Australian text in paragraph 9.2:

"Each of the Parties listed in Annex A shall aim to achieve the QELRO listed for it in that Annex for the limitation and reduction of anthropogenic emissions by sources and sinks of all greenhouse gases not controlled by the Montreal Protocol. The range within which each Party's differentiated QELRO would fall will be between a 30% reduction by 2010 from its 1990 level of such emissions and a 40% increase by 2010 over its 1990 level of such emissions⁽¹⁾."

3. Under Strengthening the Commitments in Article 4.2(a) and (b), QELROs, C. Level and Timing (text of 6 March at 5.00 pm), add the following text⁽²⁾:

9.2 bis

Process for setting of QELROs and review of QELROs under Article 7 (a)⁽³⁾ for each of the Parties or groups of Parties listed in Annex A

a. By a specified date (one month before the date stipulated in paragraph (b) below), Parties shall specify a collective Annex A QELRO or an indicative range for a collective Annex A QELRO to guide the submission of QELRO proposals by each of the Annex A and prospective Annex A Parties. This collective QELRO shall fully reflect the most recent information regarding the scientific understanding, technological developments, economic and other socioeconomic factors relating to global climate change, in accordance with the requirements of Article 3⁽⁴⁾.

b. Each Annex I Party and any other Party electing to be listed in Annex A should submit a conditional initial QELRO proposal by a stipulated date in which it specifies the QELRO which it is willing to assume through applying the requirements of Article 3⁽⁵⁾ to its particular circumstances and any other relevant individual circumstances. Such proposals should contain sufficient information to enable other Parties to meet the requirements of paragraph (d) below. Parties should explain in their proposals, utilising internationally accepted data, the factors affecting their anthropogenic emissions by sources and sinks of all greenhouse gases not controlled by the Montreal Protocol, the requirements of Article 3⁽⁶⁾ with reference to the indicators elaborated in Article 4 (c)⁽⁷⁾ and any other relevant individual circumstances, and should explain in specific detail how the application of these indicators individually or in combination has guided that Party in the determination of its particular QELRO. In the case of proposals involving regional economic integration organisations, such organisations or their members should indicate which provisions of Article 8⁽⁸⁾ they will be seeking to avail themselves of in implementing their QELRO commitments.

c. All QELRO proposals shall be circulated to all Parties in the negotiations in order to provide transparency.

d. Negotiations will take place among Parties which have submitted initial QELRO proposals. These negotiations will take place in the two month period following the date stipulated in paragraph (b) above and shall be conducted on the basis of the submitted proposals and other relevant information. Such Parties should assess the QELROs proposed to satisfy themselves that they:

i. reflect a reasonable application of the indicators in Article 4 (c)⁽⁹⁾; and

ii. meet the requirement of comparable levels of effort by each of the Annex A and prospective Annex A Parties in contributing further to achieving the objective of the Convention, in accordance with Article 3 (a) and (b)⁽¹⁰⁾.

e. In order to facilitate the negotiations under paragraph (d) above, any Annex A or prospective Annex A Party may request specific information from any other Party who has submitted a QELRO proposal, including estimation of the effects of existing policies and measures and proposed new measures on emission projections. Parties shall respond to such requests in an expeditious manner.

f. The initial QELRO proposals will be the subject of a review and assessment process by all Parties, taking place in the two month period following the date stipulated in paragraph (b) above, to determine:

i. whether there should be any adjustment to the specified collective Annex A QELRO under paragraph (a) above; and

ii. whether Parties should be invited to submit revised QELRO proposals to ensure equitable and appropriate contributions in meeting the collective QELRO, or to further enhance the collective QELRO. Any such revised QELRO proposals would be the subject of further negotiations in accordance with paragraph (d) above and should conclude within the three month period following the date stipulated in paragraph (b) above.

g. After negotiations on QELRO proposals are concluded each Annex A and prospective Annex A Party shall communicate its resultant negotiated QELRO to the Secretariat for inscription into Annex A. The resultant collective Annex A QELRO should be inscribed in Article 2⁽¹¹⁾.

4. Under Strengthening the Commitments in Article 4.2(a) and (b), QELROs, C. Level and Timing (text of 6 March at 5.00 pm), substitute the following for existing Australian text in paragraph 9.4:

9.4 Regional Economic Integration Organisations

(a) States which are members of a regional economic integration organisation may cooperate in the implementation of their commitments under this instrument. Such organisations may assist their members in implementing their commitments by taking appropriate action within their field of competence. Such action may include the adoption of policies and the taking of measures on an organisation-wide basis.

Organisation a Party and no member states are Parties

(b) Any regional economic integration organisation may become a Party to this instrument without any of its member states becoming a Party only if it certifies in its instrument of ratification, acceptance, approval or accession that under its internal constitutional arrangements the organisation itself has sufficient competence to ensure full compliance with all obligations of that organisation under the instrument, including those in respect of achievement of its QELRO and implementation of policies and measures. In such cases, the regional economic integration organisation shall be bound by all the obligations under the instrument on behalf of all of its members. A single QELRO shall be inscribed for the organisation in Annex A. To ensure a level of transparency equivalent to that required of other countries to which this instrument applies, the individual QELRO applicable to each member state under any internal arrangement shall also be listed immediately below the inscription for the organisation.

Both organisation and one or more member states are Parties

(c) In the case of such organisations, one or more of whose members is also a Party to the instrument, the following provisions shall apply:

(i) In respect of QELRO commitments under this instrument, if a regional economic integration organisation certifies in its instrument of ratification, acceptance, approval or accession that under its internal constitutional arrangements the organisation itself has sufficient competence to ensure full compliance with the QELRO commitment listed for it in Annex A, the organisation may elect to be solely responsible for meeting that commitment. In such circumstances, a single QELRO shall be inscribed for the organisation in Annex A. To ensure a level of transparency equivalent to that required of other Parties, the individual QELRO applicable to each member state under any internal arrangement shall also be inscribed in Annex A, but such member states shall not individually be responsible under this instrument for performance of such QELROs.

(ii) In the absence of the certification of competence required in sub-paragraph (i) above, the QELROs applicable to each member state shall be inscribed in Annex A. Each member state shall individually be responsible for performance of that QELRO to the same extent that other Parties listed in that Annex are for the QELROs listed for them.

(iii) The Party or Parties responsible under sub-paragraphs (i) and (ii) above for performance of QELRO commitments shall also be responsible for obligations under this instrument to report on performance of those commitments.

(iv) In respect of commitments under this instrument other than QELRO commitments and the reporting obligations referred to in sub-paragraph (iii) above, an organisation and its member states shall decide on their respective responsibilities for the performance of such obligations and shall notify the Depositary of that apportionment of responsibility in their respective instruments of ratification, acceptance, approval or accession. In such cases, the organisation shall be bound to perform that part of the obligations it notifies that it will undertake and the member states shall each be bound to perform all other obligations. In the absence of such notification, the member states shall individually be responsible for performance of all such obligations.

(d) Without limiting the scope of any of the foregoing provisions, the ratification, acceptance, approval or accession of regional economic integration organisation shall not be effective unless and until the following two conditions are met:

(i) the organisation has declared in detail in its instrument of ratification, acceptance, approval or accession the precise nature and extent of its competence with respect to matters governed by the instrument, with reference to particular treaty provisions, laws, measures, procedures, decisions, administrative actions, directives, regulations, recommendations, opinions or any other materials; and

(ii) the Meeting of the Parties has determined that a declaration so made satisfies the requirements of this Article.

At its first session after the lodgment of such an instrument of ratification, acceptance, approval or accession, the Meeting of the Parties shall review it for that purpose and may request further information and/or make appropriate recommendations to such organisations. These organisations shall also inform the Depositary, who shall in turn inform the Parties, of any substantial modification in the extent of their competence.

Alteration in composition of regional economic integration organisations

(e) Except as provided in paragraph (f)(ii) and (iv) below, the rights and obligations of a regional economic integration organisation under the instrument shall apply only in respect of its membership as of the date of the adoption of this instrument.

(f) In the event of any alteration to the composition of a regional economic integration organisation by way of enlargement, withdrawal, union of states or partition of states the following provisions shall apply:

(i) The organisation shall notify the Secretariat and the Depositary of the alteration in the composition of the organisation;

(ii) At the next scheduled review of commitments of Parties under Article 7⁽¹²⁾ the Meeting of the Parties may decide whether and on what terms the alteration in composition of the organisation shall, by way of exception to paragraph (e) above, be recognised for the purposes of this instrument. If a country undergoing the process of transition to a market economy joins such an organisation and the Meeting of the Parties decides that it should be regarded as a member of the organisation for the purposes of this instrument, any provisions of this instrument applying specifically to countries undergoing the process of transition to a market economy shall no longer apply to that country, as of the date of the decision of the Meeting of the Parties.

(iii) At the review of commitments referred to in sub-paragraph (ii) above, the Parties shall, to ensure that commitments of all Annex A Parties continue to be shared as equitably as possible, take into account, in addition to the factors listed in Article 7 (c)⁽¹³⁾, the implications of the alteration in composition of the organisation for the level and distribution of commitments of all Annex A parties;

(iv) If a member state of a regional economic integration organisation which is a Party to the instrument withdraws from that organisation it shall be treated as no longer being a member of the organisation for the purposes of this instrument as of the date of notification of withdrawal under sub-paragraph (i) above unless otherwise decided by the Meeting of the Parties as part of the review referred in sub-paragraphs (ii) and (iii) above. In the event that a withdrawing member state does not have a separate QELRO listed for it in Annex A, that Party shall negotiate with other Parties in accordance with procedures established for the setting of commitments to agree upon an equitable and appropriate QELRO for that Party.

5. Joint implementation (JI)

Under Strengthening the Commitments in Article 4.2(a) and (b), D, Flexibility (text of 6 March at 5.00 pm), insert under the heading Joint Implementation the following:

Proposal 6

37 bis

37.1 A Party listed in Annex A may meet part of its QELRO, as set out in that Annex, by credits received through undertaking JI projects with another Annex A or non-Annex A Party or Parties.

37.2 Parties may implement such projects on a bilateral or multilateral basis with other interested Parties.

37.3 Such projects can either reduce emissions or enhance sinks of greenhouse gases not controlled by the Montreal Protocol.

37.4 Parties may authorise any domestic entity, including government agencies, private firms, non-government organisations and individuals, participating in activities leading to generation, transfer and receipt of credits measured as tonnes or carbon dioxide equivalent or some other agreed basis.

37.5 The Meeting of Parties shall agree upon and adopt processes for estimation, measurement, monitoring, verification, review and reporting of greenhouse gas reductions for JI projects.

37.6 Parties participating in JI projects shall, on the basis of joint agreement and in accordance with their contributions, have the right to share among themselves the outcomes of the greenhouse gas emission reduction and/or sink enhancement (in terms of tonnes of carbon equivalent or some other agreed basis) achieved by the projects.

6. Under Elements related to Institutions, Mechanisms and Other Clauses, J. Ratification, Acceptance, Approval or Accession, (text of 6 March at 2.00 pm) add the following:

Proposal 3

166 bis. The instrument shall be subject to ratification, acceptance, approval or accession by States and by regional economic integration organisations which are parties to the Convention, subject to the conditions set out in Article 8⁽¹⁴⁾. It shall be open for accession from the day after the date on the which the instrument is closed for signature. Instruments of ratification, acceptance approval or accession shall be deposited with the Depositary.

General Commitments and Guiding Objectives

Parties listed in Annex 1 of the Convention [OR Annex X of this agreement] shall adopt and implement policies and take corresponding measures within national, and, where appropriate, regional programmes, established in accordance with paragraphs 4.1 (b)

and 4.2 (a) of the Convention in order to mitigate climate change by limiting greenhouse gases emissions and protecting and enhancing their greenhouse gas sinks and reservoirs.

Parties listed in Annex X shall agree to adopt, and define adequate mechanisms to report on, the coordinated or common policies and measures listed in this agreement on the understanding that Parties will continue to retain maximum flexibility in deciding how best, based on their national circumstances, they can reach emission limitation/reduction objectives.

Hence, for this agreement, policies and measures agreed to will focus on information sharing, common underlying messages and voluntary activities. Over time, the agreement should be sufficiently flexible to allow for amendments/additions in an expeditious manner by the Parties to this agreement. In order to implement policies and measures listed in this agreement, Parties shall use existing mechanisms, to the extent possible, without duplicating work in other fora.

Specific Policies and Measures

Coordinated Policies and Measures

xx) Parties listed in Annex 1 of the Convention [OR Annex X of the Protocol] commit themselves specifically as provided for in the following:

(a) Energy efficiency standards and labelling:

(i) monitor and share information on energy efficiency levels of current and future standards for electrical appliances.

(ii) seek harmonization of test protocols and measurement and analytical techniques regarding energy efficiency standards for electrical appliances.

(iii) work together towards harmonization of energy efficiency labelling schemes for electrical appliances.

(b) Transportation:

(i) develop in common a list of successful measures to mitigate greenhouse gas emissions in the transportation sector. Such measures should be given priority in national programmes, as appropriate to national circumstances.

(ii) communicate and regularly update information on the effects of policies and measures in progress in the transport sector with the aim of establishing in cooperation an international database to monitor the effects of such actions. The creation of the database should not duplicate existing work.

(iii) implement their commitments in subparagraph 4.2(e)(ii) in the Convention, namely identify and periodically review and report on their own policies and practices which encourage activities that lead to greater levels of anthropogenic emissions of greenhouse gases that would otherwise occur. In particular, this should apply to the transportation sector.

(iv) seek voluntary agreements with manufacturers for fuel economy improvement of road vehicles. Coordination of agreements can be made at a regional and/or broader level, as appropriate.

(c) Sustainable Agriculture:

(i) communicate and regularly update information on agricultural practices that increase carbon sequestration and reduce greenhouse gas emissions with the aim of establishing in cooperation an international database. The creation of the database should not duplicate existing work.

(ii) encourage voluntary actions in the agriculture sector. In particular, actions may include the production of dedicated energy crops, the increased use of bio-fuels, on-farm energy use of methane, the use of options to reduce enteric fermentation, the use of precision fertilizers application technologies, nitrogen testing kits, and nitrification inhibitors.

(iii) share information on national R&D programmes in sustainable agriculture.

(d) cooperate in developing and delivering an international public education and awareness campaign on climate change. The message of the campaign could be based on the outcomes of the Second Assessment Report, and further reports, of the Intergovernmental Panel on Climate Change and could focus on individual consumption patterns. Each Party listed in Annex 1 of the Convention shall implement the campaign and may cooperate with any other Parties in doing so.

(e) Energy Efficiency in Countries with Economies in Transition:

(i) urge the Multilateral Development Banks (MDBs) which lend to countries with their Economies in Transition (EITs) to focus on energy efficiency, and more generally on greenhouse gas emissions abatement technologies.

(ii) place commitments and reporting obligations on MDBs. These relate to project screening for energy efficiency opportunities, procurement policy, standardization of contract, co-financing and concessionary finance, and dissemination of policy advice. Investment appraisals should also reflect greenhouse gas externalities. MDBs' commitments should also relate to capacity building, both within MDBs and countries with EIT, including training programmes and staff exchanges.

(iii) urge the Multilateral Development Banks (MDBs) which lend to countries with economies in transition to make concessionary financing available to Energy Services Companies (ESCOs) and to use performance contract models with EIT governments to finance improvements in government energy use. Annex 1 [OR Annex X] Parties shall also urge MDBs to initially focus on capacity building and in particular, to disseminate information promoting ESCOs activity within the EITs financial sector and to include performance contracting as a component of their training programmes.

Menu of Policies and Measures

In addition to coordinated actions, the protocol or other legal instrument could include a menu of policies and measures, covering all relevant activities Parties are taking to address climate change, from which other Parties could draw in implementing their domestic action plans.

Voluntary Implementation by non-Annex 1 Parties

xx) Parties not listed in Annex 1 of the Convention may [OR are encouraged to], on a voluntary basis, undertake the policies and measures noted in subparagraphs xx) to xx).

CHAPTER IV:

PROPOSED TEXT REGARDING THE EVOLUTION OF THE PROCESS

As a further step towards meeting the objective of stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system, Parties to the Protocol not subject to quantified emission limitation and reduction objectives (QELROS) under the Protocol shall commence negotiations with all Parties to agree upon QELROS for those Parties. Such negotiations shall commence as soon as possible but no later than by the [x Conference of the Parties]

[x Meeting of the Parties] and shall be concluded no later than the [x Conference of the Parties][x Meeting of the Parties].

[The Parties][The Conference of the Parties] shall periodically conduct a review of Annexes [x] and [xx] of the Protocol with a view to taking any decisions regarding amendments [, that may be appropriate][, based on appropriate criteria determined by [all] Parties,] with respect to the addition or deletion of Parties from the lists in those Annexes, with the approval of the Party[ies] concerned. The first review shall take place no later than [xx], with subsequent reviews to take place [every [x]years thereafter][as appropriate, to be determined by the Parties].

CHAPTER II: REVIEW OF THE COMMITMENTS

PROPOSED TEXT REGARDING THE REVIEW OF ADEQUACY

[The Conference of the Parties][The Meeting of the Parties] shall at its [x] session, review the adequacy of commitments of the Parties under this Protocol with a view to achieving the objective of the Convention. Such review shall be carried out in light of the best available scientific information and assessment on climate change and its impacts, as well as relevant technical, social and economic information, and shall be conducted in conjunction with any pertinent review under the Convention or any related Protocol. Based on this review, the [Conference of the Parties][Meeting of the Parties] shall take appropriate action, which may include the adoption of amendments to this Protocol.

CHAPTER ON OBJECTIVES, PRINCIPLES, REVIEW OF COMMITMENTS

EVOLUTION AND ANNEXES

SECTION I B: PRINCIPLES

Parties should negotiate targets that are credible, realistic and can be implemented in a cost-effective way. Parties should have maximum flexibility in implementing their obligations and to this end should have the right to avail themselves of opportunities for reductions that may arise from different mechanisms regarding timing for example budgets and multi-year targets and baselines and location for example credited joint implementation and emissions trading.

CHAPTER ON INSTITUTIONS AND MECHANISMS

II. INSTITUTIONS AND PROCESSES

SECTION F: REVIEW OF INFORMATION AND REVIEW OF IMPLEMENTATION AND COMPLIANCE

Parties should participate in an international review of implementation, the parameters of such review to be developed by the Parties and included in an Annex to the Protocol. Such review should provide for verification of implementation through in-depth review of National Communications and other appropriate means and should include remedies for lack of compliance.

CHAPTER ON QELROs

SECTION C: LEVEL AND TIMING

Parties shall establish greenhouse gas emissions baselines as the average of emissions for the years [xxxx to xxxx]. Similarly, Parties shall establish target greenhouse gas emissions [for the year[s] xxxx] as the average of emissions in years [xxxx to xxxx].

CHAPTER ON POLICIES AND MEASURES

SECTION ON LISTS OF POLICIES AND MEASURES

ALTERNATIVE 2 (FROM CANADA)

(B) TRANSPORTATION (IV)

The current text should be replaced by the following:

"seek voluntary agreements with manufacturers for fuel economy improvements of all transportation modes. Coordination of agreements can be made at a regional and /or broader level, as appropriate.

An electronic version of this text was not available.

1. Recognizing the need to reduce global emissions of greenhouse gases, taking into account historical emissions and the specific responsibilities of the countries which have contributed to a greater extent than others to the rise in concentrations of these gases; and recognizing the specific, special and differentiated needs of the Parties; for the purpose of securing a stabilization in the concentrations of greenhouse gases in the atmosphere, in such a way as to prevent anthropogenic interference with the climate system, ecosystems, economic output and the development of future generations.

2. Recognizing that economic development is a priority for the developing countries, and that they have a low per capita level of greenhouse gas emissions, we reaffirm that they are sovereign as regards the reduction of their emissions of greenhouse gases

3. Recognizing that, against the above background, there is a need to shoulder a common but differentiated responsibility in keeping with the capacity of each Party to generate the broadest possible cooperation among all the Parties in working towards the objectives of the Convention and any other instrument stemming from it.

4. Affirming that compliance with the principal obligations on the part of the Annex I Countries is of fundamental importance for the full implementation of the reduction measures, but within that context we recognize that the contribution of Joint Implementation cannot be left aside, as a differentiated, voluntary and complementary measure of joint responsibility in order to contribute to a greater extent to the global mitigation and reduction of emissions of greenhouse gases, the transfer of technology for the control, reduction and prevention of anthropogenic emissions and education, training and awareness creation with regard to climate change and technology transfer.

5. We affirm that, in parallel to the matters mentioned above, it is of fundamental importance within the framework of the discharge of the principal obligations and the pursuit of Joint Implementation projects to support the promotion of the sustainable management of the conservation and development of sinks and reservoirs of greenhouse gases which are not regulated by the Montreal Protocol, such as biomass, forests, ecosystems and oceans, inasmuch as they benefit mankind by generating two environmental services: that of sustaining biological diversity and that of trapping and substantially reducing anthropogenic emissions of greenhouse gases.

6. Recognizing that, through compliance with their principal obligations together with the pursuit of Joint Implementation projects, the Annex I countries can contribute to funding the incremental costs involved in the application of a sound policy and measures falling under national programmes for Sustainable Development in the developing countries, including the enhancement of the global environmental benefits of ecosystems as sinks and reservoirs of greenhouse gases, as against the present development of lower-cost technologies which raise global emissions of greenhouse gases.

7. Recognizing the need to avoid the creation of "Greenhouse Gas Polluters' Paradises", renewed emphasis is placed on the need for the quantification, reporting, reduction and mitigation of emissions of greenhouse gases to be conducted at the national level.

8. "Joint Implementation" means a voluntary action between the Annex I Parties and the Non-Annex Parties to the United Nations Convention on Climate Change by means of which the corresponding measures to mitigate climate change through the limitation and reduction of anthropogenic emissions of greenhouse gases and the protection and improvement of sinks and reservoirs of greenhouse gases can be carried out jointly in the territory of the

Non-Annex Parties in order to make an overall contribution to attainment of the objectives of the Convention.

9. "Greenhouse Gas Emission Mitigation Certificate" means an environmental mechanism and financial instrument by means of which the Annex I Parties can demonstrate their contribution as financial partners in the implementation of Joint Implementation projects, making it possible to reduce global emissions that cause the greenhouse effect, generating overall environmental benefits that make themselves felt through the certification of metric tons of carbon equivalent offset, which, taken together, represents the value of the investment made in mitigation.

10. "Domestic emission" means emissions of greenhouse gases that take place within the territory of a country.

11. "National emission" means emissions of greenhouse gases attributable to an activity performed by a citizen or an enterprise of a country.

12. In accordance with the provisions of articles 3 and 4 of the Convention, each Party

listed in Annex I must adopt real policies and quantified objectives for the reduction and mitigation of its emissions of greenhouse gases. To this end they must draw up a National Plan for limiting and reducing anthropogenic emissions by source and increasing elimination in sinks and reservoirs of greenhouse gases. Included in this plan will be the possibility of carrying out Joint Implementation projects. The National Plans to be drawn up must be forwarded to and registered with the Conference of the Parties, and are binding on the submitting Party.

13. The Parties to the Convention which have obligations to reduce their emissions of gases must quantify, report, reduce and mitigate their national emissions of greenhouse gases.

Flexibility

Joint Implementation:

14. In order to discharge the obligations laid down in the present Protocol, the Annex I Parties, together with the Non-Annex Parties, may undertake Joint Implementation, in the territory of the Non-Annex I Party, carrying out projects to limit or reduce anthropogenic emissions of greenhouse gases or for the conservation and development of sinks and reservoirs which mitigate those gases.

15. The Annex I Parties may discharge up to 25% (twenty-five per cent) of their domestic emission reduction obligations through Joint Implementation projects and up to 100%

(a hundred per cent) of their emission reductions outside their territory. When carrying out Joint Implementation projects, the Annex I Party or Parties may credit themselves with only half of the entire mitigation or reduction in metric tons of carbon equivalent offset in the case of domestic emissions, with the remaining mitigation or reduction of greenhouse gases falling to mankind as a general benefit. However, national emissions from an Annex I Party produced in the territory of a Non-Annex Party can be offset by means of Joint Implementation, with the entire reduction or mitigation recorded in its favour.

16. Non-Annex I Parties which voluntarily implement Joint Implementation projects shall, prior to approval of a Joint Implementation project, vouch for the benefits of the mitigation or reduction of emissions of greenhouse gases, by means of the mechanism of Greenhouse Gas Emission Mitigation Certificates, and shall also notify the Secretariat of the Convention, using the Reporting format agreed by the Parties, of the origin and destination of such mitigation or reduction.

17. The certification of each project may be used for the purpose of compliance with the obligations of the Annex I countries by means of the mechanism of Greenhouse Gas Emission Mitigation Certificates.

18. The Non-Annex I countries in which Joint Implementation projects are carried out may certify the mitigation arising from the projects. For that purpose they shall demonstrate the additional economic value and the environmental benefits.

19. The emission reductions generated in each project shall belong to the host countries, which shall have the ability to cede such rights to the Parties which have obligations when a value is duly ascribed to the mitigation by means of an additional financial contribution to the projects that generated it, insofar as the national policy of each host country so provides.

20. In order to implement Joint Implementation projects, the Non-Annex I Parties shall comply with the following requirements:

(a) Implementation shall proceed and shall be accounted for project by project.

(b) A baseline shall be established setting the net environmental benefits of gas emission mitigation and reduction for each specific project, as compared with a baseline involving no project, so as to justify the additional financial contribution from the Annex I Countries.

(c) A methodology must be established to estimate and evaluate the efficacy of the measures adopted to limit emissions and encourage the absorption of the reduction or mitigation of emissions of greenhouse gases in each particular project.

It will be the task of the Secretariat of the Conference of the Parties to devise a monitoring mechanism to determine the veracity of the reduction or mitigation reported in accordance with the Reporting format agreed by the Parties.

(d) Joint Implementation projects shall be voluntary.

In addition to the part of the Protocol related to level and timing of emissions reductions (QELROs), we submit the following text:

1. Parties listed in Annex X, individually or jointly, in accordance with the Berlin Mandate, shall reduce emission levels for carbon dioxide, methane and nitrous oxide (aggregated, using GWP with a 100 year time horizon), by 5% by 2005 and by 15% by 2010, relative to the reference year 1990.

2. Those Parties which, in accordance with Article 4.2 a) of the Convention, modified their longer-term trends in anthropogenic emissions of CO₂ and other greenhouse gases not controlled by the Montreal Protocol to achieve the objective of the Convention, and reduced their anthropogenic emissions below the reference year of 1990, will use their aggregated reductions achieved in the period 1990 to 2000 to fulfil the reduction objectives of the Protocol in the period 2001 to 2015.

Elements of a Protocol or Another Legal Instrument

The Conference of the Parties be asked to intensify the process of preparing the National Communications from the developing countries and the countries with the transitional economy, which will strengthen the international mechanism of Joint Implementation and make it more effective for such countries.

Additional proposal text below is submitted to the "Draft text by the Chairman" on Elements related to objective ... and Annexes" (considered during the sixth session of the AGBM), to its part "V. Annexes, A. Listing of Parties". This submission is one of three inter-related proposals submitted by representatives of Hungary, Poland and Slovakia on behalf of the above mentioned countries with the relevant cross-references to the contents and symbols of these proposals (AC-1, AC-2, AC-3).

"Proposal AC-3"

Proposal/Listing of Parties

"Annex XX lists countries to be bound by the quantified emission limitation and reduction objective within the specified time-frames in accordance with Articles 1.1, 1.2 and 2 (see "Proposal AC-1"). Annex XX Parties shall adopt and implement policies and measures set out in List AA under relevant Article (see "Proposal AC-2") and shall give high priority to adoption and implementation of the policies and measures set out in List BB (see "Proposal AC-2")."

Article: Quantified emission limitation and reduction objectives for developed country Parties listed in Annex I of the Convention.

1. The Parties listed in Annex I of the Convention shall cooperate to ensure that their total aggregate [annual average] net emissions of greenhouse gases for the first period [20..-20..] is [ ] % lower than their total aggregate net emissions of greenhouse gases for [19..] [the period 19.. - 19..].

2. The Parties listed in Annex I of the Convention shall further cooperate to ensure that their total aggregate [annual average] net emissions of greenhouse gases for the second period [20..-20..] is [ ] % lower than their total aggregate net emissions of greenhouse gases for [19..] [the period 19.. - 19..].

3. [Further periods, as agreed]

4. To achieve the objectives described in this Article, the Parties recognise the need to take into account the differences in starting points and approaches, economic structures and resource bases, the need to maintain strong and sustainable economic growth, available technologies and other individual circumstances, as well as the need for equitable and appropriate contributions by each developed country Party listed in Annex I of the Convention. Therefore, the allocation of emission limitation and reduction objectives for each of the Parties listed in Annex I of the Convention shall be based on the following indicators calculated for each Party [to be applied on their projected net emissions of greenhouse gases]⁽¹⁵⁾, and adjusted in accordance with other national circumstances:

(a) An indicator reflecting emission intensity, defined as CO₂ equivalent emissions per unit of GDP (Gross Domestic Product);

(b) An indicator reflecting level of GHG emissions, defined as the share of CO₂ equivalent emissions per capita;

(c) An indicator reflecting the level of economic development, defined as GDP

per capita;

(d) An indicator reflecting the share of renewable energy in energy supply;

(e) ...

5. The quantified emission limitation and reduction objective for each developed country Party listed in Annex I of the Convention on the basis of the provisions of this Article, are set out in Annex A to this Protocol.

Examples of policies and measures and their indicators are listed below (indicators within brackets):

(a) Efficient use of energy

(i) Improvement of automobile fuel efficiency [in the case of Japan, 10.15 mode⁽¹⁶⁾ fuel efficiency (km/l)];

(ii) Improvement of power generation efficiency [general average of power generation efficiency (%)];

(iii) Promotion of co-generation (including fuel cells) [kw];

(iv) Promotion of energy-saving in buildings and housings;

(v) Promotion of efficient use of waste biomass energy [the number of facilities];

(vi) Promotion of use of public transport.

(b) Introduction of carbon-free or low-carbon energy

(i) Introduction of renewable energy (such as photovoltaic (PV) systems [one hundred million (kwh)] and wind power generation [kl oil-equivalent][share in primary energy supply (%)]).

(c) Innovative technological development

(i) Research and development (R&D) of CO₂ separation, fixation and utilization technology;

(ii) R&D on advanced low or non emission vehicles;

(iii) R&D on new generation city vehicles.

(d) International technical cooperation and transfer of technologies

(i) Activities Implemented Jointly (AIJ) [the number of projects] [an amount of expenditure];

(ii) Cooperation for human resource development;

(iii) Cooperative research projects and studies.

(e) Protection and enhancement of sinks and reserviors of greenhouse gasses not controlled by the Montreal Protocol

(i) Sustainable management of forest and afforestation/reforestation [area of forest][growing stock];

(ii) Development of green spaces in urban area [area of city parks].

To be developed further.

DRAFT TEXT BY THE CHAIRMAN STRENGTHENING THE COMMITMENTS IN ARTICLE 4.2 (A) AND (B)

QUANTIFIED EMISSION LIMITATION AND REDUCTION OBJECTIVES WITHIN SPECIFIED TIME-FRAMES (QELROs)

Page 25:

Voluntary application of commitments by non-annex I Parties

Any Party not included in Annex I shall not be obliged to enter into any new commitments; unless, if any such Party expresses its intention to be bound by

Article 4.2(a) and (b) of the Convention in accordance with Article 4.2(g) of the Convention and has in its instrument of ratification, acceptance, approval or accession to this protocol, or at any time thereafter, notified the Depositary of its intention to be bound by this protocol.

Proposal under page 14: Additional comments

Emissions trading should not be considered under this protocol until it has been considered at length and elaborated by SBSTA, and its environmental benefits clearly demonstrated.

Proposal under page 16: Additional comments

JI concept should be thoroughly reviewed by a COP and a decision made before it is included in this protocol. The use of JI for strengthening Article 4.2(a) and (b) should only be taken upon conclusions of an independent review of activities implemented jointly.

DRAFT TEXT BY THE CHAIRMAN

Elements related to objective, principles, review of commiments, education, training and publci awareness, evolution and annexes.

Kenya's proposal under page 6, III. Education, Training and Public Awareness

The Parties shall, within 6 months of the COP 3, adopt, all binding provisions to enable the Parties have qualitative greenhouse gas emissions obligations.

Section on "Elements related to institutions, mechanisms and other clauses.

I. Introductory elements. A. Preamble

EU proposal:

A. PREAMBLE:

"The Parties to this Protocol,

Being Parties to the United Nations Framework Convention on Climate Change, signed at New York on May 9th 1992 (hereafter: the Convention),

Recalling the provisions of the Convention, Recalling further the provisions of the Berlin Mandate, adopted by the Conference of the Parties on its first session held at Berlin from 28 March to 7 April 1995, which, in order to enable the Conference of Parties to take appropriate action for the period beyond 2000, inter alia provides for the strengthening of the commitments of the Parties included in Annex I to the Convention in Article 4.2 (a) and (b) and for the continuing advancement of the implementation by all Parties of the commitments in Article 4.1 of the Convention in order to achieve sustainable development, taking into account Articles 4.3, 4.5 and 4.7.

HAVE AGREED AS FOLLOWS:"

Section on Elements Related to Objective, Principles, Review of Commitments, Education, Training and Public Awareness, Evolution and Annexes. I. Introductory Elements. A. Objective.

EU proposal:

B. OBJECTIVE:

"The Parties to this Protocol shall be guided by the objective referred to in Article 2 of the Convention.

In this respect, Parties shall be guided, inter alia, by the assessments from the Intergovernmental Panel on Climate Change. In taking note of the serious risk of an increase of the global average temperature and particularly the very high rate of change, Parties believe that global average temperatures should not exceed 2 degrees C. above

pre-industrial level and that therefore concentration levels lower than 550 ppm CO2 should guide global limitation and reduction efforts. This means that the concentrations of all greenhouse gases should also be stabilised."

NB: This means that under Section on "Strengthening the commitments in Article 4.1.(a) and (b). QELRO's, para B. Atmospheric concentration" para. 6.1. can be deleted.

Section on Elements Related to Objective, Principles, Review of Commitments, Education, Training and Public Awareness, Evolution and Annexes. I. Introductory Elements. B. Principles.

EU proposal:

C. PRINCIPLES:

"In their actions to achieve the objective of the Protocol and to implement its provisions, the Parties shall be guided by the principles enumerated in Article 3 of the Convention."

Section on "Strengthening the commitments in Article 4.1.(a) and (b). QELRO's, para B. Atmospheric concentration"

Para. 6.1. and 6.2. can be deleted (see also above).

Section on "Strengthening the commitments in Article 4.2 (a) and (b). QELRO's. Para C. level and timing."

Page 5. Proposal 3 (par. 10.1 - 10.3):

Replace present EU text by:

Para 10.1

"Each of the Parties listed in Annex X shall, individually or jointly, abide by quantified objectives to achieve significant overall reductions, after the year 2000 below 1990 levels within specified time-frames of anthropogenic emissions by sources and enhancement of removals by sinks of greenhouse gases not controlled by the Montreal Protocol, as set out in Annex Y.

Para 10.2

In elaborating quantified limitation and reduction objectives Parties should take into account the differences in Parties' starting points and approaches, economic structures and resource bases, the need to maintain stronger and sustainable economic growth, available technologies and other individual circumstances, as well as the need for equitable and appropriate contributions by each of these parties to the global effort."

Section on " Elements related to objective, principles, review of commitments, education, training and public awareness, evolution and annexes. V. Annexes. Para C. QELRO's."

Page 8. Proposal 2 (par 36):

Replace present EU text by:

"Annex Y

Parties listed in Annex X shall, individually or jointly, in accordance with para 10.2, reduce emission levels for CO2, CH4 and N2O together (weighted total, using GWP with a 100 year time-horizon), by [...%] by 2005 and by 15% by 2010 (reference year 1990). HFC, PFC and SF6 should be added no later than 2000 to the basket of gases for the above reduction objectives.

In the longer term, more sophisticated methods to allocate reduction targets shall be implemented, in accordance with para 10.2, eventually leading to convergence of emission

levels based on appropriate indicators."

Section on "Elements related to objective, principles, review of commitments, education , training and public awareness, evolution and annexes. V Annexes. Para A. Listing of Parties

Page 7, para 30, replace present EU text by:

"ANNEX X⁽¹⁷⁾

Australia

Austria

Belarus

Belgium

Bulgaria

Canada

Croatia

Czech Republic

Denmark

European Community

Estonia

Finland

France

Germany

Greece

Hungary

Iceland

Ireland

Italy

Japan

Latvia

Liechtenstein

Lithuania

Luxembourg

Mexico

Netherlands

New Zealand

Norway

Poland

Portugal

Republic of Korea

Romania

Russian Federation

Slovak Republic

Slovenia

Spain

Sweden

Switzerland

Turkey

Ukraine

United Kingdom of Great Britain and Northern Ireland

United States of America"

Section on "Strengthening the commitments in Article 4.2(a) and (b). Policies and Measures."

Page 2. Para 6: remove footnote ('Annex X₅')

Page 15. Para 41 (d).

Replace present EU text by (new text in italics): "(d) In the field of civil aviation:

* (i) all International Civil Aviation Organization (ICAO) members could introduce aviation fuel taxation and/or efficiency standards on the basis of international agreement and worldwide application;

(ii) introducing economic instruments on an internationally agreed basis to speed up the introduction of clean aircraft;

(iii) the work in ICA0 to maintain existing and develop further N0_x emissions standards that minimise N0_x emissions without compromising technological gains in fuel efficiency and CO₂ reductions should continue;

(iv) the dissemination and further development of national research into the nature, extent and climate change-related effects of aircraft emissions, and work on the scope for further reductions, should continue under the ICA0 umbrella;

(v) improvements in the coordination of international air traffic management, so as to minimise the impact of individual aircraft;

(vi) continued development, under the ICA0 umbrella, of information and guidance for airlines and airports to raise awareness and promote best environmental practice in air transport policy."

Section on "Strengthening the commitments in Article 4.2(a) and (b). Policies and Measures.

Page 17. List C. Para 48.

Replace present EU text in para 48 by:

"National Policies and Measures to be given priority for inclusion in national programmes of Parties listed in Annex X, as appropriate to national circumstances.

Renewable Energies

1) Increase and optimisation of the co-operation between the Parties with the aim of achieving a comprehensive exchange of experience also with regard to the planning and implementation of specific projects for the use of renewable energies.

2) Promotion of demonstration projects for both Annex X and non Annex X Parties.

3) Strengthen research and development with the aim of a technological initiative for the future, in particular in the areas in which technologies are not yet ready for implementation.

4) Strengthen the socio-economic research in order to facilitate the integration of renewable energies into the market (including the research on internalisation of environmental costs).

5) Increase in information, advice, education, training, and awareness regarding the use of renewable energies.

6) Increase of CO₂-reduction potentials by combining technologies for the use of renewable energies with measures for energy-saving and efficient energy use (for example better heating insulation and use of solar energy).

7) Promotion of other specific actions of financing such as new private financing schemes (third party financing etc.).

8) Implementation of voluntary agreements with energy suppliers, industrial users or local authorities in order to introduce renewable energies into the energy systems.

9) Reporting of Parties of renewable energies in their National Communications, focusing in particular on supply of each type of renewable energy, penetration of renewable energy

and evaluation of relative costs compared to conventional alternatives.

Energy Efficiency Standards, Labelling and other Product Related Measures

10) Policies and measures for common household appliances (refrigerators, freezers, washing machines, dryers, dishwashers and water heaters); home entertainment and standby equipment, lighting products, office equipment, and air compressors include:

a) Voluntary or mandatory energy efficiency labelling and technical specifications for luminaries used in the service sector;

b) international collaboration to establish a voluntary trademark for office equipment.

11) Policies and measures for space heating equipment, air conditioners, building energy control equipment, and buildings in general:

a) introduction of periodic control of space heating equipment in the residential and service sectors;

b) introduction of use of space heating measurements and control systems in new multiple family dwellings;

c) establishment of energy certification schemes and audits of existing residential and commercial buildings;

d) establishment of environmental certification, including energy, of new residential and commercial buildings;

e) energy efficiency labelling of construction, thermal insulation products, and in particular for window and window frames.

12) General policies and measures for all of the previously mentioned products include:

a) increased support as well as private concertation of demand side management initiatives in markets; where applicable. International collaboration for the comparison of results and transfer of techniques;

b) introduction of energy efficiency criteria for public procurement of products, with possible co-ordination among Parties;

c) public information campaigns to complement labelling and voluntary agreements;

d) public information campaigns regarding high efficiency products;

e) education and training for retail staff in respect of energy efficient products;

f) public incentives for research, development and technical demonstration regarding the improvement of energy efficiency and environmental characteristics of the products;

g) increased use of economic instruments to improve energy efficiency and to internalise external effects.

13) For all measures, a schedule and a procedure for the establishment and periodic revision of labelling, voluntary agreements, and if necessary or where appropriate mandatory

minimum efficiency standards, should be established.

Transportation Sector

14) Reduction of CO₂ emissions from newly registered cars. A strategy to reduce the CO₂ emissions form newly registered cars could be based on the promotion of measures aiming at reaching target value(s) for average fuel efficiency and/or average g-CO₂/km emissions of newly registered cars per year by a given date. The above measure could include fiscal instruments to promote the introduction into the vehicle fleet of more energy efficient cars, especially in terms of fuel consumption (e.g. registration or annual circulation taxes, also for the existing vehicle fleet).

15) Research and development aimed at low CO₂ emissions vehicles and fuels.

16) Development and implementation strategies of alternative modes. The development and implementation strategies of urban public transport and of alternative intercity transport modes that are low CO₂ emitters should be encouraged. Severalmeasures can be envisaged, such as incentives aimed at encouraging the development of urban public transport.

17) Motor traffic management. Demand side management, inparticular to limit the use of private cars in the congested areas and to promote a change in mobility patterns, could be envisaged through regulatory and price mechanisms. In a similar way, the interactions between land use, urban development and transport could be taken into account in planning policies in order to reduce the need for travel by private vehicles and facilitate the use of modes of transport that save space and energy. Traffic management schemes, such as measures designed to encourage optimum traffic flows which reduce overall greenhouse gas emissions from traffic, should be promoted. These policies are mainly matters for local authorities, but the protocol, or other legal instrument, could include measures aiming at making these authorities aware of their relevant responsibilities.

18) Urban transport. Support to conversion to low CO₂ emitting urban fleets, namely public transportation fleets and professional vehicles.

19) Inspection of road vehicles. Mandatory inspection of road vehicle, which allows to control periodically the efficiency of motors, should be introduced.

20) Action to reduce CO₂ emissions from freight transport. Agreement should be sought on action to reduce inefficiencies in the freight transport sector, which distort the market and

lead to imbalances between the different transport modes. Action should include:

- fair and efficient pricing to ensure fair competition

between modes;

- the development of guide lines to avoid empty running of freight vehicles, and improvement in logistics;

- introduction of or improvements in the application of social legislation in freight transport on a regional basis.

21) Awareness / behaviour. Measures could be implemented to provide information and raise public awareness of the implication and environmental costs of the growth in transport

emissions and the need to modify behaviour. Such measures could include the promotion of in-car technical tools to inform drivers of energy-inefficient behaviour.

22) Civil aviation: encouragement of a shift from air transport to other appropriate modes including agreements on the application of environmental impact assessments for airfield expansion.

23) Maritime Transport: regulation and/or voluntary agreements such as for energy efficiency and emission reduction (i.e. with regard to generators, engines, etc.).

Economic Instruments

24) Introduction/increase of environmental taxation by one or more Parties.

25) A framework for furthering voluntary agreements.

Energy Policies

26) Intensified international co-operation.

27) Development of international energy action programmes.

28) Deepening international and national analysis of the energy sector and development of low carbon energy scenarios.

29) Development of national and local energy action programmes by an open and transparent process involving the participation of sector representatives, academia, local authorities, citizens, and NGO's in the elaboration of energy policies, and allowing for hearings and other means of broad public participation

30) Setting environmental objectives and aims for developments such as increased efficiency and the wider use of renewables.

31) Promotion of CHP and district heating.

32) R & D strategies supporting cost effective energy efficiency and energy saving, renewables, low carbon or safe carbon free energy technologies, and CO₂ recovery/sequestration.

33) Promoting active involvement of the energy industry in climate change concerns, by, for example negotiated agreements.

34) Furthering synergies between energy policy and other policy areas developed in the context of GHG limitation/reduction.

35) Development in the energy sector of an approach based on internalisation of external costs

36) Promoting information campaigns and education in order to increase the awareness among citizens of the necessity of saving energy.

37) Setting standards and regulations.

38) Removal of obstacles to the rational use of energy.

Industry Sector Emissions, including Voluntary Agreements

39) Fuel switching in combustion plants to less carbon intensive fuels, including renewable energy sources.

40) Increased use, where appropriate, of voluntary negotiated agreements and/or regulatory measures such as the introduction of energy efficiency requirements and GHG emission targets and/or emission limits in permitting procedures.

41) Greater energy efficiency in industrial processes, including developing fundamentally new processes, intrinsically less energy-intensive or depending on completely different feedstocks.

42) Limitation/reduction of emissions of greenhouse gases and precursor substances from industrial production processes (N₂0, NMVOC, CF₄, C₂F₆ etc.) and power plants (NO_x etc.).

43) Use of waste heat from large industrial and combustion plants.

44) Improvement of the energy efficiency of plants for the provision of low temperature heat (e.g. industrial cogeneration plant, heating boilers or similar devices) and other small combustion plants, and regular examination of such plants.

45) Implementation of energy diagnosis/energy audits for industry and business, and in particular for industrial sectors with high energy consumption.

46) Improved support, including information and counselling, to small and medium sized companies on the possibilities of the use of renewable energies and measures for energy-saving and efficient energy use.

47) Measures to recycle materials and to reduce the use of materials with high energy and carbon intensity on a life-cycle analysis basis.

Agricultural Sector

48) Development of best practices guidelines for GHG emission reductions.

49) Encouragement, as appropriate, of organic farming and the integration of environmental considerations into animal husbandry practice.

50) Promote the exploitation of agricultural wastes for energy production.

51) Use national, regional and international policies regarding water protection, air pollution, protection of vulnerable areas, management of natural or recreational areas,

to help to mitigate climate change.

52) Identification and diffusion of appropriate agricultural technologies to non-Annex X Parties.

53) Strengthen research and development on mitigation options and increase cooperation.

54) Regulatory and/or economic instruments may be used where appropriate.

Forestry

55) As forest conservation and sustainable use of forest resources is related to the entire range of environmental and developmental issues and opportunities, a comprehensive approach should take into account the linkages between the UNFCCC, the Convention on Biodiversity and the Statement of forests principles adopted at Rio de Janeiro in 1992.

56) Parties to the Convention should not harvest more wood volume than they can sustainably produce, and as far as appropriate take into account the developments and results of the discussions concerning forest management under the framework of the Commission on Sustainable Development and the International Panel on Forests. Human activities should not as far as possible decrease amounts of carbon conserved in the soil, unless these activities are carried out to increase the biomass production, resulting in a net decrease of carbon releases when integrated over time.

57) Progressively reduce human activities - such as forest fires and the emission of harmful air pollutants caused inter alia by energy production - that substantially decrease the

natural productivity of any forest and increase the risk of forest fires. National, and where appropriate international, programmes, to achieve this goal should be further developed.

58) Promote the development of environmentally acceptable technologies and management practices for the forest sector.

59) Parties should, where appropriate and with regard to sustainable environmental and land use considerations, particularly the need to mitigate global climate change, take or initiate actions to:

a) develop and elaborate the regulations or guidelines required to ensure the environmental sustainability of biofuel production and to promote its acceptability where necessary;

b) develop measures, where appropriate, to replace fossil fuel based and energy demanding products by wood based products and increase the use of long lived wood products;

c) assess how the structures of the forest industry affects the transition to an environmentally and economically optimal energy system;

d) protect basic elements of forest ecosystems at risk from forest fires and different processes of soil degradation, particular in semi-arid regions;

e) promote R&D in the field of utilisation of wood products, biomass and biofuels, as well as on the role of forests in the carbon cycle;

f) undertake measures to prevent, monitor and fight forest fires, and to reforest destroyed areas;

g) favour the storage of carbon in forests through incentives for afforestation of agricultural land, where appropriate;

h) Ensure the ecological balance of forest ecosystems.

Waste Sector

60) Regulation. The use of regulations to ensure that waste is prevented at source and to ensure that waste which arises nevertheless is only disposed of in landfill when no opportunities for re-use exist. Regulations should also ensure that appropriate controls exist to minimise any risk of pollution of the various environmental media or harm to human health from the landfilling of waste. While not excluding all other options, attention should be paid to the following measures:

- for new landfills, to provide regulations to enforce new anaerobic landfills to be equipped with methane recovery for use as energy (or flaring if energy use is not feasible) where economically and environmentally feasible;

- for existing landfills, to provide regulations to give an incentive to local, regional and national authorities to implement methane recovery for use as energy (or flaring if energy use is not feasible) where economically and environmentally feasible;

- best available technologies and management practices should be used to limit emissions from waste combustion and energy has to be used for heat and/or power production; emissions ,monitoring has to be provided;

- treatment of organic wastes and landfilling such waste should be analysed to identify the best practice.

61) Economic instruments. Encouraging public and private actors: to produce less waste; to recover value from more of the waste that is produced; to dispose of less waste in landfill sites (e.g. taxing the waste going to landfills).

62) Financial or other incentives. To encourage waste to energy using clean technologies, the utilisation of landfill gas and biogasification, without detracting from the priority given to the prevention of waste or discouraging other recycling of waste operations.

63) Guidance. Provision of guidance on various waste management options and best practice (e.g. obtainment of compost or anaerobic digestion of organic waste, installation

of whole-site landfill gas collection, followed by its utilisation (or flaring where applicable), at new sites receiving biodegradable waste, and at existing sites if remaining capacity and gas production is likely).

64) Research, Development and Demonstration. Promotion and support for research, development and demonstration into new sustainable waste management practices, particularly those with greatest potential for limiting methane emissions.

65) Awareness/Information. Information campaigns to raise awareness among industry, local authorities, voluntary groups and the public of sustainable waste management practices.

Provision of sound information about the environmental and economic costs and benefits of the different waste management options. Good information is essential for the formulation of

sound waste management policies; it is also needed in order that progress towards targets can be assessed.

66) Information Exchange. Encourage networks for exchange of ideas and experience in waste management practices and research.

Fluorocarbons and SF₆

67) Avoid, as far as possible, the use of fluorocarbons in testing procedures.

68) Economic and fiscal instruments.

69) Reporting on the production, consumption and national emissions of fluorocarbons.

70) Additional reporting instructions on the quantities produced, emissions, recycled and destroyed fluorocarbons.

71) Reducing anode effects in the aluminium smelter sector.

72) Reducing emissions through improved equipment and practices in the electrical equipment industry.

73) Standards for process optimisation and recycling and chemical substitution in the semiconductor industry.

74) Guidelines for good house keeping, environmentally sound and safe recovery, recycling and prudent disposal in specific areas for limitation of emissions and optimisation of the use of fluorocarbons.

75) Infrastructure of recovery, a.o. fluorocarbon reuse banking system.

76) Develop and implement standards with respect to professional skill of personnel in the field of transport, handling, maintenance, operation and control of fluorocarbons.

77) Transfer and promotion of environmentally sound and safe technologies.

78) Stimulation of R&D.

79) Reuse, regenerating, recycling, recovery.

80) Voluntary agreements between production and consumption sectors and governments; guidelines for good housekeeping, recycling and prudent disposal through regulations and/or a voluntary agreement with industry, including specific training of the several actors.

81) Information campaigns.

Municipal Actions

82) Direct municipal action Specific actions that can be taken by local authorities in this field include:

a) Fleets and transportation

- improving the environmental quality of municipal vehicle fleets;

- using public transport in municipal travel;

- encouraging municipal employees to use public transport, cycle or practice car pooling to get to work.

b) Buildings

- inspecting the municipally-owned buildings for the purpose of reducing CO2-emissions;

- installing cost-effective energy-efficiency measures relating to lighting and heating and cooling systems;

- installing cogeneration systems;

- installing appropriate renewable energy technologies.

c) Work organisation

- implementing eco-management systems in their administrative units;

- using energy efficient equipment and materials.

83) Land use policies

a) Land use policies should aim to:

- avoid excessive land use changes and especially those which involve loss of natural resources leading to adverse effects on climate change;

- avoid land-extensive models of cities and urban sprawl, based in the separation between activities (home, work, shops) that increase the transportation and infrastructure needs;

- reduce the need to travel and people's reliance on cars, by improving the integration of transport and land use planning.

b) Land use policies should aim to recognise the use of and take account of:

- analysis of the environment, identifying environmental assets and physical capacity constraints;

- relevant environmental objectives;

- the use of environmental impact assessment, where appropriate;

- measures to limit adverse impacts, for example by using environmentally friendly technology;

- diversity and mixing of land uses versus rigid zoning;

- formulation of targets and indicators about urban patterns flows and environmental quality;

- actions to shorten and reduce the need for trips rather than emphasising measures which seek to minimise travel time;

- economic instruments which influence land use decisions, land use and mobility patterns.

84) Urban mobility: policies and measures in this sector should be directed to:

- reducing the need for travel by private vehicles;

- giving priority to public transport and improve its levels of service, comfort and safety as well as intermodal connections and reserved lanes facilities;

- promoting car sharing/pooling systems;

- taking account of all benefits and costs including environmental impacts for assessing differing transport modes;

- introducing road pricing as appropriate;

- making appropriate provision of, and charging for the use of, parking facilities;

- influencing citizens' behaviour towards more sustainable movement patterns;

- broad-scale traffic calming especially by reducing speed limits in the cities and declaring "residential streets" low traffic areas, etc.;

- imposing on motor traffic the full social and economic cost caused by it;

- establishing cycle routes, including, where appropriate, segregated cycle lanes;

- ensuring the urban areas are designed and managed so that walking offers an attractive alternative;

- establishing pedestrian zones and itineraries;

- offering attractive public transport, through measures already mentioned and other ones, such as attractive fares and conditions (for example combined tickets for all the public transport in the region);

- limiting motor traffic in centres of cities and establishing appropriate motor traffic management.

85) Local action in the field of energy: policies and measures should address:

a) Energy efficiency

- the establishment of cogeneration plants which produce heat and power from the same process;

- where municipalities can do so, influence local energy producers to reduce CO2 emissions from the production and distribution of electricity by increasing the efficiency of existing power plants. This involves, where appropriate, using heat given off by these plants for space heating or industrial uses (cogeneration, district heating and cooling);

- supplying energy services instead of energy may sometimes be an appropriate and highly flexible approach to efficient energy use where municipal authorities have responsibility for the operation of utilities. Least cost energy planning (LCEP) and Integrated Resource Planning are approaches in this direction, which are also applicable to services required by the municipality itself (performance contracting).

b) Residential, commercial and institutional buildings

- decreasing heating and cooling loss in residential buildings by using bio-climatic architecture principles, and appropriate insulation methods, and through more energy efficient systems, equipment and appliances;

- establishment of local heat supply systems based on local renewable resources;

- in commercial and institutional buildings, improving the efficiency of heating, cooling and ventilation systems by installing more efficient equipment and motors and heat recovery systems and minimising the requirements for air-conditioning in new buildings;

- energy audits of buildings;

- improving lighting efficiency with energy-saving light bulbs and relating controls of light levels to occupancy and natural light conditions;

- using low energy and low carbon materials.

c) Local renewable energy : promote and facilitate the widest possible use of renewable local energies.

86) Waste Management: in addition to municipalities having a direct role in the whole waste cycle, they are in a special position to influence, through direct actions and information

campaigns, public and private actors to:

- minimise wastes;

- maximise recovery and re-use processes;

- optimise energy recovery;

- reduce the amount of organic waste disposed of in landfill sites where this is the best practicable environmental option;

- maximise the recovery of methane generated by landfill sites and its utilisation as an energy vector or, at least, flaring if energy use is not feasible.

87) Information exchange, local agencies:

- information on measures already taken at local level;

- information exchange between local authorities on experience with greenhouse gas emission reduction measures (national or international co-operation, meetings and programmes);

- education campaigns to help to create a positive attitude towards greenhouse gas emission reduction measures;

- creation of local energy agencies to advise local authorities, citizens and small and medium sized enterprises on best practice for energy management."

Section on "Strengthening the commitments in Article 4.2 (a) and (b), QELROs. Para D.

Flexibility

Page 14, para 34.1

Replace present EU text by:

34.1 Parties listed in Annex X may, in order to contribute to implementing limitation and reduction objectives as set out in Article 2 (c) above, undertake concrete projects jointly with other Parties listed in Annex X and Parties that have made a notification under Article 2(f) below of their intention to be bound by commitments on emission limitation and reduction objectives under Article 2(c) above.

34.2 Joint implementation projects shall bring about real, measurable and long-term environmental benefits related to the mitigation of climate change, while avoiding adverse environmental and social effects.

34.3 In carrying out joint implementation projects, as defined in paragraph 34.1, the following set of rules shall be applied:

(1) Joint implementation projects can be undertaken by two or more Parties or by domestic entities (such as government agencies, private firms, non-governmental organizations, individuals). All such projects require prior acceptance, approval or endorsement by the Parties participating in the projects;

(2) Joint implementation projects shall only cover the greenhouse gases included in the quantified emission limitation and reduction objectives;

(3) Joint implementation projects should be supplemental to domestic policies and measures, which should provide the main means of meeting the objectives set out in

Annex Y;

(d) Joint implementation projects shall be assessed on a project basis;

(e) Credits shall be allocated on an annual basis and reported in national communications for all the projects which are in full conformity with the requirements of 34.3 (6);

(f) Parties shall report on joint implementation projects in their national communications using guidelines to be adopted by the COP at its first session, building on the uniform reporting format for Activities Implemented Jointly under the Pilot Phase. Such guidelines should also deal with:

(i) Methodologies for calculating project baselines and actual emissions which are needed to assess the incremental impact of a project on greenhouse gas emissions and sink capacity;

(ii) Data and methods for monitoring, verification and audit.

In addition to the submissions of the European Community and its Member States on the AGBM negotiating text, paragraph 38, (additional comments ) of the draft text by the Chair under QELROs can be deleted.

FURTHER TEXTUAL PROPOSALS FROM NEW ZEALAND RELATING TO ELEMENTS OF A PROTOCOL OR ANOTHER LEGAL INSTRUMENT

Introduction

Agreement was reached at AGBM 6 on the way forward for further proposals by Parties to the AGBM process during 1997. In particular, it was agreed that further proposals had to be submitted by April 1 1997 in order to be incorporated into the negotiating text that must be prepared and circulated six months prior to COP 3 (ie by June 1 1997).

In this context, New Zealand is submitting this further proposal which supplements and builds on the four previous analytical submissions proposed by New Zealand during the Berlin Mandate negotiations. Recognising the phase of the negotiations that the AGBM has now entered, this submission contains textual proposals which the New Zealand delegation believes will assist (in tandem with proposals received from other Parties) in advancing the Berlin Mandate negotiations towards a successful outcome in Kyoto in December 1997.

This submission contains textual proposals relating to the following elements of a Protocol or another new legal instrument: level and timing of QELROs; flexibility (including emissions trading and joint implementation); policies and measures; and evolution of commitments.

Through its previous submissions to the AGBM, New Zealand narrative and text proposals are currently included in the draft Chairmans text produced at AGBM 6. Cognisant of the desire of the AGBM to streamline proposals where possible, the textual proposals in this submission are intended to supersede many of New Zealands previous narrative and textual proposals. While it should be clear through provision of specific headings where new text contained in this proposal should be placed, specific indications relating to placement of new text and replacement of previous narrative and textual proposals are provided.

PLACEMENT OF NEW TEXT FROM THIS SUBMISSION AND REPLACEMENT OF NARRATIVE AND TEXT PREVIOUSLY PROPOSED BY NEW ZEALAND

Through its previous submissions to the AGBM, New Zealand narrative and text proposals are currently included in the draft Chairmans text produced at AGBM 6. Textual proposals in this submission are intended to supersede much of that previous text appearing in various parts of the draft Chairmans text.

Draft text by the Chairman: QELROs (dated 6/3, 5.00pm)

C. Level and timing of QELROs

Proposal 8: delete paragraph 15.6.

Textual proposals in paragraphs 1.1-1.8 of this submission which relate to level and timing of QELROs should be included in this section. These new paragraphs should be included as a distinct proposal, separate from the remaining narrative paragraphs 15.1-15.5.

Additional proposals: delete paragraph 22 (and additional paragraph 23.2 from AGBM/1997/2/Add.1 which New Zealand had requested be included in the Chairmans text).

D. Flexibility

Emissions trading

Delete paragraphs 31 and 32. These should be replaced by textual proposals in paragraphs 2.1-2.2 of this submission which relate to emissions trading.

Joint implementation

Delete paragraph 39. This should be replaced by the textual proposal in paragraph 2.3 of this submission which relates to joint implementation.

Draft text by the Chairman: Policies and measures (dated 5/3, 4.00pm)

Alternative 7: Delete paragraphs 16-17. These should be replaced by textual proposals in paragraphs 1.1-1.4 of this submission which relate to policies and measures.

Draft text by the Chairman: Elements related to objective, principles, review of commitments, education, training and public awareness, evolution and annexes (dated 6/3, 8.00pm)

IV. Evolution

Proposal 1: Delete paragraph 26. This should be replaced by the textual proposal in 1.1 of this submission which relates to evolution of commitments.

QUANTIFIED EMISSION LIMITATION AND REDUCTION OBJECTIVES WITH SPECIFIED TIMEFRAMES (QELROs)

C. Level and Timing of QELROs

1.1 For all Annex [*]⁽¹⁸⁾ Parties, emission limitation commitments shall be established on a cumulative basis for n emissions budget periods of y years each, beginning in [2000+x].

1.2 For each Annex [*] Party, the allocation of commitments shall be based on the five year annual average of CO₂ equivalent base emissions.

1.3 In the initial budget period [2000+x] to [2000+x+y], each Annex [*] Party shall be allowed q% of the base emissions of gases listed in Annex [C]⁽¹⁹⁾ multiplied by y.

1.4 For subsequent budget periods, allowed emissions for each Annex [*] Party shall be set in a similar fashion to paragraph 1.3, although the percentage of base emissions allowed, and potentially the length of the budget period, could differ.

1.5 In all budget periods each Annex [*] Party shall be in compliance with their emissions budget, which defines the overall emissions allowed in each budget period, which shall equal the emissions allowed under paragraph 1.3 or 1.4:

PLUS any emissions limitation commitment 'over-achievement, on a CO₂ equivalent basis of gases listed in Annex [C], banked from a previous emissions budget period;

PLUS any emissions acquired from another Annex [*] Party from their emissions budget under emissions trading provisions permitted in paragraphs 2.1 and 2.2;

LESS any emissions transferred to another Annex [*] Party for their emissions budget under emissions trading provisions permitted in paragraphs 2.1 and 2.2;

PLUS any emission reductions acquired through joint initiatives with a non Annex [*] Party under joint implementation provisions permitted in

paragraph 2.3;

LESS the CO₂ equivalent emissions of greenhouse gases, listed in Annex [C], from source/sink categories listed in Annex [D]⁽²⁰⁾ to be developed by SBSTA, or some other body designated for this purpose; PLUS the CO₂ equivalent sequestration of greenhouse gases, listed in Annex [C], from source/sink categories listed in Annex [D];

1.6 Inventory methodologies recommended by SBSTA and approved by the CoP shall be used to calculate base period emissions to establish emissions allowed under paragraph 1.3 or 1.4, and budget period emissions to determine compliance with emission budgets.

1.7 The methodologies for the calculation of the CO₂ equivalence of greenhouse gases other than CO₂ shall be developed by SBSTA, or some other body designated for this purpose, and adopted by the Parties to the [Protocol].

1.8 The process for amending the list of gases and sources in Annex [C], and for sources/sinks listed in Annex [D], shall be developed by SBSTA, or some other body designated for this purpose, and adopted by the Parties to the [Protocol].

D. Flexibility

Emissions Trading

2.1 In any budget period, an Annex [*]⁽²¹⁾

Party may trade its allowed emissions with another Annex [*] Party, and the emission budgets of these Annex [*] Parties may be adjusted to recognise such trades, provided that such adjustments are mutually reported, are equal, and are positive for one Party and negative for the other.

2.2 Emissions trading between a domestic entity in one Annex [*] Party with a domestic entity in another Annex [*] Party shall be allowed, subject to clear accountability requirements, and legal recognition and acceptance of the trade by the Annex [*] Parties.

Joint Implementation

2.3 In any budget period, any credits earned from joint implementation to be used to increase the emission budget of an Annex [*] Party, shall be subject to stringent emission reduction verification and accountability methodologies developed by SBSTA, or some other body designated for this purpose, and agreed to by the Parties to the [Protocol].

POLICIES AND MEASURES

1.1 Each Annex [*]⁽²²⁾ Party shall have the discretion to select those policies and measures that are best suited to their national circumstances for meeting their emission limitation commitments.

1.2 Notwithstanding paragraph 1.1, all Parties shall progressively phase out fossil fuel subsidies.

1.3 Notwithstanding paragraph 1.1, all Parties are urged to cooperate through the International Civil Aviation Organisation (ICAO) in the development of policies and measures to address greenhouse gas emissions from international aviation bunker fuels.

1.4 Notwithstanding paragraph 1.1, all Parties are urged to cooperate through the International Maritime Organisation (IMO) in the development of policies and measures to address greenhouse gas emissions from international marine bunker fuels.

ELEMENTS RELATED TO OBJECTIVE, PRINCIPLES, REVIEW OF COMMITMENTS, EDUCATION, TRAINING AND PUBLIC AWARENESS, EVOLUTION AND ANNEXES

1.1 Beyond the emission limitation commitments to be taken by Annex [*]⁽²³⁾ Parties pursuant to this [Protocol]:

(a) emission limitation commitments by Annex [*] Parties will be contingent upon the extent of participation by non-Annex [*] Parties in action to restrain emissions;

(b) emission limitation commitments should be determined with reference to a longer term atmospheric concentration goal consistent with the ultimate objective of the Convention to prevent dangerous anthropogenic interference with the climate;

(c) emission limitation commitments for each Party should be specified as proportional shares of a global emissions budget, with reference to a longer term atmospheric concentration goal consistent with the ultimate objective of the Convention to prevent dangerous anthropogenic interference with the climate.

Article 2: Principles

1. In their efforts to implement policies and measures to achieve the objective of the Convention, the Parties affirm the need to be guided by the following principles:

(a) The need to take precautionary measures to anticipate, prevent or minimise the causes of climate change and mitigate its adverse effects on the basis of equity and in accordance with their common but differentiated responsibilities and respective capabilities.

(b) Ensure global benefits at the lowest possible cost through cost-effective measures that take into account different socio-economic contexts, are comprehensive, cover all relevant sources, sinks and reservoirs of greenhouse gases, comprise all economic sectors, and may be carried out cooperatively by interested Parties.

(c) Equitable and appropriate contributions from each of the Parties undertaking quantified emission limitations and reduction objectives, reflecting their differences in starting points and approaches, their economic structures and resource bases, available technologies and other national circumstances.

(d) The need to promote a supportive and open international economic system that would lead to sustainable economic growth and development in all Parties.

2. Quantified emission limitation and reduction objectives under this Protocol shall be based on principles that constitute a basis on which further strengthening of such objectives can be facilitated as evolving scientific findings require.

Article 8: Cooperative efforts by interested Parties

1. Any Party listed in Annex I of the Convention that is in compliance with its obligations under Article 4 ("Quantified emission limitation and reduction objectives for developed country Parties listed in Annex I of the Convention"), and has in place a national mechanism for certification, verification and accounting of transfer between Parties listed in Annex I of the Convention of greenhouse gas emission reductions or sink enhancements achieved through specific investments, may transfer to, or receive from, any Party listed in Annex I of the Convention any of the carbon equivalent emissions reductions or sink enhancements resulting from such investments for the purpose of meeting its obligations under Article 4 ("Quantified emission limitation and reduction objectives for developed country Parties listed in Annex I of the Convention").

2. Any Party not listed in Annex I of the Convention may, on a voluntary basis, carry out projects that are additional to what would otherwise occur that limit greenhouse gas emissions or remove greenhouse gases by sinks and reservoirs, in accordance with their national environment and development priorities and strategies. These Parties may decide to define a monetary value for the climate benefits achieved through such projects, and may further decide to transfer any portion thereof to any Party on mutually beneficial and agreed terms. Provided that such transfers are validated by host country acceptance, approval or endorsement, and reported, measured, and assessed in accordance with provisions established by the Parties to the Convention, to be reviewed at the first Meeting of the Parties, such transfers are eligible for accounting under the commitments defined in Article 4 ("Quantified emission limitation and reduction objectives for developed country Parties listed in Annex I of the Convention") for such Parties which are in compliance with their obligations.

Article 9: Communication of information

1. ...................

2. each Party to this Protocol listed in Annex I of the Convention shall include in its National Communication pursuant to Article 12 of the Convention detailed information on any emission reductions or sink enhancements received from another Party in accordance with Article 8 ("Cooperative efforts by interested Parties").

With reference to the 1 April 1997 deadline for further inputs to the draft negotiating text, Norway would like to see the following footnote inserted in "Further Proposals", paragraph 41 (b) of the Draft text by the Chairman on strengthening the commitments in Article 4.2 (a) and (b) distributed at AGBM-7 in March:

Footnote to paragraph 41 (b): "To be included in the present form if COP 3 takes a conclusive decision on the AIJ Pilot Phase and progression beyond that. If no conclusive decision is taken at COP 3, the present text should be amended".

B.

OBJECTIVES WITHIN SPECIFIC TIME-FRAMES (QELROS)

1. Parties included in Annex I of the Convention, in a comprehensive manner, covering all GHGs, their emissions by sources and removals by sinks and all relevant sectors, shall:

1.1 Return to their 1990 levels, anthropogenic emissions of carbon dioxide (CO₂), and other GHGs not controlled by the Montreal Protocol, by the year 2000;

1.2 Reduce their anthropogenic emissions of GHGs not controlled by the Montreal Protocol, by an achievable and realistic percentage of their 1990 levels by the year 2005, including a 15% reduction of CO₂; and

1.3 Further reduce their anthropogenic emissions of GHGs not controlled by the Montreal Protocol by 15%-20% of their 1990 levels by the year 2010.

2. Parties included in Annex I of the Convention that fail to return to their 1990 levels of anthropogenic emissions by the year 2000 shall reduce their anthropogenic emissions by an additional 5% of their 1990 levels by the year 2005 and then by an additional 5% by the year 2010.

3. Parties included in Annex I to the Convention shall achieve the QELROs contained in paragraphs 1 and 2 above, taking fully into account the social and economic impacts of response measures on Parties included in Article 4.8 to the Convention in accordance with Article 3.

4. QELROs of each Party included in Annex I of the Convention shall take into account the differences in starting points and approaches, economic structures and resource bases, the need to maintain strong and sustainable economic growth, available technologies and other individual circumstances, as well as the need for equitable and appropriate contributions by each of these Parties to the global effort.

This proposal is based on the text submitted by the Group of 77 and China:

CHAPTER II:

STRENGTHENING THE COMMITMENTS IN ARTICLE 4.2 (a) and (b)

Timeframes (QELROs)

1. Parties included in Annex I of the Convention, in a comprehensive manner, covering all greenhouse gases, their emissions by sources and removals by sinks and all relevant sectors, taking into account paragraph 4 below, shall:

(a) Return to their 1990 levels anthropogenic emissions of all greenhouse gases not controlled by the Montreal Protocol by the year 2000;

(b) Reduce their anthropogenic emissions of greenhouse gases by 20% of their 1990 levels by the year 2005;

(c) Further reduce their anthropogenic emissions of greenhouse gases by 20% of their 1990 levels by the year 2010.

2. Each Party included in Annex I of the Convention that fails to stabilize its 1990 levels of anthropogenic emissions by the year 2000 will be required to exert further efforts to reduce its emissions by an additional 5% of their 1990 levels by the year 2005 and by an additional 5% by the year 2010.

NB: (proposals are underlined).

Strengthening the commitments in Article 4.2 (a) and (b):

"Policies and measures" to the chapter "Lists of policies and measures"

This text is one of three inter-related proposals submitted by representatives of Hungary, Slovakia and Poland on behalf of the above mentioned countries with the relevant cross-references to the contents and symbols of these proposals (AC-1, AC-2, AC-3).

AC-2

Parties listed in Annex XX (see AC-3) shall adopt and implements the policies and measure set out in the list AA

List AA:

Mandatory energy efficiency standards and labelling for common household appliances;

Promote the development of technologies and increased use of renewable energy sources;

Increase energy efficiency in energy production, transformation and distribution, industry, transport and household sectors;

A framework for the introduction of an environmental taxation scheme;

Sustainable policies in forest sector mainly through afforestation and re-forestation.

Parties listed in Annex XX shall give high priority to the adaptation and implementation of the policies and measures set out in list BB and shall work towards their early coordination

List BB:

Voluntary agreements with energy producers and importers and industry to improve energy efficiency

Reduction of CO₂ emissions from newly registered cars

Fuel switching to lessen the GHG emitting sources

Reduction of GHG emissions in energy production, processing, transportation and distribution

Promote production of biofuel and sustainable wood production for local demand and for industry

Develop international cooperation on P&M's leading to reduction of fluorocarbon emissions

Promote education, training and public awareness.

An electronic version of this text was not available.

Item 25:

Instead of the text:

"The statements of Article 6 of the Convention should be used."

include new text:

"The provisions of Article 6 to the Convention shall apply to this Protocol."

Item 20:

Instead of the text in brackets:

"(note: List D is to be added)"

include new text in brackets:

"(note: Annexes C (List of global warming potentials for greenhouse gases not controlled by the Montreal Protocol) and D (List of possible policies and measures) is to be added)".

The following additional proposal text is submitted to the "Draft text by the Chairman" on "Strengthening the commitments in Article 4.2(a) and (b)" - Quantified emission limitation and reduction objectives within specified time-frames (QELROs), to its part "C Level and timing".

This submission is one of the three inter-related proposals submitted by representatives of Hungary, Poland and Slovakia on behalf of the above-mentioned countries with the relevant cross-references to the contents and symbols of these proposals (AC-1, AC-2, AC-3).

Proposal AC-1:

1.1 Annex XX Parties, individually or jointly, shall reduce their emission levels for CO₂, CH₄ and N₂O together (weighted total, using GWP with a 100 year time-horizon) so that this total, in 2005, do not exceed its level for reference year 1990 or the period determined in accordance with the Article 4.6 of the UNFCCC.

1.2 Each Annex XX Parties shall, [in its instrument of ratification, acceptance, approval or accesssion] notify the percentage of intended emission reduction level in accordance with the paragraph 1.1.

2. Furthermore, Annex XX Parties shall take effective measures to control and /or, [where appropriate], to reduce their emission levels for CO₂, CH₄ and N₂O together (weighted total, using GWP with a 100 year time-horizon) beyond 2005, taking into account the emission level for reference year 1990 or the period determined in accordance with the Article 4.6 of the UNFCCC.

1. Continuing to advance the implementation of existing commitments in

Article 4.1

Paragraph 22 should read:

"Any Party not included in Annex I to the Convention may use Implementing Agreements like those developed by the International Energy Agency (OECD/IEA) to be bound, on a voluntary basis, for implementing specific policies and measures or for fulfilling a specific QELRO."

This paragraph must be tranferred to: Strengthening the commitments in

Article 4.2(a) and (b). Policies and measures, G. Voluntary application of commitments by non-Annex I Parties.

2. Elements related to institutions, mechanisms and other clauses

Paragraph 78 from : II. Institutions and processes, A. Conference of the Parties/Meeting of the Parties, should be deleted:

"The protocol shall utilise the same Conference of the Parties as the parent Convention."

Paragraph 121 from: III. Final Elements, A. Decision-Making, should read:

"Decisions under the Protocol shall be adopted by a two-thirds majority vote of both, and simultaneously, Parties to this Protocol included in Annex I to the Convention present and voting, and Parties to this Protocol not included in Annex I to the Convention present and voting."

3. Elements related to objective, principles, review of commitments, education, training and public awareness, evolution and annexes

Paragraph 23 from : II. Review of commitments, Proposal 6, should read:

"The Conference of the Parties to this Protocol shall, at its first session, establish a mechanism for the review of the adequacy of the commitments undertaken by the Parties, including QELROs contained in the Protocol, in the light of the evolution of scientific knowledge."

4. Strengthening the commitments in Article 4.2(a) and (b). Quantified emission limitation and reduction objectives within specified time-frames (QELROs)

Paragraph 14.1 from: C. Level and timing, Proposal 7, should read:

"As a first step, the global objective of the Protocol is a 10 per cent reduction of the total greenhouse gas emissions of Annex I Parties by the year 2010 compared to 1990 levels."

Paragraph 14.2 from: C. Level and timing, Proposal 7 should read:

"Countries shall be grouped in categories differentiated by increments of 5 tons of annual CO₂ equivalent emissions per capita. The first category shall contain countries with emissions between 3 and 5 tons, the second category countries between 5 and 10 tons, and so on. Countries in the same category shall receive the same QELROs, starting, for the first category, with an emission cap (that is, stabilization at 1990 levels beyond the year 2000)."

Paragraph 14.3 from: C. Level and timing, Proposal 7, should read:

"The Protocol shall establish legally-binding QELROs for each Party to this Protocol."

Paragraph 36.1 from: D. Flexibility, Proposal 4, should read:

"All Parties to the Protocol may fulfil part of their obligation to reduce emissions of greenhouse gases through joint implementation of mitigation measures. Joint implementation may contribute up to x per cent to meeting the reduction obligation of each Party. The appropriateness of this limit shall be reviewed periodically and amended as necessary, taking into account both the environmental effectiveness and economic efficiency of the joint implementation instrument."

Paragraph 53 from: F. Measurement, reporting and communication of information, Proposal 9, should read:

"The provisions of the Convention as well as the existing relevant decisions adopted by the Conference of the Parties of the Convention apply mutatis mutandis. Hence, Parties to the Protocol shall submit consolidated reports on the policies and measures adopted as well as on the specific estimate of their effects on the basis of the already existing regime."

A. DEFINITIONS

"Pre-industrial level" in relation to global average temperatures means the 1860 to 1880 average global mean surface temperature.

B. PREAMBLE

Noting that there are many uncertainties in predictions of climate change, particularly with regard to the timing, magnitude and regional patterns thereof,

Reaffirming that Parties should take precautionary measures to anticipate, prevent, or minimize the causes of climate change and mitigate its adverse effects and that where there are threats of serious or irreversible damage, lack of full scientific certainty should not be used as a reason for postponing such measures,

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 mountain ecosystems are particularly vulnerable to the adverse effects of climate change.

C. OBJECTIVE

The guiding objective of this protocol shall be to ensure that global mean sea level rise resulting from climate change does not exceed 20 cm above 1990 levels and that the global average temperature does not exceed 2 degrees Celsius above the pre-industrial level.

D. PRINCIPLES

Parties shall take precautionary measures to anticipate, prevent or minimize the causes of climate change and mitigate its adverse effects. Where there are threats of serious or irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing such measures.

Parties shall take fully into account 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.

Parties shall take fully into account the specific needs and special circumstances of 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 mountain ecosystems that are particularly vulnerable to the adverse effects of climate change.

STRENGTHENING THE COMMITMENTS IN ARTICLE 4.2 (a)

AND (b) DEALING WITH QUANTIFIED EMISSION LIMITATION

AND REDUCTION OBJECTIVES

- Guiding objectives

QELROs shall be adopted and reviewed in the light of the best available scientific information and assessment on climate change and its impacts, as well as relevant technical, social and economic information, to ensure that greenhouse gas concentrations in the atmosphere do not cause global mean sea level rise to exceed 20 cm above 1990 levels and that the global average temperature does not exceed 2 degrees Celsius above the pre-industrial level.

INSTITUTIONS, MECHANISMS AND OTHER CLAUSES

- Relationships to other agreements/principles of international law

This protocol shall not be construed as affecting the rights of any Party under the general rules and principles of international law concerning responsibility and liability for the adverse effects of climate change.

1. INTRODUCTORY ELEMENTS

A. Preamble

1. Being Parties to the United Nations Framework Convention on Climate Change

(Hereinafter: The Convention),

(followed by paras. 10.1 to 10.8 of Document FCCC/AGBM/1997/2, G-77 and China proposals)

2. Acknowledging that, in accordance with the principle of common but differentiated responsibilities, Parties to the Convention and to this protocol/another legal instrument shall in the future re-examine the impact of global efforts to combat climate change and the adverse effects thereof,

3. Affirming that response 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 legitimate economic growth and the eradication of poverty,

4. Recognizing that all countries, especially developing countries, need access to resources required to achieve sustainable social and economic development and that, in order for developing countries to progress towards that goal, their energy consumption will need to grow taking into account the possibilities for achieving greater energy efficiency and for controlling greenhouse gases in general, including through the application of new technologies on terms which make such an application economically and socially beneficial.

B. Definitions

5. The definitions contained in Article 1 of the Convention shall apply.

6. This protocol/another legal instrument shall contribute to achieving the ultimate objective of the Convention as defined by its Article 2, and to strengthening the commitments under Article 4.2(a) and (b), in accordance with Article 4.2(d) of the Convention.

7. All the Principles of the Convention, as contained in its Article 3, shall apply to this protocol/another legal instrument.

II. STRENGTHENING THE COMMITMENTS IN ARTICLE 4.2 (a)

AND (b) OF THE CONVENTION

A. Policies and Measures

1. Each of the Parties included in Annex I to the Convention shall:

1.1 Adopt national policies and measures necessary to limit and reduce emissions by sources and to protect and enhance its greenhouse gas sinks and reservoirs, to modify longer term trends in anthropogenic emissions consistent with the objective of the Convention, and identify environmental and economic impacts and results that could be achieved with regard to time horizons such as 2005, 2010 and 2020;

1.2 Ensure that these policies and measures applied by each of these Parties will have no adverse impacts on socio-economic conditions of developing country Parties, especially those listed in Article 4.8 of the Convention;

2. These policies and measures, applied by each of these Parties included in Annex I to the Convention, shall:

2.1 Address all greenhouse gases, their emissions by sources and removals by sinks, and all relevant sectors;

2.2 Contribute to the stabilization of greenhouse gas concentrations in the atmosphere as elaborated in Article 2 of the Convention;

2.3 Include, and maintain a balance between, those policies and measures aimed at reducing emissions of greenhouse gases in emitting sectors and those aimed at reducing consumption of their products;

3 Each Party included in Annex I of the Convention shall take fully into account the provisions contained in Article 4.8 in the implementation of their policies and measures, which shall be in accordance with Article 3.5 of the Convention.

B. Quantified Emission Limitation and Reduction Objectives within Specified

Time-Frames (QELROs)

1. Each Party included in Annex I of the Convention shall, in a comprehensive manner, covering all greenhouse gases, their emissions by sources and removals by sinks and all relevant sectors, taking into account paragraph 4 below:

1.1 Return to its 1990 levels anthropogenic emissions of all greenhouse gases not controlled by the Montreal Protocol by the year 2000;

1.2 Reduce its anthropogenic emissions of greenhouse gases by ... % of their 1990 levels by the year 2005;

1.3 Further reduce its anthropogenic emissions of greenhouse gases by ... % of their 1990 levels by the year 2010.

2. Each Party included in Annex I of the Convention that fails to stabilize its 1990 levels of anthropogenic emissions by the year 2000 will be required to exert additional efforts to reduce its emissions by an additional ... % of their 1990 levels by the year 2005 and by an additional ... % by the year 2010.

3. Each Party included in Annex I to the Convention shall achieve the objectives contained in paragraphs 1 and 2 above, taking fully into account the social and economic impacts of these response measures on Parties included in Article 4.8 of the Convention, in accordance with Article 3.5.

4. QELROs of each Party included in Annex I of the Convention shall take into account the differences in starting points and approaches, economic structures and resource bases, the need to maintain strong and sustainable economic growth, available technologies and other individual circumstances, as well as the need for equitable and appropriate contributions by each of these Parties to the global effort.

5. Each Party included in Annex I of the Convention shall meet its QELROs through domestic action.

6. The compensation mechanism established under Section C below shall be available, as appropriate, to developing countries listed in Article 4.8 suffering damage and losses, including social and economic losses, of actions taken under this section.

C. Possible Impacts on Developing countries of New Commitments in the Protocol/Another Legal Instrument (Economic Injuries sustained by Developing Countries)

1. Each Party included in Annex I of the Convention shall take fully into account the provisions contained in Article 4.8 in the implementation of policies and measures to achieve these Parties' QELROs.

2. The commitments in Article 4.2(a) and (b) of the Convention for developed country Parties/other Parties included in Annex I should be strengthened by establishment of a concrete compensation mechanism for damages arising from implementation of response measures on developing countries referred to in Article 4.8, in order to provide them with the necessary safeguards.

3. (To be developed later)

D. Measurement, Reporting and Communication of Information

Communication of information related to implementation of this protocol/another legal instrument shall be in accordance with Article 12 of the Convention.

E. Voluntary Application of Commitments by Non-Annex I Parties

Each Party included in Annex I to the Convention shall meet its QELROs without introducing any new commitments for Parties not included in Annex I.

III. REVIEW OF COMMITMENTS

1. The Conference of the Parties, as the supreme body of the Convention, shall keep under regular review the implementation of the Convention and any related legal instrument that the Conference of the Parties may adopt (Article 7.2 of the Convention).

2. Existing mechanisms in the Convention, including review, assessment and financing, shall apply to the commitments adopted by the protocol/another legal instrument.

3. The review of this protocol/another legal instrument shall be undertaken under Article 4.2(d) of the Convention.

IV. CONTINUING TO ADVANCE THE IMPLEMENTATION OF EXISTING COMMITMENTS IN ARTICLE 4.1

(G-77 and China text contained paragraphs 152.1 to 152.3 of doc. FCCC/AGBM/1997/2, with the addition of paragraph 2 (b) of the Berlin Mandate, Decision 1/CP.1, in the chapeau).

V. INSTITUTIONS AND PROCESSES

A. Conference of the Parties

As in III. Review of commitments above.

B. Secretariat

The Secretariat of the Convention shall serve as the Secretariat of the Protocol/Another Legal Instrument. Functions provided in Article 8.3 of the Convention shall apply, mutatis mutandis, to the protocol/another legal instrument.

F. Review of Information and Review of Implementation

1. As in III.1 above.

2. As in III.2 above.

3. As in III.3 above.

VI. MULTILATERAL CONSULTATIVE PROCESS

The Parties to the protocol/another legal instrument shall, after the entry into force of the protocol/another legal instrument, give consideration to the multilateral consultative process referred to in Article 13 of the Convention.

VII. FINAL ELEMENTS

A. Decision-Making

Decisions under this protocol/another legal instrument shall be made by the Parties to the protocol/another legal instrument.

B. Relationship with the Convention

The protocol/another legal instrument is a supplement to, and is an integral part of the Convention.

C. Evolution

Any further development of commitments shall be in accordance with

Article 4.2 (d) of the Convention.

D. Annexes

Elaboration of any annexes dealing with lists in Annexes I and II of the Convention, and any other listings of the Parties shall be in accordance with Article 4.2(f) and 4.2(g) of the Convention, taking into account Article 4.2(d) of the Convention.

An electronic version of this text was not available.

Additional comments

In acccording to the statement of Mr. Victor E. Chub - Head of the delegation of the Republic of Uzbekistan on the plenary session of the AGBM, the point 40 is offered by the Republic of Uzbekistan on behalf of Armenia, Azerbaijan, Georgia, Moldova and Turkmenistan.

40. Joint implementation could be used as a way of transferring technology

on a more advantageous basis.

The Republic of Uzbekistan on behalf of Armenia, Azerbaijan, Georgia, Moldova and Turkmenistan offers the completed edition of the proposals for including them in the Protocol.

E. Possible impacts on developing countries of new commitments

in the new instrument/socio-economic injuries sustained

44. IPCC provides assistance in the preparation of recommendations on ways

of mitigating the possible negative economic, social and ecological impact of

the new commitments of Parties included in annex 1 on developing countries and

countries with economy in transition.

40. An annex to the document indicates ways of assisting countries not

included in annex 1 in implementing their obligations and suggests ways of

encouraging countries not included in annex 1 to submit proposals on the best

way of implementing their obligations more rapidly.

Recognizing that the purpose of this Protocol is to facilitate the achievement of the ultimate objective, indicated in article 2 of the Convention, by the adoption of specific new commitments by the Parties included in annex 1 and also by the implementation of voluntary measures which could be taken by all Parties setting quantitative limits on and reducing anthropogenic emissions, as well as increasing reservoirs of greenhouse gas sinks, by specific times after the year 2000.

1. 1/ This range is drawn from the Annex to the European Union Environment Council conclusions on climate change of 2-3 March 1997 and is, therefore, needed to ensure appropriate accountability relating to each Annex A party in meeting its QELROs commitments contained in this instrument.

2. 2/ This text replaces text in Article 4 (b) of Australian submission of 15 January 1997.

3. 3/ This refers to Article 7 (a) of the Australian submission of 15 January 1997; paragraph 19.1 of Chairman's draft text of 6 March at 8.00 pm on Elements Related to Objective, Principles, Review of Commitments, Education, Training and Public Awareness, Evolution and Annexes.

4. 4/ This refers to Article 3 of the Australian submission of 15 January 1997; paragraph 9.1 of Chairman's draft text of 6 March at 5.00 pm on Strengthening the Commitments in Article 4.2 (a) and (b).

5. 5/ This refers to Article 3 of the Australian submission of 15 January 1997; paragraph 9.1 of Chairman's draft text of 6 March at 5.00 pm on Strengthening the Commitments in Article 4.2 (a) and (b).

6. 6/ This refers to Article 3 of the Australian submission of 15 January 1997; paragraph 9.1 of Chairman's draft text of 6 March at 5.00 pm on Strengthening the Commitments in Article 4.2 (a) and (b).

7. 7/ This refers to Article 4 (c) of the Australian submission of 15 January 1997; paragraph 9.3 of Chairman's draft text of 6 March at 5.00 pm on Strengthening the Commitments in Article 4.2 (a) and (b).

8. 8/ This refers to revised Article 8 of the Australian submission of 15 January 1997; revised paragraph 9.4 of Chairman's draft text of 6 March at 5.00 pm on Strengthening the Commitments in Article 4.2 (a) and (b) - see text below.

9. 9/ This refers to Article 4 (c) of the Australian submission of 15 January 1997; paragraph 9.3 of Chairman's draft text of 6 March at 5.00 pm on Strengthening the Commitments in Article 4.2 (a) and (b).

10. 10/ This refers to Article 3 (a) and (b) of the Australian submission of 15 January 1997; paragraph 9.1 (a) and (b) of Chairman's draft text of 6 March at 5.00 pm on Strengthening the Commitments in Article 4.2 (a) and (b).

11. 11/ This refers to Article 2 of the Australian submission of 15 January 1997; paragraph 1 of Chairman's draft text of 6 March at 8.00 pm on Elements Related to Objective, Principles, Review of Commitments, Education, Training and Public Awareness, Evolution and Annexes.

12. 12/ This refers to Article 7 of the Australian submission of 15 January 1997; paragraph 19 of Chairman's draft text of 6 March at 8.00 pm on Elements Related to Objective, Principles, Review of Commitments, Education, Training and Public Awareness, Evolution and Annexes.

13. 13/ This refers to Article 7 (c) of the Australian submission of 15 January 1997; paragraph 19.3 of Chairman's draft text of 6 March at 8.00 pm on Elements Related to Objective, Principles, Review of Commitments, Education, Training and Public Awareness, Evolution and Annexes.

14. 14/ This refers to Article 8 of the Australian submission of 15 January 1997; revised paragraph 9.4 of Chairman's draft text of 6 March at 5.00 pm on Strengthening the Commitments in Article 4.2 (a) and (b) - see text above.

15. ¹⁵ The text within the square brackets is proposed by Norway only.

16. ¹⁶ Fuel economy test cycle in Japan. The majority of new vehicles are subject to one of three types of fuel economy test cycle (European, Japanese and American types).

17. Additions of developed countries or countries with economies in transition could be made.

18. ² Annex [*] shall be the list of Annex I Parties to the FCCC and other Parties that may assume legally binding emission limitation commitments under the [Protocol].

19. ³ Annex [C] shall be a list of gases in source categories of emissions of anthropogenic CO₂, and other greenhouse gases not covered by the Montreal Protocol, for which data certainties are judged by the Parties to the [Protocol] to be adequate for the purposes of legally binding commitments.

20. ⁴ Annex [D] shall be a list of gases in categories which can be either sources or sinks for emissions of anthropogenic CO₂, and other greenhouse gases not covered by the Montreal Protocol, for which data certainties are judged by the Parties to the [Protocol] to be adequate for the purposes of offsetting binding emission limitation commitments, potentially with a weighting factor and constraints relating to the permanence of any such sinks.

21. ⁵ Annex [*] shall be the list of Annex I Parties to the FCCC and other Parties that may assume legally binding emission limitation commitments under the [Protocol].

22. ⁶ Annex [*] shall be the list of Annex I Parties to the FCCC and other Parties that may assume legally binding emission limitation commitments under the [Protocol].

23. ⁷ Annex [*] shall be the list of Annex I Parties to the FCCC and other Parties that may assume legally binding emission limitation commitments under the [Protocol].