Distr.
GENERAL
FCCC/CP/1997/2/Add.1
26 November 1997
CONFERENCE OF THE PARTIES
Third session
Kyoto, 1-10 December 1997
Item 5 of the provisional agenda
(see FCCC/AGBM/1997/8, para. 20).
GE.97-
A. Amendment to Article 1
The following definition shall be added to Article 1 after
definition 5:
5(bis) "Intergovernmental Panel on Climate Change" means the
Intergovernmental Panel on Climate Change jointly established by the
World Meteorological Organization and the United Nations Environment
Programme in 1988.
(Additional definitions, as necessary).
B. Amendment to Article 4
1. The following subparagraph shall be inserted after
paragraph 1(a):
(a)(bis) Formulate, where relevant and to the extent possible,
cost-effective [national], and where appropriate [regional]
programmes for the development of local emission factors, activity
data and models which reflect the socio-economic conditions of each
Party for the preparation and periodic updating of national
inventories of anthropogenic emissions by sources and removals by
sinks of all greenhouse gases not controlled by the Montreal
Protocol, so as to move toward the improvement of their quality,
using comparable methodologies to be agreed upon by the Conference of
the Parties;
2. The following subparagraph[s] shall be inserted after
paragraph 1(b):
Alternative A
(i) [[In the implementation of the commitments in this paragraph,]
[Giving special consideration to supporting measures which favour the
economic development of developing country Parties and minimizing
adverse effects on other Parties, especially developing country
Parties and in particular those identified in] [paragraph 8] [shall
be taken into account];]
(ii) The programmes containing measures shall, inter
alia, and to the extent possible and relevant, [remove obstacles
to the limitation or the abatement of increase of anthropogenic
emissions by sources and to the enhancement of removals by sinks,
enhance energy efficiency, emphasize market-oriented pricing, as
appropriate encourage reforms in the energy sector and regulatory
regimes, increase the use of renewable energy, make improvements in
the transport and industrial sectors, promote the development and
sustainable management of greenhouse gas sinks and reservoirs,
improve the integration of climate change considerations into the
agriculture and waste management sectors, promote voluntary
arrangements with industry, and generally take actions to address
climate change that, in the context of their national priorities,
objectives and circumstances, are economically justified and can help
address other environmental problems;] and
(iii) The programmes containing measures shall, inter
alia, and to the extent possible and relevant, [improve
protection measures for infrastructure,] deploy adaptation
technologies and know-how, develop and implement integrated mountain
area plans, develop and implement integrated coastal zone management
plans, develop research on impacts of, and adaptation to, climate
change, develop and implement related technical capacity building and
awareness raising measures, promote sustainable management plans for
the conservation and enhancement of sinks and reservoirs and
ecosystems and develop and implement plans for water resources and
agriculture, particularly for countries affected by drought and
desertification;
Alternative B
(b)(bis) Each developed country Party and each other developed Party included in Annex II shall incorporate into its national programmes the quantified emission limitation and reduction objectives and related policies and measures under
paragraphs 2(a)(bis) to (quinquies) and paragraphs 2(b)(bis) to
(quinquies) below, including details of measures undertaken by them
to promote, facilitate and finance transfer of technology, provide
new and additional financial resources and assist in meeting costs of
adaptation in developing countries. Each developing country Party
shall seek to include in its national communication, as appropriate,
information on programmes which contain measures that the Party
believes contribute to addressing climate change and its adverse
impacts, including the abatement of increase in greenhouse gas
emissions, and enhancement of and removals by sinks, capacity
building and adaptation measures;
3. The following subparagraph shall be inserted after
paragraph 1(c):
Alternative A
(c)(bis) Promote effective modalities for removing barriers to the
investment in and development, application and diffusion, including
the transfer of, environmentally sound technologies, know-how,
practices and processes pertinent to the mitigation of, and
adaptation to, climate change, and consider policies and programmes
for the effective transfer of environmentally sound technologies
through [financial and fiscal] incentives to promote and enhance
access to, and transfer of, currently available environmentally sound
technologies;
Alternative B
(c)(bis) Take all practicable steps to promote, facilitate and
finance, as appropriate, the transfer of, or access to,
environmentally sound technologies, know-how, practices and processes
pertinent to the mitigation of, and adaptation to, climate change, in
particular to developing countries, including the formulation of
policies and programmes for the effective transfer of environmentally
sound technologies that are publicly owned or in the public domain,
and encourage the private sector through financial and fiscal
incentives to promote and enhance access to, and transfer of,
patent-protected environmentally sound technologies, in particular to
developing countries;
4. The following subparagraph[s] shall be inserted after
paragraph 1(f):
(f)(bis) Identify and implement procedures that enable their
governments to take climate change considerations into account in
relevant decisions, including those of intergovernmental
organizations and in particular multilateral development
banks;]
[(f)(ter) Promote, co-operate and share information on the
national development and use of indicators to assist in the
assessment of climate change and its adverse impacts and response
measures, inter alia, on the economy, infrastructure, human
settlements, social and cultural practices, public health and the
quality of the environment with a view to minimizing any adverse
effects, and include such assessments in their national
communications;]
5. The following subparagraph shall be inserted after
paragraph 1(g):
(g)(bis) Co-operate in scientific and technical research and
systematic observation and development of data archives to reduce
uncertainties related to the climate system, the adverse impacts of
climate change and the economic and social consequences of various
response strategies, and promote the development and strengthening of
endogenous capacities and capabilities to participate in
international and intergovernmental efforts, programmes and networks
on research and systematic observation, taking into account Article
5;
6. The following subparagraph shall be inserted after
paragraph 1(i):
(i)(bis) Co-operate in and promote at the international level, and, where appropriate, using existing bodies, the development and implementation of education and training programmes, [including the strengthening of national institutions] and the exchange or secondment of personnel to train experts in this field, in particular for developing countries, and facilitate at the national level public awareness and public access to information on climate change. Suitable modalities should be developed to implement these activities through the relevant bodies of the Convention taking into account
Article 6;
7. The following subparagraph shall be inserted after
paragraph 2(a):
(a)(bis) Each of the Parties included in Annex I [or acting under Article 4(bis)] shall adopt and implement national policies and measures in achieving its commitments regarding quantified emission limitation and reduction objectives under
subparagraph (b)(bis) to (quinquies) below, in order to promote
sustainable development,
Alternative A
such as the following policies and measures, in accordance with
its national circumstances:
(i) Enhancement of energy efficiency in all sectors of the
national economy;
(ii) Protection and enhancement of sinks and reservoirs of
greenhouse gases not controlled by the Montreal
Protocol;
(iii) Promotion, development and increased use of renewable forms
of energy and of innovative environmentally sound
technologies;
(iv) Phasing out of market imperfections, fiscal incentives, tax
exemptions and subsidies in all greenhouse gas emitting sectors that
run counter to the objective of the Convention; and
(v) Providing a continuous 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;
Alternative B
in particular, the following policies and measures:
(i) Implement commitments in subparagraph (e)(ii) below and remove
obstacles to the limitation and reduction of emissions of greenhouse
gases and greenhouse gas precursors not controlled by the Montreal
Protocol and to the enhancement of removals by sinks;
(ii) Enhance energy efficiency in all sectors, including the
energy production and transformation, industrial, transport,
residential and commercial and agricultural sectors;
(iii) Progressively reduce/phase out market imperfections and
fiscal incentives that run counter to the objective of the
Convention, including, inter alia, subsidies on all fossil
fuels;
(iv) Encourage appropriate reforms in the energy sector and
regulatory regimes aimed at promoting policies and practices which
limit or reduce emissions of greenhouse gases not controlled by the
Montreal Protocol;
(v) Promote, develop and increase the use of renewable forms of
energy to ensure that a significant increase of the share of its
energy supply is realized;
(vi) Develop measures to limit and/or reduce emissions of
greenhouse gases not controlled by the Montreal Protocol in the
transport sector including average fuel consumption targets for new
vehicles, minimum excise duty on fuels, promotion of low emission
transport modes and other instruments;
(vii) Limit or reduce emissions of greenhouse gases not controlled
by the Montreal Protocol from aviation and marine bunker fuels,
through the International Civil Aviation Organization and the
International Maritime Organization, respectively, in particular work
towards introducing aviation fuel taxation;
(viii) Protect and enhance sinks and reservoirs of greenhouse
gases not controlled by the Montreal Protocol and promote sustainable
forest management practices, afforestation and
reforestation;
(ix) Integrate climate change considerations into agricultural
practices and promote sustainable forms of agriculture;
(x) Research and develop innovative climate-friendly technologies,
and promote the application and diffusion, including transfer of,
such technologies, particularly to developing country
Parties;
(xi) Limit and/or reduce emissions of hydrofluorocarbons,
perfluorocarbons and sulphur hexafluoride;
(xii) Apply economic instruments to ensure that market prices give
appropriate signals to consumers and businesses to limit and reduce
emissions of greenhouse gases; and
(xiii) Reduce emissions of methane through recovery and use in the
waste management sector, as well as in the production, transport and
distribution of energy.
The Conference of the Parties shall assess the application of
these policies and measures;
Alternative A
(a)(ter) Each of the Parties included in Annex I [or acting under
Article 4(bis)] shall implement policies and measures under this
paragraph in such a way as to avoid adverse effects, including the
adverse effects of climate change, effects on international trade,
and social, environmental and economic impacts on other Parties,
especially developing country Parties and in particular those
identified in paragraphs 8 and 9 below, taking into account Article
3, paragraph 5.(1) The Conference of
the Parties may take further action, as appropriate, to promote the
implementation of the provisions of this subparagraph;
Alternative B
(a)(ter) Each of the Parties included in Annex I [or acting under
Article 4(bis)] shall implement policies and measure under this
paragraph taking into account the adverse effects of climate change
and/or the impacts of the implementation of policies and measures on
developing country Parties, especially those identified in paragraph
8 below. The Conference of the Parties may take actions, as
appropriate, with respect to this paragraph;
(a)(quater) Each of the Parties included in
Annex I [or acting under Article 4(bis)] shall co-operate with other
such Parties to enhance the individual and combined effectiveness of
their policies and measures adopted and implemented under this
paragraph, in accordance with subparagraph (e)(i) below. To this end,
these Parties shall take steps to share their experience and exchange
information on these policies and measures, including developing ways
of improving their comparability, transparency and effectiveness. The
Conference of the Parties shall, at its first session after entry
into force of this subparagraph or as soon as practicable thereafter,
consider ways to facilitate such co-operation, taking into account
all relevant information;
[(a)(quinquies) The Parties included in
Annex I [or acting under Article 4(bis)] shall co-ordinate the
implementation of those policies and measures identified in
subparagraph (a)(bis) above and in the development of methodologies
to assess their effectiveness. The Conference of the Parties shall,
at its first session after entry into force of this subparagraph or
as soon as practicable thereafter, consider ways and means to
facilitate such co-ordination, including by instituting a process to
develop recommendations to Parties in the form of guidelines, taking
into account national circumstances and relevant work being done by
other bodies;]
8. The following subparagraphs shall be inserted after
paragraph 2(b):
Alternative A
(b)(bis) Parties included in Annex I shall, individually or
jointly, ensure that their net(2)
aggregate anthropogenic carbon dioxide equivalent emissions of the
greenhouse gases listed in Annex III do not exceed their commitments,
expressed in terms of emission budgets, inscribed in Attachment
1;
Alternative B
(b)(bis) Each Party included in Annex I shall ensure that its net
aggregate anthropogenic carbon dioxide equivalent emissions of the
greenhouse gases listed in Annex III do not exceed its commitments,
expressed in terms of emission budgets, inscribed in Attachment
1;
Alternative C
(b)(bis) Each Party included in Annex I shall achieve quantified
emission limitation and reduction objectives within time frames such
as 2005, 2010 and 2020 for its anthropogenic emissions by sources and
removals by sinks of carbon dioxide and other greenhouse gases not
controlled by the Montreal Protocol;
Alternative A
(b)(ter) The commitments for each Party included in Annex I under
subparagraph (b)(bis) above shall be established using the process
set out in Annex IV and shall be inscribed in Attachment
1;(3)
Alternative B
(b)(ter) Parties included in Annex I shall be subject to uniform
commitments under subparagraph (b)(bis) above, which are as follows:
(to be completed);
[(b)(quater) Each Party included in Annex I
shall, by 2005, have made demonstrable progress in achieving its
commitments under subparagraph (b)(bis) above;]
[(b)(quinquies) Each Party acting under Article 4(bis) shall ensure that its net aggregate anthropogenic carbon dioxide equivalent emissions of the greenhouse gases listed in Annex III do not exceed its commitments, expressed in terms of emission budgets and inscribed in Attachment 1, determined in accordance with the provisions of
Article 4(bis);]
9. The following subparagraphs shall be inserted after paragraph 2(c):(4)
(c)(bis) Each Party included in Annex I [or acting under Article
4(bis)] shall have in place, [no later than one year prior to the
start of the first budget period,] a national system for the
estimation of anthropogenic emissions by sources and removals by
sinks of all greenhouse gases not controlled by the Montreal
Protocol. Guidelines for such national systems, which shall
incorporate the methodologies specified in subparagraph (c)(ter)
below, shall be decided upon by the Conference of the Parties at its
first session after entry into force of this
subparagraph;
(c)(ter) Methodologies for estimating anthropogenic emissions by
sources and removals by sinks of all greenhouse gases not controlled
by the Montreal Protocol for the purposes of subparagraph (b)(bis) to
(quinquies) above shall be those accepted by the Intergovernmental
Panel on Climate Change and agreed upon by the Conference of the
Parties at its third session. Where such methodologies are not used,
appropriate adjustments shall be applied according to methodologies
agreed upon by the Conference of the Parties at its first session
after entry into force of this subparagraph. Based on the work of,
inter alia, the Intergovernmental Panel on Climate Change
and advice provided by the Subsidiary Body for Scientific and
Technological Advice, the Conference of the Parties shall regularly
review and, as appropriate, revise such methodologies and
adjustments. Any revision to methodologies or adjustments shall only
be used for the purposes of ascertaining compliance with commitments
under subparagraph (b)(bis) to (quinquies) above in the case of those
commitments that are adopted subsequent to that revision [, unless
otherwise decided by the Conference of the Parties];
[(c)(quater) The global warming potentials
used to calculate the carbon dioxide equivalence of anthropogenic
emissions by sources and removals by sinks of greenhouse gases not
controlled by the Montreal Protocol listed in Annex III for the
purposes of subparagraph (b)(bis) to (quinquies) above shall be those
accepted by the Intergovernmental Panel on Climate Change and agreed
upon by the Conference of the Parties at its third session. Based on
the work of, inter alia, the Intergovernmental Panel on
Climate Change and advice provided by the Subsidiary Body for
Scientific and Technological Advice, the Conference of the Parties
shall regularly review and, as appropriate, revise the global warming
potential of each such greenhouse gas. Any revision to a global
warming potential shall only apply to those commitments under
subparagraph (b)(bis) to (quinquies) above that are adopted
subsequent to that revision [, unless otherwise decided by the
Conference of the Parties];]
10. The following paragraph shall be inserted after paragraph
3:
3(bis) [In accordance] [Consistent] with the provisions of paragraph 3 above and Article 11, the developed country Parties and other developed Parties included in
Annex II shall provide [new and] additional financial resources
[through the mechanism defined by the Convention] to meet the agreed
full costs incurred by developing country Parties in implementing
measures under paragraphs [1(a)(bis), 1(f)(ter), 1(g)(bis) and
1(i)(bis)] above. They shall also provide such financial resources,
including for the transfer of technology, needed by the developing
country Parties to meet the agreed full incremental costs of
implementing measures that are covered by paragraphs [1(b)(bis) and
1(c)(bis)] above, and that are agreed between a developing country
Party and the international entity or entities referred to in Article
11, in accordance with that Article. The implementation of these
commitments shall take into account the need for adequacy and
predictability in the flow of funds and the importance of appropriate
burden sharing among the developed country Parties.
C. New Article 4(bis)
The following new Article shall be inserted after Article
4:
1. Any signatory or Party to this Convention not included in Annex
I may, at any time, notify the Depositary that it has opted to be
bound by this Article. The Depositary shall inform the other
signatories and Parties of any such notification.
2. Such notification, supported by an inventory of emissions of
greenhouse gases not controlled by the Montreal Protocol, including
for the historical base year or period chosen under subparagraph (a)
below, and a projection of future emissions, shall include a formal
declaration on the following points:
(a) Its chosen historical base year or period for the
implementation of subparagraph (b) below; and
(b) The level of limitation or reduction of anthropogenic
emissions of greenhouse gases listed in Annex III, as a basket, it is
ready to undertake.
3. Where a notification has been made pursuant to paragraphs 1 and
2 above, the secretariat shall include it in the agenda for the
following session of the Conference of the Parties, which shall
decide on the acceptance of such notification.
4. After its acceptance by the Conference of the Parties, a
notification by a signatory shall enter into force on the date of
entry into force of this Convention for that State, and a
notification by a Party to this Convention shall enter into force on
the ninetieth day after the acceptance of such notification. The
commitment under paragraph 2(b) above of Parties acting under this
Article shall be inscribed in Attachment 1.
5. Parties acting under this Article shall be bound by the
obligations of Parties included in Annex I with respect to the
communication of information related to implementation under Article
10, paragraphs 2(a) and 2(b) and Article 12, and the relevant
decisions of the Conference of the Parties.]
D. New Article 4(ter)
The following new Article shall be inserted after Article
4(bis):
[1. The first emission budget for each Party included in Annex I,
from 200[_] to 20[_], shall be equal to [_ per cent/the percentage
inscribed for it in Attachment 1 for that budget period] of its net
aggregate anthropogenic carbon dioxide equivalent emissions of the
greenhouse gases listed in Annex III in 1990, or the base year or
period determined in accordance with Article 4, paragraph 6,
multiplied by five.]
[2. The second emission budget for each Party included in Annex I,
from 20[_] to 20[_], shall be equal to [_ per cent/the percentage
inscribed for it in Attachment 1 for that budget period] of its net
aggregate anthropogenic carbon dioxide equivalent emissions of the
greenhouse gases listed in Annex III in 1990, or the base year or
period determined in accordance with Article 4, paragraph 6,
multiplied by five.]
[3. The first emission budget for each Party acting under
Article 4(bis) shall be equal to the percentage, determined in
accordance with Article 4(bis), of its net aggregate anthropogenic
carbon dioxide equivalent emissions of the greenhouse gases listed in
Annex III in the base year or period determined in accordance with
Article 4(bis), multiplied by five.]
[4. Any part of an emission budget, or any emission credits, which
a Party acquires from another Party in accordance with the provisions
of Article 4(quinquies) or Article 4(sexies) shall be added to the
emission budget of that Party.]
[5. Any part of an emission budget, or any emission credits, which a Party transfers to another Party in accordance with the provisions of Article 4(quinquies) or
Article 4(sexies) shall be subtracted from the emission budget of
that Party.]
[6. The procedures established in paragraphs 1 to 5 above shall be used to calculate the emission budget of Parties included in Annex I [or acting under
Article 4(bis)] for subsequent budget periods, unless otherwise
decided by the Conference of the Parties.]
[7. If a Party included in Annex I [or acting under Article
4(bis)] reduces its emissions during a budget period by a greater
percentage than that required by its commitment under Article 4,
paragraphs 2(b)(bis) to (quinquies), this difference shall, on
request of that Party, be credited to its emission budget for
subsequent budget periods.]
[8. If a Party included in Annex I [or acting under Article
4(bis)] exceeds its emission budget for a budget period, by up to and
including [_] per cent, that Party shall not be considered as being
in a state of non-compliance if it subtracts the amount of excess
emissions from its subsequent emission budget at a rate of
[_:1].]
[9. Based on the work of, inter alia, the
Intergovernmental Panel on Climate Change and advice provided by the
Subsidiary Body for Scientific and Technological Advice, the
Conference of the Parties shall regularly review and, as appropriate,
amend the list of greenhouse gases in Annex III with a view to
including other greenhouse gases not controlled by the Montreal
Protocol and source and sink categories. Any amendment to the list of
greenhouse gases in Annex III shall be in accordance with the
provisions set forth in Article 16, and shall only apply to those
commitments under Article 4, paragraphs 2(bis) to (quinquies) that
are adopted after the entry into force of that
amendment.]
[10. Until such time as any greenhouse gases not controlled by the
Montreal Protocol from any source and sink categories are covered by
commitments under this Article, Parties included in Annex I [or
acting under Article 4(bis)] shall make every effort to limit and
reduce their anthropogenic emissions by sources and enhance their
removals by sinks of such gases.]
[11. Each Party included in Annex I shall fulfil the commitments
mentioned in Article 4, paragraph 2(b)(bis) in such a way as to
minimize adverse social, environmental and economic impacts on
developing country Parties, particularly those included in Article 4,
paragraph 8. A compensation fund shall be established by the
Conference of the Parties to compensate the developing country
Parties which may suffer social, environmental and/or economic loss
as a result of actions taken to meet quantified emission limitation
and reduction objectives.]
[12. A clean development fund shall be established by the
Conference of the Parties to assist the developing country Parties to
achieve sustainable development and contribute to the ultimate
objective of the Convention. The clean development fund will receive
contributions from those Parties included in Annex I found to be in
non-compliance with their quantified emission limitation and
reduction objectives under Article 4, paragraph 2(b)(bis). The clean
development fund will also be open for voluntary contributions from
Parties included in Annex
I.](6)
E. New Article 4(quater)
The following new Article shall be inserted after Article
4(ter):
1. Any Parties included in Annex I [or acting under Article
4(bis)] that have agreed that they shall jointly fulfil their
obligations with respect to quantified emission limitation and
reduction objectives under Article 4, paragraphs 2(b) (bis) to
(quinquies) shall be deemed to have met those obligations provided
that their total combined level of emission reductions meets the
levels as set out in Attachment 1 for those Parties.
2. Such agreement will become operative only if all Parties to it
have notified the secretariat of the terms of the agreement, which
shall remain operative for the duration of this Convention or until a
decision to amend or rescind the agreement is notified to the
secretariat by all Parties to the agreement.
3. The Parties to any such agreement shall notify the secretariat
of the terms of the agreement on the date on which they deposit their
instruments of acceptance in respect of this Article, or
subsequently, in any event five years before the expiry of the period
mentioned in Article 4(ter). The secretariat shall in turn inform the
other Parties of the terms of the agreement or any decision to amend
or rescind it.
4. In the event of failure by the Parties to such an agreement to
achieve their total combined level of emission reductions, the
Parties to such an agreement shall be responsible for their levels of
emissions according to the notifications made in accordance with this
Article.
5. If Parties acting jointly do so in the framework of, and
together with, a regional economic integration organization which is
itself a Party to the Convention, each member State of that regional
economic integration organization individually, and together with the
regional economic integration organization acting in accordance with
Article 22, shall, in the event of failure to achieve the total
combined level of emission reductions, be responsible for its level
of emissions as notified in accordance with this
Article.]
F. New Article 4(quinquies)
The following new Article shall be inserted after Article
4(quater):
1. For the purpose of meeting its commitments under Article 4,
paragraphs 2(b)(bis) to (quinquies), any Party included in Annex I
[or acting under Article 4(bis)] may [, under the international
framework to be established under paragraph 4 below,] transfer to or
acquire from any other Party included in Annex I [or acting under
Article 4(bis)] any of its emissions allowed under Article 4,
paragraphs 2(b)(bis) to (quinquies), provided that each such Party is
in compliance with its obligations under Article 4, paragraphs
[2(a)(bis) to (quinquies), paragraphs 2(b)(bis) to (quinquies) and]
paragraphs 2(c)(bis) to (quater) and Article 12, and has in place a
national mechanism for the certification and verification of emission
trades.
2. A Party may authorize intermediaries to participate, under the
responsibility of that Party, in actions leading to the transfer or
acquisition, under this Article, of emissions allowed.
3. Emissions trading, as defined in paragraph 1 above, shall be
subject to the following criteria:
[(a) Emission levels achieved before the start of any trading
system established under this Convention can[not] be used as the
basis for emissions trading;]
(b) Emissions trading shall be supplemental to domestic policies
and measures [, which should provide the main means] [for the
purposes] of meeting commitments under Article 4, paragraphs
2(b)(bis) to (quinquies); and
(c) A Party whose emissions are in excess of its emissions budget
in any budget period may acquire, but may not transfer, emissions
allowed.
4. The Conference of the Parties shall, at its first session after
entry into force of this Article, or as soon as practicable
thereafter, decide upon modalities, rules and guidelines for
emissions trading, as provided for in paragraph 1 above, including
methodologies for verification and reporting.
5. If a question of a Party's implementation of the requirements of Article 4, paragraphs [2(a)(bis) to (quinquies), paragraphs (b)(bis) to (quinquies) and] paragraphs (c)(bis) to (quater) or Article 12 is identified in accordance with the provisions of
Article 12(bis), transfers and acquisitions of emissions allowed
may continue to be made, provided that any such emissions allowed may
not be used by any Party to meet its obligations under Article 4,
paragraphs 2(b)(bis) to (quinquies) until any issue of compliance is
resolved. If a question of a Party's implementation of paragraph 3(c)
above is identified in accordance with the provisions of Article
12(bis), the provisions of this paragraph shall apply only to
transfers of emissions allowed by that Party.]
G. New Article 4 (sexies)
The following new Article shall be inserted after Article
4(quinquies):
1. For the purpose of meeting its commitments under Article 4,
paragraphs 2(b)(bis) to (quinquies), any Party included in Annex I
[or acting under Article 4(bis)] may receive from any other Party
included in the same Annex [or acting under that Article], in
conformity with the rules of this Article and the decisions adopted
in accordance with paragraph 5 below, the carbon dioxide equivalent
emission reductions resulting from joint implementation projects
aimed at reducing anthropogenic emissions [or enhancing anthropogenic
removals] of greenhouse gases listed in Annex III in any sector of
the economy.
2. Parties participating in joint implementation projects have the
right to share [among themselves] the credits attributed to the
project.
3. In order to generate credits, joint implementation projects
shall satisfy the following conditions:
(a) Parties participating in joint implementation projects shall be in compliance with their obligations under Articles 4, paragraphs 2(b)(bis) to (quinquies) and paragraphs (c)(bis) to (quater) and Article 12, and shall have a national mechanism for the accounting, certification and verification of their greenhouse gas emissions;
(b) Participation in joint implementation projects shall be
voluntary, and shall require prior acceptance, approval or
endorsement by the participating Parties;
(c) Joint implementation projects shall bring about real,
measurable and long-term environmental benefits related to the
mitigation of climate change, whilst avoiding adverse environmental
and social effects. Projects must provide a reduction in [or a
removal by sinks of] emissions that is additional to any that would
otherwise occur;
(d) Joint implementation projects must be compatible with, and
supportive of, national environment and development priorities and
strategies, and must contribute to cost-effectiveness in achieving
global benefits;
[(e) Joint implementation projects can be undertaken by two or
more Parties;]
(f) Joint implementation projects shall be supplemental to domestic policies and measures [, which should provide the main means of meeting commitments under Article 4, paragraphs 2(b)(bis) to (quinquies)];
(g) Joint implementation projects shall be assessed on a project
basis. Credits shall be calculated and allocated on an annual basis.
They shall be subject to stringent emission reduction [or removal]
verification and accountability methodologies. For each project, a
baseline shall be established, against which the net environmental
benefits of greenhouse gas emission mitigation and reduction achieved
by the joint implementation project can be compared; and
(h) Parties shall report on joint implementation projects in their national communications using guidelines to be adopted by the Conference of the Parties at its first session after entry into force of this Article and periodically reviewed thereafter.
4. A Party may authorize intermediaries to participate, under the
responsibility of that Party, in actions leading to the generation,
transfer or receipt of credits for joint implementation projects
under this Article.
5. The Conference of the Parties shall adopt at its first session
after entry into force of this Article, and periodically review
thereafter:
[(a) Criteria and guidelines for the attribution of emission
credits to projects;]
(b) Guidelines for reporting on joint implementation projects and
for the accounting, certification and verification of greenhouse gas
emissions [and removals];
(c) Methodologies for calculating project baselines and actual
emissions [or removals] in order to assess the incremental impact of
the project; and
(d) Methodologies for the verification and auditing of actual
emission reductions [or removals].
[6. If a decision is taken by the Conference of the Parties at the
conclusion of the pilot phase of activities implemented jointly, in
accordance with decision 5/CP.1 of the Conference of the Parties at
its first session, to allow joint implementation with Parties not
included in Annex I, then Parties included in Annex I [or acting
under Article 4(bis)] may, jointly with other Parties, undertake
projects aimed at limiting or reducing anthropogenic emissions of
greenhouse gases listed in Annex III in any sector of the economy, in
conformity with the rules of this Article and the decisions adopted
for this purpose by the Conference of the Parties.]
7. If a question of a Party's implementation of the requirements
of this Article is identified in accordance with the provisions of
Article 12(bis), transfers and acquisitions of emission credits may
continue to be made after the question has been identified, provided
that any such credits may not be used by any Party to meet its
obligations under Article 4, paragraphs 2(b)(bis) to (quinquies)
until any issue of compliance is resolved.]
H. Amendment to Article 12
1. The following paragraphs shall be inserted after paragraph
3:
3(bis) Each Party included in Annex I [or acting under Article
4(bis)] shall incorporate in its national inventory the necessary
supplementary information for the purposes of ensuring compliance
with Article 4, paragraphs 2(b)(bis) to (quinquies) and Article
4(ter), to be determined in accordance with paragraph 3(quater)
below.
3(ter) Each Party included in Annex I or acting under Article
4(bis) shall incorporate in its communication the supplementary
information necessary to demonstrate compliance with its commitments
under Article 4, paragraphs 2(a)(bis) to (quinquies), paragraphs
2(b)(bis) to (quinquies) and paragraphs 2(c)(bis) to (quater) and
Articles 4(ter), 4 (quinquies) and 4(sexies), to be determined in
accordance with paragraph 3(quater) below.
3(quater) Guidelines for the submission of information under
paragraphs 3(bis) and 3(ter) above shall be adopted by the Conference
of the Parties at its first session after entry into force of this
paragraph and reviewed periodically thereafter. The Conference of the
Parties shall also, prior to the first budget period, decide upon
modalities for the accounting of emission budgets.
2. The following sentence shall be inserted after the words
"... at their discretion" and before the words "The frequency of
subsequent communications ..." in paragraph 5:
Each Party included in Annex I [or acting under Article 4(bis)] shall submit the information required under paragraphs 3(bis) and 3(ter) above as part of the first communication due after those paragraphs have entered into force for that Party and after the adoption of guidelines as provided for in paragraph 3 (quater) above.
.
I. New Article 12(bis)
The following new Article shall be inserted after Article
12:
1. The national communications submitted under Article 12 by each
Party included in Annex I [or acting under Article 4(bis)], including
the national inventories of anthropogenic emissions by sources and
removals by sinks of greenhouse gases not controlled by the Montreal
Protocol submitted over the reporting period, shall be reviewed by
expert review teams in accordance with guidelines adopted for this
purpose by the Conference of the Parties:
(a) Expert review teams shall be co-ordinated by the secretariat
and shall be composed of experts selected from those nominated by
Parties to the Convention and, as appropriate, by intergovernmental
organizations, in accordance with guidelines adopted for this purpose
by the Conference of the Parties;
(b) The review process shall provide a thorough and comprehensive
technical assessment of all aspects of a Party's implementation of
the Convention. The expert review teams shall prepare a report to the
Conference of the Parties assessing the implementation of a Party's
commitments and identifying any potential problems in, and factors
influencing, the fulfilment of commitments. Such reports shall be
circulated by the secretariat to all Parties. In addition, the
secretariat shall identify for further consideration by the
Conference of the Parties any questions of implementation indicated
by such reports; and
(c) The Conference of the Parties shall adopt at its first session
after entry into force of this Article, and review periodically
thereafter, guidelines for the review of implementation by expert
review teams and the identification of questions of implementation by
the secretariat.
2. The Conference of the Parties, with the assistance of the
Subsidiary Body for Implementation, shall consider:
(a) The national communications submitted by Parties under Article
12 and the reports of the expert reviews thereof conducted under this
Article; and
(b) Any questions of implementation identified by the secretariat
under paragraph 1(b) above, as well as any questions raised by
Parties.
3. Pursuant to its consideration of the information referred to in
paragraphs 2(a) and 2(b) above, the Conference of the Parties shall
take decisions on any matter necessary for the implementation of the
Convention.(10)
J. Article 13(bis)
The following new Article shall be inserted after Article
13:
The Conference of the Parties shall, at its first session after entry into force of this Article, approve appropriate and effective procedures and mechanisms to determine and to address cases of non-compliance with the provisions of the Convention, including through the development of an indicative list of consequences, taking into account the cause, type, degree and frequency of non-compliance. Any binding penalties for non-
compliance under the procedures and mechanisms established under
this Article shall be _ (to be
completed).(11)
K. New Article
16(bis)(12)
The following new Article shall be inserted after Article
16:
1. Attachments to the Convention shall form an integral part
thereof and, unless otherwise expressly provided, a reference to the
Convention constitutes at the same time a reference to any
attachments thereto.
2. The adoption and entry into force of attachments, and
amendments to attachments, shall be in accordance with the procedure
laid down in Article 15, provided that a proposed amendment to the
commitment of any Party as set out in an attachment may be adopted
only with the specific consent of that Party.
L. Annexes
The following new annexes shall be added to the
Convention:
Gases
Carbon dioxide (CO2)
Methane (CH4)
Nitrous oxide (N2O)
[Hydrofluorocarbons (HFCs)
Perfluorocarbons (PFCs)
Sulphur hexafluoride (SF6)]
Sectors/source and sink
categories
Energy
Fuel combustion
Energy industries
Manufacturing industries and construction
Transport
Other sectors
Other
Fugitive Emissions from fuels
Solid fuels
Oil and natural gas
Other
Industrial processes
Mineral products
Chemical industry
Metal production
Other production
Production of halocarbons and sulphur hexafluoride
Consumption of halocarbons and sulphur hexafluoride
Other
Solvent and other product use
Agriculture
Enteric fermentation
Manure management
Rice cultivation
Agricultural soils
Prescribed burning of savannas
Field burning of agricultural residues
Other
Land use change and forestry
Changes in forest and other woody biomass stocks
Forest and grassland conversion
Abandonment of managed lands
Carbon dioxide emissions and removals from soils
Other
Waste
Solid waste disposal on land
Wastewater handling
Waste incineration
Other]
1. The process of establishing quantified emission limitation and
reduction objectives for each Party subject to Article 4, paragraph
2(b)(bis) shall take into account the differences in starting points
and approaches, economic structures and resource bases, the need to
maintain strong and sustainable 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. To this effect the differences in the following factors,
fully substantiated by readily available official data, shall be
taken into account, as appropriate, in the case of each
Party:
(a) Carbon dioxide equivalent emissions per capita of the
greenhouse gases listed in Annex III;
(b) Carbon dioxide equivalent emissions per unit of gross domestic product of the greenhouse gases listed in Annex III;
(c) Gross domestic product per capita;
(d) Gross domestic product per capita growth;
(e) Effective emissions in a given time period, defined as the increase in global mean surface temperature at the end of the period, as determined by an agreed climate change model, resulting from both the net anthropogenic emissions of an agreed set of greenhouse gases in each year of that time period and from the initial concentrations of those greenhouse gases at the beginning of the period;
(f) Projected population growth;
(g) Emission intensity of gross domestic product;
(h) Emission intensity of exports;
(i) Fossil fuel intensity of exports; and
(j) Share of renewable energy in energy supply.
2. In addressing national circumstances in their communications, Parties shall include data relating to the above factors, as appropriate.]
M. [Attachments
The following attachment shall be inserted after Annex
IV:
Name of Party Emission commitment Base year or period (where
relevant)]
1. This Amendment shall enter into force on the ninetieth day
after the date of deposit of the fiftieth instrument of acceptance,
provided that the total carbon dioxide emissions for 1990 of the
Parties which have deposited their instruments of acceptance, as
indicated in their most recent national communications submitted
under Article 12, by that time represent no less than three
Gigatonnes of
carbon.(15)
2. For each State or regional economic integration organization
that accepts this Amendment after the conditions for the entry into
force have been fulfilled in accordance with paragraph 1 above, this
Amendment shall enter into force on the ninetieth day following the
date of deposit of its instrument of acceptance.
3. For the purposes of this Article, an instrument deposited by a
regional economic integration organization shall not be counted as
additional to those deposited by States members of this
organization.
1. This matter is linked with the issue of a compensation fund and a clean development fund.
Cross-referencing may be introduced once the actual placement of the text on these funds is proposed.
2. The use of the word "net" throughout this text will depend on the outcome of the ongoing consultations on the inclusion of sinks in the establishment of quantified emission limitation and reduction objectives.
3. For those Parties included in Annex I on the date of adoption of this paragraph, these commitments shall be established together with the adoption of this paragraph.
4. The Alliance of Small Island States (AOSIS) has indicated that it would require further consultations on this paragraph, pending the elaboration of the term "net" under Article 4.2(b)(bis).
5. The Group of 77 and China have requested the deletion of this Article.
6. The Group of 77 and China requested that paragraphs 11 and 12 above, which reproduce part of that group's proposal contained in document FCCC/AGBM/1997/MISC.1/Add.6, be included in this text. It should be noted that, due to lack of time, it was not possible to enter into discussion on this matter during informal consultations conducted at the first part of the eighth session of the AGBM.
7. A Party previously proposed text, which can be found as paragraph 20 in annex I of document FCCC/AGBM/1997/INF.1. to cover the situation in which member States of regional economic integration organizations and the organizations themselves were Parties to this instrument and sought to undertake quantified emission limitation and reduction commitments as such. The text also covers possible future enlargement of regional economic integration organizations.
8. The Group of 77 and China have requested the deletion of this Article.
9. The Group of 77 and China have requested the deletion of this Article. Other Parties, including the United States and the European Community and its member States, have indicated that they would require further consultations on this Article.
10. The final drafting of paragraphs 2 and 3 above will take into account discussions on Articles relating to compliance and institutional matters.
11. The Group of 77 and China stated that this matter is linked with the issue of a clean development fund.
Cross-referencing may be introduced once the actual placement of the text on a clean development fund is proposed. The Group of 77 and China reserves the right to revert to this Article.
12. To be revisited in the light of further discussions on Article 4.2(b)(bis) and Article 4(ter).
13. This list is taken from the revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories: Reporting Instructions. It is understood that the inclusion of individual sectors/source and sink categories will require further discussion and that no agreement has yet been reached on this matter.
14. This Annex would only appear if the alternative of establishing differentiated commitments were adopted. In this case, the text would require further discussion, and in particular paragraph 1(e) would need to be better specified.