This issue concerns the adverse impacts on developing countries both of climate change and of response measures aimed at mitigating climate change.

Article 4.8 of the Convention calls on Parties to consider actions to meet the specific needs and concerns of developing countries in this regard, listing categories of countries (e.g. small island countries and countries whose economies are highly dependent on fossil fuel) that may be particularly affected.

Article 4.9 refers specifically to the needs and special situation of the least developed countries (LDCs) concerning funding and the transfer of technology.

Article 3.14 of the Kyoto Protocol echoes the Convention provisions on this issue by requiring Annex I Parties to strive to implement their emission targets in such a way as to minimize adverse social, environmental and economic impacts on developing countries, particularly those identified in Article 4.8 and 4.9. It also calls on the COP serving as the meeting of the Parties to the Kyoto Protocol (COP/MOP) to consider, at its first session, what actions are necessary to minimize such adverse impacts.

Negotiations on Article 4.8 and 4.9 of the Convention started in the context of the negotiations on the Kyoto Protocol. At COP 3 (Kyoto, December 1997), Parties adopted decision 3/CP.3, which requested the SBI to launch a process to identify actions needed to meet the needs of developing countries specified under Article 4.8 and 4.9 arising from the adverse effects of climate change and the impacts of response measures. At COP 4 (Buenos Aires, November 1998), Parties adopted a work programme on this issue as part of the "Buenos Aires Plan of Action", culminating at COP 6 (The Hague, November 2000). Article 3.14 of the Kyoto Protocol was first placed on the agenda for consideration as a separate item at COP 5 (Bonn, October/November 1999). At that session, Parties decided to consider this item further at COP 6 in order to develop input for COP/MOP 1.

Negotiations on both Article 4.8 and 4.9 of the Convention and Article 3.14 of the Kyoto Protocol have been conducted in the same contact group convened jointly by the SBSTA and the SBI. Inter-sessional workshops have also been held to advance work on this issue.

Parties failed to reach agreement on a package of decisions under the Buenos Aires Plan of Action at COP 6 and, in the same way as for other items, negotiating texts on Article 4.8 and 4.9 of the Convention and Article 3.14 of the Kyoto Protocol were forwarded to a resumed session of COP 6 for further work.

However, COP 6 part I in The Hague did adopt conclusions advancing work concerning LDCs, including a request to the secretariat to convene a workshop to develop draft guidelines for the preparation of national adaptation programmes of action, and an invitation to LDCs to submit information on their institutional development needs to enable their negotiators to participate effectively in the climate change process. The COP also forwarded a resolution as input for the Third UN Conference on the Least Developed Countries (Brussels, May 2001) and made certain requests to the secretariat to enable LDCs to provide technical input on the adverse effects of climate change to the Conference.

At COP 6 part II (Bonn, July 2001), Parties adopted the Bonn Agreements on the Implementation of the Buenos Aires Plan of Action, registering political agreement on key issues, including on the adverse effects of climate change and the impacts of the implementation of response measures. Work was also completed on two detailed decisions based on the Bonn Agreements, one on the implementation of Article 4.8 and 4.9 of the Convention, and one on matters relating to Article 3.14 of the Kyoto Protocol. These completed decisions were forwarded to COP 7 (Marrakesh, October/November 2001) for adoption.

The Bonn Agreements on the implementation of Article 4.8 and 4.9 provide for funding of activities to address the adverse effects of climate change and the impact of response measures through the special climate change fund, the adaptation fund, additional guidance to the GEF and other bilateral and multilateral sources. COP 8 in 2002 will also consider the implementation of insurance related actions, based on the outcome of workshops to be held on this issue. Concerning Article 3.14 of the Kyoto Protocol, the Bonn Agreements include an undertaking by Annex I Parties to provide information in their annual inventory report submitted under the Protocol on how they are striving to minimize adverse impacts on developing countries. Such information shall be considered by the facilitative branch of the compliance committee. In addition, the Bonn Agreements state that Annex II Parties, and other Annex I Parties in a position to do so, should give priority to certain actions, such as removing subsidies on environmentally unsound and unsafe technologies.

The completed decision on the implementation of Article 4.8 and 4.9 includes four sections. Concerning the adverse effects of climate change and the implementation of response measures, the decision specifies the activities that are to be supported by the GEF, the special climate change fund, other bilateral and multilateral sources and, in the case of the adverse effects of climate change, the adaptation fund under the Kyoto Protocol that was also established by the Bonn Agreements. On the implementation of Article 4.9, the decision establishes a work programme for LDCs, including the preparation and implementation of national adaptation programmes of action, which will be supported by the least developed countries fund. In its final section, the decision outlines further multilateral work to be conducted on this issue, consisting of a series of workshops.

The completed decision on matters relating to Article 3.14 of the Kyoto Protocol establishes a process for the implementation of Article 3.14, including exchange of information and the development of methodologies on the assessment of adverse impacts. In adopting this decision, COP 7 will recommend it for adoption to COP/MOP 1.

Another workshop to further develop the guidelines for national adaptation programmes of action and help LDCs prepare for COP 7 was hosted by the Maldives, 2-4 October 2001.

The two completed decisions on the implementation of Article 4.8 and 4.9 of the Convention and on matters relating to Article 3.14 of the Kyoto Protocol will be presented to COP 7 for adoption.

Concerning work on LDCs, a spokesperson for the group of LDCs will present an oral report on the outcome of the Maldives workshop. SBI 15 will continue to work on guidelines for the preparation of national adaptation programmes of action, with a view to recommending completed guidelines for adoption by the COP.