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Published by the International Institute for Sustainable Development (IISD) 
<http://iisd.ca> 

 

Vol. 12 No. 328
Monday, 14 May 2007

SB 26 HIGHLIGHTS:

SATURDAY, 12 MAY 2007

On Saturday, contact groups and informal consultations were held on a variety 
of issues, including: the Adaptation Fund; arrangements for intergovernmental 
meetings; the budget for 2008-2009; deforestation; Decision 1/CP.10 (Buenos 
Aires programme of work on adaptation and response measures); privileges and 
immunities; and research and systematic observation. In addition, an IPCC 
briefing took place outlining the contributions of the three Working Groups to 
the Fourth Assessment Report (AR4).

CONTACT GROUPS AND INFORMAL CONSULTATIONS

ADAPTATION FUND: Informal consultations on the Co-Chairs’ draft decision 
resulted in a new draft with six operative paragraphs focusing on eligibility 
criteria, priority areas and monetizing the share of proceeds. There were no 
brackets in a paragraph concerning eligibility for funding for Protocol parties 
that are particularly vulnerable “to assist in meeting the costs of 
adaptation.” Bracketed text remained in three paragraphs concerning priority 
areas and monetizing the share of proceeds. Two options also remained as to 
whether the COP/MOP would only review the arrangements for monetizing Certified 
Emission Reductions or all matters related to the Adaptation Fund. Informal 
consultations will continue on Monday.

ARRANGEMENTS FOR INTERGOVERNMENTAL MEETINGS: Chair Berghäll introduced draft 
SBI conclusions requesting the Secretariat “to take note of the views 
expressed” on the agendas. She outlined procedures for finalizing the agendas, 
saying that their final adoption will take place in Bali. Highlighting past 
precedent with the Third Assessment Report, Saudi Arabia, for the G-77/CHINA, 
supported SBSTA considering AR4. The EU and NEW ZEALAND highlighted that there 
was no precedent on consideration of IPCC assessment reports by COP/MOPs and, 
with others, supported the inclusion of AR4 on COP and COP/MOP agendas. 
Delegates agreed to retain the text on agendas as presented, but decided to 
delete text on inviting ministers and heads of delegation to address AR4 in 
their statements.

BUDGET: In the budget contact group, the Secretariat distributed a new version 
of the tabulated budget proposal. JAPAN asked for further cuts, maintaining its 
position on a budget reflecting zero nominal growth, and not adjusted for 
inflation. The EU also called for further budgetary savings, especially in 
relation to the records management system. Chair Dovland pointed out that 
parties had requested the Secretariat not to reduce its contribution to the 
IPCC. UNFCCC Executive Secretary Yvo de Boer justified the need for a new 
records management system to “keep the house in order” and called for guidance 
on the proposed cuts, voicing pessimism on the possibility of further 
efficiency gains. Nigeria, for the G-77/CHINA, stressed the importance of a 
data management system and the avoidance of any budgetary cuts that would 
affect activities directed at non-Annex I parties. 

DECISION 1/CP.10: In the morning, informal consultations continued on adverse 
impacts of climate change in the context of Decision 1/CP.10. Delegates 
discussed financial resources and  mainstreaming activities in Annex I parties, 
preferring the use of “planning and implementing” rather than “mainstreaming.” 

During the informal meeting on response measures in the afternoon, Chair 
Thompson suggested that parties refer to the paper provided by SBI Chair Asadi 
with a view to devising practical activities relating to response measures. She 
outlined three broad categories for consideration: modeling, financial risk 
management, and economic diversification. The discussion focused on modeling, 
with many parties seeking a better understanding of the Convention’s role in 
this process. 

DEFORESTATION: Draft text was presented during a brief informal meeting, with 
some parties objecting to addressing some of the operative paragraphs, as they 
had not previously been considered in the drafting group. This was followed by 
a contact group in which the Co-Chairs presented draft preambular text. 

INDONESIA, supported by many others, called for reinserting the reference to 
stable and predictable resources. CHINA, supported by BRAZIL and INDIA, called 
for reference to UNFCCC Article 4.3, 4.4, and 4.7 relating to financial 
commitments from developed countries. JAPAN, the EU, RUSSIAN FEDERATION and NEW 
ZEALAND underscored action resulting in real and meaningful benefits. TUVALU 
stressed environmental integrity and the US emphasized ongoing actions. BRAZIL, 
supported by NEW ZEALAND and others, called for recognition that “issues 
related to degradation may be relevant” and, with INDIA and others, underscored 
efforts in developing countries. Revised draft text will be made available 
Monday morning, ahead of an informal group meeting in the afternoon.

PRIVILEGES AND IMMUNITIES: In contact group discussions, Chair Watkinson noted 
the need to address the issue of immunities and the resolution of disputes. The 
EU emphasized the need to consider the outcome of the Secretariat’s technical 
paper relating to practices by other UN agencies and the insurability of risks, 
before charting a course of action. CANADA disagreed with language supported by 
the G-77/CHINA, which referred to the need to agree on a legally-binding, 
long-term solution favoring domestic legislative arrangements that confer 
immunity to individuals serving on the Protocol’s constituted bodies. The EU 
proposed compromise language on the need for the SBI to further consider an 
effective, legally-sound, long-term solution. BRAZIL presented text requiring 
entities participating in the Protocol mechanisms to give a formal declaration 
so that claims would be brought in accordance with COP/MOP decisions and that 
an ad hoc special review team would be constituted to address such claims. The 
EU pointed out that the scope of application for signing such a declaration 
would be limited, since many entities would not be covered. Moreover, it was 
not clear if national courts would dismiss an application on the basis of a 
declaration. Chair Watkinson requested Brazil to confer with parties to make 
progress on the paragraph. The group will reconvene on Tuesday.

RESEARCH AND SYSTEMATIC OBSERVATION: Informal consultations resumed late on 
Saturday afternoon, based on revised draft conclusions distributed earlier in 
the day. By the close of the meeting, only one sentence remained unresolved, on 
the role of the future dialogue in terms of research gaps and research capacity 
constraints in developing countries. While developing countries sought text 
noting that a dialogue “would identify” such gaps, developed countries proposed 
several other alternatives, including “could identify,” “would aim to 
identify,” or “would review.” However, these formulations were not acceptable 
to developing countries. A contact group is expected to convene on Monday 
morning. 

IPCC BRIEFING ON THE FOURTH ASSESSMENT REPORT

On Saturday morning and afternoon, lead authors from the IPCC’s three Working 
Groups briefed delegates on AR4, and responded to questions from parties.

Opening the meeting, IPCC Chair Rajendra Pachauri noted “a huge public 
appetite” for information on climate change, outlined key findings by the three 
Working Groups, and highlighted several improvements since the IPCC’s Third 
Assessment Report <http://www.iisd.ca/climate/ipwg3/> .

UNFCCC Executive Secretary Yvo de Boer emphasized that these assessments 
provide a solid basis for decision-making and identified the Nairobi Work 
Programme, the AWG and the UNFCCC Dialogue as examples of science already 
feeding into the UNFCCC process. 

WORKING GROUP I: THE PHYSICAL SCIENCE BASIS: Martin Manning presented key 
findings showing that warming of the climate system is unequivocal and that 
clear responses in all the Earth systems can now be discerned. Peter Stott said 
observed changes cannot be explained without considering anthropogenic 
emissions. He described the observed and future climate system responses in 
surface temperature, precipitation, sea ice, continental ice sheets and 
glaciers, and noted changes in storm tracks, tropical cyclones and other 
extreme events.   

WORKING GROUP II: IMPACTS, ADAPTATION AND VULNERABILITY: Jean Palutikof 
explained that some regions and vulnerable groups will be affected more than 
others, indicated that vulnerability depends on the development pathway, and 
said climate change can impede nations’ ability to achieve sustainable 
development. 

On ecosystems, Andreas Fischlin indicated that if 1.5 to 2oC temperature 
increases are experienced, 20-30% of higher plants and animals are at risk of 
extinction. In discussing emissions from terrestrial ecosystems, he indicated 
that the terrestrial biosphere tends toward a net carbon source beyond 2oC 
warming. 

On food and forest products, Guy Midgley outlined impacts on crop production 
and explained that these depend strongly on latitude. He also discussed impacts 
on commercial forestry and fisheries, and highlighted the carbon dioxide 
fertilization effect.

Richard Klein highlighted the fact that adaptation is already occurring and 
often at low cost, although he also pointed out the high costs of adaptation to 
sea-level rise for low lying areas, and gaps in research. Regarding 
inter-relationships between adaptation and mitigation, he explained that this 
was an emerging field that had developed in response to policymakers’ concerns, 
with limited literature available at this point.

Responding to a question from ZAMBIA about whether mitigation “buys time for 
adaptation,” Klein said integrated assessment models do not yet allow for 
confident statements about how the two might substitute for one another over 
time, since more work is needed on the adaptation side.

Summarizing the morning’s discussions, Pachauri noted that if there is to be a 
fifth assessment report, a further discussion in such a forum could be a very 
useful way to inform the scientific community on how it might improve upon AR4. 

WORKING GROUP III: MITIGATION: In the afternoon, Bert Metz highlighted key 
findings, emphasizing that emissions have increased significantly in the last 
35 years. Regarding mitigation, he demonstrated that emissions should peak in 
the next two decades if low emission stabilization levels are to be achieved, 
which could be encouraged by policy incentives for technology development and 
transfer.

Jayant Sathaye discussed sustainable development and climate change mitigation, 
noting a “two-way relationship” where “climate policy can have positive or 
negative effects on others factors, and non-climate development policies can 
influence greenhouse gas emissions as much as specific climate policies.”

Ralph Sims spoke about potentials for emissions reductions in the energy, 
building, transport and industrial sectors, noting significant potential, 
particularly in the building sector.  

In discussing mitigation potential and costs of land-use options, Daniel 
Martino explained that most of the emissions and economic mitigation potential 
is in developing countries, where emissions tend to increase. While noting that 
90% of agricultural and 60% of forest mitigation potential is in carbon 
sequestration, Martino emphasized uncertainties related to, inter alia, how 
climate change affects sinks. 

Dennis Tirpak presented on a range of policies, instruments and cooperative 
agreements to reach mitigation goals, highlighting the need for research and 
development investment.  

In the question-and-answer session, GRENADA asked about the absence of 
stabilization scenarios below 2°C, noting that even a 2°C increase would be 
disastrous for some countries. Metz explained that the literature does not 
contain such scenarios. Metz also responded to a question on the enormous 
potential for reductions available at no cost or even with net benefits, saying 
that these come mainly from the building and transport sectors, but noted 
barriers that prevent exploiting this potential. 

IN THE CORRIDORS

Some delegates were discussing the budget negotiations on Saturday, with 
several developing country and NGO representatives frustrated at a suggestion 
of no increase. “The original proposal for a 3.3% rise seems modest given what 
the IPCC is telling us about the imminent dangers of climate change. A zero 
increase just seems unfair,” said one. Others, however, justified the “no 
change” scenario by arguing that scope remained to find further cost 
efficiencies and synergies. 

Some parties were also discussing the bleak news from CSD-15 
<http://www.iisd.ca/csd/csd15/> , which ended without a negotiated outcome. “I 
suspect we may see some hardening of positions here in Bonn emanating from the 
poor result in New York,” speculated one negotiator.
 

This issue of the Earth Negotiations Bulletin © <[EMAIL PROTECTED] 
<mailto:[EMAIL PROTECTED]> > is written and edited by Asheline Appleton, 
Suzanne Carter, María Gutiérrez Ph.D., Kati Kulovesi and Chris Spence. The 
Digital Editor is Dan Birchall. The Editor is Pamela S. Chasek, Ph.D. <[EMAIL 
PROTECTED] <mailto:[EMAIL PROTECTED]> >. The Director of IISD Reporting 
Services is Langston James “Kimo” Goree VI <[EMAIL PROTECTED] <mailto:[EMAIL 
PROTECTED]> >. The Sustaining Donors of the Bulletin are the United Kingdom 
(through the Department for International Development – DFID), the Government 
of the United States of America (through the Department of State Bureau of 
Oceans and International Environmental and Scientific Affairs), the Government 
of Canada (through CIDA), the Danish Ministry of Foreign Affairs, the 
Government of Germany (through the German Federal Ministry of Environment - 
BMU, and the German Federal Ministry of Development Cooperation - BMZ), the 
Netherlands Ministry of Foreign Affairs, the European Commission (DG-ENV) and 
the Italian Ministry for the Environment and Territory General Directorate for 
Nature Protection. General Support for the Bulletin during 2007 is provided by 
the Swiss Federal Office for the Environment (FOEN), the Norwegian Ministry of 
Foreign Affairs and the Ministry of Environment, the Government of Australia, 
the Austrian Federal Ministry for the Environment, the Ministry of Environment 
of Sweden, the New Zealand Ministry of Foreign Affairs and Trade, SWAN 
International, the Japanese Ministry of Environment (through the Institute for 
Global Environmental Strategies - IGES) and the Japanese Ministry of Economy, 
Trade and Industry (through the Global Industrial and Social Progress Research 
Institute - GISPRI). Funding for translation of the Earth Negotiations Bulletin 
into French has been provided by the International Organization of the 
Francophonie (IOF) and the French Ministry of Foreign Affairs. Funding for the 
translation of the Earth Negotiations Bulletin into Spanish has been provided 
by the Ministry of Environment of Spain. The opinions expressed in the Earth 
Negotiations Bulletin are those of the authors and do not necessarily reflect 
the views of IISD or other donors. Excerpts from the Earth Negotiations 
Bulletin may be used in non-commercial publications with appropriate academic 
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#21F, New York, NY 10017, USA. The ENB Team at SB 26 can be contacted by e-mail 
at <[EMAIL PROTECTED] <mailto:[EMAIL PROTECTED]> >. 

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