Shared vision
Countries cannot agree (end of 2009) on goals for global emissions to peak – whether to include only a long-term goal - 2050 - or nearer-term goals such as 2015-2020.
There is no agreement either on whether to
- use a limit based on the increase of temperature,
- a total level of emissions or
- an atmospheric concentration of greenhouse gases (measured in parts per million or ppm).
Many developed countries and major developing nations say the increase in global temperature should not exceed 2 °C above pre-industrial levels.
But close to 100 other nations, including the LDCs and AOSIS, argue for a more ambitious goal of no more than 1.5 °C of warming.
This would entail limiting concentration to 350ppm (a challenge given that it is already at 387ppm, up from 280ppm in pre-industrial times).
REDD
Deforestation causes 15-20% of all greenhouse gas emissions.
Something likely to be adopted at COP15 is REDD, or
reducing emissions from deforestation and (forest) degradation in developing countries.
Under REDD, countries that reduce deforestation could gain credits for reduced emissions. These credits could be sold on international carbon markets, compensated through a fund paid by developed nations or, as looks most likely, paid for using a combination of both approaches.
Up for negotiation is whether and how REDD will benefit forest-dependent communities, safeguard against conversion of natural forests to plantations and bring additional benefits for biodiversity (collectively known as REDD-plus).
Fossil fuels
Controversial in both negotiating tracks are the ‘economic and social consequences of response measures’ – the impacts of mitigation.
The wealthier oil-producing nations in OPEC are particularly concerned that moves to de-carbonise development will harm their economies. They are calling for compensation for lost oil revenues.
Although this topic is covered under mitigation in the Bali Action Plan, OPEC members keep raising it in discussions of adaptation, to the dismay of poor and vulnerable nations.
LDCs and AOSIS see it as conceptually different from dealing with impacts such as floods, droughts and rising seas.
The key issue is that fossil fuel use drives impacts.
More effective mitigation means less adaptation is needed but this will impact OPEC economies. While AOSIS and LDCs urge immediate action, OPEC would gain from slowing mitigation.
Vulnerability
The vulnerable should be first in line for support to adapt to climate change impacts, but who decides who is vulnerable?
Parties have already agreed that some developing nations within the G77/China (such as the LDCs and SIDS) are ‘particularly vulnerable’. But other countries are contesting this, as they fear it could leave them last in line for finance.
They argue that all developing countries have vulnerable communities. This division causes additional tensions within the G77/China.
Intellectual property
Technology will be essential for both mitigating climate change and adapting to its impacts, but the developed countries have most of the advanced technologies and a larger capacity to develop new ones.
Parties need to agree ways of transferring technologies to the non-Annex I countries, and a major barrier is disagreement about intellectual property rights (IPRs).
The United States says any agreement must not undermine enforcement of IPRs, which it sees as essential incentives for innovation.
Developing countries argue for a more flexible approach – such as exemptions from patent protection for vulnerable countries – to enhance the transfers of technology.
Finance
The World Bank says developing nations will need US$400 billion per year for mitigation and US$75-100 billion per year for adaptation.
Critics say the costs of adaptation have been grossly underestimated as they do not include all sectors that need to adapt.
In this context, key areas for negotiators to agree at COP15 was to include how much funding will be needed, how it will be raised, and how it will be disbursed and used.
Developed countries also want funding to be diffused through existing channels such as the World Bank’s
Global Environment Facility, but developing nations point to problems with this and want central institutional control under the authority of the UNFCCC.
Mexico has proposed a
Green Fund that all countries, except LDCs, would contribute to on the basis of their GDP, emissions and population.
The LDCs have proposed an
International Air Passenger Adaptation Levy, which could raise US$10- 15 billion per year for adaptation. But so far, other developing nations in the G77/China have opposed this, as it would raise money from all countries alike.