01 - 12 December 2003, Milan, Italy

GEF support for the preparation of NAPAs

Presented by the Global Environment Facility (GEF)

Janos Pasztor, UNFCCC, highlighted the importance of producing high-quality National Adaptation Programmes of Action (NAPAs) and expressed hope that such programmes would be implemented soon.

Richard Muyungi, Tanzania's Division of Environment, underscored the critical role that the GEF plays in assisting NAPA implementation in least developed countries (LDCs).

Patricia Bliss-Guest, GEF, noted the need to enhance GEF collaboration with LDCs to prepare their NAPAs. She thanked donor countries for contributing approximately US$11 million to the LDC Trust Fund, which partially meets the US$ 20 million pledged. Bliss-Guest said there are 26 countries that have approved NAPA projects and another three that are awaiting approval.

Yannick Glemarec, UNDP/GEF, updated the status of NAPA projects and noted that UNDP, the GEF and UNITAR organized a number of workshops on the formulation of such programmes. He said the workshops identified the need to: overcome delays in the disbursement of funds for project formulation; foster synergies among UN agencies and international bodies; and develop a cross-sectoral management structure to provide adequate support for project implementation. Glemarec highlighted the next steps regarding existing NAPA projects, including: increasing the number of dedicated NAPA staff and the use of regional experts; establishing a UNDP unit to foster capacity development and adaptation for NAPA implementation; and completing project formulation and disbursing funds.

On the status of NAPAs activities, Ravi Sharma, UNEP/GEF, expressed hope that all NAPA projects would be started by March 2004. He underscored some of the obstacles relating to NAPA projects, including the need for: enhancing synergies at the institutional level; building capacity, especially to assess countries' vulnerability; and fostering stakeholder participation.

Annie Roncerel, UNITAR, said that GEF funding has supported four NAPA training workshops. She underscored that NAPAs aim to identify the urgent and immediate needs of LDCs, and communicate LDC's priority activities. Roncerel observed that the workshops raised LDCs' awareness about adaptation issues and links to poverty reduction, capacity building and sustainable development. She noted that the workshops were country driven and their outcomes included identifying the need to improve the methodology for NAPA formulation, and increase capacity building of national teams to gather relevant information for the preparation of NAPAs.

Discussion: Participants discussed how synergies can assist LDCs in elaborating their NAPAs, and the need to enhance synergies among the UN agencies. On disaster recovery and climate change, participants discussed the linkages among such issues, as well as food security and water management activities. Noting the high transaction cost of translating NAPA-related documents, participants noted the need to increase the number of NAPA-related staff that speak French and are from LDCs.

Global climate regime beyond 2012: Incentives for everyone

Presented by the Institute for Global Environmental Strategies (IGES) and the National Institute for Environmental Studies (NIES)

Yasuko Kameyama, NIES, noted that NIES and IGES aim to finalize a report on options for an appropriate post-2012 international emission limitation regime. She explained that the report would address: the determination of incentives and disincentives; institutions and measures to gain incentives; options for a climate regime beyond 2012; and evaluation.

Carlo Carraro, University of Venice, noted that future climate policy could take one of two paths: extending the Kyoto Protocol or following a new approach. He suggested focusing on a research and development protocol, regional climate agreements, and linkages between climate policy and trade and development policies.

Billy Pizer, Resources for the Future, explained that the US has inadequate incentive to participate in the climate change regime. He favored a bottom-up and regional approach over a global regime, and noted that international emissions trading among industrialized countries is a weak incentive. He said that although the clean development mechanism (CDM) is appealing, sufficient institutions to support it are lacking.

Lu Xuedu, Ministry of Science and Technology of China, said that in order to participate in the global climate regime, developing countries need assistance in the areas of science and technology, financial resources and management skills. He emphasized that the climate change regime needs to be consistent with development objectives.

Erik Haites, Margaree Consultants Incorporated, explained that future targets for the global climate regime should entail frequent, small, short-term changes to targets, and provide incentives for participation, including trade sanctions for non-Parties. He underscored the need for cooperation with the US on climate change issues, even if it does not ratify the Kyoto Protocol.

Hiroshi Ohta, Aoyama Gakuin University, outlined Japan's concerns about the Kyoto Protocol. He listed possible incentives for Japan's further commitment beyond 2012, such as technological leadership.

Kazu Takemoto, Ministry of the Environment of Japan, presented the interim report of the Central Environment Council of Japan. Takemoto explained that the Council discussed issues that Japan should consider regarding international negotiations for a climate regime beyond 2012.

Discussion: Participants raised questions about the effectiveness of the incentives proposed in the presentations. They also discussed the importance of research on climate change issues and questioned whether ratification of the Kyoto Protocol by the Russian Federation would change the position of the US.

Greenhouse gas inventory information: A
useful tool for policy makers, negotiators and experts dealing with climate change

Presented by the UNFCCC

Sevdalina Todorova-Brankova, UNFCCC, said to ensure credible greenhouse gas inventory data, Parties need to: use reliable information and choose appropriate methods and emission factors; prepare inventories in accordance with the Intergovernmental Panel on Climate Change (IPCC) and UNFCCC guidelines; and report inventories to the COP through the Secretariat in accordance with the guidelines. She explained the collective responsibility of the expert review team (ERT), noting that the Secretariat strives to ensure a balance of Annex I and non-Annex I experts in the overall composition of the ERTs.

Vlad Trusca, Ministry of Agriculture, Forests, Waters, and Environment of Romania, highlighted the opportunity to involve experts from different sectors and raise awareness among decision makers on inventories issues. Noting that the ERT identified problems with Romania's inventories, he said the next submission would be improved. He recommended that Parties nominate more inventory experts in the roster of experts, and request the UNFCCC Secretariat to promote training of more inventory experts.

As a member of the ERT, William Agyemang-Bonsu, Environmental Protection Agency of Ghana, noted the need to improve understanding and use of the IPCC Good Practice Guidance. He concluded that increased engagement of more experts from non-Annex I countries in the review of Annex I inventories could lead to improved transparency and quality of information

Clemencia Licona Manzur, UNFCCC, discussed the advantages of an integrated greenhouse gas database, highlighting that it enables national inventory experts to access more data and compare greenhouse gas inventories. She demonstrated how to use a search engine prepared by the Secretariat, which allows inventory experts to explore the greenhouse gas database, and showed how comparisons can be made. Manzur said that the integrated greenhouse gas database is a key component of a cost-effective, high-quality data management system, and noted that information from the database could be used to enhance the quality of inventories.

Highlighting the diversity of data available, Todorova & Brankova concluded that national experts can make a wide range of analyses, compilations and comparisons, and inventory data can be readily applied for planning purposes, projects, and priority setting.

Development and Climate

Presented by the International Institute for Environment and Development (IIED)

Saleemul Huq, IIED, said linking development strategies and climate change can foster the involvement of developing countries in the climate change negotiations and noted that the Development First programme was established for this purpose. Huq noted that the objectives of the programme include: exploring national strategies that meet development priorities and address climate change; investigating policy options and activities that promote sustainable development; and establishing partnerships between centers of excellence in developing and developed countries. He concluded that both mitigation and adaptation are key to developing successful climate policies and noted that attention to development objectives is important.

Moussa Cisse, Environmental Development Action in the Third World (ENDA), emphasized the importance of decision making for addressing key concerns relating to climate change and development in Senegal. He said that when climate change policies are set at the national level, it is important that decision makers also on focus on development objectives.

Emilio Lèbre La Rovere, Federal University of Rio de Janeiro, explained national case studies demonstrate that many developing countries are already taking measures to address climate change and provided the Brazilian example of zero-tillage practices. He emphasized the need to view climate change from a development perspective.

Pierre Mukheibir, University of Cape Town, said that South Africa's main development objectives include water management, housing and electricity generation combined with a strong economy. He said the country needs to increase energy production while addressing development goals. He noted that the South African Government is examining adaptive capacity to climate change and focusing on job creation.

John Drexhage, IISD, emphasized that international climate policy objectives are inextricably linked and should be addressed simultaneously. Citing the example of the Russian Federation, he noted that some countries are overly focused on economic objectives and identified a need for compromise if governments are to link development priorities and climate change objectives. Drexhage also expressed concern over Parties' short-sighted decision to exclude agriculture from the CDM.

Thomas Heller, Stanford University, said that countries should recognize the benefits that result from climate policy as well as the ancillary benefits of those policies. He noted that countries are focused on the wrong frameworks in the climate discussions. He questioned how to prioritize development objectives, including looking at climate change in the context of political economy.

Discussion: Participants drew attention to the linkage between climate change and the Millennium Development Goals and noted that vulnerability levels vary significantly between countries. They identified the need to consider scale when discussing development in the context of climate change.

Environmental intelligence from space

Presented by the European Space Agency (ESA)

Stephen Briggs, ESA, noted that the ESA provides services for monitoring land cover, forestry and land change.

Dimitris Lalas, National Observatory of Athens, identified the need for information on land use and forest cover to comply with reporting obligations under the Kyoto Protocol. He said that forest maps generated using space technology can be used to provide detailed information on forest area change and forest type, and to develop carbon stock estimates. He said that forest maps meet the Kyoto Protocol's specifications for accuracy, and that the methodology for their generation is repeatable, efficient and transparent.

Lucia Perugini, University of Tuscia, outlined efforts in Italy to account for forest carbon and noted disparities between existing data and problems with credibility and comparability. She stressed the need for homogeneous and representative data sets.

Joseph Racapé, Interministerial Task-Force for Climate Change in France, outlined the types and coverage of French forests, both in France and in French territories. Noting that France is the only Annex I Party with significant rainforest coverage, he said that radar monitoring from space allowed for penetration of cloud cover in French Guyana, and was complemented by data from optical images to reveal the extent of rainforest cover.

Jóse Romero, Swiss Agency for the Environment, Forest and Landscape, noted that the Swiss National Forest Inventory does not satisfy the Kyoto Protocol's reporting requirements due to problems with georeferencing. He said that deforestation, afforestation and reforestation occur in very small areas in Switzerland, making them difficult to detect. He outlined a project to generate information on land use categories in Switzerland using space technology and stated that the project had improved georeferencing, allowed cross-checking with empirical data, and incorporated seasonal difference in forest appearance.

Discussion: A participant stressed the importance of ensuring the equitable distribution across countries of data and associated technologies emerging from space projects, and recommended that methodologies be disseminated so that local initiatives can follow the same parameters for future data integration. Briggs noted that space technologies are being developed to permit the measurement of greenhouse gases in the atmosphere and said that this would contribute directly to the climate policy process.

Launching the Climate Investment Partnership

Presented by the Earth Council

Beat Nobs, Swiss Agency for the Environment, Forests and Landscape, described how a large number of project developers face a lack of financing at the early stages of project development. He explained that Climate Investment Partnership (CIP) assists in resolving this problem and promotes a large portfolio of projects. Emphasizing Switzerland's prioritization of environmental issues, Nobs noted that CIP complements Switzerland's national efforts.

Frank Joshua, CIP, noted that CIP tackles the challenge of acquiring financial resources to finance greenhouse gas projects through a public-private partnership model, which enables financial organizations to share and manage investment risk. He explained that CIP is a not-for-profit project finance mechanism that uses carbon credits as collateral.

Nigel Baker, Swiss Re, outlined the CIP partnership model and noted that its project finance mechanism includes: a greenhouse gas project finance facility; a CIP Global Equity Fund; a network of project suppliers; and a secure information technology platform. Baker explained that the CIP aims to link projects and financial sources.

Karen McClellan, CIP, described the CIP Global Fund which provides upfront financing for projects. She said that each project is expected to deliver carbon credits and that carbon credits accrue to the CIP Global Fund as a return on equity or subordinated debt. McClellan explained that the average project size ranges from 20 to 50 million euros and that projects would initially be carried out in three or four countries.

Urs Brodman, Factor Consulting and Management, spoke about the project pipeline for CIP, noting that the current pipeline has been compiled from the substantial number of projects already submitted to the CIP, a portfolio project, and projects from Factor Consulting and Management. He noted that CIP projects focus on reducing or avoiding greenhouse gas emissions and promoting renewable energy sources.

Yoni Jacobs, Riskclick, provided information on CIPnet, a technology platform and infrastructure that supports the CIP project finance mechanism. He explained that CIPnet has a simple user interface, promotes efficiency and best practices, and allows for efficient data collection.

Discussion: Participants raised questions about including forestry and transportation projects as well as having a wider geographical distribution for projects. They also discussed standardization procedures for projects and questioned how the CIP would be affected if the Kyoto Protocol does not enter into force.

Decentralized renewable energy and the CDM

Presented by ENDA

John Drexhage, IISD, said that the Climate Change Knowledge Network (CCTN) consistes of 12 research institutes from developing and developed countries and provides a forum for rigorous research on means to address climate change. He said research focuses on climate change issues, including adaptation, technology transfer and capacity building.

Jo-Ellen Parry, IISD, summarized some of the CCTN's activities, including capacity-building workshops in Africa and Latin America and projects addressing vulnerability and adaptation issues. She noted a project that focuses on identifying climate change impacts on India's agricultural sector.
Moussa Cisse, ENDA, introduced the book "Seeing the light: Adapting to climate change with decentralized renewable energy in developing countries," which will be released in February 2004. He said the book aims to raise awareness of the contributions that CDM projects can make to mitigation and adaptation, and CDM project design for integrating mitigation and adaptation. Cisse observed that the book highlights the positive contribution of decentralized renewable energy in addressing climate change, and summarizes case studies in Argentina, Bangladesh, Brazil, Senegal and Zimbabwe.

Leonidas Osvaldo Girardin, Bariloche Foundation, explained that in Argentina, 30% of the rural population and 2% of the urban population do not have access to electricity. He noted a rural renewable energy project supported by the World Bank, GEF and government funds. He observed that the project illustrates that rural electrification mitigates greenhouse gas emissions, improves livelihoods, creates social opportunities, and builds capacity in rural communities.

Norbert Nziramasanga, Southern Centre for Energy and Environment, noted that Zimbabwe's case study shows ways to overcome obstacles relating to wind power, including cost-inefficiency, high maintenance, and non-versatile machines. Nziramasanga said that the technology transfer for wind power was successful because the systems were adapted to local needs, and local staff were trained to operate and maintain the machines. He noted that wind technology also has potential for water pumping and refrigeration.

Ijaz Hossain, Bangladesh, noted the importance of cooking technologies for diminishing biomass consumption, and land degradation in Bangladesh. He said that the CDM should avoid funding projects that cause land degradation and stated that decentralized renewable energy projects could be successfully implemented.

Angela Oliveira da Costa, presented a case study in Brazil that aims to supply electricity to two rural communities in the Amazon region. She explained that this project involves a fuel switch from diesel to biodiesel, which is produced from vegetal oils. She said the project has the potential to generate income, create jobs, reduce carbon emissions and diversify the electricity mix.

Moussa Cisse, ENDA, focused on a solar power case study in Senegal that adapts solar power systems to local conditions and improves water and electricity supplies. He noted that the project addresses issues relating to rural poverty, sustainable development, and mitigation and adaptation activities.

Information event by the CDM Executive Board

Presented by the UNFCCC

Emphasizing the importance of transparency, Hans Jürgen Stehr, CDM Executive Board, noted that all official CDM Executive Board meetings can be viewed "live" on the UNFCCC website. He outlined two main areas of the Board's work: the approval of methodologies; and the accreditation of operational entities. Noting that by UNFCCC SBSTA-18 in June 2003, 14 methodologies had been assessed and none had passed. Stehr drew attention to recent progress in this area and announced that nine methodologies have now been approved. He said the approved methodologies would be posted on the UNFCCC website and the same methodologies can be used by others. Stehr noted that nine other proposals lacked fundamental information and would not be considered in their present form. Noting that approving methodologies is a slow process, he stressed the need to maintain the quality and credibility of the CDM.

Regarding the accreditation of operational entities, Stehr stated that 19 applications have been received, including one from the US. He identified the need for capacity building to enable operational entities in developing countries to apply for accreditation.

Kai-Uwe Barani Schmidt, UNFCCC, demonstrated how to submit a public comment on a project design document (PDD) on the UNFCCC CDM website.
Discussion: Participants and members of the CDM Executive Board discussed, inter alia: small-scale CDM projects; the responsibility of host countries to ensure that projects contribute to sustainable development; the potential for reusing approved methodologies; and the need for methodologies to address additionality concerns.

Suppressed demand baseline scenarios: Extending CDM potential into LDCs

Presented by South South North (SSN)

Youba Sokona, ENDA-TM, noted the need to shift away from dominant technological models toward more efficient systems in order to achieve sustainable development in LDCs, where increased energy consumption is required for further development.

Lwandle Mqadi, SSN, described a project aimed at avoiding unsustainable energy consumption in low-cost housing in Khayelitsha, South Africa. She noted the importance of making champions of local council officials, appointing local development facilitators, and establishing a baseline sample.

Steve Thorne, SSN, described how models were used to compare non-suppressed and suppressed demand for energy, in order to provide data for the CDM application process.

Hanh Hong Dang, Hamburg Institute of International Economics, considered how to calculate the minimum level of energy service necessary for decent human livelihood, and concluded that it is difficult to agree on a consumption level at which demand is no longer suppressed.

Njeri Wamukonya, UNEP, emphasized the need to take a holistic perspective and recognize that the CDM is not just about emissions reductions, but also about development. She said that Africa needs to increase energy consumption in order to promote sustainable development.

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