Proposal for a Council Decision concerning the Signature by the European Community of a Protocol to the United Nations Framework Convention on Climate Change
COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 23. 02. 1998 COM(1998) 96 final Proposal for a COUNCIL DECISION concerning the Signature by the European Community of a Protocol to the United Nations Framework Convention on Climate Change (presented by the Commission) Rxplanatory Memorandum On 4 February 1991 the Council authorized the Commission to participate on behalf of the Community in the-negotiations of a Convention on Climate Change and any related Protocols. The United Nations Framework Convention on Climate Change wassigned bythe Community and all its Member States in June 1992 and was ratified by the Community pursuant to a Decision of 15 December 1993. The first meeting of the Conference of the Parties took place in Berlin from 28 March to 7 April 1995 and agreed to begin a process to enable it to take appropriate action for the period beyond 2000, including the strengthening of the commitments of the Parties in Annex 1 of thc Climate Change Convention through the adoption of a Protocol or othcr legal instrument. An open-ended ad hoc group of Parties was cstablished there to rcport to the second session of the Conference of the Parties on the status of the process. That Ad Hoc Group on the so-called Berlin Mandate met on eight occasions. Negotiations for matters within Community competence were conducted in accordance with the negotiating directives set out by the Council on 4 February 1991 3 and the successive Council conclusions on climate change, the most recent of which were adopted by the Environment Councils of 3 March, 19 June and 16 October 1997. The Conference of the Parties which was held from 1 to 10 December in Kyoto, Japan, finally adopted the Protocol. Although the Protocol as finally adopted is less ambitious than the European Union negotiating objectives, the outcome of the negotiations is positive for the global environment, consistent with Community law and compatible with the above mentioned Council conclusions. The Community should exercise its leadership role also with respcct to the signature. Thcrefore, it is in the Community's intcrcst to bc able to sign the Protocol as soon as possible after the opening for signature on 16 March 1998 in Ncw York. The Protocol will rcmain open for signaturc until 15 March 1999. As to sebsequent steps, the Protocol is subject to ratification, acceptance or approval by the Parties to the Convention. A proposal for a Council decision on conclusion will be submitted by the Commission in due course. Given public statements of position by other key partners, it is already clear that global implementation depends on making further progress in the year ahead, not least on issues such as joint implementation, the conditions for emissions trading and the role of developing countries. The Commission will make proposals as appropriate in due course. It is therefore requested that the Council decides on the signature of the Protocol to the Climate Change Convention and authorizes the President of the Council to designate the persons empowered to sign jt. • ,. & 1 DOC 4446/91 ENV 34 ENER 4 2OJ L 33, 7. 2. 94, p l l. 3 DOC 4446/91 ENV 34 ENER 4 Z Proposal for a Coundl Dccision conccrsiiiiK thesignaturc foy the Europcan (ommtiiiity of a Protocol to the United Nations Framework Convention on Climatc Change THE COUNCIL OF THE EUROPEAN UNION Having regard to the Treaty establishing the European Community, 1 laving regard to the proposal from the Commission, Whereas the Community is a Party to the United Nations Framework Convention on Climatc Change; Whereas the Commission has participated on behalf of the Community, in accordance with the negotialing directives given by the Council on 4 February 1991, and in line with successive Council conclusions on climatc change, in the Ad Hoc (ïroup on the Berlin Mandate eslablished by the First Confcrcncc of the Parties of that Convention on 7 April 1995 for the purpose of taking appropriate action for the period beyond 2000; Whereas a Prolocol has bcen adopted at the Conference of the Parties of the United Nations Framework Convention on Climate Change held at Kyoto from 1 to 10 Deeember 1997; Whereas the Prolocol aims to rcducc emissions of grecnhouse gases and thus contributes to the achievement of the objcctives of the Community environment policy ; Whereas it is therefore appropriate for the Community to sign this Protocol, HAS DEC1DED AS FOILOWS: SOLE ARTJCLE The President of the Council is hcrcby authorised to designate the persons empowered to sign the Protocol to the Climate Change Convention adopted on 10 Deeember 1997 at Kyoto, Japan, on behalf of the Community. Done at Brusscls, For the Council The President 3 UNITED yg NATIONS Framcworktonvcntion 011 Climate Change Subject to technical revision CONFERENCE OF THE PARTIES Third session Kyoto, 1-10 December 1997 Agenda item 5 Distr. LIM1TED FCCC/CP/1997/L. 7/Add. l lODecember 1997 Original: ENGLISH UNITED NATIONS FRAMEWORK CONVENTION ON CLIMATE CHANGE c KYOTO PROTOCOL TO THE The Parties to this Protocol, Being Parties to the United Nations Framework Convention on Climate Change, hereinafter referred to as "the Convention", In pursuit of the ultimate objective of the Convention as stated in its Article 2, Recalling the provisions of the Convention, Being guidcd'by Article 3 of the Convention, Pursuant to the Bcrlin Mandate adopted by decision 1/CP. l of the Conference of the Parties to the Convention at its lirst session, I Iave agrced as follows: Article 1 For the purposes of this Protocol, the defmitions contained in Article 1 of the Convention shallapply. Inaddition: 1. 'Conference of the Parties" means the Conference of the Parties to the Convention. W FCCGOV? 9WL. 7/Add. I EngHsh Page 2 "Convcntion" mcans thc United Nalions Framcwork Convention on Climate Change, 2. adopted in New York on 9 May 1992. "Intergovernmental Panel on Climate Change" means the Intergovemmental Panel on 3. Climate Change established in 1988 jointly by the Worid Meteorological Organization and the United Nations Environment Programme. 4. "Montreal Protocol" means the Montreal Protocol on Substances that Deplete the Ozone Layer, adopted in Montreal on 16 September 1987 and as subsequently adjusted and amended. "Parties present and voting" means Parties present and casting an affirmative or negative 5. vote. 6. "Party" means, unless the context otherwise indicates, a Party to this Protocol. "Party included in Anncx I" means a Party included in Annex I to thc Convention, as 7. may be amended, or a Party which has made a notification under Article 4, paragraph 2(g), of the Convention. Article 2 Each Party included in Annex I in achieving its quantified emission limitation and 1. reduction commitments under Article 3, in order to promote sustainable development, shall: (a) Implement and/or further elaborate policies and measures in accordance with its national circumstances, such as: (i) (ii) (iii) (iv) Enhanccment of energy ctilcicncy in relevant sectors of the national cconomy; Protcction and enhancement of sinks and reservoirs of greenhouse gases not controlled by the Montreal Protocol, taking into account its commitments under relevant international environmental agreements; promotion of sustainable forest management practices, afforestation and - reforestation; Promotion of sustainable forms of agriculture in light of climate change considerations; Promotion, research, development and increased use of new and renewable forms of energy, of carbon dioxide sequestration technologies and of advanced and innovative environmentally sound technologies; s FCCC/CP/1997/L. 7/Add. 1 English Page 3 (v) Progressivc rcduction or phasing out of markct impcrfections, fiscal inccntives, tax and duty exemptions and subsidies in all greenhousc gas emitting sectors tliat run counter to the objective of the Convention and apply market instruments; (vi) Encouragement of appropriate reforms in relevant sectors aimed at promoting policies and measures which limit or reduce emissions of greenhouse gases not controlled by the Montreal Protocol; (vii) Measures to limit and/or reduce emissions of greenhouse gases not controlled by the Montreal Protocol in the transport sector; (viii) Limitation and/or reduction of methane thrOugh recovery and use in waste management, as well as in the production, transport and distribution of energy; (b) Cooperatc with other such Parties to enliance the individual and combined effectiveness of their policies and measures adopted under this Article, pursuant to Article 4, paragraph 2(e)(i), of the Convention. To this end, these Parties shall take steps to share their cxperience and exchange information on such policies and measures, including developing ways of improving their comparability, transparency and effectiveness. The Conference of the Parties serving as the meeting of the Parties to this Protocol shall, at its first session or as soon as practicable thereafter, consider ways to facilitate such cooperation, taking into account all relevant information. 2. The Parties included in Annex I shall pursue limitation or reduction of emissions of greenhouse gases not controlled by the Montreal Protocol from aviation and marine bunker fucls, working through the Inlernalional Civil Aviation Organizalion and the Intcrnational Maritime Organizalion, respcctively. Thc Parties included in Annex 1 shall strivc to implement policies and mcasurcs under 3. this Article in such a way as to minimizc adverse elTecls, including the adverse eiYects of climatc change, elTccls on international tradc, and social, cnvironmental and economic impacts on otlier Parties, especiaily developing country Parties and in particular those identified in Article 4, paragraphs 8 and 9 of the Convention, taking into account Article 3 of the Convention. The Conference of the Parties serving as the meeting of the Parties to this Protocol may take further action, as appropriate, to promote the implementation of the provisions of this paragraph. The Conference of the Parties serving as the meeting of the Parties to this Protocol, if it 4. decides that it would be beneticial to coordinate any of the policies and measures in paragraph 1(a) above, taking into account different national circumstances and potential effects, shall consider ways and means to elaborate the coordination of such policies and measures. c FCCC/CP/1997/L. 7/Add. l Hnglish Pagc 4 Articlc 3 1. The Partics includcd in Annex 1 shall, individually or jointly, cnsurc tliat tlieir aggregatc anthropogenic carbon dioxide equivaient emissions of the greenhouse gases listed in Annex A do not exceed their assigned amounts, calculated pursuant to their quantified emission limitation and reduction commitments inscribed in Annex B and in accordance with the provisions of this Article, with a view to reducing their overall emissions of such gases by at least 5 per cent below 1990 levels in the commitment period 2008 to 2012. Each Party included in Annex I shall, by 2005, have made demonstrable progress in 2. achieving its commitments under this Protocol. ~~. The net changes in greenhouse gas emissions from sources and removals by sinks 3. rcsulting from direct human-induced land use changcf andjforestry activitiesCJimited to afforestalion, rcforcslation, and dcforestation sincc 1990, measured as verittablc changes in stocks in each commitmcnf period shall be used lo mcct Uie commilments in this Article of each Party included in Anncx I. The greenhouse gas emissions from sources and removals by sinks associated wilh thosc activities shall be reported in a transparent and verifiable manner and reviewcd in accordancc with Articles 7 and 8. 4. Prior to the first session of the Conference of the Parties serving as the meeting of the Parties to this Protocol, each Party included in Annex I shall provide for consideration by the Subsidiary Body for Scientific and Technological Advice data to establish its level of carbon stocks in 1990 and to enable an estimate to be made of its changes in carbon stocks in subsequent years. The Conference of the Parties serving as the meeting of the Parties to this Protocol shall, at its first session or as soon as practicable thereafter, decide upon modalities, rules and guidelines as to how and which additional human-induced activities related to changes in greenhouse gas emissions and removals in the agricultural soil and land use change and forestry categories, shall be added to, or subtracted from, the assigned amount for Parties included in Anncx 1, laking into account uncertainties, transparency in reporting, verifiability, the methodological work of the Intergovernmental Panel on Climate Change, the advice provided by the Subsidiary Body for Scientific and Technological Advice in accordance with Article 5 and thc decisions of the Conference of the Parties. Such a decision shall apply in the second and subsequent commitment periods. A Party may choose to apply such a decision on these addilional human-induced activities for its first commitment period, provided that these activities havc takcn place since 1990. The Parties included in Annex I undergoing the process of transition to a market 5. economy whose base year or period was established pursuant to decision 9/CP. 2 of the Conference of the Parties at its second session, shall use that base year or period for the implementation of their commitments under this Article. Any other Party included in Annex I undergoing the process of transition to a market economy which has not yet submitted its first national communication under Article 12 of the Convention may also notify the 1 FCCC/CP/1997/L. 7/Add. 1 English Page 5 Confcrence of the Parties serving as the meeting of the Parties to this Protocol that it intends to use a historical base year or period other than 1990 for the implementation of its commitments under this Article. The Conference of the Parties serving as the meeting of the Parties to this, Protocol shall decide on the acceptance ofsuch notification. Taking into account Article 4, paragraph 6, of the Convention, in the implementation of 6. their commitments under this Protocol other than those in this Article, a certain degree of flexibility shall be allowed by the Conference of the Parties serving as the meeting of the Parties to this Protocol to the Parties included in Annex I undergoing the process of transition to a market economy. ln the lirst quantified emission limitation and reduction commitment period, from 7. 2008 to 2012, thc assigned amount for each Party included in Annex I shall be equal to the percentage inscribed for it in Annex B of its aggregate anthropogenic carbon dioxide equivalent emissions of the greenhouse gases listed in Annex A in 1990, or the base year or period dctermincd in accordance with paragraph 5 above, multiplied by five. Those Parties included in Annex 1 for whom land use change and forestry constituted a net source of greenhouse gas emissions in 1990 shall include in their 1990 emissions base year or period the aggregate anthropogenic carbon dioxide equivalent emissions minus removals in 1990 from land use change for the purposes of calculating their assigned amount. 8. Any Party included in Annex I may use 1995 as its base year for hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride, for the purposes of the calculation referred to in paragraph 7 above. Commitments for subsequent periods for Parties included in Annex I shall be established 9. in amendments to Annex B to this Protocol, which shall be adopted in accordance with the provisions of Article 20, paragraph 7. The Confcrcnce of the Parties serving as the meeting of the Parties lo this Protocol shall iniliate the considcralion ofsuch commitments al least seven ycars bcfore Ihe end of thc iirst commitment period mentioncd in paragraph 7 above. Any emission reduction units, or any part of an assigned amount, which a Party acquires 10. from another Party in accordance with the provisions of Article 6 and of Article 16 bis shall be added to the assigned amount for that Party. Any emission reduction units, or any part of an assigned amount, which a Party transfers 11. to another Party in accordance with the provisions of Article 6 and of Article 16 bis shall be subtracted from the assigned amount for that Party. Any certified emission reductions which a Party acquires from another Party in 12. accordance with the provisions of Article 12 shall be added to the assigned amount for that Party. FCCC/CP/1997/l,. 7/Add. l Hnglish Page 6 If the emissions of a Party included in Annex I during a commitment period are less than 13. ils assigncd amount under this Article, tliis diftercnce shall, on request of that Party, be added to the assigned amount for that Party for subsequent commitment periods. Each Party included in Annex I shall strive to implement the commitments mentioned in 14. paragraph 1 above in such a way as to minimize adverse social, environmental and economic impacts on developing country Parties, particularly those identified in Article 4, paragraphs 8 and 9, of the Convention. In line with relevant decisions of the Conference of the Parties on the implcmcntation of tliosc paragraphs, the Confcrcncc of the Parties serving as the meeting of the Parties lo this Protocol shall, at its first session, consider what actions are necessary to minimize the adverse effects of climate change and/or the impacls of response measures on Parties referred to in those paragraphs. Among the issues to be considered shall be'the establishment of funding, insurance and transfer of technology. Articlc4 Any Parties included in Annex I that have agreed to jointly fiilfil their commitments 1. under Article 3 shall be deemed to have met those commitments provided that their total combined aggregate anthropogenic carbon dioxide equivalent emissions of the greenhouse gases listed in Annex A do not exceed their assigned amounts calculated pursuant to their quantified emission limitation and reduction commitments inscribed in Annex B and in accordance with the provisions of Article 3. The respective emission level allocated to each of the Parties to the agreement shall be set out in that agreement The Parties lo any such agreement shall notify the secretariat of thc terms of thc 2. agrecment on the datc of dcposit of their instrumenls of ratification, acceplance, approval or accession. The secretariat shall in turn inform the Parlies and signatories to the Convention of the terms of the agreement. The agreement shall rcmain in operation for the duration of the commitment period 3. speciiied in Article 3, paragraph 7. 4. If Parties acting jointly do so in the framework of, and together with, a regional economic integration organization, any alteration in the composition of the organization after adoption of this Protocol shall not affect existing commitments under this Protocol. Any alteration in the composition of the organization shall only apply for the purposes of those commitments under Article 3 that are adopted subsequent to that revision. 5. In the event of failure by the Parties to such an agreement to achieve their total combined level of emission reductions, each Party to such an agreement shall be responsible for its own level of cmissions set out in the agreement. 3 FCCC/CP/1997/L. 7/Add. 1 English Page7 6. If Partics acting jointly do so in the framework of, and togetlier witli, a regional cconomic intcgration organization which is itself a Parly lo this Protocol, cach member Statc of tliat regional economic integration organization individually, and together with the regional economic integration organization acting in accordance with Article 23, 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. Article 5 Each Party included in Annex I shall have in place, no later than one year prior to the 1. start of the first commitment 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 paragraph 2 below, shall be decided upon by the Conference of the Parties serving as the meeting of the Parties to this Protocol at its first session. Methodologies for cstimating anthropogenic emissions by sources and removals by sinks 2. of all greenhouse gases not controlled by the Montreal Protocol shall be those accepted by the Intergovcrnmental Panel on Climate Change and agreed upon by the Conference of the Parties at its third session. Where such methodologies are nol used, appropriate adjustments shall be applied according to methodologics agrecd upon by thc Confercnce of the Parties serving as the mecting of thc Parlies lo this Protocol al ils first session. Based on the work of, inter alia, thc Intergovernmental Panel on Climate Change and advice provided by the Subsidiary Body for Scientific and Technological Advice, the Conference of the Parties serving as the meeting of the Parties to this Protocol shall regularly review and, as appropriate, revise such methodologies and adjustments, taking fully into account any relevant decisions by the Conference of the Parties. Any revision to methodologies or adjustments shall be used only for the purposes of ascertaining compliance with commitments under Article 3 in respect of any commitment period adopted subsequent to that revision. The global warming potentials used to calculate the carbon dioxide equivalence of 3. anthropogenic emissions by sources and removals by sinks of greenhouse gases not controlled by the Monlrcal Protocol listcd in Annex A shall bc those acccpted by the Intergovernmcnlal Panel on Climate Change and agrced upon by the Conferencc of the Parties at its third session. Based on thc 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 scrving as the meeling of thc Parties to this Protocol shall regularly review and, as appropriate, revise the global warming potential of each such greenhouse gas, taking fully into account any relevant decisions by the Conference of the Parties. Any revision to a global warming potential shall apply only to those commitments under Article 3 in respect of any commitment period adopted subsequent to that revision. •1O FCCC/CP/1997/L. 7/Add. l English Page 8 Articlc 6 1. For the purpose of meeting its commitments under Article 3, any Party included in Annex I may transfer to, or acquire from, any other such Party emission reduction units resulting from projects aimed at reducing anthropogenic emissions by sources or enhancing anthropogenic removals by sinks of greenhouse gases in any sector of the economy, provided that: (a) Any such project has the approval of the Parties involved; (b) Any such project provides a reduction in emissions by sources, or an enhancement of removals by sinks, that is additional to any that would otherwise occur; (c) It does not acquire any emission reduction units if it is not in compliance with its obligations under Articles 5 and 7; and (d) The acquisition of emission reduction units shall be supplemental to domestic actions for the purposes of meeting commitments under Article 3. The Conference of the Parties serving as the meeting of the Parties to this Protocol may, 2. at its first session or as soon as practicable thereafter, further elaborate guidelines for the implementation of this Article, including for verification and reporting. 3. A Party included in Annex I may authorize legal entities to participate, under its responsibility, in actions leading to the generation, transfer or acquisition under this Article of emission reduction units. ]f a question of implemenlation by a Parly included in Annex I of the requirements 4. rcferred to in this paragraph is identified in accordance wilh the relevant provisions of Arlicle 8, transfers and acquisitions of cmission reduction units may continue to bc made after the question has been idenlilied, provided that any such units may not be used by a Party to meet its commitments under Article 3 until any issue of compliance is resolved. Article 7 Each Party included in Annex I shall incorporate in its armual inventory of anthrqpogenic 1. emissions by sources and removals by sinks of greenhouse gases not controlled by the Montreal Protocol, submitted in accordance with the relevant decisions of the Conference of the Parties, the necessary supplementary information for the purposes of ensuring compliance with Article 3, to be determined in accordance with paragraph 4 below. Each Party included in Annex I shall incorporate in its national communication, 2. submitted under Article 12 of the Convention, the supplementary information necessary to • ii FCCC/CP/1997/L. 7/Add. 1 English Page9 dcmonstratc compliancc with its commitmcnts undcr tliis Protocol, to bc dctcrmined in accordancc with paragraph 4 below. Each Party included in Annex I shall submit the information required under 3. paragraph 1 above annually, beginning with the first inventory due under the Convention for the first year of the commitment period after this Protocol has entered into force for it. Each such Party shall submit the information required under paragraph 2 above as part of the first national communication due under the Convention after this Protocol has entered into force for it and after the adoption of guidelines as provided for in paragraph 4 below. The frequency of subsequent submission of information required under this Article shall be determined by the Conference of the Parties serving as the meeting of the Parties to this Protocol, taking into account any timetable for the submission of national communications decided upon by the Conference of the Parties. 4. The Conference of the Parties serving as the meeting of the Parties to this Protocol shall adopt at its first session, and review periodically thereafter, guidelines for the preparation of the information required under this Article, taking into account guidelines for the preparation of national communications by Parties included in Annex I adopted by the Conference of the Parties. The Conferencc of the Parties serving as the meeting of the Parties to this Protocol shall also, prior to the first commitment period, decide upon modalities for the accounting of assigned amounts. Article 8 1. The information submitted under Article 7 by each Party included in Annex I shall be reviewed by expert review teams pursuant to the relevant decisions of the Conference of the Parties and in accordance with guidelines adopted for this purpose by the Conference of the Parties serving as thc meeling of thc Parties to this Prolocol under paragraph 4 below. The information submitted under Articlc 7, paragraph 1, by each Party included in Annex I shall bc reviewed as part of the annual compilation and accounting of emissions inventories and assigned amounts. Additionally, the information submitted under Article 7, paragraph 2, by each Party included in Annex 1 shall be reviewed as part of thc revicw of communications. Expert review teams shall be coordinated by the secretariat and shall be composed of 2. experts selected from those nominated by Parties to the Convention and, as appropriate, by intergovernmental organizations, in accordance with guidance provided for this purpose by the Conference of the Parties. The review process shall provide a thorough and comprehensive technical assessment 3. of all aspects of the implementation by a Party of this Protocol. The expert review teams shall prepare a report to the Conference of the Parties serving as the meeting of the Parties to this Protocol, assessing the implementation of the commitments of the Party and identifying any potential problems in, and factors influencing, the fulfilment of commitments. Such reports shall 4z FCCC/CP/1997/L. 7/Add. : English Page 10 be circulated by the secretariat to all Parties to the Convention. The secretariat shall list those questions of implementation indicated in such reports for further consideration by the Conference of the Parties serving as the meeting of the Parties to this Protocol. The Conference of the Parties serving as the meeting of the Parties to this Protocol shall 4. adopt at its first session, and review periodically thereafter, guidelines for the review of implcmcntation by cxpert review tcams taking into account the relevant decisions of the Confercnce of thc Parlies. Thc Confercnce of the Parties serving as the meeting of the Parties to this Protocol shall, 5. wilh the assislance of the Subsidiary Body for Implcmcnlalion and, as appropriate, thc Subsidiary Body for Scienliiic and Tcchnological Advice, consider: (a) The information submitted by the Parties under Article 7 and the reports of the expert reviews thereon conducted under this Article; and * (b) Those questions of implementation listed by the secretariat under paragraph 3 above, as well as any questions raised by Parties. Pursuant to its consideration of the information referred to in paragraph 5 above, the 6. Conference of the Parties serving as the meeting of the Parties to this Protocol shall take decisions on any malter required for the implementation of this Protocol. Articlc 9 Thc Conference of the Partics scrving as the meeting of the Parties to this Protocol shall 1. periodically rcvicw this Protocol in the light of the best available scientific information and assessments on climatc change and ils impacls, as well as relevant technical, social and economic information. Such reviews shall be coordinatcd with pcrtinent rcviews under the Convention, in particular thosc required by Article 4, paragraph 2(d), and Article 7, paragraph 2(a), of the Convention. Based on these reviews, the Conference of the Parties serving as the meeting of the Parties to this Protocol shall take appropriate action. The first review shall take place at the second session of the Conference of the Parties 2. serving as the meeting of the Parties to this Protocol. Further reviews shall take place at regular intervals and in a timely manner. Article 10 All Parties, taking into account their common but differentiated responsibilities and their specific national and regional development priorities, objectives and circumstances, without inlroducing any new commitmenls for Parties not included in Annex I, bul reaffirming cxisting commitmcnts in Article 4, paragraph 1, of the Convention, and continuing to advancc the <^S FCCC/CP/1997/L. 7/Add. l English Page 11 implementation of these commitments in order to achieve sustainable development, taking into account Article 4, paragraphs 3, 5 and 7, of the Convention, shall: (a) Formulate, where relevant and to the extent possible, cost-effective national, and where appropriate regional programmes to improve the quahty of local emission factors, activity data and/or 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, using comparable metliodologies to be agreed upon by the Conference of the Parties, and consistent with thc guidelincs for national communications adopted by the Conference of the Parties; (b) Formulate, implement, publish and regularly updatc national and, wherc appropriate, regional programmes containing measures to mitigate climate change and measures lo facilitatc adequate adaptalion to climate change: (i) (ii) Such programmes would, inter alia, concem the energy, transport and industry sectors as well as agriculture, forestry and waste management. Furthermore, adaptation technologies and methods for improving spatial planning would improve adaptation to climate change; and Parties included in Annex I shall submit information on action under this Protocol, including national programmes, according to the guidelines laid down in Article 8; and other Parties shall seek to include in their national communications, as appropriate, information ori programmes which contain measures that the Parly believes contribute to addressing climate change and its adversc impacls, including the abatcmcnl of incrcasc in greenhouse gas emissions, and enhancement of and removals by sinks, capacity building and adaptation measures. (c) Cooperate in the promotion of effective modalities for the developmcnt, application and diffusion of, and take all practicablc steps to promolc, facililate and linance, as appropriate, the transfer of, or access to, environmentally sound technologies, know-how, practices and processes pertinent 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 the creation of an enabling environment for the private sector, to promote and enhance access to, and transfer of, environmentally sound technologies; (d) Cooperate in scientific and technical research and promote the maintenance and the development of systematic observation systems 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 Ay l'CC(7CP/1997/L. 7/Add. l Hnglish Page 12 intergovermncntal efforts, programmes and networks on research and systematic observation, taking into account Article 5 of the Convention; (e) Cooperate 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 capacity building, in particular human and institutional capacities 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 bodics of the Convention taking into account Article 6 of the Convention; (f) Include in their national communications information on programmes and activities undertaken pursuant to this Article in accordance with relevant decisions of the Conference of the Parties; and (g) Give full consideration, in implementing the commitments in this Article, to Article 4, paragraph 8, of the Convention. Article 11 In the implementation of Article 10, Parties shall take into account the provisions of 1. Article 4, paragraphs 4, 5, 7, 8 and 9 of the Convention. In the context of the implementation of Article 4, paragraph 1, of the Convention, in 2. accordance with the provisions of Article 4, paragraph 3, and Article 11 of the Convention, and through the operating entity or entities of the financial mechanism of the Convention, the developed country Parties and other developed Parties included in Annex II to the Convention shall: (a) Provide new and additional financial resources to meet the agreed full costs incurrcd by dcveloping country Parties in advancing tlic implementation of existing commitmcnts under Article 4, paragraph 1(a), of the Convention that are covered in Article 10, subparagraph (a); and (b) 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 advancing the implementation of existing commitments in Article 4, paragraph 1, of the Convention that are covered by Article 10 and that are agreed between a developing country Party and the international entity or entities referred to in Article 11 of the Convention, in accordance with that Article. A r FCCC/CP/1997/L. 7/Add. 1 English Page 13 The implcmcnlation of these existing commitmenls shall takc into account tlie need for adequacy and prcdictability in thc flow of funds and tlic importance of appropriate burden sharing among developed country Parties. The guidance to the financial mechanism of the Convention in relevant decisions of the Conference of the Parties, including those agreed before the adoption of this Protocol, shall apply mutatis mutandis to the provisions of this paragraph. 3. The developed country Parties and other developed Parties in Annex II to the Convention may also provide, and developing country Parties avail themselves of, financial resources for the implementation of Article 10, through bilateral, regional and other multilateral channels. 1. A clean development mechanism is hereby defmed. Article 12 Thc purpose of the elean development mechanism shall be to assist Parties not included 2. in Anncx I in achieving sustainable development and in contributing to the ultimate objective of tlie Convention, and to assist Parties included in Annex 1 in achieving compliance with their quantified emission limitation and reduction commitments under Article 3. 3. Under the clean development mechanism: (a) Parties not included in Annex I will benefit from project activities resulting in certified emission reductions; and (b) Parties included in Annex I may use the certificd emission rcductions accruing from such project activitics to contribute to compliance with part of their quantified emission limitation and reduction commitments under Article 3, as dctermincd by the Conferencc of thc Parties serving as the meeting of thc Parties to this Protocol. The clean development mechanism shall be subject to the authority and guidancc of the 4. Conference of the Parties serving as the meeting of the Parties to this Protocol and be supervised by an cxccutive board of the clean development mechanism. 5. Emission reductions resulting from each project activity shall be certified by operational entities to be designated by the Conference of the Parties serving as the meeting of the Parties to this Protocol, on the basis of: (a) Voluntary participation approved by each Party involved; (b) Real, measurable, and long-term bencfits related to the mitigation of climate change; and Ai FCCC/CP/1997/L. 7/Add. I EngHsh Page 14 (c) Reductionsin emissions that are additional to any that would occur in the absence of the certified project activity. The clean development mechanism shall assist in arranging funding of certified project 6. activities as necessary. The Conference of the Parties serving as the meeting of the Parties to this Protocol shall, 7. at its first session, elaborate modalities and procedures with the objective of ensuring transparcncy, eflficiency and accountability through independent auditing and verification of projecl activitics. The Conference of the Parties serving as the meeting of the Parties to this Protocoi shall 8. ensure thal a share of the proceeds from certified project activities is used to cover administrative expcnses as well as to assist developing country Parties that are particularly vulnerable to the adverse effects of climate change to meet the costs of adaptation. Participation under the clean development mechanism, including in activities mentioned 9. in paragraph 3(a) above arid acquisition of certified emission reductions, may involve private and/or public entities, and is to be subject to whatevei* guidance may be provided by the executive board of the clean development mechanism. 10. Certified emission reductions obtained during the period from the year 2000 up to the beginning of the first commitment period can be used to assist in achieving compliance in the first commitment period. Articlc 13 The Conference of the Parties, the suprcmc body of the Convention, shall serve as the 1. meeling of Ihe Parties to this Protocol. Parlies to the Convention that are not Parties to this Protocol may participate as 2. observers in the proceedings of any session of the Conference of the Parties serving as the meeting of the Parties to this Protocol. When the Conference of the Parties serves as the meeting of the Parties to this Protocol, decisions under this Protocol shall be taken only by those that are Parties to it. When the Conference of the Parties serves as the meeting of the Parties to this Protocol, 3. any member of the Bureau of the Conference of the Parties representing a Party to the Convention but, at that time, not a Party to this Protocol, shall be substituted by an additional member to be elected by and from amongst the Parties to this Protocol. i } FCCC/CP/1997/L. 7/Add. 1 English Page 15 The Conference of the Parties serving as tlie meeting of the Parties to this Protocol shall 4. keep under regular review the implementation of this Protocol and shall make, within its mandate, the decisions necessary to promote its effective implementation. It shall perform the functions assigned to it by this Protocol and shall: (a) Assess, on the basis of all information made available to it in accordance with the provisions of this Protocol, the implementation of this Protocol by the Parties, the overall effects of the measures taken pursuant to this Protocol, in particular environmental, economic and social effects as well as their cumulative impacts and the extent to which progress towards the objective of the Convention is being achieved; (b) Periodically examine the obligations of the Parties under this Protocol, giving due consideration to any reviews required by Article 4, paragraph 2(d), and Article 7, paragraph 2, of the Convention, in the light of the objective of the Convention, the experience gained in its implementation and the evolution of scientific and technological knowledge, and in this respect consider and adopt regular-ceports on the implementation of this Protocol; (c) Promote and facilitate the exchange of information on measures adopted by the Parties to address climate change and its effects, taking into account the differing circumstances, responsibilities and capabilities of the Parties and their respective commitments under this Protocol; (d) Facilitate, at the request of two or more Parties, the coordination of measures adopted by them to address climate change and its effects, taking into account the differing circumstances, responsibilities and capabilities of the Parties and their respective commitments undcr this Protocol; (e) Promote and guide, in accordance with the objective of the Convention and the provisions of this Protocol, and taking fully into account the relevant decisions by the Conference of the Parties, the development and periodic refinement of comparable methodologies for the effective implementation of this Protocol, to be agreed on by the Conference of the Parties serving as the meeting of the Parties to this Protocol; (f) Protocol; Make recommendations on any matters necessary for the implementation of this (g) Seek to mobilize additional financial resources in accordance with Article 11, paragraph 2; (h) of this Protocol; Establish such subsidiary bodies as are deemed necessary for the implementation A<6 FCCC/CP/1997/L. 7/Add. 1 English Page 16 (i) Seek and utilize, whcre appropriate, thc services and cooperation of, and information provided by, compclcnt intemational organizations and intergovernmental and non-oovernmental bodies: and non-governmental bodies; and (j) Exercise such other functions as may be required for the implementation of this Protocol, and consider any assignment resulting from a decision by the Conference of the Parties. 5. The rules of procedure of the Conference of the Parties and financial procedures of the Convention shall be applied mutatis mutandis under this Protocol, except as may be otherwise decided by consensus by the Conference of the Parties serving as the meeting of the Parties to this Protocol. The first session of the Conference of the Parties serving as the meeting of the Parties to 6. this Protocol shall be convened by the secretariat in conjunction with the first session of the Conference of the Parties that is scheduled after the date of the entry into force of this Protocol. Subsequent ordinary sessions of the Conference of the Parties serving as the meeting of the Parties to this Protocol shall be held every year and in conjunction with ordinary sessions of the Conference of the Parties unless otherwise decided by the Conference of the Parties serving as the meeting of the Parties to this Protocol. 7. Extraordinary sessions of the Conference of the Parties serving as the meeting of the Parties to this Protocol shall be held at such other times as may be deemed necessary by the Conference of the Parties serving as the meeting of the Parties to this Protocol, or at the written request of any Party, provided that, within six months of the request being communicated to the Parties by the secretariat, it is supported by at least one third of the Parties. The United Nations, its specialized agencies and the International Atomic Energy 8. Agency, as well as any State member thereof or observers thereto not party to the Convention, may be reprcsented at sessions of the Conference of the Parties serving as the meeting of thc Parties lo this Protocol as observcrs. Any body or agency, whether national or intcrnational, governmenlal or non-govcrnmental, which is qualified in matters covered by this Protocol and which has informed thc secretariat of its wish to be represented at a session of the Conference of the Parties serving as the meeting of the Parties to this Protocol as an observer, may be so admitted unless at least one third of the Parties present object. The admission and participation of observers shall be subject to the rules of procedure, as referred to in paragraph 5 above. Article 14 The secretariat established by Article 8 of the Convention shall serve as the secretariat of 1. this Protocol. 2. Article 8, paragraph 2, of the Convention on the functions of the secretariat, and AO FCCC/CP/1997/L. 7/Add. 1 English Page 17 Article 8, paragraph 3, of the Convention on arrangemenls made for the functioning of the secretariat, shall apply mutatis mutandis to this Protocol. The secretariat shall, in addition, exercise the functions assigned to it under this Protocol. Article 15 The Subsidiary Body for Scientific and Technological Advice and the Subsidiary Body 1. for Implementation established by Articles 9 and 10 of the Convention shall serve as, respectively, the Subsidiary Body for Scientific and Technological Advice and the Subsidiary Body for Implementation of this Protocol. The provisions relating to the functioning of these two bodier, under the Convention shall apply mutatis mutandis to this Protocol. Sessions of the meetings of the Subsidiary Body for Scientific and Technological Advice and the Subsidiary Body for Implementation of this Protocol shall be held in conjunction with the meetings of, respectively, the Subsidiary Body for Scientific and Technological Advice and the Subsidiary Body for Implementation of the Convention. <t Parties to the Convention that are not Parties to this Protocol may participate as observers 2. in the proceedings of any session of the subsidiary bodies. When the subsidiary bodies serve as the subsidiary bodies of this Protocol, decisions under this Protocol shall be taken only by the Parties to this Protocol. 3. When the subsidiary bodies established by Articles 9 and 10 of the Convention exercise their functions with regard to matters conceming this Protocol, any member of the Bureaux of those subsidiary bodies representing a Party to the Convention but, at that time, not a party to this Protocol, shall be substituted by an additional member to be elected by and from amongst the Parties to this Protocol. Articlc 16 The Conference of the Parties serving as the meeting of the Parties to this Protocol shall, as soon as practicable, consider the application to this Protocol of, and modify as appropriate, the multilateral consultative process referred to in Article 13 of the Convention, in the light of any relevant decisions that may be taken by the Conference of the Parties. Any multilateral consultative process that may be applied to this Protocol shall operate without prejudice to the procedures and mechanisms established in accordance with Article 17. Article 16 bis The Conference of the Parties shall define the relevant principles, modalities, rules and guidelines, in particular for verification, reporting and accountability for emissions trading. The Parties included in Annex B may participate in emissions trading for the purposes of fulfilling their commirments under Article 3 of this Protocol. Any such trading shall be supplemental to domestic actions for the purpose of meeting quantified emission limitation and reduction commitments under that Article. 2o FCCC/C1V1997/1,7/Add. I ItagHsh Page 18 Articlc 17 The Conference of the Parties serving as the meeting of the Parties to this Protocol shall, at its first session, approve appropriate and effective procedures and mechanisms to determine and to address cases of non-compliance with the provisions of this Protocol, including through the development of an indicative list of consequences, taking into account the cause, type, degree and frequency of non-compliance. Any procedures and mechanisms under this Article entailing binding consequences shall be adopted by means of an amendment to this Protocol. ITic provisions of Articlc 14 of the Convention on scttlement of disputes shall apply mutatis mutandis to this Protocol. Article 18 1. Any Party may propose amendments to this Protocol. Article 19 Amendments to this Protocol shall be adopted at an ordinary session of the Conference of 2. the Parties serving as the meeting of the Parties to this Protocol. The text of any proposed amendment to this Protocol shall be communicated to the Parties by the secretariat at least six months before the meeting at which it is proposed for adoption. The secretariat shall also communicate the text of any proposed amendments to the Parties and signatories to the Convention and, for information, to the Depositary. 3. The Parties shall make every effort to reach agreement on any proposed amendment to this Protocol by consensus. If all efforts at consensus have been exhausted, and no agreement reached, the amendment shall as a last resort be adopted by a three-fourths majority vote of the Parties present and voting at the mecting. The adopted amendmcnt shall be communicated by the secretariat lo Ihc Deposilary, who shall circulatc it to all Parties for their acccptancc. 4. Instruments of acccptance in respect of an amendment shall be deposited with the Dcpositary. An amendment adopted in accordance with paragraph 3 above shall enter into force for those Parties having accepted it on the ninetieth day after the date of receipt by the Depositary of an instrument of acceptance by at least three fourths of the Parties to this Protocol. 5. The amendment shall enter into force for any other Party on the ninetieth day after the date on which that Party deposits with the Depositary its instrument of acceptance of the said amendment. L"\ FCCC/CP/1997/L. 7/Add. l English Page 19 Article 20 Annexes to tliis Protocol shall form an integral part thereof and, unless otherwise 1. expressly provided, a reference to this Protocol constitutes at the same time a reference to any annexes thereto. Any annexes adopted after the entry into force of this Protocoi shall be restricted to lists, forms and any other material of a descriptive nature that is of a scientific, technical, procedural or administrative character. Any Party may make proposals for an annex to this Protocol and may propose 2. amendments to annexes to this Protocol. 3. Annexes to this Protocol and amendments to annexes to this Protocol shall be adopted at an ordinary session of the Conference of the Parties serving as the meeting of the Parties to this Protocol. The text of any proposed annex or amendment to an annex shall be communicated to the Parties by the secretariat at least six months before the meeting at which it is proposed for adoption. The secretariat shall also communicate the text of any proposed annex or amendment to an annex to the Parties and signatories to the Convention and, for information, to the Depositary. 4. The Parties shall make every effort to reach agreement on any proposed annex or amendment to an annex by consensus. If all efforts at consensus have been exhausted, and no agreement reached, the annex or amendment to an annex shall as a last resort be adopted by a thrcc-fourths majority vote of the Parties present and voting at the meeting. The adopted annex or amendment to an annex shall be communicated by the secretariat to the Depositary, who shall circulate it to all Parties for their acceptance. 5. An annex, other than Annex A or B, that has been adopted or amended in accordance with paragraphs 3 and 4 above shall enter into force for all Parties to this Protocol six months after the date of the communication by the Depositary to such Parties of the adoption or amendment of the annex, except for those Parties that have notified the Depositary in writing within that period of their non-acceptance of the annex or amendment to the annex. The annex or amendment to an annex shall enter into force for Parties which withdraw their notification of non-acceptance on the ninetieth day after the date on which withdrawal of such notification has been received by the Depositary. If the adoption of an annex or an amendment to an annex involves an amendment to this 6. Protocol, that annex or amendment to an annex shall not enter into force until such time as the amendment to this Protocol enters into force. Amendments to Annexes A and B to this Protocol shall be adopted and enter into force in 7. accordance with the procedure set Out in Article 19, provided that any amendments to Annex B shall be adopted only with the written consent of the Party concerned. 2 L. FCCC/CP/1997/L. 7/Add. 1 English Page 20 Articlc 21 1. Each Party shall have one vote, except as provided for in paragraph 2 below. 2. Regional economic integration organizations, in matters within their competence, shall exercise their right to vote with a number of votes equal to the number of their member States which are Parties to this Protocol. Such an organization shall not exercise its right to vote if any of its member States exercises its right, and vice versa. Article22 The Secretary-General of the United Nations shall be the Depositary of this Protocol. Articlc 23 This Protocol shall -be open for signature and subject to ratification, acceptance or 1. approval by States and regional economic integration organizations which are Parties to the Convention. It shall be open for signature at United Nations Headquarters in New York from 16 March 1998 to 15 March 1999. This Protocol shall be open for accession from the day after the date on which it is closed for signature. Instruments of ratification, acceptance, approval or accession shall be deposited with the Depositary. 2. Any regional economic integration organization which becomes a Party to this Protocol without any of its member States being a Party shall be bound by all the obligations under this Protocol. In the case of such organizations, one or more of whose member States is a Party to this Protocol, the organization and its member Stales shall decide on their respective rcsponsibilities for thc performance of their obligations under this Protocol. In such cases, the organization and the mcmbcr Slates shall not be entitled to exercise rights under this Protocol concurrently. ln their instrumenls of ratification, acceptance, approval or accession, regional economic 3. integration organizations shall declare the extent of their competence with respect to the matters governed by this Protocol. These organizations shall also inform the Depositary, whoshall in turn inform the Parties, of any substantial modification in the extent of their competence. Article 24 This Protocol shall enter into force on the ninetieth day after the date on which not less 1. than 55 Parties to the Convention, incorporating Parties included in Annex I which accounted in total for at least 55 per cent of the total carbon dioxide emissions for 1990 of the Parties included in Annex I, have deposited their instruments of ratification, acceptance, approval or accession. Z1 FCCC/CP/1997/L. 7/Add. 1 English Page21 For the purposes of this Article, "the total carbon dioxide emissions for 1990 of the 2. Parties included in Annex I" means the amount communicated on or before the date of adoption of this Protocol by the Parties included in Annex I in their first national communications submitted in accordance with Article 12 of the Convention. For each State or regional economic integration organization that ratifies, accepts or 3. approves this Protocol or acccdes thereto after the conditions set out in paragraph 1 above for the entry into force have been fulfilled, this Protocol shall enter into force on the ninetieth day following the date of deposit of its instrument of ratification, acceptance, approval or accession. 4. For the purposes of this Article, any instrument deposited by a regional economic integration organization shall not be counted as additional to those'deposited by States members of the organization. No reservations may be made to this Protocol. Article 25 Article 26 At any lime after three years from the date on which this Protocol has entered into force 1. for a Party, thal Party may withdraw from tliis Protocol by giving written notification to the Depositary. 2. Any such withdrawal shall take effect upon expiry of one year from the date of receipt by the Depositary of the notification of withdrawal, or on such later date as may be specified in the notification of withdrawal. Any Party that withdraws from the Convention shall be considered as also having 3. withdrawn from this Protocol. Article 27 The original of this Protocol, of which the Arabic, Chinese, English, French, Russian and Spanish texts are equally authentic, shall be deposited with the Secretary-General of the United Nations. Donc at Kyoto this tcnth day of Deccmbcr onc thousand ninc hundred and nincty-scvcn. L 1 Anncx A FCCC/CP/1997/L. 7/Add. 1 English Page22 Carbon dioxide (C02) Methane (CH4) Nitrous oxide (N20) Hydrofluorocarbons (HFCs) Perfluorocarbons (PFCs) Sulphur hexafluoride (SF6) Sectors/source 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 Sotvent and other product use 2 r FCCC/CP/1997/L. 7/Add. 1 English Page 23 Agricullure Entcric fermentation Manure management Rice cultivation Agricultural soils Prescribed burning of savannas Field burning of agricultural residues Other Waste Solid waste disposal on land Wastewater handling Waste incineration Other ZQ FCCC/CP/1997/L. 7/Add. 1 Eoglish Pagc 24 Party Anncx B Ouantified emission limitation or redwction cQmrnitroent (percentage of base year or period) v Australia Austria Belgium Bulgaria* Canada Croatia* Czech Rcpublic* Denmark Estonia* European Community Finland Francc Germany Greece Hungary* Iceland Ireland Italy Japan Latvia* Liechtenslein Lithuania* Luxembourg Monaco Netherlands New Zcaland Norway Poland* Portugal Romania* Russian Federation* Slovakia* Slovenia* Spain Sweden Switzerland Ukrainc* Unitcd Kingdom of Greal Britain and Northcrn Ircland Unitcd Statcsof Amcrica 108 92 92 92 94 95 92 92 92 92 92 92 92 92 94 110 92 92 94 92 92 92 92 92 92 100 101 94 92 92 100 92 92 92 92 92 100 92 93 * Countries that are undergoing the process of transition to a market economy. 11 ISSN 0254-1475 COM(98) 96 final DOCUMENTS EN 14 15 01 Catalogue number : CB-CO-98-103-EN-C ISBN 92-78-31284-3 Office for Official Publications of the European Communities L-2985 Luxembourg 2 t