Cancun Meet Ends with Many Gains

Well into the second week of talks, there were signs ministers were making progress on key areas. After some last-minute hiccoughs and all-night talks, governments finally reached an accord in the wee hours of 11 December - in no small measure, many delegates said, due to skilful chairing by COP President Patricia Espinosa, Mexico’s foreign minister.

Spirit of compromise

There are two texts that make up the Cancun Agreements: one on Long Term Cooperative Action (LCA) and one on the Kyoto Protocol. Much compromise can be seen in the texts with give and take by both developed and developing countries. For example, the Green Climate Fund - which was established last year in Copenhagen - was strengthened and the World Bank was given a three-year interim mandate to serve as trustee.

The United Nations climate summit that finished in Cancun this month surpassed low expectations when governments struck a deal that keeps alive efforts for a multilateral response to tackle climate change.

The agreements reached in the Mexican beach resort do not establish caps on green-house gas emissions; on that crucial issue, they simply kick the can down the road to next year’s summit in Durban, South Africa. But govern-ments agreed on an international system for monitoring mitigation, fleshed out a facility for climate finance, and established rules for rewarding forest preservation. They also steered clear of a clash that could have killed what remains of the Kyoto Protocol. Trade issues, from emissions resulting from the international shipment of goods to the use of unilateral trade measures ostensibly to offset reduced industrial competitiveness resulting from higher carbon costs, proved too contentious, and were left out of the text.

Additionally, any references to the use of unilateral trade measures were removed, leaving a crucial element of enforcement and regulation unresolved. Clearly, trade issues proved to be some of the most difficult questions to untangle and agree upon in Cancun.

This concession was balanced by an agreement that the Fund would be designed by a transitional committee made up of a majority of developing countries. The 40 member committee will be made up of 15 developed countries and 25 developing countries (seven from Africa, seven from Asia, seven from the Group of Latin America and Caribbean Countries (GRULAC), two from small island developing states (SIDS), and two least-developed countries).

Another major compromise - particularly for China - can be seen in the establishment of an international system for providing measuring, reporting, and verification (MRV) for mitigation actions. This “transparency” issue had seemed too difficult to solve in the weeks leading up to Cancun, with the US insisting that it be a part of any financing package and China resolutely against anything of the sort.

On mitigation in general, parties agreed that by the time next year’s Durban COP arrives, they would establish a timeframe for emissions to reach a global “peak.” China has been resistant to committing to a peak in the past, arguing until quite recently that it expects its emissions to continue to rise for some time.

Kyoto not dead, but on life support

The Kyoto Protocol lives to see another day. Although debilitated, it is not dead, as many thought might happen. Several developed countries - including Canada, Australia, and Japan - had been calling for an end to Kyoto, arguing that any climate deal that does not require major economies like China and India to meet mitigation targets is ineffective.

Cancun secures the survival of Kyoto’s Clean Development Mechanism (CDM) programme and opens up the possibility for its expansion. The deal, however, does not establish a second term of emissions reduction commitments for Kyoto and it still is unclear what will happen when the first phase expires at the end of 2012.

Another key victory for developing countries is that, as laid out in the Kyoto Protocol, they will continue to not be penalised for failing to meet their emissions targets. In the end, China also managed to include language that allows it to set its reduction target based on “emissions intensity” - a less arduous target based on carbon emissions per unit of economic output. Developed countries had been pushing for commitments capping total emissions.

The agreement also establishes rules on the enhanced Reducing Emissions from Defore-station and Forest Degradation in Developing Countries (REDD+) programme, a key issue pushed by Mexican President Felipe Calderon.

Notably, the rules on REDD+ now mention the need to respect the rights of indigenous communities and others, in accordance with international law. Some developing countries, most notably Bolivia, had expressed reservations that an international forests agreement might impinge on the traditional practices of forest dwellers.

Small Island Developing States (SIDS), the countries most vulnerable to rising sea levels resulting from climate change, received a small victory with language that “recognises the need to consider” strengthening the long-term goal of capping global average temperature rises by lowering this goal from 2°C to 1.5°C.

Thorny trade issues nixed

While the Cancun meeting surpassed what had been expected of it at the outset, several key issues were dropped in order to reach consensus - trade-related issues among them. Agriculture, which had been considered one of the easier negotiating issues, became linked in the negotia-ting process to contentious discussions about emissions resulting from international shipping. When it became clear that parties would be unable to overcome their differences on how to manage bunker fuels - the global nature of the industry makes it difficult to make decisions on jurisdiction - both issues were snipped out of the text.

Additionally, any references to the use of unilateral trade measures were removed, leaving the issue unresolved. It remains to be seen how governments will try to address these thorny issues when the UNFCCC process resumes in 2011.