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However, Estrada, noting that certain Annex I countries require flexibility mechanisms to take on significant legally binding commitments, urged delegates to adopt a decision allowing COP-4 to determine modalities and guidelines for emissions trading, in particular for verification, reporting and accountability. This was supported by KENYA and COSTA RICA. On 9 December, Estrada introduced a new draft text (FCCC/CP/1997/CRP.4) at an evening session of the COW. He indicated that the proposed text on Article 3 would be treated as a take it or leave it offer. The proposal was the "big bubble," as suggested at various moments during the negotiations, in particular by Russia. The Chair's text contained a global reduction of 5% in emissions of CO2, CH4, NO2 from 1990 levels, for the commitment period between 2006 and 2010, with the possibility that Parties fulfill the commitment individually or jointly. He said the global reduction commitment had been distributed in a differentiated way, with some countries possibly increasing emissions, others keeping their current levels, and most reducing. On 6 December, Kjelln reported that numerous alternative texts remained to be decided. A document was distributed outlining the status of negotiation, including alternative texts and some new proposals. Estrada invited Parties to negotiate on the basis of Kjelln's alternatives. The UK, supported by HUNGARY, TUVALU, GRENADA, SEYCHELLES, ZIMBABWE, the CZECH REPUBLIC, CHILE, URUGUAY, the PHILIPPINES, SLOVENIA, AOSIS, ZAMBIA and COLOMBIA, proposed amending the paragraph to clarify that trading would not be allowed until appropriate rules and guidelines were agreed by the COP. The Chair noted the existence of a draft decision for COP-3 to that effect. MEXICO, RUSSIA, ISRAEL, UKRAINE, NAURU, AUSTRALIA, the REPUBLIC OF KOREA, ROMANIA, JAPAN, ARGENTINA, SAMOA, NEW ZEALAND, POLAND and SWITZERLAND favored keeping the three paragraphs as drafted. IRAN suggested that the Secretariat study the concept for future action. UGANDA, supported by NIGERIA, specified that future COPs should examines the merits of trading.

Summary report 1–11 December 1997 - IISD Earth Negotiations Summary report 1–11 December 1997 - IISD Earth Negotiations

Delegates next considered reports from the FCCC subsidiary bodies. Tibor Farag (Hungary) introduced the report and draft decisions of the Subsidiary Body on Scientific and Technological Advice (SBSTA) (FCCC/SBSTA/1997/14). Delegates noted the report of SBSTA and adopted its draft decisions on cooperation with the Intergovernmental Panel on Climate Change (IPCC) and the development of observational networks. Joint SBSTA/SBI draft decisions were adopted on the development and transfer of technology and activities implemented jointly (AIJ). McDonald's, Chipotle Raising Prices In California ... After State Increases Fast-Food Workers' Wages MN Cop Kim Potter Cries on Stand Describing Shooting, Killing Daunte Wright Kim Potter Breaks Down on Stand ... Details Shooting & Killing Daunte Wright Estrada asked delegates to adopt the revised Annex B, reflected in document FCCC/CP/1997/L.7/Add.1, in light of the text agreed for the Protocol. Annex B presents each Annex I country's commitment target. Combined, these equal a global 5.2% reduction of six GHGs. Estrada pointed out that on a graph it could be seen that a 5% reduction from 1990 emission levels would equal a 10% reduction in emissions of six gases from projected 2000 levels and was 30% below business-as-usual projections for 2010. QELROs should be calculated on a "net-net" basis, i.e., all sources minus all sinks in both the base year and the target year for the first budget period.Paragraph 7 states that for the first commitment period (from 2008 to 2012), QELROs for Annex I Parties shall be equal to the percentage of their 1990 or chosen base year emissions inscribed in Annex B, multiplied by 5. It determines that Parties shall include in their 1990 emissions base year or period, GHG emissions minus removals in 1990 from land use change for the purposes of calculating their assigned amount, if land use change and forestry constituted a net source of GHGs in 1990. The first MOP shall elaborate modalities and procedures to ensure transparency, efficiency and accountability through independent project auditing and verification. The MOP shall also assure that a share of proceeds from certified projects is used to cover administrative expenses and to assist meeting adaptation costs of those developing country Parties particularly vulnerable to climate change effects. Participation may involve private and/or public entities, subject to guidance provided by the CDM executive board. Certified emission reductions obtained between 2000 and 2008 can be used to achieve compliance in the first commitment period. The COP serving as the MOP shall, at its fourth session, analyze the implications of the paragraph on reductions between 2000 and 2008.

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The first meeting of the COW convened on 1 December. The COW established three negotiating groups on: institutions and mechanisms; advancing the implementation of FCCC Article 4.1 and the financial mechanism; and P&Ms. COW Chair Ral Estrada Oyuela conducted negotiations on QELROs. In addition, a number of informal groups considered other issues. SWITZERLAND, supported by HUNGARY, urged SBSTA to further elaborate on the inclusion of bunker fuel emissions in overall GHG inventories. JAPAN, opposed by the UK, said there were "actual" and "potential" methods of estimating emissions and proposed a new paragraph under which the COP would affirm the "actual" method for including HFC, PFC and SF6 emissions in QELROs. The US, supported by NORWAY, called for using actual methodology where data is available. The text introduced at the 9 December COW meeting included afforestation, reforestation and deforestation as sinks, with provision for further analysis.ARTICLE 3 (QELROs and Sinks): The article on quantitative emission limitation and reduction objectives (QELROs) was discussed in a negotiating group chaired by COW Chair Estrada throughout the first week, as well as during COW sessions on 4, 5, 6, 9 and 10 December, the last session concluding on 11 December. Methodologies for estimating anthropogenic emissions by sources and removals by sinks of all GHGs not controlled by the Montreal Protocol shall be accepted by the IPCC and agreed upon by COP-3. Where methodologies are not used, appropriate adjustments shall be applied according to methodologies agreed upon by the COP acting as the MOP. ARTICLES 14 AND 15: These articles were agreed in the negotiating group on I&Ms. Under 14 (Secretariat) and 15 (Subsidiary Bodies), the FCCC Secretariat and Subsidiary Bodies will also serve the Protocol.

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CHINA said that VENEZUELA, SAUDI ARABIA and KUWAIT objected to adopting incomplete rules. ARGENTINA and the Alliance of Small Island States (AOSIS) supported the draft decision. The EU supported the draft decision but suggested that rule 22 was already agreed. The President called for consultations and said the COP would continue to apply the draft rules except rule 42.

a synthesis of information from Annex I national communications on sources and sinks in the land-use change and forestry sector (FCCC/TP/1997/5). The Chair's draft presented in the 9 December COW covered emissions of CO2, CH4, NO2 from 1990 levels, for the commitment period between 2006 and 2010. COP-4 was to adopt an annex to the Protocol establishing reduction commitments covering HFCs, PFCs, and SF6 with a linkage between the two baskets.