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    August 10th, 2001 
    Pact Politics
    High political drama marks climate negotiations as the European Union
    strives to enforce the Kyoto protocol without the US. The South could play a crucial role
    pushing for a fair treaty, but it simply continues to squabble over a few dollars! 
    
      
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        THE US President George Bush's obdurate
        stance on climate change has driven negotiations under the critical UN Framework
        Convention on Climate Change (UNFCCC) to a feverish pitch. The world has now two options -
        convolute the climate treaty to meet US demands (including one that countries like China
        and India take on legally binding commitments), or go without the US, the world's largest
        and most powerful polluter. The next act of the drama will be played out when the
        suspended sixth conference of parties (CoP-6) to the UNFCCC continues its work at
        "COP-6 plus" in Bonn later this month. The original CoP-6 was suspended in The
        Hague last November as no agreement could be reached (see DTE, December 31, 2000, Tart
        Response).   | 
       
     
    Climate politics went into full speed in
    early June 2001. The day before he left for his maiden European tour, Bush dropped his
    climate bricks and baits. To appease his European colleagues, climate-sceptic Bush
    acknowledged the severity of the global warming problem for the first time, and said that
    the US would lead the way by advancing science on climate change. "The world's second
    largest emitter of greenhouse gases is China. Yet, China was entirely exempted from the
    requirements of the Kyoto Protocol. India and Germany are among the top emitters. Yet,
    India was also exempt from Kyoto," Bush said. For these reasons, he said, "The
    Kyoto Protocol is fatally flawed in fundamental ways." 
     
    In the Swedish city of Gothenburg where protesters greeted "toxic Texan"
    Bush with naked backsides and banners during an European Union (EU)-US summit in mid June
    2001, the EU was forced to take a stand. It decided, somewhat reluctantly, to part ways
    with the US. Swedish prime minister and host, Goeran Persson said that the EU would stick
    with the Kyoto treaty, while the US would "go on with their policy." "Kyoto
    is not meaningless without the US," defended Persson, "because it is the first
    step."  
     
    The Kyoto Protocol can only come into force if it has been ratified by 55 parties
    to UNFCCC, including industrialised countries responsible for at least 55 per cent of the
    emissions of the industrialised countries in 1990. The negotiations have turned into a
    courtship game, as the EU cajoles, woos or bribes key nations to get the magical 55 per
    cent number. For the protocol to come into effect without the US, the EU will need Russia
    and the countries in transition and either Japan or Canada and Australia together (see
    box: The numbers game, p34). All these countries want concessions in the use of sinks -
    using forests, grazing lands and croplands to sequester carbon dioxide to meet their
    commitments. Sinks have, therefore, become the battleground to make or break the Kyoto
    pact. And each one of these countries is working hard to get the maximum concessions
    possible in this great bargain.  
     
    For Japan's sake 
    "Japan is key (for the Kyoto Protocol to come into effect)," admits Svend Auken,
    Denmark's dynamic energy and environment minister. Russia and Ukraine and the EU account
    for about 53 per cent. It is the last two per cent that is difficult. Japan is making full
    use of its power and is blowing hot and cold. Mid-June, Japanese prime minister, Junichiro
    Koizumi dramatically proclaimed that the Bush administration's position on Kyoto was
    "truly deplorable." The next day, foreign minister, Makiko Tanaka said,
    "Japan cannot go ahead with European countries while leaving behind the US. We will
    make constructive efforts till the end to ratify the pact jointly with the US." 
     
    Playing all sides was profitable. On June 18, CoP-6 president Jan Pronk put forward
    his revised draft proposals for parties to negotiate upon when they meet in Bonn. This
    latest draft contained special favours for Japan. Indian scientist, N H Ravindranath, who
    contributed to the Intergovernmental Panel on Climate Change (IPCC) report on land use,
    land use change and forestry (LULUCF), calculates that through these new proposals, Japan,
    like other industrialised countries, could meet roughly 50 per cent of its reduction
    commitments through sinks.  
     
    However, the catch is that Japan does not have the land area to meet these
    commitments domestically. It will need to plant trees in developing countries to meet its
    emission reduction target. Therefore, Japan's participation is in the hands of developing
    countries who are still holding out on the issue of including sinks in the Clean
    Development Mechanism (CDM) - the trading mechanism set up so that the North can buy its
    emission quota by investing in cleaner power plants or planting trees in the south. 
     
    If the EU has to make it to 55 per cent it needs Japan. Japan in turn needs the
    definition of sinks to be expanded and to be given as much leeway to meet its emission
    reduction target from sinks. For this, Japan needs G-77 to drop its opposition to
    including sinks in CDM. The bottomline is that the EU needs G-77 and China, for Japan's
    sake. 
     
    But by early July positions changed again. At a Koizumi-Bush summit, Japan's
    premier changed sides. With the country sinking deeper into a recession, he was clearly
    not in a mood to antagonise his largest trading ally. Although just a week ago he had
    called Bush's position deplorable, he now maintained that if Washington and Tokyo
    cooperated, they would be able to "create means that will be more effective in
    dealing with global warming issues." Koizumi ended the summit visit with an agreement
    that "he would not proceed without the US."  
     
    A few days later, this time after his meeting with Tony Blair, UK prime minister,
    Koizumi said that Japan would make efforts "until the very last minute" to bring
    the US on board. He left the issue of going without the US open. He has, however, stated
    clearly that Japan will not make any decisions on ratifying the protocol until CoP-7 in
    October 2001. Japan's prevarication is clearly strategic. Already, nervous negotiators are
    willing to offer sops to bring Japan on board. Pronk announced that he was willing to
    agree to extend the deadline for industrialised countries by two years. The UK has
    announced that it is willing to support changes to the Kyoto protocol, to support Japan's
    efforts to bring the US back on board. There are also indications that the compliance
    provisions will be kept so weak as to render the entire Kyoto commitment almost voluntary.
    Australia and Canada, who hold the other two casting votes, are also keeping their options
    open.  
     
    On a tightrope 
    At CoP-6, the negotiations with G-77 and China were deadlocked mainly over the issues of
    finance and technology transfer. These still remain sticky. But developing countries have
    a new challenge. George Bush's ultimatum could easily turn the tide and they could become
    the focus of attention. To bring the US on board, developing countries could be offered as
    the sacrificial lamb. And, if they still oppose taking on commitments, they could be
    dubbed the problem creator, standing in the way of getting an effective climate regime.  
     
    The Bill Clinton administration was not very different in its position. It had also made
    the "meaningful participation" of developing countries the main focus of its
    negotiating strategy. But it had stopped short of asking for legally binding commitments.
    Instead, it had concentrated on getting major concessions from developing countries in the
    use of CDM. The US administration calculated that the use of CDM would allow it to buy its
    emission reduction targets very cheap - between US $7-15 billion over the five year period
    if it could buy 90-100 per cent of its emission reduction through CDM, at a cheap rate of
    US $10-20 per tonne of carbon. Given that CDM is a synonym for overseas investment - US
    companies would sell energy efficient technologies, in return for carbon credits - it was
    a double bonus. US negotiators used trick and treat tactics to break down opposition of
    developing countries to CDM. By CoP-6, Southern negotiators were only picking holes in the
    various rules and definitions of CDM, but everyone wanted the trading mechanism to begin
    as fast as possible.  
     
    The second US negotiating strategy was to expand the definition of sinks to make it
    possible to use just about every creative accounting practice to get credits for carbon
    sequestration from vegetation. Its interest was to expand the definition of sinks so that
    just about every shrub, farm or tree would appear in its carbon credit book. Pronk's
    proposals would allow almost 50 per cent of US emission reduction targets to be achieved
    by domestic vegetation management. The third negotiating strategy is aimed at getting key
    developing countries, China and India, to take on legally binding emission reduction
    commitments. "We are not saying that Burkina Faso has to sign up to this right now,
    but the major emitters - India and China - have to sign now," a US official told the
    New York Times. 
     
    The US knows that it will not be able to ram its way to get commitments today but
    its attempt will be to find a politically acceptable option to drive the wedge between the
    EU, the G-77 and China. For instance, writing in the Washington Post, Clinton's former
    climate change director and chairman of the White House Climate Change Task Force, Roger
    Ballentine puts forth a seductive agenda: 
     
    Make the first commitment period of the Kyoto Protocol when industrialised
    countries are expected to meet their emission reduction targets voluntary. He argues that
    for the US to meet its targets is too tough and the five years can be a good opportunity
    to get its act together. In his proposal, the targets would still apply and can be used
    for trading but there would be no consequences for missing them.  
     
    Simultaneously work to make the second period mandatory and to bring in developing
    countries into the ambit of the protocol. For 2013 to 2017, industrialised countries would
    face the same targets that were voluntary in the first period, but this time these would
    be mandatory. At the same time, developing countries would be required to take on targets,
    but theirs would be voluntary. 
     
    By 2018-2022, industrialised and developing countries would all be in the same
    system with legally binding commitments.  
     
    Then there would be no "fatal flaw" in the treaty - only fatalities in
    the developing countries. The favourite formula is to give developing countries an
    arbitrary 10-year grace period, as was done in the case of the Montreal Protocol to save
    the ozone layer. The South was given 10 years to take on the same commitments as the
    North, without any attempt to iron out the gross inequities in the use of resources.  
     
    As yet, the South is taking comfort that the EU is on its side. But for how long?
    And what compromise will it need to make with the EU to get its support? After all,
    bringing the US on board is in the interest of the EU, which stands to lose its
    competitive advantage if only its industry is asked to take on the extra burden of climate
    change abatement. The G-77 and China will also want the US to participate - but for
    another reason. Without the US, the largest buyer of emission credits, the trade under CDM
    is also expected to shrink.  
     
    Ecologically effective! 
    With Australia and Canada playing their cards close to their chest and Japan
    prevaricating, it is clear that for the world to go without the US, it will need to make
    major concessions. Whether or not the agreement will effectively combat the threat of
    climate change is quite another issue. Firstly, to bring Japan and others on board, the
    agreement will be riddled with loopholes. Secondly, without the participation of the
    world's largest polluter, the US, the global atmosphere will continue to be loaded with
    increasing emissions.  
     
    In 2000, carbon dioxide emissions in the US increased by 2.7 per cent according to
    estimates released by the US Energy Information Administration. Its estimates are that the
    US released 1,558 million tonnes of carbon dioxide into the atmosphere in 2000, up 41
    tonnes from 1999. The American way of life was the major contributor with transportation
    related emissions, mainly from gas guzzling cars, sports utility vehicles and trucks
    jumping 2.6 per cent.  
     
    The average growth rate of US emissions has been pegged at 1.5 per cent annually. By this
    estimate, by the first commitment period in 2008, US emissions would have increased a
    staggering 27 per cent or more over 1990 levels. To meet its Kyoto targets, the US would
    need to reduce its emissions by 33 per cent over 1990 levels at the very least. Small
    wonder then that President Bush is belligerent about his country's right to pollute. Bush
    says that Kyoto Protocol will have a serious impact on the US economy. And it is for this
    reason that he would like to target competition from India and China. 
     
    Pronk tries to resolve 'crunch issues' 
    In June 2001, Pronk came out with his third version of a compromise text proposal. His
    first such draft had emerged in the wee hours of the last night of CoP-6. Pronk had called
    it a "balanced" note, prepared with the view to flesh out the most controversial
    issues with "balanced representation  
    of the participating country proposals." But many saw that the draft had a definite
    partiality to US positions. "Either that, or the US demanded so much in the first
    place, that even in giving them so little, Pronk has given away too much," said the
    editorial in Equity Watch, a newsletter published by the Centre for Science and
    Environment, New Delhi. Pronk's draft will be the basic negotiating text for the resumed
    CoP at Bonn.  
     
    Rubbing salt on wounds  
    The latest Pronk proposal gives nothing to the South, except for words and vague promises.
    It suggests an adaptation fund to finance both pilot and concrete projects in developing
    countries to help them adapt to climate change. It will be financed from the share of the
    proceeds of the CDM - two per cent of certified emission reduction (CERs) generated. CERs
    are earned as credits for reducing emissions through CDM projects. And a special climate
    change fund to finance activities relating to technology transfer, capacity building and
    economic diversification. These activities should be additional but complimentary to those
    currently funded by the Global Environment Facility (GEF) and bilateral and multilateral
    funding. The fund will be operated by the GEF council.  
     
    In addition, a carrot of US $1 billion is dangled before the cash-desperate South.
    The proposal says that total annual contributions from industrialised countries towards
    the adaptation fund, special climate change fund, GEF, and additional bilateral and
    multilateral funding should rise to US $1billion by 2005. About half of the amount is
    earmarked for adaptation programmes.  
     
    For the South, the Pronk proposals are akin to rubbing salt on its wounds. Everything that
    it has fought against is in - from GEF being the main body, to the fact that under the
    adaptation fund the South will have to pay for its own adaptation. Under this proposal, a
    part of the CERs which the North buys, probably at ridiculously low rates from the South,
    will be set aside to give back to the South a few peanuts for its adaptation projects.
    This is an amazing distortion of the polluter pays priniciple. The polluting North is
    liable to pay for the South's adaptation needs. But by taxing the CDM literally amounts to
    stealing from the poor to give back to them - a modern Robin Hood story. Moreover,
    proceeds from other flexibility mechanisms, which involve only industrialised countries,
    are exempt from such a contribution. Putting the adaptation funds under CDM means that the
    North gets away doing nothing with the commitments under the climate convention.  
     
    Furthermore, the trifle amount of US $1billion per year does not even begin to
    address developing country's technology and adaptation needs. Moreover, in the absence of
    a strong deterrent, there is no guarantee that industrialised countries will contribute
    even this amount. The commitment is not binding, and unlike the earlier proposal of
    November 23, 2000, failure to contribute does not result in a levy being imposed on Joint
    Implementation (JI) projects and emission trading. 
     
    Trading cheap  
    The Kyoto Protocol enlists three flexibility mechanisms, namely, emissions trading, JI and
    CDM. These mechanisms offer some flexibility to industrialised countries by providing them
    cheap ways of meeting their emissions reduction target. Emissions trading allows
    industrialised countries to buy and sell parts of their assigned amounts - the quantity of
    green house gases (GHGs) they can emit each year. The protocol lays out assigned amounts
    for all industrialised countries with reduction commitments. A country that has gone over
    its emissions limit can buy assigned amount units (AAUs) from another country, whose
    emissions are well within its assigned amount. CDM, a project-based mechanism, enables
    industrialised countries to earn credits by investing in emissions cutting initiatives in
    developing countries. JI is similar to CDM except that here investment is made in another
    industrialised country rather than a developing country. 
     
    Pronk's proposal is right in stating that climate  
    change policies and measures "should seek to reduce inequalities in per capita
    emissions of developing and industrialised countries." He adds, "Therefore,
    industrialised countries must meet their emissions reduction targets chiefly through
    domestic action undertaken since 1990."  
    This is an issue of intense debate - should industrialised countries be forced to take
    measures domestically to meet their emission reduction targets, or be allowed to buy their
    targets by buying emission credits from developing countries and ailing economies of
    industrialised countries. The Kyoto Protocol had left the issue ambiguous. Initially, the
    EU had taken a green stance arguing that the net transfers (non-domestic action) should
    not be greater than the amount of emissions reduced domestically. The US and its allies
    opposed supplementarity and finally the Pronk paper leaves it wide open once again. 
     
    Pronk gives another sop to industrialised countries - by allowing them to
    accumulate surplus CERs to meet reduction obligations in the second commitment period.
    This provision means industrialised countries can today buy emission reductions credits at
    throwaway prices from developing countries and bank them for future use. But developing
    countries, having sold cheap ways of reducing emissions, will be forced to take recourse
    to expensive methods when it is their turn to reduce in the future.  
     
    Although, the host developing country will have the right to decide if a particular
    CDM project contributes to its sustainable development objectives, and is in line with its
    national priorities, the proposal calls on industrialised countries to refrain from using
    nuclear projects under JI and CDM. In order to ensure that CDM projects are equally
    distributed, simplified procedures will apply to specific small-scale projects to
    facilitate equitable regional distribution of CDM projects. The proposal also emphasises
    that use of public funding in CDM projects should not result in diversion of official
    development assistance (ODA).  
     
    The nuclear issue has been one of the most bitter "crunch" issues. The
    South insists that it is its "sovereign" right to decide what technology it
    should adopt and if it wants to invest in the environmentally unfriendly and expensive
    nuclear - in other words, if it wants to go to hell - it is its business. The EU opposes
    this option because of its green lobbies. The US and allies, don't support it openly but
    urge the South to consider it as it would suit their ailing nuclear industry interests.
    The EU instead wants a "positive list" to define what is more environmentally
    friendly technology. Pronk has left it to the discretion of the buyer.  
     
    The loopholes 
    The debate over using forests, referred to as 'sinks' because they absorb carbon dioxide
    from the atmosphere, is becoming more contentious day by day. The Kyoto Protocol asks
    industrialised countries to reduce their carbon dioxide emissions, but it also provides
    two 'loopholes' that allow the use of sinks to offset these emissions instead of
    undertaking real cuts in fossil fuel use. Article 3.3 and 3.4 of the Protocol permit
    countries to engage in land use, land use change and forestry activities (LULUCF) to
    enhance carbon dioxide absorption by sinks, and gain emissions reduction credits for the
    gas thus removed from the atmosphere. The compromise proposal on the table for the
    upcoming climate change talks gives a complex formula to calculate these credits.  
        In order to enhance carbon content of a system, countries can undertake
    LULUCF activities, which 
    1)    change the use of land to one with higher potential for storing
    carbon, for instance, forests store more carbon dioxide than croplands or grasslands, or 
    2)    manage the land differently so that more carbon is absorbed, and retained
    for a longer time, like by introducing cropping techniques that minimise soil disturbance
    and consequential carbon loss. 
     
    The Kyoto Protocol had included under Article 3.3 the use of afforestation,
    reforestation and deforestation (ARD) activities to absorb carbon dioxide and gain
    credits, whereas other LULUCF activities like forest, cropland and grazing land management
    (Article 3.4) were still open for future agreements. Afforestation and reforestation refer
    to establishing trees on lands where there were none. They are distinguished only by the
    period when the land was without forest. Planting trees on land, which has had recent tree
    cover, is called reforestation, whereas afforestation involves land that did not have
    trees for a much longer period. Deforestation means removing forest from the land and
    putting it to non-forest use.  
     
    On the other hand, activities under Article 3.4 are rather vaguely defined and open
    to interpretation. For instance, forest management practices would simply mean that the
    country is taking credits for improving the practice of forest management or cropland
    management. Such an activity could be simply adding nutrients to increase growth rate,
    pest management, low-impact harvesting where soil disturbance is kept at the minimum,
    forest fire management and reducing forest degradation.  
     
    Similarly, areas like grasslands, pasture, savannas and shrub lands are considered
    grazing lands. Reducing overgrazing, protecting intensively grazed lands, reverting
    cultivated lands to grasslands, fertilisation and irrigation to increase productivity,
    introducing plant species like legumes or deep-rooted species and fire management are some
    of the practices used to manage grazing lands to increase their carbon content. 
     
    In croplands, most of the carbon is stored in soil as crops are regularly
    harvested. Therefore, any activity that enhances carbon storage in soils will be crucial
    for cropland management under the Protocol. Improved water management, higher yielding
    crop varieties and pest management are ways to increase crop yield. Increased yield causes
    more carbon to be absorbed by crops, which in turn favours enhanced carbon storage in
    soils. Conservation tillage, where land is tilled in a way that leaves a lot of crop
    residue on the surface and thus reduces soil erosion by water, and other soil erosion
    control techniques can also go a long way in retaining carbon present in soils.  
     
    Revegetation involves planting small vegetation. This is why at the CoP-6,
    environmentalists angry at this loophole put up placards on small bushes and potted plants
    in the conference centre saying, "Do not touch. This is an Australian sink."
    This category is considered to be of a particular interest to Australia where much of the
    landscape is saline. Agricultural soils are also becoming increasingly saline due to
    clearing of trees and excessive irrigation. Growing salt tolerant species like saltbush
    can improve conditions, but such small type of vegetation may not qualify as
    reforestation. Hence the need for a separate category. Including revegetation may not mean
    much in terms of credits, but can be helpful for politicians in winning people at home.
    Critics say these will be impossible to monitor and even more impossible to verify. It is
    for this reason that this issue was the deal breaker in The Hague. But now with countries
    desperate to bring the polluters on board, sinks of any colour and size may just make it
    through.  
     
    In his proposal, Pronk allows revegetation and forest, cropland and grazing land
    management as eligible activities, essentially giving an advantage to countries like the
    US, Australia, Russia and Canada with large land areas under forests, grazing lands or
    croplands. 
     
    Pronk's proposal offers a three-tier method to calculate credits arising from
    activities under Article 3.4 in the first commitment period (2008-2012). In the first
    tier, countries can fully count carbon dioxide removed from the atmosphere through forest
    management, up to the level of net carbon dioxide emissions reported under Article 3.3. If
    more carbon dioxide is released due to deforestation than is absorbed by afforesation and
    reforestation, net emissions are reported in Article 3.3. But annual credits in this tier
    are capped at 8.2 million tonnes of carbon (mtC). The limit can be extended to 13 mtC, if
    the country meets certain criteria for energy efficiency, forest cover and population
    density. 
     
    Beyond the first tier, countries get only 15 per cent credits for forest
    management. A discount factor of 85 per cent is applied to exclude carbon dioxide absorbed
    due to natural ways, or due to effects of practices employed before 1990. This is done
    because Article 3.4 calls for separating carbon dioxide absorbed due to human-induced
    activities from absorption occurring naturally. For example, only forest regeneration done
    intentionally will be considered as opposed to regeneration happening without human
    assistance. Carbon dioxide absorption, which can be attributed to activities undertaken
    before 1990 is also not considered for credits in the first commitment period. For
    instance, carbon dioxide being absorbed due to nutrients added in 1989 cannot be
    considered for credits. But, it is extremely difficult to attribute causes to the change
    observed in carbon content and separate human-induced effects from natural, and pre-1990
    from after 1990. In order to overcome this problem, the proposal takes refuge in the
    discounting factor, whose value is very arbitrary. Strangely, no discounting is applied to
    the first tier, even though those credits are no less riddled with such problems. There is
    no reason to award full credits in the first tier except to compensate countries for their
    emissions under Article 3.3. Lastly, in the third tier, full credits for agricultural
    management, which comprises cropland and grazing land management, and revegetation, are
    given (see table: Calculated commitments).  
     
    The proposal imposes an overall limit on the sum total of credits gained from the
    second and third tier, and those from LULUCF projects under JI and CDM. There is no
    explanation why credits from first tier or Article 3.3 are not included in this total. In
    case of countries, which can increase their emissions over base year levels or have to
    maintain at those levels, this limit is fixed at 2.5 per cent of emissions in the base
    year. This means a country like Russia will not be able to use sinks to take credit for
    more than 2.5 per cent of its base year emissions. On the other hand, for a country
    required to reduce its greenhouse gas emissions below base year emissions, the total
    should not exceed 50 per cent of its Kyoto target. So a country like the US can meet up to
    50 per cent of its target using sinks. Calculation shows that this formula will help the
    US to fulfil most of this 50 per cent through sinks projects at home. However, Japan can
    only meet 13 per cent of the Kyoto target from domestic sinks projects under second and
    third tier. It will be dependent on credits from LULUCF projects under JI and CDM for the
    rest 37 per cent. 
     
    The issue of including sinks in CDM was controversial with key developing countries
    like Brazil holding out. Pronk says that, as a compromise, only afforestation and
    reforestation projects, and not forest management practices or grazing or croplands will
    be eligible as CDM projects in the first commitment period. The Subsidiary Body for
    Scientific and Technical Advice (SBSTA) will develop modalities on the many problematic
    issues that plague the sinks issues, including how the world will ensure that the credits
    are both verifiable and permanent.  
     
    The fudge account 
    The bottomline is that the many compromises will make the Kyoto Protocol not even worth
    the paper it is written on. The Kyoto Protocol is a grand fudge account where every
    polluter is working overtime to make sure that it is business as usual, if not better. In
    all this, the role of the G-77 and China has been pathetic. They have shown little
    political sagacity in the negotiations. Instead, each CoP sees this largest grouping of
    countries squabbling over funds and technology transfer - discussions in which they have
    never won anything, except for empty promises and deceit. It is almost as if the larger
    issues of an effective climate regime do not concern this group of the most vulnerable
    countries. 
     
    Nobody will suffer more from climate change than poor countries - and not just the
    small island states. Emerging science tells us that climate change will be measured in
    signs of greater climatic variation and extreme events. What then will happen to the
    millions of poor people of the Sahel region of Africa, with its already degraded
    ecosystems, if there were increased periods of water stress, or drought? In each such case
    of flood, drought or sea level rise, people living at the very margins of survival will be
    even more vulnerable and dispossessed. Therefore, it is in the interests of developing
    countries to demand that the industrialised North take effective and measurable action to
    reduce its emissions.  
     
    Current Kyoto negotiations are only about creating a carbon market - and not about
    finding effective ways of averting the climate crisis. This is why negotiators while away
    their time arguing about additionality, fungibility, supplementarity, CERs and sinks, and
    not about action that is needed to reduce existing carbon emissions to sustainable levels.
    If they do this, they would find that the only way ahead is to move as fast as possible
    towards zero-carbon energy production systems. In other words, governments have to
    reinvent the global energy systems, and do this as fast as possible.  
     
    The Kyoto Protocol, on the other hand, takes the world in the opposite direction.
    The entire discussion on CDM is about technical modalities and not about the fact that
    this mechanism could easily end up being the biggest subsidy for fossil fuels and will
    lock developing countries further into fossil fuels and the world into global warming.
    This is because of the insistence of industrialised countries to look for least-cost
    options. Unfortunately, the cheapest options are in improving the fossil fuel sector -
    coal washing, for instance, can give a tonne of carbon saving for as little as US $3.  
     
    Instead of squabbling about a few dollars more in aid, the South must show
    political leadership in demanding that the CDM funds should only be invested in renewable
    energy systems that will leapfrog it into cleaner energy systems. The South has the
    advantage of not being connected to the fossil fuel grid and therefore, can provide a
    necessary headstart to allow the penetration of these technologies. Once the market for
    zero-carbon systems grows and begins to compete with fossil fuels, the climate crises will
    be averted. But for this, the North has to invest more today. 
     
    The current proposals on CDM will encourage the current generations of developing
    countries to sell off their cheaper options, leaving future generations straddled with
    higher cost options for emission reductions tomorrow. It is important to realise that
    sooner or later, the South will have to take legally binding actions. This is simply
    because the North is doing precious little to change its domestic energy systems, the
    current cause of global warming. CDM therefore literally forces the cash-strapped South to
    discount its future.  
     
    What the South also does not see is that the climate change negotiations are
    possibly the biggest cooperative enterprise that humans have ever embarked upon. But this
    can only happen if there is a sense of fairness in the burden sharing arrangements.
    Coercion also works, but rarely lasts. Long term cooperation only comes when there is a
    fair deal.  
     
    The South should put reply to the US asking for its participation by demanding a
    framework that is just and equitous so that all countries can learn to live within their
    share of the global atmospheric space. It is for this reason that it should argue that the
    issue of equity is important in climate change negotiations. Firstly, the total greenhouse
    gas emissions have to be limited, and therefore, shared. As these emissions are closely
    linked to economic growth, and if we remain in a carbon-driven economy for long, then
    restricting carbon dioxide emissions will also mean limiting economic growth. If there is
    a freeze in economic inequities, then it is bound to be unacceptable. The only way would
    be to set up a framework of equal per capita entitlements so that each nation has a share
    of the global atmospheric commons. The entitlements can then be used to trade - and will
    provide poor nations the incentive to invest in cleaner technologies so that they protect
    their unused share of the atmosphere. This would be a win-win situation.  
     
    Written by Sunita Narain with inputs from Neelam Singh 
     
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    2)  Calculated commitments 
     
     
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