Subject: Kyoto: analysis
The Nation
Mon, Dec 8,1997

Hard bargaining about to begin at

          climate gathering

          by James Fahn

          KYOTO -- With all the talk of ''sinks'' and ''bubbles'' in this
          Japanese city over the last week, you would think delegates
          to the climate change summit here were discussing how to
          wash dirty dishes. But political leaders are now arriving on the
          scene for the start of the ministerial segment of the third
          conference of parties (COP-3) to the climate change
          convention, and hard bargaining over how to prevent global
          warming is now set to begin.

          At the centre of negotiations is a proposed Kyoto Protocol
          which is expected to include binding limits on the emission of
          greenhouse gases (GHGs) by developed countries, known
          under the treaty as Annex I states.

          Despite varying proposals from Japan, the US and the
          European Union on the extent of those limits, chances appear
          good that an agreement can be reached.

          Nevertheless, ratification of the protocol may yet be held up
          due to conflict over a side issue involving developing
          countries, including Thailand. Even more bizarrely, according to
          some officials, an ageing US senator from the remote state of
          West Virginia has become the key figure in deciding the
          outcome of the conference.

          The basic outline of the protocol is quickly emerging.
          Developed countries will have to limit their emissions of at
          least three, and possibly six, gases that are thought to
          contribute to global warming. Carbon dioxide, methane and
          nitrous oxide will all be regulated; and there are efforts to
          include limits on three man-made greenhouse gases --
          hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride
          -- if not this year, then soon after.

          There is still a deadlock over what the emission targets for
          Annex I states should be, but there is some hope that US
          Vice President Al Gore, who is expected to make a
          high-profile visit to the COP-3 today (Monday), will bring along
          some new proposals with him. So far, he is still demanding
          limits equal to 1990 levels being met around 2010. That would
          still represent a 28-per cent reduction from the amount of
          greenhouse gases the US is expected to release if it
          continues on a business-as-usual path. The European Union,
          meanwhile, has called for cuts of 15 per cent below 1990
          levels by 2010, and Japan has called for cuts of 5 per cent below.

          In fact, the final targets may end up being different for various
          Annex I states in accordance with their varying
          circumstances. This concept, known as ''differentiation'', has
          gained increasing prominence here in Kyoto.

          Reports claim that conference chairman Raul Estrada of
          Argentina has produced a paper which presents five sets of
          targets: 5 per cent over 1990 levels for Australia; targets
          equal to 1990 levels for Iceland, Norway, Russia and the
          Ukraine; 2.5 per cent cuts for Japan; 5 per cent cuts for
          Canada and the US; and 10 per cent cuts for the EU, central
          and eastern European countries and Switzerland.

          The EU, however, is opposed to this arrangement, arguing that
          it should have the same targets as the US, in particular and
          probably Japan, too. In the end, a limited range of targets may
          be set, or a complicated formula could be drawn up to take
          into account the size and growth of a country's GDP and population.

          It also appears increasingly likely that an emissions trading
          system will be set up among Annex I states. This would allow
          a country which can reduce its emissions cheaply, or which
          like Russia has already seen its emissions decrease due to
          de-industrialisation, ''sell'' its reductions to those states which
          find it difficult to cut greenhouse gas production.

          The EU has opposed general emissions trading, but its
          objections are difficult to understand since its member states
          are planning to do it among themselves. Under its ''bubble''
          proposal, the EU would be treated by the protocol as a single
          entity rather than 15 individual countries, allowing them to
          carry out emissions trading within the group.

          Will the trading system be extended to developing countries
          even though they will not be subject to emissions limits? The
          G-77 still claims that Joint Implementation (JI), by which
          developed countries could help developing countries reduce
          their emissions in exchange for credits, should not be carried
          out until after its pilot phase is complete in 2000. But Gore
          has also demanded that JI be included in the protocol, and
          since many G-77 governments are eager for the investment
          JI would bring, they might just compromise on this point,
          especially since it will in any case take some time before the
          guidelines for handing out credits can be drawn up.

          One issue which has yet to be resolved is that of ''sinks'':
          whether the protocol should take into consideration the
          presence of forests in a country, since they help store carbon
          and prevent it from entering the atmosphere. The technical
          issues involved are formidable and not very well understood,
          but the US wants to include sinks in the agreement, as
          planting forests would then become an alternative to reducing
          greenhouse gas emissions.

          The greatest source of conflict, however, may end up being
          the role of developing countries. Among Gore's demands was
          a repeat of the assertion that non-Annex I states should
          participate in a ''meaningful'' way, even though the Berlin
          Mandate (which is supposed to guide negotiations until after
          COP-3) rules out any new commitments from developing
          countries.

          The US' demands on this ''evolution'' issue remain vague, in
          public at least. Article 10 of the proposed protocol would allow
          developing countries to agree to voluntary emission targets,
          but the G-77 and China say it should be deleted. Meanwhile,
          New Zealand (probably at the behest of the US) has proposed
          that all but the least developed countries should agree to
          binding limits by 2014. The proposal received an irate response
          from developing countries.

          The US is looking for some kind of concession from
          developing countries -- probably a promise that the richer
          ones (including China, India, Korea, Mexico and Brazil) -- that
          will commit them to binding emission limits within a specified
          time frame. But it is not Al Gore or even Bill Clinton who
          developing countries have to satisfy.

          Ratification of the protocol is actually under threat from the
          US Senate, explain US officials and other sources.

          Earlier this year, the Republican-controlled chamber
          unanimously passed the Byrd-Hagel Resolution urging the
          administration not to move ahead on the treaty unless
          developing countries also commit to reducing greenhouse gas
          emissions, and the Senate will have to ratify the protocol by a
          two-thirds majority.

          Senator Chuck Hagel, a Republican from Nebraska, is said to
          be a right-winger who simply doubts that climate change is for
          real. However, Senator Robert Byrd, a Democrat from West
          Virginia, reportedly agrees that climate change is a genuine
          threat but also believes developing countries should help solve
          it. His vote holds a lot of weight in the Senate, the sources
          add, and will therefore be key in deciding whether the protocol
          is passed.

          Thailand is of course following the G-77 lead and rejecting
          any new commitments for any developing countries. But
          behind the scenes, Thai officials hold more intricate views.

          In a speech at the Eco Japan '97 conference being held
          simultaneously with COP-3, Kasem Snidvongs, the permanent
          secretary of the Science, Technology and Environment
          Ministry, pointed out that developed countries have been
          emitting greenhouse gases for 150 years, and they have the
          financial resources to help solve the problem. ''I firmly believe
          advanced countries should take the lead in preventing global
          climate change,'' he said.

          But he also noted that there is a ''huge gap'' in income levels
          among developing countries themselves. He divided the South
          into three tiers: least developed countries, mid-level countries,
          and richer developing countries. ''After COP-3, we should
          come up with a plan,'' he said.

          Although he did not elaborate, his statements suggested that
          following the adoption of the Kyoto protocol, some of the
          wealthier developing countries should indeed begin looking at
          binding limits to greenhouse gas emissions. Thailand, by the
          way, would presumably be considered a mid-level country.
          ''Developing countries will move toward limits if they are given
          time, and the right approach,'' Kasem concluded.
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