Overview 2007-2008
Decisions taken at Bali to further implement the existing Commitments of Parties to the UNFCCC.
Adaptation
Governments decided that funding for adaptation projects in developing countries, financed by the Kyoto Protocol's clean development mechanism (CDM), would begin under the management of the Global Environment Facility (GEF). This ensures that the Adaptation Fund will become operational in an early stage of the first commitment period of the Kyoto Protocol (2008-2012). The fund is filled by means of a 2% levy on CDM projects. Currently the fund is worth about 37 million Euros.
Considering the amount of CDM projects in the pipeline, this figure will rapidly increase to an estimated 80- 300 million USD in the period 2008-2012. The governments could not agree on additional practical adaptation measures, such as how to integrate adaptation into national policies. This issue will be on the agenda of the next meeting of the so called Subsidiary Body for Scientific and Technical Advice in Bonn in June of 2008.
Technology
The Bali Conference also made important progress on the issue of technology, one of the key concerns of developing countries. Governments agreed to kick start strategic programme to scale up the level of investment for the transfer of both the mitigation and adaptation technologies that developing countries need. The aim of that programme is to give an extra push to concrete demonstration projects, to create more attractive environments for investment, as well as to provide incentives to the private sector for technology transfer. The GEF will start setting up this programme together with international financial institutions and representatives of the private financial sector.
Parties also agreed to extend the mandate of the Expert Group on Technology Transfer for a further five years. The Expert Group has been asked to pay particular attention to the assessment of gaps and barriers to the use of, and the access to, financing resources. Furthermore, the Expert Group will start working on performance indicators that can be used to regularly monitor and evaluate progress on the development, deployment and transfer of environmentally sound technologies. The work of the Expert Group provides important input into the discussions on technology transfer for the new post-2012 climate change deal.
REDD
'Reducing emissions from deforestation in developing countries' (REDD) was a key issue at Bali. Parties affirmed the urgent need to take further meaningful action to reduce emissions from deforestation and forest degradation and adopted a work programme for further methodological work.
That programme will focus, for example, on assessments of changes in forest cover and associated green house gas emissions, methods to demonstrate reductions of emissions from deforestation and the estimation of the amount of emission reductions from deforestation.
The decision furthermore encourages Parties to support capacity building and to undertake efforts, including demonstration activities, to address the drivers of deforestation. This is important to address the needs of local and indigenous communities who depend on forests for their livelihoods. Deforestation is regarded to be an important component of a future climate change regime beyond 2012 - in both mitigation and adaptation strategies.
IPCC
Parties agreed to recognize that the Fourth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) is the most comprehensive and authoritative assessment of climate change to date. The scientific findings will continue to inform the international climate change process.
Parties agreed to recognize that the Fourth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) is the most comprehensive and authoritative assessment of climate change to date. The scientific findings will continue to inform the international climate change process.
CDM
Small-scale afforestation and reforestation: Parties agreed to double the limit in size of small-scale afforestation/reforestation project activities to 16 kilotonnes of CO2 per year. This move will expand the number and geographical reach of the CDM to countries that have thus far been unable to take part in the mechanism for this category of project activities.
Small-scale afforestation and reforestation: Parties agreed to double the limit in size of small-scale afforestation/reforestation project activities to 16 kilotonnes of CO2 per year. This move will expand the number and geographical reach of the CDM to countries that have thus far been unable to take part in the mechanism for this category of project activities.
Carbon Capture and Storage
Parties for the first time considered the possible inclusion of carbon capture and storage (CCS) in geological formations as CDM project activities. They agreed to do further work on this and established a workplan for 2008. The plan will include receiving and considering input on technical, legal, policy and financial topics associated with CCS. This input will be considered at the next Climate Change Conference in Poznan next year. CCS is widely regarded as an important technology to enable the continued use of fossil fuels in a clean way.
Least Developed Countries
Parties agreed to extend the mandate of the Least Developed Countries (LDCs) Expert Group. This group provides critical advice to LDCs in assessments of adaptation needs. It is universally accepted that it is critical that LDCs are supported in assessing their adaptation needs because of their low adaptive capacity.