UNCLASSIFIED U S Department of State Case No F-2010-06143 Doc No C17528322 Date 01 15 2014 -· -i C I RELEASED IN FULLj 2 December 1997 To Please see attached listing F rom USDBL Kyoto -Mark G Hambleyr Subject Third Conference of the Parties to the Climate Convention Update No 3 Report on the Meetings Activities for Dec 1 2 1997 This unofficial and uncleared report covers regional meeting activities of the Third Conference of the Parties of the Framework Convention on Climate Change COP-3 which is being held in Kyoto Japan between November 30 and December 10 1997 This edition covers events from the afternoon of Dec l to the morning session on Dec 2 Although it is not clnssified it is not intended for use or distribution outside the U S Government We are also including various reports prepared by USDBL representatives dealing with recent discussions on the national security provision on an EEl-sponsored side event and reports on both the AGBM Plenary and the first meeting of the COP We arc also including the latest edition ofECO the highly satirical opinionated and usually biased pe riodica published by cnvironmontal groups with financial support from the goVl n ments of Denmark the Netherlands and Oennany Nevertheless ECO provides a humorous always unique and sometimes informed rendering of events The final paragraphs can be used as a summary as desired or appropriate COP-3 Update No 3 Dec 1 2 Difficult Afternoon COP Session Over Handling of Evolution EU · Upset about S Questioning of its Bubble volution Blow up Contained - For Now The afternoon plenary of the Third Conference of the Parties COP-3 resumed deliberations on the agenda on Monday afternoon Dec 1 The decisions made by the two key subsi fiary bodies of the Convention the Subsidiary Body on Implementation SBI and the Subsidiary Body on Technological Advice SBSTA were approved with the exception about the work plan for COP-4 and the budget More excitement was forthcoming when the COP President Minister·Obki of Japan proposed that two issues not being dealt with by the Committee of the Whole the COW should be dealt with under Item 3F which deals with other matters The two issues involved were the Brazilian Protocol proposal and the question of future commitments by all Panias read evolution After making his proposal a somewhat confused Minister Ohki apparently did not hear the suggestion made by an experienced aide audible to all ofus in the room in which he was advised to declllre that in the absence of any objections he should gavel the matter into a decision Inexplicably the Minister called upon Tanzania the representative of the O-77 China and th floodgates of protests about evolution poured out REVIEW AUTHORITY Alan Flanigan Senior Reviewerj UNCLASSIFIED U S Department of State Case No F-2010-06143 Doc No C17528322 Date 01 15 2014 UNCLASSIFIED U S Department of State Case No F-2010-06143 Doc No C17528322 Date 01 15 2014 Tanzania ossentially said that this concept was not a proper item for consideration as the Berlin Mandate focuses on developed counny obligations only He added that this is the case even when the Chair attempts to introduce this issue through the back door while trying to sugar coat it with the Brazilian proposal The G-77 was followc4 by Chins India Malaysia and Saudi Arabia who cited similar objections Even Indonesia which had made positive noises about its receptivity to the idea of developing country commitments at both the Tokyo ministerial and the APEC summit last month indicated its view that this issue should not be discussed at this meeting The U S responded with an effective presentation in which we outlined why it is indeed appropriate for this subject to be discussed in the COP in part because the COP is the supreme body of the convention If not here then where Australia also chimed in with a useful supponing intervention For reasons that ere not clear the President did not recognize Canada or Japan which had both raised their flags The EU which did not speak told us with a straight face that it had not spoken because of the absence of Luxembourg from his chair In any case the Chair subsequently decided that Bra%il would be discussed at the Dec 3 plenary and that he would have consultations on how best to introduce the issue of a follow-on process to Kyoto Institutions Group Meets with Some Progress Reported The negotiating group on institutional issues also met for the fmt time on Dee 2 4• Apparently there was progress on the issue over the relationship of the COP to the proposed Meeting of the Parties for the protocol There had been concern expressed about the proposal by the G-77 that would have pcnnitted non-Parties to the protocol to vote in the Meeting of the Parties A new fonnulation is being considered which will overcome this problem NGO Business Briefings The first two of daily briefmgs were held with U S environmental NGOs and with business representatives Questions raised at the enviro briefmg included those about the differentiation concept mentionc in our morning statement at the plenary see Update 2 The NGOs are particularly concerned that targets be established next week and not be postponed to a future date Other questions concerned gas coverage with some initial suggestion that some of our enviros were backing away from the comprehensive six gas approach They later rcaffim1ed their support The business representatives asked questions about dlfferentiation gases and sinks They also wanted to know about our attitude townrds the Russian Annex I bubble approach National Security Exemption Provision Several other side groups met throughout the afternoon and night Our DOD reps supported by Sue Biniaz ofL OES discussed the question o the national security provision nJSCANZ was very supportive the UK was not but thanks to the timely intervention of Under Secretary Eizenstat in London this potential problem should be reversed We are working on a proposal which would cast this issue as one methodological in nature Some of the results plus a copy of our proposal are reported in an enclosure to this repon UNCLASSIFIED U S Department of State Case No F-2010-06143 Doc No C17528322 Date 01 15 2014 UNCLASSIFIED U S Department of State Case No F-2010-06143 Doc No C17528322 Date 01 15 2014 Developing Country Issues Discussion among JUSCANZ members on developing country issue$ produced a paper which might be somewhat adequate as an end game but not as an initial negotiating document We raised with Japanese Ambassador Aoki in Geneva a distinguished Berlin MllJ date veteran - at a meeting on Dec 2 the necessity for COP President Ohkl to have a piece of paper outlining what we have in mind as a possible Kyoto Mandate in hand for his discussions with countries on the question ofa post-Kyoto process We described the proposed JUSCANZ text as too weak and a proposed EU text as even weaker At Japanese request we prepared a page of shon comments outlining how we look at the question of developing country participation Sinks Issue Also l ending Resolution Meanwhile discussions on sinks continued with this issue scheduled for discussion at the evening Although the chair has indicated the necessity for Parties to reach conclusions at this time this appears most unlikely COW meeting on QELR OS on Dec 2 Israel Joining Article 10 Reports are circulating that Israel may become the first Party to offer to join Article 10 on voluntary entry into a legally binding quaniified emission limitation objective Stay tuned • UNCLASSIFIED U S Department of State Case No F-2010-06143 Doc No C17528322 Date 01 15 2014 UNCLASSIFIED U S Department of State Case No F-2010-06143 Doc No C17528322 Date 01 15 2014 The following paragraphs can be used as a sununary as appropriate or desired COP-3 Update No 3 Dec 1-2 Difficult Afternoon COP Session Over Handling or Evohltion EU Upset11 about U S Questioning·onts Bubble The aftetnoon plenary of the Third Conference of the Parties COP-3 resumed deliberations on the agenda on Monday afternoon Dec 1 The decisions made by the two key subsidiary bodies of the Convention the Subsidiary Body on Implementation SBI and the Subsidiary Body on Technological Advice SBSTA were approved with the exception about the work plen for COP-4 and the budget More excitement was forthcoming when the CO P- President Minister Ohki of Japan proposed that two issues not being dealt with by the Committee of the Whole the COW should be dealt with under Item 3F which deals with other matters The two issues involved were the Brazilian Protocol proposal and the question of future commitments by Parties read evolution · all The Minister first called upon Tanzania the representative of the G-77 China for his reaction Tanzania essentially said that this concept was not a proper item for consideration as the Berlin Mandate focuses on developed country obligations only He added that this ia the case even when the Chair attempts to introduce this issue through the back door wbjJe trying to sugar coat it with the Brazilian proposal The 0-77 was followed by China India Malaysia and Saudi Arabia who cited similar objections Even Indonesia which had made positive noises about its recepth1ty to the idea of developing country commitments at both the Tokyo ministerial end the APEC summit last month indicated its view that this issue should not be discussed at this meeting The U S responded with an effective presentation in which we outlined why it is indeed appropriate for this subject to be discussed in the COP in part because the COP i s the supreme body of the convention lfnot here then where Australia also chimed in with a useful supporting intervention Toe Chair subsoquently decided that Brazil would be discussed at the Pee 3rd plenacy and that h e would have consultations on how best to introduce the issue of s follow on process to Kyoto The negotiating group on instirutional issues also met for the first time on Dec 2nd• Apparently there was progress on the issue over the relationship of the COP to the proposed Meeting of the Parties for the protocol There had been concern expressed about the proposal by the G-77 'that would have pennitted non-Parties to the protocol to vote in the Meeting of the Parties A new fonnulstion is being considered which will overcome this problem Meanwhile discussions on sinks continued with this issue scheduled for discussion a the evening COW meeting on QELROS on Dec 2 Although the chair has indicated the necessity for Parties to reach conclusions at this time this appears most unlikely Hambley UNCLASSIFIED U S Department of State Case No F-2010-06143 Doc No C17528322 Date 01 15 2014 UNCLASSIFIED U S Department of State Case No F-2010-06143 Doc No C17528322 Date 01 15 2014 9 AGBM Plenacy Meeting November 30 Notes by Sharon Saile Chairman Estrada opened the session hoping that Parties could make progress on the few issues where some consensus had seemed to emerge but the Parties basically went back to repeating their original positions The issues discussed included 1 Sinks - Tony Devina sp Of the Philippines has be¥n chairing a contact group on sinks and reported some progress by coming to 4 options to cover the range of Parties' views Include sinks in the QELROs on a unet net basis i e net emissions in the baseyear and net emissions in the compliance years b Exclude from QELROs at this time but look at including sinks later when measurement methods are improved perhaps by the second budget period c Exclude from QELROs at this time but have a decision by the Meeting of the Parties to include them later d Exclude sinks from the QELROs but allow sink offsets to count in the compliance a years The FCCC Secretariat will prepare text to implement these options and the contact group will meet again on Monday Chairman Estrada gave the group until Tuesday evening to resolve the issue urging the Parties to decide what to do about sinks to help them resolve the level of the targets 2 Budgets - Although many Parties seem to have agreed to a budget approach G-77 raised its objections to a budget approach concept of emissions allowed and emissions trading etc very strenuously 3 PAMs - Chairman indicated that one extreme is for mandatory policies and measures another extreme is no policies and measures therefore he plans to proceed to draft a further compromise text 4 Name of Protocol Kyoto Protocol to the UN Framework Convention on Climate Change on GreenhoU 5e Gases Note - the G-77 suggested waiting to ·name the protocol until after the substantive provisions of the protocol would be resolved This reservation provoked a response from Chairman Estrada indicating that he nee4ed more cooperation from G-77 UNCLASSIFIED U S Department of State Case No F-2010-06143 Doc No C17528322 Date 01 15 2014 UNCLASSIFIED U S Department of State Case No F-2010-06143 Doc No C17528322 Date 01 15 2014 • • l 'l '- -- - • -- - - · •• - •• n' o - CQP Monday Afternoon December l •Notes by Sharon Saile SBSTA report - decisions on contained in FCCC doc SBSTA 14 1997 1 cooperation with IPCC and other bodies and 2 observation·of global monitoring networks 3 development and transfer of technologies - further analysis and information 4 jointly with SBI - AIJ - uniform reporting format methodologies · roster of experts division of labor SBireport non-Annex I national communications division oflabor program budget HQ agreement financial mechanism AG-13 report Waiting to decide process or committee for MCP answerable to COP directly or thru SBI consultative advice for protocol or all Parties to FCCC form and content are open but consensus that MCP is needed - delayed until post-Kyoto therefore the papers containing these reports are adopted for consideration by the COP IPCC Report by outgoing chainnan - 4 technical papers All decisions adopted by consensus AGBM report COP shall consider Negotiating text based on Parties proposals plus the Chainnan's revised text 1 negotiations will have to make final decisions 2 propose that SBSTA and SBI prepare work for any protocol decisions which require decisions at subsequent meeting of parties · 3 Brazilian proposal - QELROs to be based on changes in temperature -may merit SBSTA consideration 4 Evolution - one party proposed new instrument should be binding QELROs for all soon after 2000 with automatic progression of GHG commitments based on agreed criteria but other Parties opposed as beyond Berlin Mandate Outside AGBM but appropriate for COP3 191195 1 of negotiating text Only 10 days to complete negotiation - square brackets indicating problems QELRqs PAMs etc Need only political will to achieve the commitment Stabilization of concentrations to prevent dangerous anthropogenic interference with climate Stabilization of emissions will not lead to UNCLASSIFIED U S Department of State Case No F-2010-06143 Doc No C17528322 Date 01 15 2014 _ · U CLASSJE E£ U · l 2 P l l l t t _Case No F-2010-06143 Doc No C17528322 Date 01 15 2014 q I ·1 Y1 stabilization of concentrations and this fact cannot be disguised Historical contribution from developed countries - per capita from developing ountries are still low although will grow to meet social needs Developing countries are taking actions though haven't submitted communications Chainnan Estrada was elected by consensus as Chairman of the Committee of the Whole and will participate in Bureau of Conference of the Parties COW wiffbe convened tonight at 8 pm f The President adopted all the Decisions However a long discussion empted over the President's suggestion to discuss both the Brazilian proposal and the evolution proposal in the COP plenary sessions All the developing countries O-77 Tanzania China Malaysia Indonesia Brazil objected to even discussing evolution while $e US and Australia supported the President's suggestion The time for discussion was cut short and will resume on Wednesday UNCLASSIFIED U S Department of State Case No F-2010-06143 Doc No C17528322 Date 01 15 2014 I UNCLASSIFIED U S Department of State Case No F-2010-06143 Doc No C17528323 Date 01 15 2014 · DEC 03 ' rr n MHM u 1 t-'r 1 un H 1 t'tV r J o 0 l RELEASED IN FULL __' l 1 Dcc97 Summary of Discussions ofJUSCANZ Legal Working Group of 1 Dec 97 1400-1600 '' Chris Weaver Roy Salomon and Sue Binia z met with other members of the nJSCANZ legal working group Countries represented at rhe meeting included Japan Canada New Zealand Australia NotWay US and Switzerland We reviewed four items one of which was the US proposal for a Decision of the Parties on Nationsl Security The proposal language is quoted below The Conference of the Parties at its third session Recalling Article 3 of the Protocol which requires each AnnelC I Party to limit its emissions as set forth in that article Recalling Article 5 of the Protocol which calls for further work on methodologies for estimating anthropogenic emissions by sources and removals by sinks of greenhouse gases recognizes the need to address through work on methodolOgies the appropriate treatment of bunker fuels 2 recognizes the ability of two or more Annex I Parties to arrange for emissions in the territory of one such Party that are attributable to activities of another such Party to be counted against the emission budget of the latter Party and 3 decides that emissions related to multilateral operations conducted by milltaries pursuant to the UN Charter such as peacekeeping and humanitarian assistance shall not count against the emission budgets of individual Annex I Parties 1 The legal group's analysis states that decisions ofth e patties may foxm part of the negotiating hi story of a treaty provision wlth relevance to interpretation of the treaty in accordance with international law The group also noted that a decision of the parties is not as desirable as protocol language On the merits of the proposal the lawyers were supportive During the discussion Japan and New Zealand expressed concern over bullets 1 and 2 First they were confused that these bullets did not directly discuss military emissions After the US explanation of the tactical reasons for the drafting they were satisfied that all three items WC ll'c concerns over the efinition of its in Article 3 Japan expres d a second concern that the proposal might be viewed as an attempt to add a different type of trading provision The US exp Jaine that this was not our intent Australia expressed support for the proposal as written Toe group produced a short analy1ds that will ba presented to the entire JUSCANZ group tomonow at the 0900 regular meeting Summary of Discussions with EU Re presentativs s J r UK of l Dec 97 l 700 1745 W9UhattDun schmidt GE and Dr Jun Penman At the request of Dr Penman via Dr• Jonathan Pershing of the US delegation Capt Weaver snd Lt Col Salomon met informally with Ors Durrschmidt and Penman on the afternoon of 1 Dae The putpose vvas to provide background information and explanation of the US position on the National Security Provision Dr Penman conveyed that it-was unclear to the BU why this issue is so important to the US He indicated that he didn't think militruy emissions amounted to great deal and that it seemed a relatively small issue to raise to such a high level Capt Weaver and Lt Col Salomon responded that what may seem to be a small emissions slice when viewed in the context of an individual nation' military forces C lll be significant when viewed in the context of another nation's territory or in the context of a large scale a REVIEW AUTHORITY Alan Flanigan Senior Reviewer UNCLASSIFIED U S Department of State Case No F-2010-06143 Doc No C17528323 Date 01 15 2014 UNCLASSIFIED U S Department of State Case No F-2010-06143 Doc No C17528323 Date 01 15 2014 ' ' Ut l ' IQJ • i Hl I UOJ J I -_ _ I -'-''- I JV I ·'If ' - -· multinational military operation Dr Penman recommended that the issue be referred to a methodological detennination by the FCCC's Subsidiary Body on Science and Technical Advice SBSTA or the Subsidiary Body on Implementation SBI in a post--Kyoto process · Capt Weaver and Lt Col Salomon responded that a determination ofhow national security emissions are to be treated by the protocol is an extremely important aspect of the US position W0 feal it is not appropriate to leave the issue for ultimate resolution by lower le-vel bodies in the wake of the Kyoto Conference It is not the amou_i it of emissions that relate to military operations that is key it is the pr incjpal of how military emissions in the multilateral environment are to be accounted for The US is c ncemed that training operations and thus readiness of foroes may be inadvertently banned by failing to address head on the issue of national security emissions accounting regardless of their overall siZe This is true not only for US forces but equally importantly for allied military forces as well We offered the example of the allied nation that supported US airlift during the buildup for the Gulf War and how daily US aircraft refueling represented a substantial part of that nation's overall fuel consumption At one point Dr Durrschmidt observed that the EU has a number of significant issues between their position and the US position on the overall protocol The U wants to avoid another issue such as NSP arising to further complicate negotiations Capt Weaver and Lt Col Salomon asked for additional feedback on how the current DOP language Pfoposat could be better crafted to accommodate BU concerns Drs Penman and Durrschmidt indicated they would consult with the other EU members in their morning meeting and would get back for more discussions · Ce pt Weaver summarized the differing perspectives developed during the disoussion The EU representatives feel that the absolute levels of emissions relating to national seourlty are low and amenable to addressing in a post-Kyoto methodological determination process The US position on the other hand desires that the NSP issue be included albeit in RS least intrusive a manner as possible in the ongoing Protocol process Tho US desires the support of our European allies NATO in this initiative and we look forward to working through the issue with the BU Dr Penman indicated that he ''recognized the importance of this issue to us and wanted to work with us as well We expect to meet again on 2 Dec UNCLASSIFIED U S Department of State Case No F-2010-06143 Doc No C17528323 Date 01 15 2014 UNCLASSIFIED U S Department of State Case No F 2010-06143 _ Doc No C17528325 Date 01 15 2014 • UC '- U-1 _ u•• 111 - - - - • ___ -• • - - - • • - · ·· RELEASED IN FULLJ Presentation of BEi UNIPEDB and FEPC December 1 1997 On Monday December 1 1997 three organizations representing electric utilities in the U S Japan and internationally presented the findings of an International Energy Agency study on technology development and diffusion for electric power generation Dr Koch from the IBA spoke to the st1 1dy funded by these organizations In addition representatives from the three· sponsors outlined their climate change mitigation activities Bob Beck of the Edison Electric Institute EEO read from a prepared statement discussing the role of U S electric utilities in the Climate Challenge program a voluntary effort to r0duce greenhouse gas emissions He also outlined EEI's position in the international negotiations namely that its member utilities do not support legally binding emissions targets However if an agreement does come out of Kyoto they favor full credit for early actions provisions for flexibility in implementation and meaningful participation of developing countries in fumre commitments Although Beck did not read all of the statement one section was particularly critical of the Administration •s position - it stated that the approach • threatens to do great damage to the economy that an auction permit fee is another form of a $100 ton carbon tax and that based on an Australizn economic study the U S would experience a greater economic loss under a grandfathered tradable quote approach than under a unifonn targets approach A representative from the Japanese electric utility trade association the Federation of Electric Power Companies of Japan FEPC also mooc a presentation which focused on the significant role of nuclear power both past and envisioned for the future in mitigating greenhouse gas emissions Liquefied Natural Gus LNG will Dlso play i major role A shon statement from the Intematlonal Union of Producers and Distributors ofElcctrical Energy UNIPEDE was followed by a description of a joint statement from all three organizations which came out of an October summit held in Boston Their recommendations to the COP emphasized the need to increase global use of electric energy and the use energy-efficient clc ctro1ecbnologies as no regrets option Furthennore electric utilities can limit emissions from electricity production through efficiency improvements and energy consumers can reduce their total energy requirements · REVIEW AUTHORITY Alan Flanigan Senior Reviewer UNCLASSIFIED U S Department of State Case No F-2010-06143 Doc No C17528325 Date 01 15 2014 ·-·