This week, I will be posting updates on the United Nations Conference on Climate Change discussions being held in Bali, Indonesia. 

The Bali Conference is beginning to feel more like an industry association meeting than a COP. The presence of traders, offset project developers, and other carbon market types are making their strong presence felt.

Andrei Marcu, president of the International Emissions Trading Association (IETA), has provided several statements on behalf of “civil society” in support of continuation of the Clean Development Mechanism and for strengthening governance structure.

The Bali Conference is markedly different from the Nairobi meetings last year. At the 2006 Conference, few industry representatives attended, and those who did were clearly pushing company-specific issues. The dynamic has changed dramatically, with unprecedented involvement of industry.

For further information about this topic, please contact Akin Gump.

This week, I will be posting updates on the United Nations Conference on Climate Change discussions being held in Bali, Indonesia.

A major theme of discussions over the past two days was the Clean Development Mechanism (CDM) process, which is a financial mechanism under Kyoto allowing Annex 1 countries to invest in emission reductions projects in developing countries.

The Executive Board of the CDM shared recent statistics on projects, estimating that:

• The current project pipeline is expected to generate +2.5 billion Certified Emissions Reductions (CERs) by the end of the first Kyoto commitment period (2012);
• These CERs will result from more than 2,600 project activities;
• About 150 projects enter the pipeline each month, and no reduction is expected in this trend.

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For further information about this topic, please contact Akin Gump.

This week, I will be posting updates on the United Nations Conference on Climate Change discussions being held in Bali, Indonesia.

The 13^th Conference on Climate Change kicked off with enthusiasm, but little fanfare. The highlight of the day was Australia’s new Prime Minister, Kevin Rudd, formally announcing his country’s ratification of the Kyoto Protocol.  The announcement leaves the U.S. as the only developed country to not agree to adopt the Protocol.

In his opening remarks, UNFCCC Executive Secretary Yvo de Boer outlined the main issues for delegates to act on during the meetings. Mr. de Boer emphasized the need for practical action on the issues of adaptation and reducing emissions from deforestation and called for support for developing countries, including through a framework for an Adaptation Fund that could be worth “$300 million annually from 2008 to 2012,” according to Reuters.

Mr. de Boer encouraged delegates to work towards the goal of adopting “a formal negotiating agenda.” Four important keys to the success of the talks, he said, are: leadership from industrialized countries; technology access and incentives for developing countries; recognition of our collective responsibility to use fossil fuels without destroying our environment; and a “focus on creating opportunities rather than being paralyzed by threats” by prioritizing adaptation.

For further information about this topic, please contact Akin Gump.

Akin Gump will host a side event at the 2007 UN Climate Change Conference in Bali, Indonesia, on “The Role of Compliance in Ensuring Environmental Integrity and Market Confidence in Climate Change Regimes.”

Compliance will play a critical role in the success of any post-2012 climate change regime and, in this side event, panelists will discuss the compliance issues faced by States in meeting commitments under a post-Kyoto treaty and in implementing the treaty through national measures.

Date: Tuesday, 4 December 2007
Time: 13:00-15:00
Location: BINGO Room, Grand Hyatt New Conference Center (Upper Level)

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During a meeting for industry groups on Tuesday, Jim Connaughton, Chairman of the Council on Environmental Quality, discussed the U.S. goals for the Bali climate meetings, along with State Department Undersecretary Paula Dobriansky, and other members of President Bush’s negotiation team on climate.

At the September 2007 United Nations High-Level Event on Climate, the U.S. committed to participating in the UN process to advance negotiations. The U.S. believes that a successful outcome of the UN Framework Convention on Climate Change meeting in Bali will be the establishment of a “Bali Roadmap” that will advance formal negotiations on an effective post-2012 framework.
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The final policy summary of the science on climate change finds that warming of the climate system is unequivocal, and that there is a 90% certainty that most observed increases in globally-averaged temperatures are due to increases in anthropogenic greenhouse gas concentrations.

Released on November 16 in Valencia, Spain, the Summary Report for Policymakers of the Fourth Assessment of the Intergovernmental Panel on Climate Change analyzes the best available scientific, social, and economic data and makes an incontrovertible case for immediate, decisive action to reduce greenhouse gas emissions.

The report’s strong language describing the adverse effects of climate change on natural and human systems is expected to:

• Shape the international policy discussion during climate talks in Bali, Indonesia, next month, as parties prepare to develop a roadmap for a successor agreement to the Kyoto Protocol, which expires in 2012;

• Increase international pressure for regulatory action from the U.S. and China; and

• Raise potential issues for executives, investors, companies, and fund managers regarding the business implications of climate change.

For further information about this topic, please contact Akin Gump.