OUTCOMES OF UNFCCC/COP 16

The Outcomes of

UNFCCC/COP 16 (“The

Cancun Agreements”)

Author: Miguel Fredes

Client: The World Bank –

Jakarta - Indonesia

Creation Date: 17/01/2011

Last Revised: 24/01/2011

Version: Final draft

Environmental Consultant. (c) Diploma International Environmental Law, UNITAR/UNEP, Geneva - LL.B. (Hons) Law and

Social Sciences, Finis Terrae University, Santiago, Chile - H/P: +62 8121079803 - Email: fredeslegalconsultant@gmail.com -

Skype: miguel.fredes - Skype online +5672743814

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EXECUTIVE SUMMARY

The “Cancun Agreements” were accomplished in Mexico in December 10 2010 at the 16th session of the Conference of

the Parties (COP16) to the U.N. Framework Convention on Climate Change (UNFCCC) with consensus of 193

countries. These decisions solidify the core text of the Copenhagen Accord and the four building blocks of the Bali

Action Plan. Consequently, at least 80 developed and developing economies officially agreed to disclose their emissions

pledges and be held to some degree accountable for non-binding targets enhancing transparency by means of a

standardised scheme for MRV of GHGs emissions and targets compliance.

OUTCOMES: Major results of the AWG-LCA negotiating track include the following decisions:

Mitigation Commitments: It “anchored” the Copenhagen Accord’s mitigation pledges by both developed and

developing countries. This resolution took note of developed countries emissions reduction targets. Voluntary

targets adopted by larger emitters could become legally binding in the future.

Adaptation: A Climate Adaptation Framework and a linked Adaptation Committee will be established to achieve

an action-oriented treatment of response and resilience. The framework will prioritize areas for action, while the

Committee will identify gaps, highlight good practices, and make recommendations on unmet needs.

Finance: Pledges under the Copenhagen Accord totalling USD30 billion for fast-start for the period 2010-2012,

with a balanced allocation between adaptation and mitigation, and USD100 billion/yr for long-term finance

were confirmed. A Green Climate Fund with a board of equal representation from developed and developing

countries will manage a portion of these resources. The World Bank will serve as trustee on an interim basis for 3

years since this fund has begun operations.

Measurement, Reporting and Verification (MRV): Developing countries will provide updates on progress on

their nationally appropriate mitigation actions (NAMA).If international financial support is required for a domestic

plan, it will be subject to international MRV that is non-intrusive, non-punitive and respectful of national

sovereignty. A public access registry to collect NAMA will be established. Updates of national GHG inventories

and NAMA needs and support received are to be submitted every four years, with biennial update reports.

REDD+: A final decision was adopted to “halt and reverse” forests destruction as guideline encouraging five

activities and a three-phase process that promotes a subnational approach as a mitigation strategy. Activities must

be undertaken in accordance with national development priorities, objectives and capabilities and should

respect sovereignty, the knowledge and rights of indigenous peoples and local communities. Additionally, a

set of social and environmental safeguards was defined.

Technology: A Technology Mechanism to facilitate the transfer of environmentally sustainable technologies to the

developing world in support of efforts toward low carbon development was established. The decision set up a

Technology Executive Committee and a Climate Technology Centre and Network.

ABBREVIATIONS AND ACRONYMS

AWG-KP

AWG-

LCA

BAP

BAU

CGE

CRF

COP

COP/MOP

CTCN

GCF

GHGS

ICA

KP

LDC

LULUCF

MRV

NAMAS

REDD+

SBI

SBSTA

SCCF

TEC

UNFCCC

AD HOC WORKING GROUP ON FURTHER

COMMITMENTS FOR ANNEX I PARTIES UNDER THE

KYOTO PROTOCOL

AD HOC WORKING GROUP ON LONG-TERM

COOPERATIVE ACTION UNDER THE UN FRAMEWORK

CONVENTION ON CLIMATE CHANGE

BALI ACTION PLAN

BUSINESS-AS-USUAL

CONSULTATIVE GROUP OF EXPERTS

COMMON REPORTING FORMAT

CONFERENCE OF THE PARTIES

CONFERENCE OF THE PARTIES SERVING AS THE MEETING OF

THE PARTIES TO THE KYOTO PROTOCOL

CLIMATE TECHNOLOGY CENTRE AND NETWORK

GREEN CLIMATE FUND

GREENHOUSE GASES

INTERNATIONAL CONSULTATION AND ANALYSIS

KYOTO PROTOCOL

LEAST DEVELOPED COUNTRIES

LAND USE, LAND-USE CHANGE AND FORESTRY

MEASURING, REPORTING AND VERIFICATION

NATIONALLY APPROPRIATE MITIGATION ACTIONS

REDUCING EMISSIONS FROM DEFORESTATION AND FOREST DEGRADATION IN

DEVELOPING COUNTRIES, AND THE ROLE OF CONSERVATION, SUSTAINABLE

MANAGEMENT OF FORESTS AND ENHANCEMENT OF FOREST CARBON STOCKS IN

DEVELOPING COUNTRIES

SUBSIDIARY BODY FOR IMPLEMENTATION

SUBSIDIARY BODY SCIENTIFIC AND TECHNOLOGICAL ADVICE

SPECIAL CLIMATE CHANGE FUND

TECHNOLOGY EXECUTIVE COMMITTEE

U.N. FRAMEWORK CONVENTION ON CLIMATE CHANGE

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GOAL AND ACTIVITIES

This report, commissioned by the Jakarta Office of the World Bank, aims to describe, analyse and

summarize the most relevant outcomes of the 16th session of the Conference of the Parties (COP16)

to the United Nations Framework Convention on Climate Change (UNFCCC) held in Cancun,

Mexico from 29 November to 10 December 2010.

Further this report highlights, briefly analyses and compares key issues decided against unresolved

matters expected to be negotiated and adopted at COP 17, in Durban, South Africa.

Activities developed in preparation of this report:

(i) Collected relevant data related to the Cancun Agreements including submissions, COP

decisions, background documents and annexes.

(ii) Conducted emails communications and with several stakeholders Skype conferences

(donors, UN officials and NGOs policy experts) to validate the information.

(iii) Studied and analyzed bibliography, UNFCCC website, and different articles and press

releases of the Cancun negotiations highlighting major implications for developing

countries.

(iv) Identified key political, legal and policy issues in this particular study area of international

negotiations.

(v) Prepared a working paper that describes major outcomes, with few remarks, findings, and

conclusions with a table comparing formal decisions produced in Cancun and

documenting key issues that remain unresolved for the next round of UNFCCC

negotiation in Durban, South Africa, November 29 – December 12, 2011.

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I. CONTEXT

The 16th session of the Conference of the Parties (COP16) to the U.N. Framework Convention on

Climate Change (hereinafter “UNFCCC” or “The Convention”) and the 6th session of the

Conference of the Parties serving as the meeting of the Parties (CMP6) to the Kyoto Protocol

(hereinafter the “KP”) were held in Cancun Mexico from 29 November to 10 December 2010,

following preparatory negotiations1.

The focus in Cancun was on a two-track negotiating process aiming to enhance long-term

cooperation under the Convention and the KP. The outcomes of both working groups are made up

of a set of decisions and were adopted by the COP and the COP/MOP, respectively under one

umbrella -named the “Cancun Agreements” (hereinafter “CAs”, “COP16” or “Cancun”)2.

Cancun reached consensus by 193 nations against the objection of Bolivia3. While provisions

decided in COP16 may not be legally binding, they represent formal decisions that, where validly

adopted and which Parties operating within the UNFCCC process have agreed to abide by.

In the lead-up to Cancun, several matters were widely identified as areas where a balanced

“package” of outcomes could be agreed. These issues included mitigation, MRV, adaptation,

financing, technology, REDD+ and international consultation and analysis (ICA).

In addition to the Cancun Agreements, the COP and COP/MOP adopted 20 other decisions on

matters ranging from capacity building to administrative, financial and institutional matters. As

well, the Subsidiary Body for Implementation (SBI) and Subsidiary Body Scientific and

Technological Advice (SBSTA) adopted over 20 conclusions on a range of topics, including the

financial mechanism and a wide range of methodological issues.

II. CANCUN AGREEMENTS OUTCOME

The COP16 decisions of the AWG-LCA incorporated the four main building blocks of the Bali

Action Plan (BAP)4 – mitigation, adaptation, technology and financing. The most relevant results of

the Convention track as follow5:

1) Official recognition of emission targets

The COP16 officially set emissions mitigation targets for approximately 80 countries, including

all the major economies6.

Also agreed –for the first time in an official United Nations treaty- to keep temperature

increases below a global average of two degrees Celsius.

1 Four rounds of negotiations were held before Cancun. The first three of these were in Bonn, from 9 to 11 April, 1 to 11 June, and 2 to 6 August. The Bonn talks

were reported as ending in failure. The fourth round of talks in Tianjin, China, made minimal progress and was marked by a dispute between the US and China

regarding emission targets. 2 The two tracks were the “UNFCCC (AWG-LCA)” and the “Kyoto Protocol (AWG-KP)”. The outcomes of both track are available UNFCCC website at:

http://unfccc.int/meetings/cop_16/items/5571.php 3 Parties of both the UNFCCC and KP supported the Mexican Presidency in its interpretation of the UNFCCC rules, namely that “consensus does not require

unanimity” and that the COP16 would not grant a veto right to a single nation. 4 The Bali Action Plan, adopted at COP 13, launched a comprehensive process to enable the full, effective and sustained implementation of the Convention

through long-term cooperative action, now, up to and beyond 2012. 5 See Advance unedited version, Draft decision -/CP.16 Outcome of the work of the Ad Hoc Working Group on long-term Cooperative Action under the

Convention. 6 That means that the world’s largest emitters of GHGs among them China, the United States, the European Union (EU), India, and Brazil, have signed up for

targets and actions to reduce emissions by 2020.

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1.2) Mitigation commitments by developed countries

The COP16 took note of the economy-wide emission reduction targets to be implemented by

developed countries in 2020, referring to those submitted in Copenhagen7.

Additionally, parties call for an international assessment and review of developed countries

emission reduction targets8.

1.3) Mitigation actions from developing countries

Developing countries agreed to take nationally appropriate mitigation actions (NAMAs) to

reduce business-as-usual (BaU) greenhouse gases (GHGs) emissions by 20209.

As with developed countries’ emission pledges, the COP 16 took note of all NAMA to be

implemented by developing countries, as submitted according to the Copenhagen Accord10

.

2) MRV and transparency

COP 16 created a new standard for transparency in which all-major economies will report on

the progress they are making in meeting their national climate targets or actions.

Developed countries will enhance reporting of their support to developing nations in the form

of finance, technology transfer and capacity building11

.

In return, developing countries will submit biennial updates to the Subsidiary Body for

Implementation (SBI) on their mitigation actions and accept international consultation and

analysis (ICA) of these actions12

, mechanism performed in a non-intrusive and non-punitive

approach that is respectful of national sovereignty13

.

A registry will also be set up which will help to match actions seeking finance and other

support, and will help ensure transparency around the provision of support and the effectiveness

of this finance and other support provided by developed nations.

3) Adaptation

A Climate Adaptation Framework and a linked Adaptation Committee will be established to

achieve an action-oriented treatment of response and resilience.

The framework will prioritize areas for action, while the Committee will identify gaps,

highlight good practices, make recommendations on unmet needs and enhance actions14

.

7 See Appendix I - Quantified economy-wide emissions targets for 2020, available at: http://unfccc.int/home/items/5264.php 8 This decision means that for the first time there will be mandatory in-depth review of implementation of the commitments by developed countries including

assessments by experts and consultations with developing countries participation. 9 In this context, Indonesia aims to reduce emissions by 26% percent from current levels with its own efforts and 41% percent with international support. 10 See Appendix II - Nationally appropriate mitigation actions of developing country Parties available at: http://unfccc.int/home/items/5265.php 11 Such contributions will be submitted through common reporting formats (CRF), a series of standardized data tables containing mainly numerical information

and submitted electronically to UNFCCC. 12 This will include not just reporting on the list of mitigation actions they wish to undertake but also a review of the effect of these actions, along with the

domestic provisions and timeline for implementation. 13 The reports will be analyzed by technical experts that are now empowered to evaluate data relating to GHG inventories, mitigation actions, progress on

implementation of such actions and domestic MRV. 14 Innovations in the framework include attention to migration, disaster risk reduction (DRR), and strengthening of institutions.

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Additionally, the Cancun Adaptation Framework will:

Conduct impact, vulnerability and adaptation assessments;

Formulate and implement national adaptation plans; and

Support developing country activities with long-term, scaled-up, predictable, new and

additional finance, technology, and capacity building.

4) Finance

The COP16 incorporated the collective commitment made by developed nations to provide

USD30 billion in “fast-start” finance for developing countries between 2010-2012 and

USD100 billion a year in “long-term” finance by 2020 to address mitigation and adaptation

needs of developing countries with the establishment of a Green Climate Fund (GCF).

The GCF will be accountable to and will operate under the guidance (rather than the direct

“authority”) of the COP15

.

The GCF trustee will be accountable to the 24 members GCF Board, with equal representation

from developed and developing countries.

The World Bank was invited to serve as GCF’s interim trustee, subject to a review three years

after this fund has begun operations.

The GCF design was delegated to a 40-member Transitional Committee (15 members from

developed countries, 25 from developing), which will be convened initially by the UNFCCC

secretariat and is to submit its recommendations to CP17 in December 2011.

A Standing Committee and Transitional Committee were established to improve coherence

and coordination among different finance channels with the goal of improving the facilitation

of the fund.

5) REDD+

COP16 adopted with only slight modifications the draft decision adopted in Copenhagen on

REDD+ with the following major features16

:

Firstly, it addresses the goal of the activities to be undertaken – to slow, halt and reverse forest

cover and carbon loss – and the scope of what will be considered relevant activities.

Secondly, provides guidance with regards to “readiness” by listing the five activities17

developing countries should undertake (and for which they should be supported) to achieve

emission reductions against BaU.

Thirdly, developing nations should develop a national REDD+ strategy, a national and, if

appropriate subnational, reference (emission) levels, a MRV system (national and/or

subnational), and an information system on how safeguards (social and environmental

15 See Annex III “Terms of Reference for the design of the Green Climate Fund”, AWG/LCA. 16 Decision on REDD+ is included in the LCA text: http://unfccc.int/files/meetings/cop_16/application/pdf/cop16_lca.pdf Section III. C (pp. 10-12), Annexes I

and II (pp.24-26). Relevant sections also in Section III. B. 17 1) reducing emissions from deforestation; 2) reducing emissions from forest degradation; 3) conservation of forest carbon stocks; 4) sustainable management

of forest; and 5) enhancement of forest carbon stocks.

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minimum standards) are being addressed and respected throughout REDD+ activities

implementation.

The subnational elements proposed are intended to be an interim measure. In turn, safeguards

must be applied permanently to all REDD+ activity implementation18

.

Establishment of a three phased approach: i) national strategies and capacity building, ii)

strategies implementation and iii) results-based actions that should be fully measured,

reported and verified19

. The choice of the starting phase of each country depends on national

circumstances and available technical and financial support.

The decision further provides a two years work programme20

for the SBSTA to address

further guidance, rules, modalities and methodological issues21

.

The major gap in this specific decision is explicit language concerning concrete funding options:

there is no reference to public or market-based sources. However, COP16 asked the AWG-LCA to

recommend financing options for results-based actions22

.

6) Technology transfer

A Technology Mechanism to accelerate technology development and transfer under the

UNFCCC was established.

It is comprised of a Technology Executive Committee (TEC)23

and a Climate Technology

Center and Network (CTCN)24

under the guidance of and accountable to the COP.

Technology needs are to be nationally determined based on national priorities of developing

countries.

The decision also identifies several possible priority areas for technology, and explicitly

encourages both bilateral and multilateral cooperation.

III. CANCUN OUTCOMES VS. DURBAN TASKS

The “Cancun Agreements” are the outcomes from COP 16 and COP/MOP 6.Decision 1/CP.16

includes the results of work by the AWC-LCA and covers the main components of the BAP25.,

namely: a “shared vision” for long-term cooperative action; mitigation by developed and developing

nations, MRV, and REDD+; adaptation, finance, technology and capacity building.

18 For detailed information about safeguards see Annex I of the AWG-LCA decision. 19 The three phases are not strictly sequential due overlap in practice exists. 20 See Annex II, AWG-LCA. 21 Inter alia identify LULUCF activities that are linked to the drivers of deforestation and forest degradation; identify the associated methodological issues to

estimate emissions and removals resulting from REDD activities; assess REDD activities potential contribution to the mitigation of climate change; develop

modalities relating to forest reference levels and guidance relating to safeguards; and develop modalities for MRV anthropogenic forest-related emissions. 22 These actions require national monitoring systems. 23 The TEC will consist of 20 experts – 11 from developing and 9 from developed countries. Its mandate is broad, and includes not only facilitating the effective

implementation of the Technology Mechanism and the further implementation of the technology transfer framework, but also evaluating needs, providing

recommendations, facilitating collaboration on technology development and transfer, and catalyzing the achievement of international plans and roadmaps. 24 The CTCN is slated to facilitate national, regional, sectoral and international networks to provide advice and support upon the request of developing countries,

as well as to stimulate development and facilitate and encourage cooperation. 25 Building block of Bali Action Plan (BAP).

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Additionally, the decision requests the AWG-LCA to continue working in 2011 to carry out the

undertakings contained in the decision with the aim of completing an outcome based on the BAP.

Therefore, major issues that need to be addressed at COP 17 for adoption are summarized below.

Table I

BAP CANCUN (COP 16) (OUTCOMES) DURBAN (COP 17) (TASKS)

EMISSIONS

PLEDGES

Includes developed country targets and developing countries’

NAMAs as part of the decision (so-called “anchoring” of pledges)

Identify and adopt a global goal for

substantially reduce global emissions by

2050. Identify and consider a timeframe for

peaking of GHG emissions.

MRV Adds detail to the content, frequency, and review of emissions

reduction and financial pledges for developed, developing, and LDC.

Establishes a registry for NAMAs by developing countries and

details of the MRV/ICA and analysis process

Provide further guidance

ADAPTATION Establishes a Climate Adaptation Framework and an Adaptation

Committee

Provide further guidance

FINANCE

Address fast-start and long-term financing. Review progress report

Establishes a Green Climate Fund (GCF) as the operational entity

(World Bank invited to serve as interim trustee for 3 years).

Define GCF legal and institutional

arrangements.

Creates a Transitional Committee and Standing Committee to

improve the facilitation of the fund

Review Transitional Committee

recommendations.

Define specific roles and functions of

Standing Committee.

TECHNOLOGY Establishes a Technology Mechanism to facilitate the technology

development and transfer. Include a Technology Executive

Committee and Climate Technology Center.

Review program progress to further define

roles and functions with a view to a decision,

making the Technology Mechanism fully

operational in 2012.

REDD+

Establishes a goal to “slow, halt and reverse” forest destruction and

provides “readiness” guidance.

List five activities to be supported by developed countries and

performed by developing nations and describes a three-phase

process.

Subnational elements are intended to be an interim measure.

Encourage countries to develop national strategies, reference

emission levels, a MRV system and an information system on

safeguards.

Finance: clarify of sources of funding and

long-term finance for results-based activities.

KYOTO

PROTOCOL

There was no decision on the future of the KP.

Decide whether or not Annex I parties will

agree on a second commitment period.

LEGAL

ARCHITECTURE

There was no decision on this specific matter.

Determine whether to adopt a legally binding

agreement that complements the KP, an

inclusive legally binding agreement for all

countries that would replace the KP, or

another option.

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IV. CONCLUSIONS

The Cancun Agreements, accomplished in Mexico in December 10 2010 at the 16th session of

the Conference of the Parties (COP16) to the U.N. Framework Convention on Climate Change

(UNFCCC), engendered the momentum for near-term action on voluntary targets, financial

support, capacity building and technology transfer for developing countries encouraging the

continuation of the UN process for an international climate change regime.

This implies a departure from the original goals of the Kyoto Protocol, a legally binding treaty

signed in a diverse historical world scenario to cut global emissions. As I have outlined above

there was no decision on the future of the KP.

Japan and Russia in particular resisted pressure to commit to a second period. Both countries

have argued that, with the rise of China, India, Brazil and others emerging economies, the

committed industrialised nations now account for only 27% of global GHGs emissions, and that

a new legally binding pact obliging the US, China and other major emitters to cut greenhouse

gases was therefore required.

Consequently, would be very difficult for the UN process to negotiate and achieve a second

commitment period without the inclusion of those emerging economies and the inclusion of the

US.

Additionally, the issue of the legal architecture of the UNFCCC agreement remains unresolved.

This challenge means that Parties still need to decide in Durban whether to adopt a legally

binding agreement that complements the KP, thus an inclusive legally binding agreement for all

countries that would replace this accord, or another binding option where Parties cooperate

through COP decisions rather than a new treaty.

Contrasted with the five-pages Copenhagen Accord (COP15) negotiated by key heads of state,

the CAs (COP16) represented a realistic shift away from the absolute pursuit of a single top-

down legally-binding set of climate change provisions to the pledging of national targets and the

support of voluntary national frameworks to meet those emissions targets.

The Cancun outcomes described above allow negotiations to continue under the auspices of the

United Nations, but have only deferred several multifaceted matters and decisions until the 2011

Climate Change Conference in Durban, South Africa, to establish a new treaty to limit carbon

emissions.

Possibly a global agreement would not be realistic, however, countries should be able to

negotiate and establish a legally binding deal comprising all countries by 2015, and implement a

framework for a Green Climate Fund (GCF) designed to mobilize and distribute US$100 billion

per year to support poor countries adapt to climate impacts and improve disaster management.

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