Global climate change talks begin in Montreal

London (Platts)--28Nov2005

Representatives of the 189 signatories to the UN Framework Convention on
Climate Change and more than 150 Kyoto Protocol member countries gather in
Montreal Monday for two weeks of talks on both the future of the Protocol, and
the present state of its flexible mechanisms.
     While the general media has concentrated on the long-term ambitions of
member states and their desire for agreement on a post-2012 framework, much of
the work in Montreal will concern practical issues affecting the operations of
the Clean Development Mechanism and Joint Implementation, the two project-
based mechanisms that allow Annex-1 countries and companies to earn emissions
reductions abroad.
     One of the main concerns voiced by the emissions market is that the CDM
should be streamlined and improved. An under-funded and under-staffed CDM
Executive Board has managed to register just 36 projects since the Kyoto
Protocol entered into force in February, while more than 400 projects are
awaiting approval.
     No less important for Annex-1 countries is the development of an
infrastructure for Joint Implementation activities. Montreal should see the
establishment of a Supervising Committee for JI projects, which will act in
much the same way as the CDM Executive Board does.
     Greenpeace's European climate policy director Mahi Sideridou said Friday
the environmental group wanted to see concrete results in the
"operationalization" of both the CDM and JI. "We hope to see decisions made on
the day-to-day practical issues of the flexible mechanisms," she said.
     "There is a great deal of irritation" in developing countries over the
length of time it is taking to get clean development mechanism projects
approved, Swedish Environment Minister Lena Sommestad said.
     Sideridou also emphasized the importance of the clarification of
penalties for non-compliance with the terms of the Kyoto Protocol. The
Conference aims to adopt procedures covering compliance that were first
outlined at the Marrakech Conference in 2001.
     Despite these critical issues, the headlines will be dominated by the
debate on the future of Kyoto after 2012 which sees the US, which favors a
more technology-driven approach to emissions reduction and has thus far
rejected concrete limits on emissions, facing up to Europe, which is in the
main in favor of binding targets on emissions reduction.
     "It's important to build on [Kyoto]; otherwise all our work will have
been wasted," Sommestad said. Observers will also be paying particular
attention to the attitude of the UK government. "We're concerned at the line
coming out of the UK lately," Sideridou said. "They have been moving closer to
the US than we would have liked them to do."
     UK Prime Minister Tony Blair has in recent months talked about the need
to harness technology as a way to limit emissions, a shift in position that
many observers have said signals a move away from unqualified support for
binding emissions caps.

For more emissions stories, request a free trial to Platts Emissions Daily at
http://www.platts.com/Request%20More%20Information/

Please visit: www.platts.com

Their coverage of energy matters is extensive!!.