Bali Policy Update from WWF

OVERALL:
At the conference opening yesterday (3 Dec) the different country groupings showed their first hand. After the official opening, both tracks and both subsidiary bodies opened as well, with heated discussions already emerging in at least one.

Besides the first possible confrontations (see further down) there is also a set of possible early wins - countries are keen to ensure those as that would help them to explain what the conference is about, especially to the domestic public. The possible early wins include finalization of the adaptation Fund and REDD - Reduced Emissions from Deforestation and Degradation.

One overall aspect here is that on linking mitigation and adaptation - an issue that WWF has pushed for years. This thinking is now starting to pervade the system, as several statements showed. This is helpful politically because it demonstrates that countries realize how much they are bound together in these negotiations.

There is also a proliferation of ideas on funds, which is not a realistic way forward. The UNFCCC has already got 3 funds and a plethora of new ones would not get funded and be useless. At some stage these ideas will have to be pulled together - we are on the look-out for initiatives in this direction.

The intervention from the NGOs in CAN Climate Action Network to the plenary was given by WWF Indonesia's head of communications, Elshinta Marsden.

ADAPTATION:
Adaptation has lost its image of afterthought and is now square on the agenda. A number of key States form G77+ as well as the EU made it a central point in their opening statements. It appears both under the Convention and in the AWG.

Least developed countries (LDC) and AOSIS (small islands states) are calling for a strong link between mitigation and adaptation.

One relatively new aspect is the inclusion of bunker fuels in the adaptation fund.

Generally there is no contention between the countries on this issue. But the heat is rising when it comes to the governance structure of the Adaptation Fund (AF) which has not been sorted for two years: Both the US and the EU want to put the AF under the governance of the Global Environmental Facility (GEF). The G77 are rejecting the GEF proposal and want to put the management of the AF under the UNFCCC secretariat - there are parallels to this proposals, namely in the Montreal Protocol.

Here in Bali, GEF is lobbying wildly at the side lines - Bali is generally seen as the place where the blockage on the fund could finally be raised and things might move - so that Least Developed Countries could start to receive funds.

This will continue to keep us busy today in the SBI. There is lots of work being done on the adaptation fund is behind the scenes - there seems to be a feeling that resolution is possible. WWF had put forward criteria WHEN???? which we now see being used by some Parties in the negotiations (very satisfactory). WWF is also preparing interventions jointly with Oxfam and others.

CARBON MARKETS and CDM
Not yet really started but we have helped to cause some action with in the Climate Action Network (CAN) working group to get prepared for heavy action - including an Eco article for tomorrow. WWF is leading the CAN working group on CDM.

CDM will however come up for the first time in today's morning session of SBSTA. Three topics are particularly relevant: the inclusion of CCS, Include hydroflurorcarbons (HFC) in the CDM, and the limit small scale forest sinks (now limited to 8 kilotons per year in project size).

REDD:
Several major delegations mentioned their desire to have a resolution. Degradation was mentioned several times. Formal negotiations start this morning under SBSTA. An intervention form CAN is foreseen this morning which WWF has heavily contributed to.

On-going efforts by CAN to forge a position are finally bearing fruit (to Ken's relieve) - we expect a decision on that today; However, lack in terms of focus and details on some key elements mean that WWF will want to define those ourselves.

Intervention scheduled for SBSTA this morning. Ken has heavily contributed to that.

The big issue is how to integrate REDD with the post-2012 negotiations as much of the REDD discussion so far was under the Convention.

TECH TRANSFER
The current mandate of the Expert Group on Technology Transfer EGTT comes to an end here in Bali (it was already prolonged for one year in Nairobi). So a decision on how to deal with technology transfer (TT) - under which structure and set-up - is needed urgently. TT is a crucial topic - technology will be needed both for mitigation and adaptation, and instruments span from information exchange to financial support. Copy right issues are amongst the contested.

Yesterday, China came out saying that the current slow pace of EGTT leads to a lock-in effect and is too slow. China proposed the idea of a technology collaboration platform, showing new flexibility in an issue which is pivotal to the Chinese effort here in Bali.
China has been moving since Vienna, it is very serious but not married to one particular format.

The big struggle however - which held up negotiations for 2.5 hours - was that G77 came out with a differing view on the agenda, wanting to link TT to SBI as well as to SBSTA.

The EU supported the current EGTT work - it should continue but with an elaborated mandate, such as a think tank. EGTT should also support the post-2012 negotiations.

The CAN Technology working group will be meeting the delegations of 10 different countries during this week, and has started to work on a variety of other tasks. John from WWF Denmark is one of the two coordinators of this group.


RESOURCES:
Check out today's ECO at the CAN website www.climatenetwork.org
And the WWF website. www.panda.org/climate