On the philosophy and principles of Kyoto (equity and common but differentiated responsibilities)

We don’t find the need to develop over arching framework of principles. I do not mean to suggest whether they are good or bad.

I found it disconcerting in these negotiations the suggestions that we need to pay enormous sums for something seemingly evil we have done in the last 150 years. That’s not a good message for US. There is something in notion of equity that seems very political to me. I do not know what agreement we will sign in Copenhagen.

On Saturday, March 4 two major discussion took place in the working groups. On financial mechanism and institution arrangement and REDDs.

On financial mechanism
In the contact group meeting everyone was commending and supporting everyone else’s proposal but finally there was no concrete decision. I am highlighting the G-77 and China proposal below.

The proposal said that the financial mechanism must be based on principle of equity and ‘common but differentiated responsibilities’, and that should operate under and must be fully accountable to the COP. It reiterated the demand for direct access that was supported by many other developed countries as well. It also said that the funding should be “new and additional” over and above the official development assistance (ODA) and that level of funding can be set at 0.5 to 1 percent of the GNP of Annex I countries.  

Then several countries made their statements on the framework of financial proposal as well as the institutions to handle it. India said that deploying existing institutions (like World Bank) was not supported under the convention and that the existing institutions have a very different mandate. GEF and World Bank came in for a severe criticism from the developing countries. Philippines said that we are operating under a failed system of delivery. It said that GEF had high administrative costs and is an inoperational entity. Philippines also gave an example. They said that they send proposals to GEF. We got back the proposal with a budget head of foreign consultant for awareness generation that we did not even ask for. We do not need anyone for awareness generation.

Switzerland commented that we should try to use existing institutions to which India replied later that they hoped Switzerland does not have to deal with these institutions in a way LDCs have to. Many LDCs and Small Island nations said that they faced lot of problems when dealing with these institutions. Barbados said that the past multilateral financial system had failed to deliver. “We dot not have a voice in the World Bank. We shall not have a say in any reforms in these institutions”. Most developing countries preferred a mechanism and institutional system under the convention and which follows directions of the Parties.