M van Schalkwyk on United Nations Framework Convention on Climate
Change

19 November 2006

African Priorities tops climate agenda

I am extremely pleased to report that during the past two weeks of
negotiations in Nairobi, South Africa achieved most of its key objectives.
Working closely with our African counterparts and as chair of the G77&China
negotiating bloc, we placed African priorities at the top of the global climate
agenda. Significant successes achieved in ensuring action on adaptation to
climate change after almost two years of steadfast negotiating effort and the
announcement of new interventions to ensure effective participation by African
countries in the flexible mechanisms of the Kyoto Protocol, bear witness to
this.

South Africa's negotiating mandate and our intensive lobbying efforts over
the past six months have been informed by five clear objectives:

* taking real action on adaptation
* kick-starting the Clean Development Mechanism (CDM) in Africa
* introducing new thinking on technology transfer
* maintaining and enhancing the real political momentum towards a strengthened
and more effective global climate regime after 2012
* expanding the creative space on options to enhance climate action by all
parties.

During our deliberations South Africa stressed that in Africa, as in many
parts of the world, impacts could include greater and more rapid sea level rise
than previously projected; more frequent coastal storms, threatening the lives
and livelihoods of coastal communities; substantial reductions in surface water
resources; accelerated desertification in sensitive arid zones; and greater
threats to health, biodiversity and agricultural production. Many actions to
safeguard our citizens against these threats will also have immediate benefits
in the face of ongoing climate variability that have direct impacts on peoples
lives now.

We also highlighted the potential of ongoing climate change to lead to
regional instability, conflict, migration and greater poverty. 40% of Africa's
international borders are demarcated by river channels and basin watersheds,
and most major rivers traverse national boundaries. These are sensitive to even
moderate reductions in rainfall, as are projected for much of western and
southern Africa. Such reductions could lead to an increase in inter-communal
and inter-state conflicts over scarce water resources, it would threaten food
security, and may place the sustainability of hydro-electric power generation
at risk.

Against this background, we are very encouraged by the following concrete
outcomes achieved in Nairobi:

* Taking real action on adaptation

Nairobi was a real turning point in placing adaptation at the top of the
climate agenda. The five-year programme of work on adaptation finalised at this
meeting after two years of hard negotiating enables us to expand our knowledge
base and to begin next year with intensified scientific and technical work by
adaptation experts to pave the way for the eventual implementation of concrete
activities to adapt to climate variability and climate change.

Agreement was reached in respect of the principles and modalities (rules)
that will guide an Adaptation Fund. This fund will provide a means to assist
those developing countries that are particularly vulnerable to the adverse
effects of climate change. It is expected that the fund will be up and running
by the end of 2007. A major political victory in Nairobi was the agreement that
the decision-making of the Adaptation Fund will be based on the principle of
one-country-one-vote, rather than the inequitable system preferred by some
developed countries.

* Kick-starting the CDM in Africa

The 19 CDM projects in the pipeline in Sub-Sahara Africa accounted for only
1,5% of the total of 1 260 projects worldwide, with 13 located in South Africa,
2 in Nigeria and 1 each in Ivory Coast, Tanzania, Equatorial Guinea and
Uganda.

Achieving equitable regional distribution of CDM projects, as well as the
need for financial resources to support these activities, was recognised as a
priority. We therefore welcome the announcement by the United Nations Secretary
General that there will be an inter UN agency intervention to ensure a more
equitable distribution of CDM projects. This intervention must facilitate the
development of concrete projects on the ground, and build capacity through
bottom-up approaches, in partnership with local institutions.

* Introducing new thinking on technology transfer

Technology co-operation, development and transfer are fundamental to the
overall climate change agenda. A key challenge for developing countries is to
address the intellectual property rights barriers that still undermine access
to environmentally-friendly technologies. Despite the limited progress on this
issue in Nairobi, creative ideas have now been raised and the stage is set for
real and meaningful progress on this agenda item during 2007. We are confident
that our negotiating partners would use the next few months to consider the
issues and return to the negotiating table to move significantly beyond the
current institutional and financial arrangements.

* Maintaining the political momentum and expanding the creative space

The two-track process launched in Montreal last year has set the stage for a
more effective and inclusive multilateral response to climate change. We dare
not fail in this endeavour, as this process will ensure that the Kyoto Protocol
will continue and strengthen after 2012.

The Convention Dialogue once again provided an opportunity for constructive
and creative ideas regarding future activities by all countries to intensify
its efforts to address climate change to be considered. Our challenge next year
will be to convert all the creative ideas generated during the Convention
Dialogue into practical action. We have to start concretising our vision into
possible balanced package deals. By the end of 2007, a new mandate might be
needed to take this forward. A hallmark of the dialogue in Nairobi was that
most presentations were from developing countries, with Brazil, India, China
and South Africa making innovative proposals for future action based on
positive incentives and in support of sustainable development objectives.

In Nairobi we also made significant progress in building up the momentum to
finalise the negotiations on future commitments by developed countries in time
to ensure that there shall be no gap between the Kyoto commitment periods.
Working towards this objective, the Ad Hoc Working Group on future Kyoto
targets for developed countries elaborated a clear work plan for the next year,
which should produce, by the end of 2007, an indicative range of mitigation
commitments. This will inform the agreement on deeper emission reductions by
developed countries beyond 2012. This sends a clear signal to carbon markets on
our common resolve to secure the future of the Kyoto regime. In Nairobi it was
also agreed to review the protocol in 2008.

Note to editors:

* The twelfth session of the Conference of the Parties (COP 12) to the
UNFCCC and the second Conference of the Parties serving as the Meeting of the
Parties (COP/MOP 2) to the Kyoto Protocol took place in Nairobi, Kenya, from 6
to 17 November 2006. The South African inter-departmental delegation was led by
Marthinus van Schalkwyk, Minister of Environmental Affairs and Tourism. South
Africa also chaired the G77&China negotiating bloc.

* Current negotiations on strengthening the UNFCCC and its Kyoto Protocol
are expected to conclude by 2008 or 2009. International efforts are aimed at
both the mitigation of climate changes through the stabilisation of the
concentration of Greenhouse Gasses (GHG) in the atmosphere, as well as measures
required to enable countries to adapt to the (inevitable) adverse effects of
climate change. In terms of mitigation, the key negotiation issue at present is
related to the future of the Kyoto carbon market. The current period of
legally-binding commitments of developed countries expires in 2012. Developing
countries have an interest in securing the Kyoto carbon market beyond 2012 as
they benefit through participation in the Clean Development Mechanism
(CDM).

* To develop and negotiate a framework for the future international Climate
Change Regime, a two track process was set up in Montreal last year: an Ad-Hoc
Working Group to negotiate the future (post-2012) legally-binding Kyoto targets
for developed countries; and a dialogue on long term co-operative action under
the Convention focused on future action by developing countries.

Enquiries: Riaan Aucamp
Cell: 083 778 9923

Issued by: Ministry of Environmental Affairs and Tourism
19 November 2006