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Japan's proposal for AWG-LCA
: For preparation of Chair's document for COP14

September 30, 2008

Japan hereby submits its concrete proposals as inputs for AWG-LCA Chair's document prepared for COP 14.

Japan has already turned in the submission documents on its views regarding AWG-LCA (see references at the end). As for further details of Japan's views on each element of paragraph 1 of the Bali Action Plan, please refer to these submissions.

0. Basic Structure of the Future Framework

  • The final decision on the legal structure of the framework beyond 2012 is to be made after legal scrutiny, but in order to establish a framework in which all countries take responsible actions, our preferable option is to adopt a new protocol. Another option would be to amend the Kyoto protocol, provided that it can cover all the necessary elements.

1. Shared Vision

  • Under the UNFCCC negotiations, all Parties should adopt the long-term goal of achieving at least 50% reduction of global emissions of greenhouse gases (GHG) by 2050 as a shared vision. Toward realizing this goal, the peaking-out of the global GHG emissions in the next 10 to 20 years should be pursued. Further development of innovative technologies and measures to realize low carbon societies should be strengthened from a long-term perspective.

2. Mitigation

(1) Commitments or actions by developed countries

(a) Scope of "developed countries"

  • Each "Party included in Annex I" (hereafter called "Annex I country") under the Kyoto Protocol continues to fulfill its responsibility as Annex I country.
  • Countries which fall under any one of the　following three categories should assume obligations of Annex I country: (i) OECD member countries, (ii) countries that are not OECD members but whose economic development stages are equivalent to those of the OECD members, and (iii) countries which do not satisfy the conditions of (i) and (ii), but which voluntarily wish to be treated as Annex I country. Qualifications of countries which fall under category (ii) should be made in a comprehensive manner according to, for example, the following criteria.
    • GDP per capita
    • GHG emissions per capita
    • Human development index
    • GHG emissions per GDP
    • Share of the country's GHG emissions in the world
    • Contributions to historically accumulated GHG emissions / future GHG emissions
    • Industrial structure, energy composition
    • Population, demographics
    • Natural and geographical characteristics (including land area and climate conditions such as temperature, etc.)

(b) Substance of commitments or actions

  • Each Annex I country bears the obligation to achieve its quantified national emissions reduction target as its commitment. Annex I country should achieve its national target, in principle, through domestic measures. But, the use of flexible mechanism should be allowed as a supplementary measure. Also, LULUCF should be included as part of the national target in a proper way, ensuring the continuity and consistency with the rules under the first commitment period.
  • Annex I country's national target in the period 2013 to 20XX should be indicated as:
    • reduction rates from the plural number of base years including the latest year for which data are available
    • total volume of its GHG emissions

(c) Ensuring comparability

  • Reduction target of each Annex I country should be set on the basis of each country in a manner which ensures comparability of its mitigation efforts of each country. (Countries may, individually or jointly, fulfill their agreed reduction targets.)
  • In setting a national emission reduction target, comparability of mitigation efforts of Annex I countries should be ensured by utilizing the Sectoral Approach which compiles reduction potentials in each sector, using indicators such as energy efficiencies or GHG intensities, with due consideration to the marginal abatement costs and total abatement costs as percentage of GDP.
  • Sectors for analysis are, for instance, as follows;
    • Iron and steal, cement, aluminum, power generation, other industries, residential / commercial , transportation (freight / passengers), agriculture, LULUCF, wastes

(2) Actions by developing countries

(a) Differentiation of developing countries

  • Developing countries should be classified into the following 3 groups in accordance with the principle of "common but differentiated responsibilities and respective capabilities":
    • (i) developing countries which are expected to take further mitigation actions, based on their economic development stages, response capabilities, shares of GHG emissions in the world, etc;
    • (ii) developing countries whose emissions are very little and which are vulnerable to adverse effects of climate change, especially LDCs and SIDS; and
    • (iii) other developing countries
  • The differentiation of developing countries described above should be made through comprehensive consideration using, for example, such criteria as indicated in (1)(a).

(b) Substance of actions of developing countries

  • Developing countries' actions should be considered, focusing on the following;
  • A country under group (a)(i) should;
    • set out binding targets for "GHG emissions per unit" or "energy consumption per unit" in major sectors (e.g. power generation, iron and steel, cement, aluminum and road transport), taking into consideration national circumstances.
      This is not to imply in any way adopting trade restriction measures.
    • set out binding targets for economy-wide "GHG emissions per GDP" or "energy consumption per GDP", taking into consideration national circumstances. Each country should also provide an estimate of total volume of its emission as reference, based on its economic growth forecast.
    • establish a national measurement system for its targets, with international assistance. Under the system, necessary data and information should be collected which then should be submitted to the Conference of the Parties. Experts should verify these data and information.
    • submit its voluntary national action plan, including policies and measures for mitigation, to the Conference of the Parties. The Conference of the Parties should periodically review the voluntary national action plan.
  • A country under groups (a)(ii) and (iii) should;
    • submit its voluntary national action plan, including policies and measures for mitigation, to the Conference of the Parties. The voluntary national action plan should be reviewed periodically.

(3) Graduation

  • When a developing country has met the conditions of an upper group in the light of such criteria as indicated in (1)(a), due to its economic development and so on, that country should be graduated into the upper group upon a COP decision.
  • A country which voluntarily commits itself to stricter mitigation commitments or actions should be included in the upper group, even if the country does not meet the conditions set out for the group.

3. Adaptation

  • Measures on adaptation for countries that are vulnerable to the adverse effects of climate change should be strengthened, especially for those mentioned in 2 (2)(a)(ii). Ways to respond to new financial needs should be considered in addition to the effective use of existing financial mechanisms (see infra "5. Finance").

4. Technology

  • In order to achieve the long-term target, developed countries, along with developing countries that are willing to take part, should accelerate innovative technology development in cooperation with the relevant international organizations, through expanding investment in research and development, sharing technology roadmaps, and strengthening international cooperation.
  • In order to support the actions by developing countries indicated in 2(2)(b), sectoral sub-groups should be established with participation of private sectors. The sub-groups should examine necessary assistance measures through sharing information on progress of technology transfer, analyzing reduction potentials, and creating achievement indices as well as making assessment in a quantitative manner. The result of this examination will be utilized to assist technology transfer under the financial mechanism (see infra "5. Finance").

5. Finance

(1) New financial contributions of each country should be assessed in a comprehensive manner, taking into account various factors (contributions to funds under the UNFCCC, contributions to other multilateral funds including Climate Investment Funds under the World Bank, ODA contribution, technology assistance, R&D investment, investment through market, etc.).

(2) Improvement of existing financial mechanisms

  • For effective use of the existing funds established under the Convention (SCCF and LDCF), each Council of SCCF and LDCF should discuss appropriate improvements including the following points.
    • Accelerate procedures
    • Ensure equity of geographical balance
    • Prioritize vulnerable countries
    • Ensure the balance between mitigation (including technology transfer and capacity building) and adaptation
    • Utilize funds properly through improvement of screening criteria
    • Ensure follow-up evaluation

(3) Response to new financial needs

  • Measures to meet the new financial needs for both mitigation and adaptation, including contributions from the Parties, should be considered from the perspective of broad international cooperation.

(4) Assistance for mitigation actions in each sector

  • Sectoral crediting mechanism will be discussed as a means to assist nationally appropriate mitigation actions by developing countries.
  • Consideration should be given to how to promote private loans for technological inducement and investment which are related to the improvement of intensity in each sector and measures with co-benefits (such as energy efficiency improvement, reduction of air pollution, etc.). Other measures such as labeling also need to be considered.

6. Entry into Force

  • Appropriate requirement for entry into force of the new framework should be considered with a view to realizing an effective framework.

(Reference: Japan's already-presented submissions)

  • CCC/AWGLCA/2008/MISC.1/Add.1 p.3-11
  • FCCC/AWGLCA/2008/MISC.2 p.13-39
  • FCCC/AWGLCA/2008/MISC.4 p.8-16
  • FCCC/AWGLCA/2008/MISC.4/Add.1 p.8-9
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