24 Climate change and development cooperation
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7523/03
COM(03) 85
| Commission Communication on climate change in the context of development co-operation
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| Legal base | — |
| Department | International Development
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| Basis of consideration | Minister's letter of 16 January 2004
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| Previous Committee Report | HC 63-xxiii (2002-03), para 12 (4 June 2003)
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| To be discussed in Council | 26-27 January 2004 GAERC
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| Committee's assessment | Politically important
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| Committee's decision | Cleared (decision reported on 4 June 2003)
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Background
24.1 The Commission introduces this Communication by stating that,
according to the Intergovernmental Panel on Climate Change (IPCC),[45]
climate change[46] is
taking place and there is new evidence that most of the warming
observed during the last 50 years is attributable to human activities.[47]
The Commission Communication
24.2 The purpose of the Communication is to consider the impact
of climate change on poverty and achieving the Millennium Development
Goals[48] and to examine
how development cooperation should adapt in order to respond effectively.
It proposes an EU climate change strategy. A draft Action Plan
for implementing the strategy is annexed. The document emphasises
the need to "mainstream" climate change considerations
into broader policy-making processes in developing countries,
recognising that the implications can be far-reaching, and that
adaptation must fit in with the main objective of reducing poverty.
24.3 The Commission recalls that, at a Conference
of the Parties to the Intergovernmental Panel on Climate Change
(IPCC),[49] UNFCCC in
July 2001 in Bonn, the EU+ group[50]
pledged to contribute $ 410 million each year to 2005 to assist
developing countries. This is known as the Bonn Political Declaration.
No agreement has been reached since on the distribution of these
funds. It was suggested at the time that distribution should
be calculated on the basis of CO2 emissions in 1990
by the members of the group, with the obvious exception of the
Commission.
THE EU STRATEGY
24.4 The proposed strategy for the EU is aimed at
assisting the partner countries to meet the challenges posed by
climate change through implementing the UN Framework Convention
on Climate Change (UNFCCC)[51]
and the Kyoto Protocol. Four strategic priorities, are identified:
- Raising the profile of climate
change;
- Support for adaptation to climate change;
- Support for mitigation of climate change;
- Capacity development.
SCRUTINY
24.5 When we considered this Communication on 4 June
2004, we commented on the possibility that the Commission was
suggesting in the Communication that a formal system should be
set up, whereby the EC would decide how the contributions of the
Member States to the funds pledged by the EU+ group would be spent.
We understood that a number of Member States were opposed to
any such notion and that the Commission had not pursued it.
24.6 We cleared the document but asked the Minister
to provide us with an update in due course on the development
of the strategy. In particular, we asked whether agreement had
been reached on what contribution should be expected of developing
countries towards the global effort to mitigate climate change.
The Minister's letter
24.7 The Secretary of State for International Development
(Mr Hilary Benn) says in his letter of 18 January that a lengthy
process to prepare feedback on the Communication was undertaken
by the Development Cooperation Working Party, which agreed a draft
text of Council Conclusions on 1 December 2003. This was expected
to be adopted by the Council on 26-27 January 2004.
24.8 In the draft Conclusions, the Council agrees
to pursue a climate change strategy within the context of development
cooperation. Assistance to developing countries to address climate
change should be part of development cooperation activities, in
particular at EC level in the context of the Mid-Term Review process
for each country assistance plan. Such assistance should be integrated
into poverty reduction strategies or equivalent.
24.9 The draft Conclusions say that development assistance
should not be used as an instrument to achieve emissions reduction
in developing countries. Responses to climate change should be
country-owned and country-driven. The decision to integrate responses
to climate change should be taken through a process of consultation
with a wide range of stakeholders. Actions on adaptation and
mitigation should take place in line with country priorities.
24.10 The Minister also tells us that no agreement
between the EU Member States has been reached on the distribution
of the funds pledged under the Bonn Political Declaration. The
Council Conclusions reiterate the Council's commitment to fulfil
its share.
24.11 The Minister comments that the Council will
need to debate the use of overseas development assistance (ODA)
funding for activities undertaken under the Clean Development
Mechanism (CDM). This is an international greenhouse gas emissions
trading mechanism that allows investments in emissions reduction
projects in developing countries to be rewarded with tradeable
permits that can be used to contribute to an industrialised country's
compliance with their emissions reduction target. The Minister
comments:
"Using ODA funds in this way can be interpreted
as tied aid. The primary objective of ODA should be poverty reduction
and changes in ODA resource allocation should not be made if the
impact on poverty reduction is compromised."
24.12 Member States have agreed to develop further,
in the relevant Council Expert Group, the Action Plan for implementing
the four strategic priorities of the Communication. This is likely
to be taken forward during the Irish Presidency.
24.13 Finally, the Minister says:
"The UK supports distribution of responsibility
for the Bonn Political Declaration according to the polluter pays
principle, although how we meet this responsibility is [a]matter
of national sovereignty. The UK is not in favour of allowing
the use of ODA for CDM purposes. We look forward to working with
the rest of the EU to develop the Action Plan."
Conclusion
24.14 We thank the Minister for the update which
we requested. The use of overseas development assistance for
activities connected with tradeable permits for greenhouse gas
emissions, under the Clean Development Mechanism, is of political
importance and we would expect the Government to give us an opportunity
to scrutinise any such proposal before the Council takes a decision.
24.15 This document was cleared on 4 June 2003.
45 Established under UN auspices in 1988 in order to
provide a scientific assessment on climate change. Its first
assessment report in 1990 led to the UN Framework Convention on
Climate Change (UNFCCC). Back
46
Climate change is caused by rising concentrations of greenhouse
gases (GHGs) in the atmosphere, released primarily by the combustion
of fossil fuels and from agriculture and land-use changes. The
GHGs cause the atmosphere to retain more of the infrared heat
radiated from the Earth's surface, thus leading to a gradual rise
in global temperature. Back
47
The Commission says that all the scientific information and statements
in the introduction to the Communication are from the Third Assessment
report of the IPCC (2001). Back
48
The development goals in the UN Millennium Declaration include
eradicating extreme poverty and hunger, achieving universal primary
education, promoting gender equality, reducing child mortality,
improving maternal health, combatting AIDS, malaria and other
diseases, and ensuring environmental sustainability. Back
49
Established under UN auspices in 1988 in order to provide a scientific
assessment on climate change. Its first assessment report in
1990 led to the UN Framework Convention on Climate Change (UNFCCC). Back
50
This group consists of the EC and the Member States, plus Canada,
Iceland, New Zealand, Norway and Switzerland. Back
51
The UNFCCC was signed by 154 countries at the Earth Summit in
Rio de Janeiro in June 1992 and came into effect on 21 March 1994.It
represents a concerted effort to tackle global warming occurring
as a result of human-induced climate change. It recognises the
special situation of developing countries and espouses the concept
of common but differentiated responsibilities and capabilities,
requiring developed countries to take the lead in combating climate
change. Back
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