It was a long march from Rio in 1992 to Bonn in 2001 for the world to reach a consensus and to commit to take a first step together, on the road to action. The first international response to climate change had taken shape with the development of the United Nations Framework Convention Climate Change (UNFCCC).

Adopted in 1992, the UNFCCC set out a framework for action aimed at stabilising atmospheric concentrations of greenhouse gases at a level that prevent human-induced actions from leading to "dangerous interference" with the climate system. The Convention has since been signed by 186 countries and entered into force on 21st March 1994.

The first conference of the Parties to the Convention (COP 1) was held in Berlin in March - April 1995. During

COP 1, it became very clear to the world community that "Rio is not enough" and pressed for adequacy of commitment by the developed countries for reduction of emissions.

Accordingly, a Protocol to the Climate Change Convention was adopted in Kyoto in 1997 with the objective of bringing down the global GHG emissions by 5.2% in aggregate by the developed countries (Kyoto Protocol).

The Protocol also provided the basis for three flexibility mechanisms to assist developed countries in meeting their national quantified emissions limitation and reduction commitments (QELRC) in a cost effective manner. These mechanisms are:

Ø Joint Implementation (Article 6 of the Protocol)
Ø Clean Development Mechanism (Article 12 of the Protocol)
Ø Emission Trading (Article 17 of the Protocol)

For the Kyoto Protocol to enter into force, the criteria was that 55 parties to the UNFCCC including developed country parties representing at least 55% of the total carbon dioxide emission for 1990 must ratify the protocol. So far, the protocol has been signed by the 84 countries and ratified only 35 countries.

The achievement at Bonn is considered remarkable in view of the political decisions taken by 178 nations at Bonn to proceed with the implementation of the Protocol. It is likely that the protocol will enter into force by 2002 after the above criteria are met, with the sole exception of the United States, who refused to participate in this victory of multilateralism over unilateralism.

The crucial meeting before the historical decision at Bonn was held in the night of Sunday the 22nd of July 2001. The "marathon" meeting concluded with the plenary at 11.55 a.m. on Monday, 23rd July.

Some important issues on which consensus was reached are as follows:

1. Funding
2. Land-use and Land-use Change and Forestry (LULUCF)
3. Mechanisms under the Kyoto Protocol
4. Compliance

Thanking all delegates at the end of the "marathon" session, President Pronk said that such a consensus was necessary not just for the climate but to underline the value of multilateral negotiations within the framework of UN. Iran for the G-77 / China said that this was "honourable deal" that represents a historic achievement and the "triumph of multilateral negotiations over unilateralism".

Japan expressed pleasure in joining the consensus that constitutes a vital step towards realising the entry into force of the Protocol by 2002. The US noted that the COP recognises the segregation between funding under the UNFCCC and the Protocol.

The fact that US did not seek to block consensus did not change her country’s view that the "Protocol is not a sound policy".

Details on Key Issues

Ø Funding under the convention and the Kyoto Protocol
Ø Special Climate Change fund
Ø Least development countries fund
Ø Kyoto Protocol adaptation fund
Ø Development and transfer of technology to developing countries

It further states that forest management, cropland management grazing land management and re-vegetation are eligible landuse, landuse change and forestry activities under Article 3 of the Protocol.

Additions to and subtraction from the amount of the Party resulting from forest management under Article 3 and Article 6 of the Protocol should not exceed the value agreed upon by each developed countries.

3. Mechanisms

The Conference took positions on several key decisions on the Protocol’s most delicate issue: the Clean Development Mechanism (CDM). Some of them are as follows:

The CoP-6 took a decision to

Ø Facilitate a prompt start for the CDM
Ø Invite nominations for membership in the Executive Board
Ø Authorise signatory Parties to the Kyoto Protocol as eligible for ‘doing’ CDM projects
Ø Formulate simplified modalities and procedures for small scale CDM projects such as ;

Renewable energy project activities with a maximum output capacity equivalent of up to 50 megawatts,

Ø Energy efficiency improvement project activities which reduce energy consumption up to the equivalent of 15 giga watt hours (GWH) per year; alternatively
Ø Other project activities that both reduce anthropogenic emissions by sources and that directly emit less than 15 kilotonnes of the carbon dioxide equivalent annually

Among the other decisions taken, projects starting as of the year 2000 may be eligible for validation and registration as CDM and may obtain certified emissions reductions. In addition, from a CDM project, the share of proceeds for adaptation fund shall be not more than 2% of the total Certified Emission Reductions (CERs) generated from the CDM project. Accepting the strong case of unilateral CDM activities, wherein a developing country Party could apply and win a CDM project, the CoP mentioned that such projects shall be exempted from the share of the proceeds to assist with the cost of adaptation. The Parties also debarred nuclear projects from being included in the ambit of CDM. Finally, carbon sequestration from afforestation and reforestation only will be eligible for CDM.

The US decision not to join the Protocol may have adverse impacts on their business sector. In a recent analysis by WRI, the following aspects have been brought out: