PwC: UN Climate Summit in Doha reaches d-day.

By Rob Starr, Content Manager, Big4.com

Ministers and negotiators are now in what they hope will be the final stretch before the conclusion of the UN climate conference in Doha. Discussions are expected to run on into the early hours, though negotiators are now contemplating the possibility a full day on Saturday.

The big issues that delegations are still grappling with are:

Kyoto Protocol: Rumours yesterday that the KP text has been forwarded to ministers and that “We will agree a second commitment period tomorrow.” Outstanding issues are the level of ambition in the second commitment period of the Kyoto protocol: confirming targets, the duration of the period, and the carry-over of surplus allowances from the first period (important to Poland, the Ukraine and Russia).

Finance: wrapping up the work of the working group on Long-term Cooperative Action. This will necessitate more financial commitments from developed countries as well as a clear indication of how unresolved issues will be taken forwards.

Jonathan Grant, director, PwC sustainability & climate change commented:

“The International Air Transport Association has set ambitious targets to halve net emissions from the sector by 2050 and it is likely that carbon offsets will feature, at least as an interim solution. Our analysis shows that airlines may need to buy CDM credits worth 1BN euros each year to keep to their current voluntary targets,” he said.  “Airlines could therefore be a major new source of demand for credits from the Clean Development Mechanism (CDM) or New Market Mechanisms. Progress in Doha on the idea of a CDM reserve bank or fund has been limited, but this could rescue the CDM from the doldrums.”