SP(2010)793/2

Following the debate which took place during the sitting of 24 November 2009, the European Parliament adopted by 516 votes to 92, with 70 abstentions, a resolution tabled by the Committee on Environment, Public Health and Food Safety, on the EU strategy for the Copenhagen Conference on Climate Change (COP 15).

The resolution emphasises that by the end of this year in Copenhagen, the Parties need to reach a legally binding agreement on industrialised-country mitigation targets and financing and to establish a formal process to achieve a legally binding comprehensive climate agreement in the first few months of 2010, coming into force on 1 January 2013 . It also s tresses that, in order to secure continuing commitments after the Kyoto Protocol first commitment period expires, it is vital for the negotiations on a post-2012 agreement in Copenhagen to be concluded, according to MEPs.

Parliament urges the EU to continue to develop an external climate policy and to speak with one voice to maintain its leading role in the negotiations at COP 15.

The main issues dealt with in this resolution are as follows:

Reduction commitments

the international agreement should be based on the principle of a ‘common but differentiated responsibility’, with the industrialised countries taking the lead in reducing their domestic emissions; the international agreement should ensure collective reductions in greenhouse gas emissions in the developed countries at the high end of the 25-40 % range for 2020 compared to 1990 levels; the resolution recalls that a long-term reduction target should be set for the EU and the other developed countries of at least 80 % by 2050 compared to 1990 levels. Given their economic weight, that China, India and Brazil should commit themselves to targets similar to those of the industrialised countries; in accordance with the Bali Action Plan, take nationally appropriate mitigation actions in the context of sustainable development, supported and enabled, in a measurable, reportable and verifiable manner, by technology, financing and capacity-building from developed countries, having due regard, in technology transfers, to the protection of industrial property rights and to the special needs of the least developed countries; the international agreement should also ensure that developing countries as a group limit the growth of their emissions to 15 to 30 % below ‘business as usual’ in order to ensure that the 2ºC objective is achieved; the Copenhagen agreement should bind the parties to mandatory reductions and provide for sanctions at international level for non-compliance. The resolution calls for regular reviews in the agreement every five years; the EU should clarify under which conditions it would increase its reduction commitment, taking into account the fact that the latest scientific recommendations call for a commitment to a 40 % reduction in emissions. The EU should invite the members of the COP 15 to develop a common vision for the year 2050 and beyond.

Financing

according to MEPs, an agreement in Copenhagen could provide the necessary stimulus for a ‘ Sustainable New Deal ’ boosting sustainable social and economic growth, promoting environmentally sustainable technologies, renewable energy and energy efficiency, reducing energy consumption and securing new jobs and social cohesion in both developed and developing countries; developed countries should provide sufficient, sustainable and predictable financial and technical support to the developing countries to allow them to commit themselves to the reduction of their greenhouse gas emissions, to adapt to the consequences of climate change and to reduce emissions from deforestation and forest degradation, as well as to enhance capacity-building in order to comply with obligations under the future international agreement on climate change; commitments to provide for the required predictable financial support for climate change mitigation and adaptation in the context of the United Nations Framework Convention on Climate Change (UNFCCC) must be new and additional to ODA and independent from annual budgetary procedures in the Member States. The resolution recalls that the resources should be distributed not as concessional loans, but as grants; the EU is called upon to commit at least to the Commission’s estimate of overall financing of EUR 5-7 billion annually for the period 2010-2012 ; the collective contribution by the EU towards developing countries' mitigation efforts and adaptation needs should not be less than EUR 30 000 million per annum by 2020 , a figure that may increase as new knowledge is acquired concerning the severity of climate change and the scale of its costs; the international community is invited to increase significantly its financial support for adaptation to and mitigation of climate change for developing countries by exploring other innovative financial mechanisms (for example debt-for-nature swaps); a substantial part of the revenues generated by the auctioning of certificates in the EU Emissions Trading Scheme (EU ETS), including auctioning for aviation and maritime transport, should be earmarked for enabling developing countries to fight and adapt to climate change; developed countries should envisage earmarking a percentage of their GDP for the creation of a cooperation fund for the realisation of clean energy technologies, independently of existing development aid funds.

Cooperation with developing countries

the EU and its Member States should strengthen their existing climate partnerships with developing countries, and to enter into new partnerships where they do not currently exist, providing significantly increased financial support for technology development and transfer, agreement on intellectual property rights and institutional capacity-building; the Commission and the Member States should: (i) build the necessary links between climate change and the MDGs; (ii) increase substantially the budget for the Global Climate Change Alliance (GCCA). The Commission is urged to ensure that the GCCA becomes a clearing house for adaptation funding in developing countries, thus avoiding the creation of new bilateral EU initiatives.

Energy and energy efficiency

there is an urgent need to improve energy efficiency on a global scale and to increase the share of renewable energy resources; an international shift towards a low-carbon economy will consider nuclear energy as an important part of the energy mix in the medium term. The issue of safety and security of the nuclear fuel cycle must be addressed in an appropriate manner at international level in order to ensure the highest possible level of safety; EU Member States are urged to step up their ambition on the energy efficiency package, notably on the Energy Performance of Buildings Directive recast which is currently being discussed, to enable a dynamic and cohesive agreement with the Council to be reached.

Adaptation : stressing the historical responsibility of developed countries for irreversible climate change, Parliament calls on the EU and its Member States:

to assist developing countries in capacity building in order to adapt to climate change and to provide sufficient technological support for those countries most affected by a changing environment; to enhance action to support the urgent implementation of adaptation actions within the EU in order to save resources for future international action.

Technological cooperation and research

the Copenhagen agreement should provide for Technology Action Programmes for key adaptation and mitigation technologies to provide support throughout the entire technology chain with objectives such as to considerably increase financing for mitigation and adaptation-related research, development and demonstration (RD&D); developed countries should invest more in research on novel and advanced technologies for sustainable and energy-efficient production processes; considers it essential to improve funding for international cooperation on climate change within the Seventh Framework Programme (FP7).

A global carbon market

although market solutions, including the development of a global carbon market, through ‘cap and trade’ mechanisms or taxation schemes in developed countries, are not the solution for developing countries in the near future, this must remain the long-term goal for all negotiations; a functioning global carbon market is essential for the EU economy. The resolution stresses the need for a comprehensive international post-2012 agreement stipulating comparable efforts to be made by other developed countries in order to overcome the risk of carbon leakage; the Kyoto Protocol's Clean Development Mechanism (CDM) is deemed a possible way to enable developing countries to participate in the carbon market and to provide them with modern and efficient technologies. The resolution underlines, however, that the use of offsets to meet emission reduction targets by developed countries cannot be counted as part of the responsibility of developing countries to mitigate their greenhouse gas emissions in an international agreement on climate change; stringent project quality standards must be part of future offsetting mechanisms, in order to prevent developed countries taking away the low-cost reduction options from developing countries, and to guarantee the high standard of such projects, with reliable, verifiable and real additional emission reductions that also support sustainable development in such countries. The CDM and Joint Implementation (JI) should be reformed, taking into account those project quality standards.

Land use change, deforestation, forest and natural resources degradation

the EU and the Member States are urged to recognise the need to preserve forests and to integrate this aspect into an international agreement; significant financial support, as well as technical and administrative assistance, must be provided to developing countries to halt gross tropical deforestation by 2020 at the latest . Parliament invites the EU and its Member States to provide funding for the period 2010-2012 for early action in developing countries and supports the Commission's proposal to create a Global Forest Carbon Mechanism (GFCM) under the UNFCCC framework, based on a permanent-financing scheme; Member States should confirm their commitment to halting global deforestation and forest and land degradation, as well as desertification, by earmarking a significant part of the auctioning revenues from the EU ETS to reduce deforestation and forest degradation in developing countries; the EU is called upon to promote strong social and environmental standards for Reducing Emissions from Deforestation and Degradation (REDD); practices followed in several sectors, including water management, ecosystem preservation, agricultural production, soil conditions, land use change, health, food security and disaster risk, have led to the causation and aggravation of climate change and that these dimensions should be included in the Copenhagen agreement.

Aviation and maritime transport

· MEPs insist that – in the light of the failure of the negotiations involving the International Civil Aviation Organisation (ICAO) and the International Maritime Organisation (IMO) – international aviation and shipping be incorporated into an agreement under the UNFCCC;

· MEPs urge that international agreements in the aviation and maritime sectors set the same binding targets as for other industry sectors; urges further that in a global framework at least 50 % of the allowances in this area be auctioned.

Lastly, Parliament believes that the EU delegation plays an important role in these negotiations on climate change, and therefore finds it unacceptable that the Members of the European Parliament that are part of that delegation were unable to attend the EU coordination meetings at the previous Conference of the Parties. It expects the European Parliament participants to have access to such meetings in Copenhagen on the basis of observer status at least, with or without speaking rights.

T7-0089/2009

B7-0141/2009

Debate in Parliament

The Council discussed preparations for the Copenhagen climate conference (7-18 December 2009).

The Council was first briefed on various aspects of the ongoing international talks for a new international climate protection regime for the period from 2013.

President of the Copenhagen meeting Danish minister Connie Hedegaard, Polish minister Maciej Nowicki and UNFCCC Executive Secretary Yvo de Boer spoke about the path to the international climate conference. Commissioner Stavros Dimas gave an outline of EU greenhouse gas emissions trends and emissions reductions proposals by other parties while Norwegian minister Hanne Bjurstrøm talked about initiatives to reduce deforestation in developing countries. Lastly, French minister Jean-Louis Borloo presented his "climate justice" plan. Over lunch, ministers held a policy debate on this issue.

The president summarised the discussions as follows:

Ministers confirmed the existing EU position for the Copenhagen talks and underlined the need to show EU leadership at the conference. The EU still aims for a legally binding agreement that will come into force in 2013 and will build on the Kyoto Protocol . Such an agreement would have to cover all elements of the Bali Action Plan and encompass all countries.

The EU will keep pressing other parties to present ambitious pledges to cut their greenhouse gas emissions. Ministers welcomed recent developments whereby some parties have increased their bids and others have offered emissions reductions for the first time. At the same time, the EU will continue using its conditional offer to move by 2020 to a 30 % reduction compared to 1990 levels as a lever to increase other parties' pledges .

Ministers also debated the EU's vision for the outcome of the Copenhagen conference. It was highlighted that the main decisions will have to be taken in Copenhagen, including binding emissions reduction commitments and a timetable for drafting ratifiable text . Those decisions must be followed up with immediate action, including quick financial assistance to developing countries and measures to prevent deforestation .

The EU position for Copenhagen, adopted in October 2009, is set out in the Conclusions adopted by the Council (Environment) on 21 October 2009 (please see the following Council documents 14790/09 and 15265/09 ). This position will continue to evolve during the 15th Conference of Parties to the United Nations Framework Convention on Climate Change in Copenhagen (7 to 18 December 2009).

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External Relations Council conclusions

The Council examined an annotated draft agenda prepared by the presidency for the European Council meeting to be held on 10 and 11 December 2009. It will make more detailed preparations at its meeting on 7 and 8 December. Issues to be addressed by the European Council include including notably climate change.

The European Council will assess the state of negotiations at the Copenhagen conference on climate change and take all necessary decisions to contribute to its successful outcome.

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The Council held an orientation debate and adopted conclusions that underline the importance of a medium- to long-term perspective in addressing climate change and development. Strengthening coherence between the two is essential to successfully achieve internationally agreed climate and development objectives, while ensuring that the fight against poverty and the attainment of the Millennium Development Goals are not jeopardized.

The conclusions invite the Commission and member states to engage in more dialogue with partner countries and to support the integration of climate change concerns into their development strategies and budget processes.

Adaptation : the Council recalls the Bali Action Plan, in particular on enhanced action on the provision of new and additional financial resources; it recognizes that development cooperation has an important role to play in supporting developing countries that are particularly vulnerable to the adverse impact of climate change, especially the least developed countries (LDCs), the Small Island Developing States (SIDS) and countries in Africa affected by drought, desertification and floods as is stated in the Bali Action Plan, and that such cooperation should build on support currently provided through bilateral and multilateral channels (including UNFCCC funds).

The Council also emphasizes the following points:

the need for a shift towards a long-term strategic approach to integrating climate resilience into national policies, supported by public finance where necessary; that adaptation is both about undertaking technical adaptive measures and about initiatives that strengthen the capacity of individuals, ecosystems and societies to adapt to a changing climate. In this context, the Council underlines the human dimension of climate change, including a gender perspective; that effective adaptation can be achieved by, for instance, investments in health and education; improved access to water and energy; sustainable land, forests, and water management; enhancement of carbon stocks; combating desertification; protection of ecosystems and biodiversity; investments in flood protection infrastructure; sufficient water supply (including drinking water); and crop insurance schemes. The Council underlines that development assistance targeting adaptation efforts in the agriculture sector, including through agricultural research, will be decisive for food security and the livelihood of poor people; the role of the local level and local institutions in effective adaptation, is highlighted, within the framework of national institutions and planning; that climate change adaptation and disaster risk management are closely linked and that reducing disaster risk is critical to managing and adapting to the impacts of climate change and minimising the impacts on social and economic welfare. A close coordination is needed with the UN Hyogo Framework for Action (HFA), and the International Strategy for Disaster Reduction (ISDR).

Mitigation : recalling the 2 degree objective, the Council underlines the following points:

in accordance with the findings by IPCC, developed countries as a group have to take the lead by reducing their emissions below 1990 levels through domestic and complementary international efforts by 25 to 40 % by 2020 and by 80-95 % by 2050 and that developing countries as a group should achieve a substantial deviation below the currently predicted emissions growth rate, in the order of 15-30 % by 2020; development cooperation in support of mitigation in the least developed and most vulnerable countries should be oriented towards promoting win-win strategies for adaptation and mitigation and sustainable development, and should inter alia support access to efficient low carbon energy systems, transition to energy-efficient technology, renewable energy, increased energy security as well as sustainable management of land and marine ecosystems and wetlands, sustainable agriculture including food production, green growth and capacity building related to sustainable forest management.

Financing, Governance and Institutions : reiterating that a deal on financing will be a central part of an agreement in Copenhagen, the Council recalls that:

a gradual but significant increase in additional public and private financial flows is needed to help developing countries implement ambitious mitigation and adaptation strategies; all countries, except the least developed, should contribute to international public financing, through a comprehensive global distribution key based on emission levels and on GDP to reflect both responsibility for global emissions and ability to pay, with a considerable weight on emission levels. The EU and its Member States are ready to take on their resulting fair share of total international public finance; while support to mitigation and adaptation in developing countries will require additional resource mobilization from a wide range of financial sources, ODA will continue to play a role, particularly for support to adaptation, including disaster risk reduction, in the most vulnerable and least developed countries. In this respect, the Council underlines that developed countries should honour their respective commitments of ODA contributions; in parallel with deliveries of climate financing all international parties should commit that such financing would not undermine or jeopardize the fight against poverty and continued progress towards the MDGs; innovative financing can play a role in ensuring predictable flows of financing for sustainable development, especially towards the poorest and most vulnerable countries; the overall governance structure and implementation of international climate change financing should, to the extent possible, build on existing and reformed mechanisms, channels and national and international institutions of the international financial architecture, and be decentralised, country-driven, transparent, allowing effective monitoring, and should fulfil standards for aid effectiveness; addressing climate change is a multi-level governance issue that requires involvement and responsibility from all levels: individual, local, national, regional, and global, with a special focus on support to the local level. Collaboration between different levels is needed; the Council supports the establishment of a high-level forum or body to inter alia provide a consolidated overview of international sources for financing climate-related investments in developing countries; there is a need to reform the Clean Development Mechanism (CDM) including through enhancing its effectiveness, efficiency, environmental integrity and governance as well as the importance of strengthening the participation of Less Developed Countries in CDM; climate change also poses challenges that most effectively can be dealt with regionally, and underlines that regional institutions should play a more prominent role in the challenge of climate change, including areas such as exchange of experience and lessons learned, dissemination of know-how, and diffusion of information via early warning systems.

The Council calls on EU Member States and the Commission to further integrate adaptation, risk reduction, mitigation efforts, into development cooperation policies, strategies and activities, building on dialogue with partner countries. It invites the Commission in cooperation with Member States in an appropriate framework, to report to the Council by the end of 2010, on progress in taking forward the recommendations as set out in these Conclusions.

The Environment Council adopted Conclusions setting out the EU position for the Copenhagen Climate Conference (7-18 December 2009). These conclusions provide the EU with a basis for negotiating an international agreement on climate protection that is to enter into force when the Kyoto Protocol expires.

In its conclusions, the Council underlines that preventing dangerous climate change requires sustainable economic growth and social development with a minimum of greenhouse gas emissions. It insists on the fact that such a low-emission development path is possible but that it requires a concerted global cooperative effort enabled and supported by a comprehensive international regulatory framework under the United Nations Framework Convention on Climate Change (UNFCCC).

Acknowledging that climate change is seriously undermining efforts to reduce poverty and hunger and is a major threat to achieving the Millennium Development Goals, the Council intends to strengthen its alliances and partnerships with developing countries , in particular with Africa, the Latin American countries, the Least Developed Countries (LDCs) and the small island developing states (SIDS) in this regard.

The Council reaffirms its commitment to reaching a global, ambitious and comprehensive climate agreement in Copenhagen in December 2009 building on the Bali Roadmap whilst underlining the mutual co-benefits for developed and developing countries of reaching such an agreement.

The main points raised in the Council conclusions are the follows:

1) MITIGATION : the Council reiterates that that a Copenhagen agreement must be based on the best available scientific evidence as presented by the Intergovernmental Panel on Climate Change (IPCC). It recognises that the 2°C objective sets the level of ambition for global mitigation action and underlines that, in accordance with the IPCC findings:

developed countries as a group should reduce their GHG emissions below 1990 levels through domestic and complementary international efforts by 25 to 40% by 2020 and by 80 to 95% by 2050 ; while developing countries as a group should achieve a substantial deviation below the currently predicted emissions growth rate, in the order of 15-30% by 2020.

In this context, the Council calls upon all Parties, as part of a Copenhagen agreement, to embrace the 2°C objective and to agree to global emission reductions of at least 50% , and aggregate developed country emission reductions of at least 80-95%, as part of such global emission reductions, by 2050 compared to 1990 levels. Such objectives should provide both the aspiration and the yardstick to establish mid-term goals, subject to regular scientific review.

The Council reaffirms its commitment to move to a 30% reduction compared to 1990 levels as its contribution to a global and comprehensive agreement for the period beyond 2012, provided that other developed countries commit themselves to comparable emission reductions and that developing countries contribute adequately according to their responsibilities and respective capabilities. Developed countries should take the lead in combating climate change and the adverse effects thereof. The Council urges developed country Parties to announce more ambitious proposals for emission reductions ahead of Copenhagen.

According to the Council :

at least all Parties listed in Annex I to the UNFCCC and all current EU Member States, EU candidate countries and potential candidate countries that are not included in Annex I to the UNFCCC should commit to ambitious binding quantified emission limitation or reduction commitments ; other non-Annex I Parties that are at levels of development and GDP/capita comparable to those of the group of developed countries, notably OECD member countries and candidates for membership thereof, to consider making similar commitments commensurate with their responsibilities, capabilities and national circumstances; advanced developing countries should come forward, already before Copenhagen, with proposals for ambitious mitigation actions as part of their contributions to the global effort and to include in their low-carbon growth plans ambitious mitigation actions, including through the adoption of sectoral thresholds and targets, and to indicate how emission growth will be decoupled from economic growth and make these actions, thresholds and targets part of the international agreement in Copenhagen.

The Council considers that global emission reduction targets for international aviation and maritime transport , consistent with a global reduction path towards meeting the 2°C objective, should be incorporated into a Copenhagen agreement and that Parties should commit to work through ICAO and IMO to enable an agreement that does not lead to competitive distortions or carbon leakage, that is agreed in 2010 and approved by 2011.

Global reduction targets for greenhouse gas emissions from international aviation and maritime transport should be set by UNFCCC to -10 per cent for the aviation sector and to -20 per cent for the maritime sector below 2005 levels by 2020 to be implemented globally in a manner that ensures a level playing field.

The Council that, in this context, the EU supports the use of global market-based instruments to reduce emissions from these sectors and that such instruments should be developed within ICAO and IMO, respectively.

Lastly, the Council reiterates its proposal to include an HFC emissions reduction arrangement in the Copenhagen agreement , whereby HFCs remain in the basket of gases covered by the Kyoto Protocol or its successor.

2) ADAPTATION : the Council states that climate change is already occurring, that many vulnerable countries are already experiencing the impact of climate change and that the ability to cope with adverse climate change effects varies considerably among countries. Adaptation is a necessary complement to mitigation. This issue must be comprehensively addressed by all Parties in a Copenhagen agreement.

The Council stresses the need to effectively integrate adaptation into national and sectoral planning, sustainable development policies and strategies at all levels and into development cooperation.

The Council recognises the potential impacts of climate change on, inter alia, water resources and management, sustainable forest management, land management, health, soil conditions, biodiversity, agricultural production, food security and efforts on disaster risk reduction. It therefore urges all international stakeholders, bodies and institutions involved in adaptation , risk assessment and management and related activities, to cooperate and integrate effects of climate change in their work in line with a Copenhagen agreement.

In this context, the Council stresses the need to continue to cooperate to improve research and systematic observation and to strengthen capacities in vulnerable developing countries, and to develop and transfer technology and knowledge on adaptation, including climate systematic observation and development of regional climate scenarios; and to enable the provision of high quality climate services.

The Council recognises that adaptation needs and responses are context-specific and should be addressed in line with specific circumstances and priorities . It recalls the Bali Action Plan, in particular on enhanced action on the provisions of new and additional financial resources.

It recognises that further financing will be needed to support adaptation in developing countries and therefore underlines the need to scale up support for adaptation in developing countries , until and beyond 2012, focusing on countries and regions that are particularly vulnerable to the adverse impacts of climate change, especially SIDS, LDCs and African countries prone to drought, desertification and floods.

3) DEFORESTATION, LAND USE : the Council:

reaffirms the importance of action to reduce deforestation and forest degradation (REDD) and also of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries (REDD+), as well as the EU’s objectives of reducing gross tropical deforestation by at least 50% by 2020 compared to current levels and to halt global forest cover loss by 2030 at the latest. It underlines that, in general, assistance to developing countries will be necessary in order to produce accurate data and build capacity to establish and implement an effective and reliable framework for including REDD+ in their low carbon growth plans; reiterates that the accounting rules for the treatment of land use, land-use change and forestry in developed countries in future commitments should stimulate mitigation actions in these sectors and ensure permanence and environmental integrity, while ensuring that early action is recognised. It underlines in this context the role of sustainably produced wood products as a climate friendly material and therefore proposes to include harvested wood products in the accounting modalities of a Copenhagen agreement, while stressing the need for robust, transparent and consistent data and methodologies; underlines the importance of Assigned Amount Units (AAUs) in the common accounting framework under the current commitment period within the Kyoto Protocol (2008-2012). It notes that, during the current commitment period under the Kyoto Protocol a significant amount of unused AAUs are likely to accrue as a consequence of emissions lower than the assigned amount. The AAU surplus could affect the environmental integrity of a Copenhagen agreement if it is not addressed appropriately. The Council clarifies that the EU will further consider options in view of discussions with other Parties.

4) LOW CARBON DEVELOPMENT STRATEGIES/GROWTH PLANS AND NATIONALLY APPROPRIATE MITIGATION ACTIONS : the Council clarifies that, in accordance with the principle of common but differentiated responsibilities and respective capabilities, all countries, except LDCs, should commit themselves to preparing ambitious, credible and country-owned low-carbon development strategies/growth plans. It underlines that the EC and its Member States will develop such strategies / plans, building on the energy and climate package.

The strategies/plans should include Nationally Appropriate Mitigation Actions which provide the information for identifying the needs for financial, capacity-building and technology support to developing countries. They should provide a basis for independent analysis of the adequacy of the global level of ambition of actions.

The Council underlines the need for capacity building in developing countries to assist them in preparing LCDS/LCGP and national inventories.

5) CARBON MARKET : recalling the crucial importance of carbon markets, the Council reiterates that putting a price on GHG emissions through cap-and-trade systems and other market-based mechanisms is imperative for driving low-carbon investments and for achieving global mitigation objectives in a cost-efficient manner. It also calls for an OECD-wide carbon market through the linking of cap-and-trade systems comparable in ambition and compatible in design as soon as practicable and preferably by no later than 2015 and the extension of this market to more advanced developing countries by 2020 as important steps towards achieving a fully integrated global carbon market which at the same time will promote a level-playing field.

According to the Council, maintaining a continuing strong role for the project-based mechanisms Clean Development Mechanisms (CDM) and Joint Implementation (JI), including programmatic approaches, is important for broadening carbon markets and maintaining the trust of carbon market investors.

The Council reiterates its proposal that the more advanced developing countries should identify, as part of their low carbon development strategies/growth plans, ambitious thresholds and targets for specific sectors , subject to agreed international governance procedures, with a view to participating in sectoral crediting and sectoral trading mechanisms, obtaining financing and promoting large-scale emissions reductions as well as facilitating their progressive participation in internationally linked carbon markets based on cap-and-trade systems by 2020.

The Council takes the view that, in light of the importance of the creation of sector-specific mechanisms, an orderly transition to such mechanisms should be initiated in a Copenhagen agreement to provide clarity to investors and ensure the continuing stability of the market.

6) CLIMATE FINANCE, GOVERNANCE AND DELIVERY : the Council recognises that a Copenhagen agreement will require a gradual but significant scaling up of both public and private financial flows to developing countries. It underlines that adequate, predictable and timely financial support for implementation of a Copenhagen agreement is crucial and that the EU is prepared to take on its fair share, in the framework of a global and comprehensive Copenhagen agreement which entails appropriate and adequate contributions by Parties.

The Council supports the establishment of a high-level forum or body to inter alia provide a consolidated overview of international sources for financing climate-related investments in developing countries , review the balanced distribution of international public finance across priorities, involve all relevant actors, and encourage synergies with other environmental agreements. This forum or body should be created under the guidance of the UNFCCC and involve all relevant actors, including International Financial Institutions (IFIs). It stresses that that the overall governance structure should be decentralised, country-driven, transparent, allowing effective monitoring, and should fulfil standards for aid effectiveness.

7) TECHNOLOGY : the Council reiterates the importance of development, deployment and diffusion, including transfer of safe and sustainable technologies , for mitigation and adaptation. It proposes that developing countries perform national assessments of their needs and barriers related to technology and use those assessments in order to make strategic choices in their low carbon development strategies/growth plans. These strategies should set out what support is needed to implement actions and policy frameworks that lead to enhanced technology development and deployment. The Council recalls that the design and implementation of national policy frameworks are essential to provide enabling environments with a view to re-directing and scaling up private investments as well as playing a major role in driving research, development, demonstration, deployment and diffusion, including transfer of technologies at the scale needed. It stresses the importance of creating in all countries, developed as well as developing, incentives and mechanisms to engage the private sector in technology cooperation .

Furthermore, the Council reaffirms the importance of increasing private and public energy-related RD&D compared to current levels, working towards at least a doubling of global energy related RD&D by 2012 and increasing it to four times its current level by 2020 with a significant shift in emphasis towards safe and sustainable low greenhouse-gas-emitting technologies, especially renewable energy and energy efficiency.

The Council supports further initiatives for international cooperation on demonstration and deployment of energy efficiency , safe and sustainable technologies and renewable energy sources inside or outside a Copenhagen Agreement. It recognises the importance of public-private partnerships. The European Commission is invited to continue the cooperation together with Member States, stakeholders and financial institutions with a view to the further development of environmentally safe climate change mitigation technologies and finding ways for financing demonstration.

Lastly, the Council emphasises the need for a legally binding agreement for the period starting 1 January 2013 that builds on the Kyoto Protocol and incorporates all its essentials, as an outcome from Copenhagen in December 2009.

The Council discussed preparations for the 15th conference of the parties to the UN convention on climate change, which will convene in Copenhagen from 7 to 18 December 2009. The discussion concerned in particular the financing of climate policies.

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