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1. In accordance with Article 4, paragraph 1, each Party shall communicate to
the Conference of the Parties, through the secretarlat, the following elements of
Information:

A national Inventory of anthropogenic emissions by sources and
removals by sinks of all greenhouse gases not controlled by the
Montreal Protocol, to the extent its capacities permit, using
comparable methodologies to be promoted and agreed upon by
the Conference of the Parties;
A general description of steps taken or envisaged by the Party to

implement the Convention; and
(c) Any other Information that the Party considers relevant to the

achievement of the objective of the Convention and suitable for
Inclusion in its communication, including, If feasible, material
relevant for calculations of global emission trends.

2. Each developed country Party and each other Party Included in Annex I
shall Incorporate in Its communication the following elements of Information:
(a) A detailed description of the policies and measures that it has

adopted to implement its commitment under Article 4, paragraphs

2(a) and 2(b); and
(b) A specific estimate of the effects that the policies and measures

referred to in subparagraph (a) Immediately above will have on
anthropogenic emissions by Its sources and removals by Its sinks
of greenhouse gases during the period referred to in Article 4,
paragraph 2(a).

3. In addition, each developed country Party and each other developed Party
Included in Annex II shall Incorporate details of measures taken in accordance
with Article 4, paragraphs 3, 4 and 5.
4. Developing country Parties may, on a voluntary basis, propose projects for
financing Including specific technologles, materials, equipment, techniques or
practices that would be needed to implement such projects, along with, if
possible, an estimate of all incremental costs, of the reductions of emissions
and Increments of removals of greenhouse gases, as well as an estimate of the
consequent benefits.

PARTICIEL

FINANCIAL MECHANISM

1. A mechanism for the provision of financial resources on a grant or
concessional basis, Including for the transfer of technology, Is hereby defined.
It shall function under the guidance of and be accountable to the Conference
of the Parties, which shall decide on Its policies, programme priorities and
eligibility criteria related to this Convention. Its operation shall be entrusted
to one or more existing international entities.

2. The financial mechanism shall have an equltable and balanced
representation of all parties within a transparent system of governance.

3. The Conference of the Parties and the entity or entities entrusted with the
operation of the financial mechanism shall agree upon arrangements to give
effect to the above paragraphs, which shall include the following:
(a) Modalities to ensure that the funded projects to address climate

change are in conformity with the policies, programme priorities

and eligibility criteria established by the Conference of the Parties;
(b) Modalities by which a particular funding decision may be

reconsidered in light of these policies, programme priorities and

eligibility criteria;
(c) Provision by the entity or entities of regular reports to the

Conference of the Parties on its funding operations, which is
consistent with the requirement for accountability set out in

paragraph 1 above; and
(d) Determination in a predictable and identifiable manner of the

amount of funding necessary and available for the implementation
of this convention and the conditions under which that amount
shall be periodically reviewed.

4. The Conference of the Parties shall make arrangements to implement the
above-mentioned provisions at its first session, reviewing and taking into
account the Interim arrangements referred to in Article 21, paragraph 3, and
shall decide whether these Interim arrangements shall be maintained. Within
four years thereafter, the Conference of the Parties shall review the financial
mechanism and take appropriate measures.

S. The developed country Parties may also provide and developing country
Parties avail themselves of, financial resources related to the implementation of
the Convention through bilateral, regional and other multilateral channels.

10

United States Statement on Advaacing Article 4.1 Commitmeats
Third Session of the Ad Hoc Group on the Berlin Mandate

March 7, 1996

Mr. Chairman;

I would like to take this opportunity to coavey our thoughts on this very important aspect of the Berlin Mandate: advancing the implementation of the Parties' existing commitments under Article #1 to mitigate greenhouse gas emissions. I note that the Secretariat has once again prepared several useful documents relevant to this discussion and I would like to thank the Secretariat for its valuable and timely work in this area

At the second session of the AGBM, we heard presentations from a number of parties emphasizing the positive and diverse activities they are undertaking to implement their existing commitmeats under Article 4.1. We listened with interest to these presentations and were impressed with the wide array of activities. We are pleased that our cooperative work with many other countries through the U.S. Country Studies Program has played a valued role in their programs and activities addressing climate change.

As the Secretariat has noted in document FCCCIAGBM1996/1/Add. I, advancing the implementation of Parties' commitments under Article 4.1 entails more than reporting on their current activities.

The United States believes there is a tremendous potential for all countries, including developing countries, to
further their objectives for economic development and growth and to protect the earth's climate system at the
same time. The PCC Second Assessment Report concluded that there is a range of policies and actions to
mitigate greenhouse gases that are appropriate, feasible, and cost-effective for all Parties. The IPCC report-
noted that many opportunities to reduce greenhouse gas emissions a little or no cost, or even at a profil, aro.
available to developed and developing countries alike. By seizing these opportunities, all countries can, and
must, contribute to changing the path of dramatic emissions growth that the wodd currently faces.
Finding and seizing these opportunities are, we believe, at the heart of the obligation of all countries to
advance the implementation of existing commitments under Article 4.1.
There is much scope for developed and developing countries to work together in this endeavor. Through the
Country Studies program, which I have already mentioned, the United States has been able to provide
developing countries and countries with economies in transition with technical and financial help to
understand the sources of greenhouse gas emissions and identify attractive options to reduce them. Through
this process, and similar efforts by other countries, a number of countries have built invaluable planning
capacities and technical capabilities for dealing with climate change. A few examples may help illustrate the
breadth and significance of these opportunities:

Improved refrigerator designs consume less energy while eliminating ozone-destroying CFCs. More
efficient refrigerators translate directly into reduced pressure on scarce capital for expansion of power
production and transmission capacity. And with power demands reduced, the path of greenhouse gas
emissions growth can be reduced. Design codes and product standards for buildings, appliances and
other equipment may also be useful to developing countries.
Nutritional supplements can improve the health and productivity of cattle -- and reduce their methane

Methane gas can be profitably recovered from coal beds before coal is mined, recovering fuel and reducing accident risks while preventing greenhouse emissions.

Countries can also improve conditions for economic development, climate protection and overall environmental quality by identifying and eliminating market imperfections, barriers to technological development and diffusion, administrative inefficiencies and constraints, and legal instabilities. Such actions lay the foundation for a cost-effective and comprehensive long-term strategy for addressing the climate change problem.

The United States believes that all parties have the opportunity to learn from one mother in carrying out their Article 4.1 commitments. The open exchange of experiences and information is critical to understaoding. And overcoming barriers and identifying win-win solutions. To this end, we support the proposal of the G-T7 md China for additional workshops as a valuable contribution to this process. There may also be value in additional meetings, perhaps on a regional basis, on opportunities to adopt best practices and other means to promote economic growth and climate protection at the same time. We would also like to suggest that consideration be given to the possibility of using the multilateral consultative process yet to be defined under Article 13 as a vehicle for facilitating the implementation of commitments for all parties. Such a process could draw upon the expertise of a range of technical experts from both developed and developing countries. The experts would provide advice and guidance on me nooded basis to assist parties with questions, concerns and problems relating to the full range of commitments: national inventories, assessment of mitigation and adaptation options, development of climate response strategies and programs and preparation of national communications. An additional component of the AGBM's work to advance the implementation of Article 4.1 must be a firm commitment to an ongoing workprogram on technology. We fully support the decisions of the SBSTA mod SBI on these matters and urge that the Secretariat's valuable work in this area serve as a initial step in a mulópronged effort on technology. Advancing the implementation of existing commitments will be a long-term process for all parties. We see il not as a objective, in and of itself, but rather as a foundation laying exercise. What we are seeking to do, ka national and global level is to lay the groundwork for a long-term strategy to meet the threat of climate change. The successful implementation of such as strategy is the key to our sustainable development:

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1991 Emissions by Major World Groupings

Energy Use, Land Use Changes and Methane

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70%

30%

60%

Percent (%)

50%

70.4%

40%

20%

10%

0%

WORLD

OECD

FSUVE.EUROPE

ASIA (NON

OECD)

OTHER NON

OECD

OLAND USE CHANGES O ENERGY USE I METHANE

lote: Land use changes data not available for FSU/E. Europe nor for the OECD, except the U.S. ource: World Resources 1994-1995, World Resource Institute

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