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The final text on Article 12 defines the clean development mechanism (CDM). Its purpose is to assist non-Annex I Parties in achieving sustainable development and contributing to the FCCC objective, and to assist Annex I Parties in achieving QELROs. Non-Annex I Parties will benefit from project activities resulting in certified emission reductions, and Annex I Parties may use the certified reductions "to contribute to compliance with part of their" QELROs, as determined by the MOP. provides reduction in emissions or enhancement of removals that is additional to any otherwise occurring; The Third Conference of the Parties (COP-3) to the United Nations Framework Convention on Climate Change (FCCC) was held from 1 - 11 December 1997 in Kyoto, Japan. Over 10,000 participants, including representatives from governments, intergovernmental organizations, NGOs and the press, attended the Conference, which included a high-level segment featuring statements from over 125 ministers. Following a week and a half of intense formal and informal negotiations, including a session on the final evening that lasted into the following day, Parties to the FCCC adopted the Kyoto Protocol on 11 December. COP President Hiroshi Ohki (Japan) reported substantial progress at the intensive discussions in Kyoto and expressed confidence about a breakthrough for final agreement. The G-77/CHINA objected to the definition of "defined amount" and supported Alternative C, which called for QELROs within time frames such as 2005, 2010 and 2020. CHINA objected to the omission of crucial elements of targets and timetables.

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Article 2, as adopted, describes policies and measures that each Annex I Party shall implement or elaborate in achieving its QELROs, in accordance with national circumstances. A subparagraph lists measures "such as:" energy efficiency; protection and enhancement of sinks; sustainable agriculture; new and renewable forms of energy, carbon sequestration and advanced technology; phasing out of subsidies and incentives that run counter to the FCCC objective; sectoral reform; GHG emission limitation and reduction; and methane recovery and use. Parties shall cooperate to enhance the effectiveness of P&Ms. Annex I Parties shall pursue limitation of emissions from aviation and marine bunker fuels, working through the International Civil Aviation Organization and the International Maritime Organization. Parties shall strive to minimize the adverse effects on other Parties, especially developing country Parties and those identified by FCCC Articles 4.8 and 4.9. The COP shall consider ways to elaborate coordination, if it decides coordination would be beneficial. The President noted that the ratification status report (FCCC/CP/1997/INF.2), indicating that 167 States and the EU had become Parties, showed nearly universal recognition of the importance of climate change issues. On adoption of rules of procedure (FCCC/CP/1997/5), he noted a draft decision suggesting that the COP adopt all rules except rule 22, paragraph 1, on election of the Bureau, and rule 42, paragraph 1, on voting in the absence of consensus, applying those rules until agreement is reached.

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TUVALU indicated a mathematical inconsistency between Article 3.1, stating an aggregate 6% reduction, and the sum of the figures in Annex B, which represents only a 5.2% reduction. He noted that negotiations had been undertaken on the basis of the text in Article 3.1 of the draft Protocol. The Chair pointed out his earlier statement that 6% was only an estimate based on the options under discussion, and that the selection of particular options would affect the numbers. The figure was corrected in the final version of Article 3.1. There should be a sink category called "land use change and forestry" (LUCF), not to be considered for the establishment of QELROs in the first budget period, but for which the IPCC should improve methodologies geared to their inclusion during the second budget period. TANZANIA, on behalf of the G-77/CHINA, noted that developing countries are the most vulnerable to climate change and the least able to adapt. He also said that they are committed to modify trends in human-induced emissions through the principle of common but differentiated responsibilities. The delay between production of emissions and their effects requires Annex I countries to take the first steps. Developed countries should be blamed if Kyoto fails. He objected to the proposed "post-Kyoto evolutionary process" and to threats to aid unless developing countries accept it. In the Kyoto Protocol, Parties in Annex I of the FCCC agreed to commitments with a view to reducing their overall emissions of six greenhouse gases (GHGs) by at least 5% below 1990 levels between 2008 and 2012. The protocol also establishes emissions trading, joint implementation between developed countries, and a "clean development mechanism" to encourage joint emissions reduction projects between developed and developing countries. Jos Mara Figueres Olsen, President of Costa Rica, said the Kyoto agreement must include significant cuts in emissions by industrialized countries, a financial mechanism bridging developed and developing countries, and active voluntary participation by the developing nations. He noted that Costa Rica has developed a marketable instrument to value emissions reductions. He called on developing countries to do their part.

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a synthesis of information from Annex I national communications on sources and sinks in the land-use change and forestry sector (FCCC/TP/1997/5). AUSTRALIA proposed another option for a fully comprehensive net approach and suggested that the other options would introduce inequities between countries, along with uncertainty. The Australian text stated that the verifiable net GHG emissions from sources and removals by sinks in terms of carbon dioxide equivalents resulting from direct human-induced activities shall be used to meet the QELROs commitments of each Party in Annex I. It provided for reporting in a transparent and verifiable manner.

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ARTICLES 14 AND 15: These articles were agreed in the negotiating group on I&Ms. Under 14 (Secretariat) and 15 (Subsidiary Bodies), the FCCC Secretariat and Subsidiary Bodies will also serve the Protocol. Delegates next considered reports from the FCCC subsidiary bodies. Tibor Farag (Hungary) introduced the report and draft decisions of the Subsidiary Body on Scientific and Technological Advice (SBSTA) (FCCC/SBSTA/1997/14). Delegates noted the report of SBSTA and adopted its draft decisions on cooperation with the Intergovernmental Panel on Climate Change (IPCC) and the development of observational networks. Joint SBSTA/SBI draft decisions were adopted on the development and transfer of technology and activities implemented jointly (AIJ).