The negotiations on climate change in Panama derailed on the issue of economic and social consequences of response measures yesterday, as developed countries showed their lack of willingness and commitment to produce results in the main negotiating body of the UN Convention on Climate Change.

Developing countries emphasised that this is an issue of critical importance for them, as actions to reduce greenhouse gas emissions, while tackling climate change, will have adverse effects on their economies and societies, undermining their prospects for development and poverty erradication.

In spite of the concerns and views raised by developing countries on the need to have a political result that would enhance assistance to affected countries, and minimize negative impacts, and that there is a mandate for an agreed outcome, industrialised countries refused to make progress in Panama. This will hinder the achievement of a result on the issue at the COP 17/CMP 7 to take place in Durban, South Africa, in December 2011. This conference aims to find a balanced and ambitiuos outcome for the multilateral climate regime, following the agreements reached in Cancun in 2010, that included the theme of economic and social consequences as an issue that needs further discussion and implementation.

Not even issues as important as the social aspects, such as a just transition of the workforce, creation of decent work and quality jobs for those who lose their jobs due to cleaner developmental paths, were provided the space for discussion in Panama by developed countries.

Given this situation, developing countries underscored their strong dissapointment at the intransigence of developed countries that contributed to a lack of an outcome of the talks in Panama, as no negotiating text was developed in the meetings due to the strong opposition of developed countries. Even when industrialised countries recognised the importance of the theme, the result reflects their unwillingness to address developmental aspects of responses to climate change and to cooperate with poor countries on this vital issue. As mitigation efforts advance over time, the consequences for developing countries will be magnified without a political resolution to this issue.