Mr. President

It is my pleasure to make this contribution on behalf of the Group of 77 and China. I would like to congratulate you and members of the bureau on your election and assure you of our full support and cooperation in bringing our deliberations to a fruitful conclusion.

2. Let me also thank the Government and People of fraternal Republic of Indonesia for the warm hospitality extended to us since our arrival in this beautiful Island.

3. I would like to assure you as well as our negotiating partners of the Group of 77 & China's resolve to engage constructively so as to ensure a substantive outcome of this important meeting.

4. This meeting takes place in the backdrop of the recently released Synthesis Report of the IPCC Fourth Assessment Report, which presents a stark and dire warning about climate change. The IPCC reports and the recent scientific findings demonstrate, irrefutably, that Climate change is posing a very serious and immediate challenge to the efforts of developing countries.

5. The Group of 77 and China is concerned about the fact that the adverse effects of climate change and the associated phenomena threaten sustainable development, livelihoods and the very existence of many developing countries and in particular Africa, the LDCs, the LLDCs, SIDs and disaster prone developing countries.
           
Mr. President,

6. Climate Change poses serious risks and challenges to the developing countries who are least equipped to respond and therefore most vulnerable to its rising dangers.

7. According to the Fourth Assessment Report of IPCC:

        - In Africa, climate change is projected to expose between 75 and 250 million people to increased water stress and reduced yields from rain-fed agriculture by up to 50%.
        - In Asia, freshwater availability is projected to decrease, coastal areas will be at greater risk due to increased flooding, and climate change is projected to compound pressures on natural resources and public health;
        - In Latin America, climate change threatens significant loss of biodiversity through species extinction. Reduction in productivity of important crops will pose risks to food security.
        - Small Islands are expected to face inundation, storm surges, erosion and other coastal hazards, threatening vital infrastructure, settlements and livelihoods of island communities.

8. In all developing countries water available for human consumption, agriculture and energy generation is likely to be significantly affected.

Mr President,

9. In such a bleak scenario, our task becomes even more daunting given the inextricable link between sustainable development and climate change. Developing countries, which historically were not responsible for the climate change problem, have rights and priorities in meeting their present and future development needs.  

10. The most formidable challenge before us in addressing climate change and its adverse effects include: lack of fulfillment of commitments during the first commitment period of the Kyoto protocol by annex 1 countries in reducing GHG emission; provision of financial resources and technology transfer to developing countries; inadequacy of financial resources for adaptation and mitigation efforts; insufficient national institutional capacity in the developing countries for participation in carbon market mechanisms.

11. The best and the most appropriate way to address the threats of climate change are to adopt and implement an integrated approach to Sustainable Development. Making development more sustainable can help address climate change. On the other hand, it is very likely that climate change will slow the pace of progress towards sustainable development, and could impede achievement of the Millennium Development Goals.

12. Simultaneously, we would like to reiterate that without immediate and effective cuts in Greenhouse Gases (GHG) emissions by developed countries, all efforts to address climate change will remain fruitless. The early completion of the work of the Ad-hoc Working Group on further commitments for Annex 1 parties under the Kyoto Protocol is an absolute imperative.

13. Adaptation remains at the forefront of G77 & China's concern. We look forward to the launch of the Adaptation Fund. We hope that the Nairobi Work Programme of Action will continue to be implemented in a concrete and substantive manner as part of the implementation of the Buenos Aires Plan of Action.

14. Effective mitigation and adaptation policies must take into consideration all aspects with regard to commitments at various conferences and summits, in particular the legally binding commitments under the UNFCCC and the Kyoto Protocol in accordance with the principle of Common but Differentiated Responsibilities.

15. In addition, it needs to be ensured that the adverse impacts of response measures, as it relates to the unintended consequences of mitigation, are addressed as a distinct priority in a consolidated work programme.

16. During this session the most important issues in responding to these challenges include mustering the political will to agree on a approach based upon the key principles of Rio and those in the UNFCCC and its Kyoto Protocol, especially (a) common but differentiated responsibilities and respective capabilities; (b) Polluters pay principle (c) protection of the vulnerable; (d) equal treatment of mitigation and adaptation, including legally binding instrument for adaptation and technology transfer.

Mr. President,

17. The bigger challenge is to overcome the "trust deficit" between the developing and developed countries regarding financial and technological cooperation and commitments of annex-1 countries. Good faith engagement at international level will help meet the trust deficit.
18. The G77 & China would like to emphasise that the UNFCCC and the Kyoto Protocol serve as the multilateral agreed structure, within which the international community should address the challenge of climate change. Given the intensity of the challenge, any other effort will distract and further compound the challenge.

19. The G77 & China welcomes reports that Australia will soon be ratifying the Kyoto Protocol. We would like to reiterate our call on those states that have not yet done so, to join the Kyoto Protocol.

20. Annex I countries should undertake ambitious commitments for GHG emission reduction in the second commitment period. Deeper GHG reductions of Annex I countries will produce greater opportunities for developing countries to move onto a sustainable development pathway.

Mr. President,

21. New institutional and financial mechanisms would significantly enhance   technology co-operation, development, transfer and meet the incremental costs. Enhancing action in pursuit of this objective is fundamental to the overall climate change agenda. Notwithstanding the lack of progress, the elements and key issues have now been raised and the stage is now set for real and meaningful progress on this agenda item.

22. We are confident that our negotiating partners will move significantly beyond the current institutional and financial arrangements. UNFCCC estimates additional financial resources up to a level of $200 - 210 billion by 2030 to achieve emission reductions targets. In addition, hundreds of billions are needed to support adaptation activities. It is, thus, essential that an investment pathway is designed to secure additional financial resources for the developing countries for mitigation and adaptation and other related requirements in accordance with their national plans.

23. Capacity Building under the Convention and the Protocol remains an area of high priority for the G77, as it has not received the attention it deserves. The Group of 77 and China hopes that the scope for activities and replenishment will be decided upon soon with regard to the LDCs Fund and steps will be taken for implementing it through concrete projects that have measurable and positive impacts.

Mr. President,

24. Climate change is indeed the most pressing challenge of our times. It is absolutely necessary that policies made in other areas and in other fora have to be looked at through the fresh lens of addressing climate change, and made consistent with the aims and measures that we are trying to implement in combating climate change.  

25. Transfer of technology remains an enormous challenge to efforts for adaptation and mitigation keeping in view the issue of incremental costs and capacity building. Addressing current and future changes in the climate system depends on early and effective development, deployment, transfer and diffusion of environmentally friendly technologies to developing countries. A key question is also the treatment of intellectual property rights (IPRs) over climate-friendly technologies. Developing countries must also be helped, on affordable preferential and concessional terms, through technology transfer, directed R&D and other assistance, to acquire and build capacity for the application of technologies to meet sustainable development targets and goals. The G77 and China would like to express its disappointment about the progress made on this agenda item. Development of performance indicators to monitor if commitments have been honoured in this area will be a useful tool.

26. As reflected in the recent IPCC Reports, reducing emissions from deforestation deserves serious global attention.  Further, during this process, it has become clear that implementation of relevant policy approaches and positive incentives will require new and additional financial resources that are predictable, sustainable, and at sufficient scale.  The G77 and China recognizes the interests of the Parties to consider policy approaches and positive incentives that address compensated forest conservation and also forest degradation.

27. Ad hoc Working Group (AWG), which reflects a legal requirement of the Protocol for the second commitment period for Annex 1 countries, must complete its work by 2009 so as to allow smooth transition to the second commitment period.

28. The "Dialogue on Long-term cooperative action to address climate change by enhancing implementation of the Convention has identified elements on which we intend to engage constructively.

I Thank You Mr. President