EXECUTIVE SUMMARY LISBON 7-9 NOVEMBER POST ADDRESS Rue de la Loi 200 B-1049 Brussels

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1 E U R O P E A N D E V E L O P M E N T DAY S EUROPEAN COMMISSION Directorate-General for Development and Relations with African, Caribbean and Pacific States POST ADDRESS Rue de la Loi 200 B-1049 Brussels FAX DEV-A4-FMB@ec.europa.eu LISBON 7-9 NOVEMBER 2007 EXECUTIVE SUMMARY h t t p : / / w w w. e u d e v d a y s. e u INTERNET: European Commission

2 This Executive Summary has been published by the European Commission, Directorate-General for Development and relations with African, Caribbean and Pacific States A great deal of additional information on the European Union is available on the Internet. This can be accessed through the Europa server ( Luxembourg, Office for Official Publications of the European Communities, 2007 European Communities, 2007 Reproduction is authorised provided the source is acknowledged Printed in Belgium, November 2007

3 FOREWORD LOUIS MICHEL European Commissioner for Development and Humanitarian Aid W hat a great pleasure it was to gather the whole development family in Lisbon the most committed and experienced actors on this subject. We asked whether climate would change development. Yes it will. At the 2 nd European Development Days we saw how, through debates, exchanges and criticism. It was three days of sharing ideas, interaction and the building of increasingly solid political will among the 2,170 people from 100 countries who attended, including 1,000 to 1,500 leading decision-makers. Is the world s climate changing? Consider that 40% of coral reefs have already disappeared and 1% of tropical forests are destroyed each year. Seven of the 10 most deadly climatic disasters in the last two decades took place between 2000 and Floods, hurricanes, fires, heat waves, droughts all over the world these words are increasingly in the news. Everyone can see it. Beyond this, there are the unseen effects: extinction of species, loss of biodiversity forever global warming is a fever and the treatment must begin now. Climate change is a matter of life and death for many people in developing countries. Global warming is unfair because the most affected countries are those least responsible. The statistics are frightening: water shortages for 75 to 200 million in the next 10 years and in some regions, a 50% drop in crop yields. And this is just in Africa alone. Will climate change development? Yes. Definitely. All of our development efforts over the last 50 years could disappear into the sand if global warming is not controlled. We have an historic responsibility. We face a challenge for the whole of humanity. All decision makers must act now to change people's approach. Nobody will be able to say they did not know about the danger and the consequences of climate change. Acting may be costly; but non-acting will be even more expensive. During Development Days 2007, the European Commission once again proposed a Global Climate Change Alliance for immediate action for the poorest countries. It is about ensuring policies are in place such as adaptation and mitigation measures, prevention, and reducing emissions from deforestation. But it is also a process for the EU and developing countries to work together, in a strong political partnership, against climate change. As a global thinker, the European Commission has to be open to new ideas. We should be creative, make the best use of innovation and research, test the potential of a carbon market and explore other incentives. The world community should pay to preserve Global Public Goods such as forests. In Lisbon I also launched the idea of a Global Loan scheme to make available large scale cash resources now, borrowing over the long-term to minimise payback costs tomorrow. FOREWORD 1

4 It is time for action and concrete results. The European Commission will lead this political will. We have the technical capacities to adapt and anticipate the effects of climate change. We can find the necessary financial resources and we must act quickly. Above all, DEVDAYS 2007 left me with a great sense of optimism. We face a huge challenge that we could transform into an opportunity for change. Together against climate change let's just do it! 2 EUROPEAN DEVELOPMENT DAYS 2007

5 INTRODUCTION D evelopment Days is a unique forum where big ideas meet. It is an open platform for debating global issues rather than negotiations behind closed doors. Everyone has a voice campaigners and experts alongside parliamentarians and government ministers; worldwide authorities alongside the public. DEVDAYS is a lively debate between people with diverse views and who don t all agree with each other. Lawyers and policy makers meet each other in negociations. Africa s leaders meet EU Heads of State at the EU Summit. NGOs meet NGOs in Porto Alegre. But DEVDAYs is a forum for everyone. Europe has brought two decades of leadership on climate change and five decades of development cooperation to Development Days Europe has already taken the lead on climate change: a target to reduce EU greenhouse emissions by at least 20% by 2020, increasing to 30% if there is a global agreement. Europe has taken a lead with developing countries, recognising that the poorest countries are often the hardest hit. Environment is a priority theme in the 22 billion European Development Fund over the next six years. From the turn of the millennium, the EU has been collectively on track to more than double aid levels by Latest figures show that EU development assistance amounted to over 100 for every European citizen in We need to be a catalyst for change, not just a helping hand. Europe alone cannot solve the climate change problem. Its is a challenge that transcends the North/South divide. This is a global issue, which is why debates and exchanges are necessary to chart the way ahead. Together, multilateral organisations, states, experts, NGOs, journalists and citizens can change things. This is the meaning of DEVDAYs. Website: INTRODUCTION 3

6 TABLE OF CONTENTS 5 Opening Ceremony: A forum to forge global partnerships 7 Climate change investment a challenge and an opportunity Special Address (Yvo de Boer) 9 Challenges and converging visions High Level Panel 11 Portuguese-speaking countries and European Commission sign cooperation agreements Signature Ceremonies 13 Unprecedented cooperation required Special Address (Kofi Annan) 15 Sharing a common vulnerability Special Addresses (Arkalo Abelson and Vaia Tuuhia) 17 Mitigation and adaptation measures essential Special Address (Kemal Dervis) 19 Vulnerability and adaptation to climate change Round Table 22 Global public goods and climate change Round Table 25 Climate change and poverty, human settlements and migration Round Table 28 Speakers Quotes 32 Partnerships and global environmental governance Round Table 35 Partnerships and global environmental governance High Level Panel 37 Closing Ceremony: The best adaptation mitigation with development 39 Parallel Events: Forums for innovative thinking 44 Development Village: A crossroad for sharing experience 48 Conclusion 4 EUROPEAN DEVELOPMENT DAYS 2007

7 OPENING CEREMONY A forum to forge global partnerships Louis MICHEL José Manuel BARROSO Is development affected by climate change? Clearly, yes. And Europe wants to involve all the players [in finding solutions]. Louis Michel, European Commissioner for Development and Humanitarian Aid Maumoon Abdul Gayoom, President of the Republic of Maldives José Manuel Barroso, President of the European Commission Louis Michel, European Commissioner for Development and Humanitarian Aid José Socrates, Prime Minister of Portugal and President-in-Office of the Council of the European Union EU leaders and the president of the Maldives highlighted the importance of the European Development Days as a forum for politicians, experts and civil society representatives to forge global partnerships to combat the problems of climate change, especially as they affect poor nations. Lisbon this week is where Davos [the World Economic Forum] meets Porto Alegre [the World Social Forum], said José Manuel Barroso, President of the European Commission. Speakers stressed the importance of the December 2007 United Nations Climate Change Conference in Bali, Indonesia. The Maldives will raise the issue of the human dimension of climate change that environmental protection is a fundamental human right at the Bali conference, said Maumoon Abdul Gayoom, President of the Republic of Maldives. The meeting could be our last chance to make significant advances towards a comprehensive and effective post-kyoto climate change regime. Noted José Socrates, Prime Minister of Portugal and President-in-Office of the Council of the European Union: The Portuguese Presidency is working to ensure the success of the Bali conference. Kicking-off the opening session, Louis Michel, European Commissioner for Development and Humanitarian Aid, drew links between global warming, development and poverty. Climate change was seen as an environmental issue, he said. But now 200 million Africans may see their water supplies threatened and there could be food shortages due to reduced harvests. The Commissioner cited examples of the effects of the phenomenon, from disappearing coral reefs and shrinking tropical forests, to lower water levels in Lake Chad and the Dead Sea. Is development affected by climate change? Clearly, yes. And Europe wants to involve all the players [in finding solutions], Michel told participants. EXECUTIVE SUMMARY 5

8 José SOCRATES Maumoon ABDUL GAYOOM José Manuel BARROSO A tragic paradox Prime Minister Socrates called climate change, the biggest challenge to human kind at this time. He drew attention to the importance of the issue to the EU under the Portuguese Presidency. He placed special emphasis on efforts in Africa, calling it one of the most affected regions. Barroso agreed, calling it a tragic paradox that those who have least contributed to the problem will in many cases be the most affected. Gayoom outlined how climate change is affecting his nation, which consists of 1,200 islands divided into 26 atolls. Just 193 of these islands are inhabited and 119 are suffering from beach erosion, he said. The Maldivian coral reefs key as protective barriers for fisheries development and as tourism attractions are threatened by rising ocean temperatures. Earlier this year, the Maldives experienced tidal surges on nearly 80 islands, he said. Never in our documented history have so many islands been simultaneously flooded over and to such an extent. Gayoom decried the absence of action on climate change in recent decades. In my address to the UN General Assembly in 1987, I spoke of how global warming, if left unchecked, would lead to the death of the Maldives and many countries like us, he said. He called for international initiatives to help severely affected nations like his mitigate and adapt to the affects of the problem. We have failed to reach consensus on too many occasions, Gayoom said. We have let short-term profits dictate over long-term global benefits for far too long. Let us go forth to Bali with a mindset to succeed. A great technological opportunity Both Socrates and Barroso called attention to another international meeting scheduled for December, the EU-Africa Summit in Lisbon and a new EU-Africa Strategic Partnership. One key element, according to Barroso, will be in the development of renewable energy. Climate change represents a great technological opportunity for developing countries to leapfrog the high-carbon phase of development, he concluded. 6 EUROPEAN DEVELOPMENT DAYS 2007

9 SPECIAL ADDRESS Climate change investment a challenge and an opportunity Yvo DE BOER Climate change and development are intricately linked. We have only a short time to solve the problem of climate change. Smart investments must be made. The investment challenge is critical. Yvo de Boer, Executive Secretary of the United Nations Framework Convention on Climate Change How and where climate change investment is spent is both a critical challenge and an important opportunity, said Yvo de Boer, Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC). Much of the solution for the future lies in the blending of international financial resources, he said. What is the best way to blend it, to make it work better? Leveraging private investment De Boer said that Official Development Assistance (ODA) should be used to leverage private investment in new, clean technologies in developing countries. He noted that despite the obvious and well-documented drawbacks of climate change, it also offers an opportunity for private sector investment. Green development will spur economic growth, he said. We must make private money go where private money has never gone before. A recent UNFCCC study revealed that over the next 25 years, significant changes in the patterns of investment and financial flows would be needed to address climate change. The purpose of the study was to review existing and planned investment and financial flows with a view to developing an effective international response to climate change, with particular focus on the needs of developing countries. The study indicates that the additional estimated amount of investment and financial flows needed in 2030 to address climate change is large compared with the funding currently available under the UNFCCC and its Kyoto Protocol, but small in relation to estimated global gross domestic product (0.3% to 0.5%) and global investment (1.1% to 1.7%) in The study also shows that total investment in new physical assets globally is projected to triple between 2000 and This provides a window of opportunity to direct the financial and investment flows into new facilities that are more climate-friendly and resilient. Developing countries provide the largest opportunity. They currently account for just 20% to 25% of global investments, however, their expected rapid economic growth means they will require a large share of investment and financial flows. The study also says that it is important for governments to focus on the role of the private sector when considering ways to enhance investment and financial flows to address climate change in the future. The private sector provides the largest share of investment and financial flows (86%). Although ODA funds are currently less than 1% of investment globally, ODA represents a larger share of the total investments in some countries such as in Least Developed Countries (6%). EXECUTIVE SUMMARY 7

10 We need intelligent financial engineering De Boer told participants that together, private sector investments and ODA can and should support both development and the environment: Climate change and development are intricately linked. We have only a short time to solve the problem of climate change. Smart investments must be made. The investment challenge is critical. At the same time, sustainability is key. Today s investments must not be washed away tomorrow. We need intelligent financial engineering to see how we can alter the effects of investment in the sector, he said. 8 EUROPEAN DEVELOPMENT DAYS 2007

11 HIGH LEVEL PANEL Challenges and converging visions Chris LANDSBERG João GOMES CRAVINHO Wahida BASHAR AHMED and Saleemul HUQ Least Developed Countries have a right to grow... actions to address climate change must work for, not against development. Katherine Sierra, World Bank Vice-President for Sustainable Development Moderator Chris Landsberg, Centre for Policy Studies, Johannesburg Wahida Bashar Ahmed, ActionAid International João Gomes Cravinho, State Secretary for International Affairs and Cooperation, Portugal Saleemul Huq, Director of the Climate Change Programme, International Institute for Environment and Development, Michel Jarraud, Secretary General, World Meteorological Organization Maria Mutagamba, Minister of State for Water and Environment, Uganda Katherine Sierra, Vice-President for Sustainable Development, World Bank Anders Wijkman, Member of the European Parliament Climate change a development and environment problem The December 2007 Conference of the UN Framework Convention on Climate Change and the 3 rd Meeting of the Parties to the Kyoto Protocol in Bali is expected to draw up a roadmap for a future climate change deal. To avoid a gap between then and the entry into force of a new framework, the aim is to conclude a new deal by 2009 to allow enough time for ratification. There exist many challenges and obstacles to securing broad support for a comprehensive negotiation process to lay the foundation for creating a post-2012 climate change regime. Importantly, bridging the gap between industrialised, developed and developing countries is deemed critical to achieving an agreement by Against this backdrop, Moderator Chris Landsberg challenged the panellists to consider whether the relevant actors nations, civil society and individuals have the wherewithal and the political will to meet the 2009 deadline, to identify the fault lines between north and south, and to consider the mutual rights and responsibilities of the developed and developing nations. Poor people most affected ActionAid International s Wahida Bashar Ahmed, drawing on her experience in disaster relief and mitigation, reminded the audience: Poor people, and particularly women, are most impacted by adverse consequences from climate change, but the impacts on women are not being addressed by policymakers. She also questioned whether privatisation is the answer to address climate change issues such as water supply security. Saleemul Huq, Director of the Climate Change Programme at the International Institute for Environment and Development in London, noted that of the four regions in the world most adversely affected by climate change, three regions small islands, the entire African continent and the mega deltas of Asia are the homes of the world s poorest people. EXECUTIVE SUMMARY 9

12 Anders WIJKMAN Michel JARRAUD Katherine SIERRA Maria MUTAGAMBA Huq identified one point on which visions are converging: the recognition that climate change is as much a development problem as an environmental problem. He also suggested one way in which divisions between north and south might be overcome. Because of the global nature of the problem, people can no longer leave climate change to nation-state governments that seek to protect national interests only, but must assert themselves as citizens of the planet, he told participants. Individuals and civil society must take responsibility. We must look at our own carbon footprints. Ugandan Minister of State for Water and Environment, citing confusion, frustration and despair in Africa today, reminded the audience: Countries in Africa are simultaneously experiencing droghts and floods... If solutions are not found, destabilising migration will continue, she said. Funding and action to address climate change Representing the host country, João Gomes Cravinho, State Secretary for International Affairs and Cooperation of Portugal, pointed to the EU position and stressed that developed countries must take the lead in emission reductions. Anders Wijkman, Member of the European Parliament from Sweden, said that the European Parliament is considering using revenues from carbon emission credit auctioning to fund development aid for mitigation, adaptation and risk reduction. He also emphasised the need for a global deal between north and south to advance technology transfer. Least Developed Countries have a right to grow... actions to address climate change must work for, not against development, commented Katherine Sierra, World Bank Vice-President for Sustainable Development. Michel Jarraud of the World Meteorological Organization also noted a point of possible convergence: There is growing recognition that climate change mitigation and adaptation methods will be less expensive if undertaken right away. 10 EUROPEAN DEVELOPMENT DAYS 2007

13 SIGNATURE CEREMONIES Portuguese-speaking countries and European Commission sign cooperation agreements The agreement will play an important role in eradicating poverty and promoting development in PALOP and is an important step forward in our relationship with these countries. Louis Michel, European Commissioner for Development and Humanitarian Aid THE 2 ND EUROPEAN DEVELOPMENT DAYS WAS THE OCCASION FOR THE SIGNATURE OF IMPORTANT COOPERATION AGREEMENTS BETWEEN THE EUROPEAN COMMISSION AND TWO GROUPS OF PORTUGUESE- SPEAKING COUNTRIES. Signature Ceremony of EC- PALOP and Timor-Leste European Commission President José Manuel Barosso and Commissioner for Development and Humanitarian Aid Louis Michel signed a Memorandum of Understanding (MoU) with PALOP ministers (African Countries of Portuguese Official Language Angola, Cabo Verde, Guinea-Bissau, Mozambique and São Tomé) and Timor-Leste. Commission President Barosso described the agreement with the six countries as original and a special example of south-south cooperation. The six countries share the same language and culture and the same systems of governance. Through the agreement they can work today to ensure better public administration, justice, social service and management of public finances, he said. The agreement will also stimulate better integration, while maintaining their individual identities. The Commission President pointed out that the first cooperation arrangement with the Portuguese-speaking countries of Africa was set up during the first Portuguese Presidency of the European Union in It has now been extended to include Timor-Leste in the Asia Pacific Region. The PALOP agreement is original in that it recognises the idea of working with a group of countries that are not geographical neighbours, but have strong cultural links. The MoU is expected strengthen mutual cooperation, ensure better dialogue and help contribute to stabilisation in these areas. Commissioner Louis Michel highlighted the practical elements of the MoU, including the sharing of human resources in the health sector, education, trade, investment, justice and employment. With the signature of this memorandum we underscore our political will to strengthen this cooperation between PALOP and the European Commission, Michel stressed. The agreement will play an important role in eradicating poverty and promoting development in PALOP and is an important step forward in our relationship with these countries. Some 33 million will be dedicated to the European Commission s cooperation programme with PALOP. EXECUTIVE SUMMARY 11

14 Signature ceremony of EC-CPLP A Memorandum of Understanding (MoU) was also signed between the European Commission and the Community of Portuguese Speaking Countries (CPLP), which brings together Angola, Brazil, Cabo Verde, Guinea-Bissau, Mozambique, Portugal, São Tomé and Timor-Leste. Commission President José Manuel Barroso, a former prime minister of Portugal, pointed out that the Portuguese language encompasses four continents and 238 million people The agreement with the Portuguese-speaking countries of the CPLP will open up opportunities for cooperation development. It will also help avoid and resolve conflicts, he stressed. This is an important moment for CPLP. We have ensured the basis for our future and the basis for greater stability in the world. Luis Fonseca, Executive Secretary of the CPLP The Executive Secretary of the CPLP, Luis Fonseca, stressed that the presence of Commission President Barroso at this event underscored the importance attributed by European Commission to this cooperation agreement. This is an important moment for CPLP, he said. We have ensured the basis for our future and the basis for greater stability in the world. Under the agreement, the two parties will intensify work in the areas of democracy and human rights, as well as conflict prevention, management and resolution. The MoU also looks at areas for joint cooperation in fields such as economic and social development, education, training and youth, and cultural diversity. An important area of potential cooperation is the information society. We want to be able to benefit from technological progress so that we can create a modern society and ensure peace and understanding in the CPLP regions, Fonseca told participants. By looking for joint solutions to our problems we will be seeking a better future for our people and future generations. Louis Michel, European Commissioner for Development and Humanitarian Aid, highlighted the role that the agreement can play in reinforcing political dialogue and ensuring complementarity between actions and policies. He also pointed to the personal commitment of Commission President Barosso, which had brought the parties to an agreement in a very short time. Because of the history of past conflicts affecting the CPLP countries, international support is needed. Commissioner Michel also pointed to the importance of promoting democracy as a means of preventing conflicts. 12 EUROPEAN DEVELOPMENT DAYS 2007

15 SPECIAL ADDRESS Unprecedented cooperation required Kofi ANNAN We are all bound together as human beings. If we remain indifferent to the suffering of others, we are only depriving ourselves of our own humanity. We need to act together as humanity for humanity. And now is the time. Kofi Annan, President of the Global Humanitarian Forum Climate change is a global issue and serious threat to development everywhere, said Kofi Annan, President of the Global Humanitarian Forum and former secretary general of the United Nations. He challenged policymakers to immediately step up efforts to fight climate change. For far too long we have considered climate change as a problem for the future, he said. But we must remember that climate change is an all encompassing threat. It is not an issue of rich versus poor, of north versus south. It s a global issue and we are seeing its effects everywhere. Annan reminded the audience that it is important to try to be more proactive rather than reactive, to try to prevent catastrophes before they happen. But resources are limited and there is one crisis swiftly followed by another. We can rebuild houses, roads and schools, but we can never give back life when it has been taken away. This is why it is vital that governments invest more in climate change, he said. Annan told participants that increased pressure on scarce resources such as land, food and water will put lives in extreme danger and exacerbate humanitarian crises that could culminate in threats to international security. Building resilience to climate change will require unprecedented cooperation and take players from many different disciplines, he added. He noted that it is significant that the European Development Days are taking place just one month before the EU-Africa Summit that will take place in Lisbon in December 2007: The EU is a strong supporter of African development and is Africa s most important economic trading partner. A political vision based on mutual respect The EU and the African Union have decided to further strengthen the ties linking both continents by developing a co-owned joint strategy that reflects the needs and aspirations of the peoples of both continents. The purpose of the EU-Africa Joint Strategy is to develop a political vision and practical approaches for the future partnership between the two continents, based on mutual respect, common interests and the principle of ownership. The upcoming Lisbon Summit [involving heads of state from Africa and EU] is important, Annan said, and must conclude with concrete actions to improve the lives of poor people in Africa. He expressed hope that the Summit would not be Eurocentric and that European leaders would listen very carefully to what African leaders have planned for their own development. EXECUTIVE SUMMARY 13

16 After all, we have to recognise there are only eight miles that separate us. A peaceful, prosperous Africa, a stable Africa is in all our interests. We stand on the cusp of change. We are all bound together as human beings. If we remain indifferent to the suffering of others, we are depriving ourselves of our own humanity, he said. More needs to be done Annan noted that unfortunately African countries are off-track to meet the Millennium Development Goals (MDGs). And while the EU has a good track record of ODA (Official Development Assistance) to Africa, aid will have to increase dramatically. He added that the EU and G8 must continue to deliver on previous commitments and must seriously reinvigorate its efforts to help African countries make progress. The key to prosperity in Africa, he said, is good governance and the continent s ability to meet the MDGs. There s an appetite for change in Africa, said Annan. There is a young, dynamic group that is pushing for this move. Africa is moving in the right direction, but more needs to be done. 14 EUROPEAN DEVELOPMENT DAYS 2007

17 SPECIAL ADDRESSES Sharing a common vulnerability Arkalo ABELSON Vaia TUUHIA Greenland is an ideal laboratory for studying the effects of climate change and for developing adaptation measures... [But] our resources are limited. We need more money for capacity building and new research programmes. Arkalo Abelson, Minister the Environment of Greenland Arkalo Abelson, Minister of the Environment, Greenland Vaia Tuuhia, Special Representative, French Polynesia The societies of the Arctic and Small Island Developing States have much in common when it comes to climate change they share a common vulnerability. Greenland s problems caused by climate change could affect millions of people worldwide, said Arkalo Abelson, Minister of the Environment of Greenland. Greenland depends heavily on living resources. We are a hunting and fishing society, he said. Locally, climate change is already affecting people s lives. Greenland s ice cap is melting faster than ever imagined. Globally, this could be a disaster, especially for Small Island Developing States. A 2005 report published by the UK government says the Greenland ice sheet is likely to melt, resulting in sea levels rising by 7 meters over 1,000 years. The report, Avoiding Dangerous Climate Change, collates evidence presented by scientists at a conference hosted by the UK Meteorological Office in February It states that even a partial melting of the ice sheet could have catastrophic consequences for low-lying countries like Bangladesh and the Maldives. For example, a 1-metre sea level rise would submerge a substantial amount of Bangladesh. Greenland is an ideal laboratory for studying the effects of climate change and for developing adaptation measures, Abelson told participants. We are putting more funding into research. But we have only 57,000 people in Greenland and our resources are limited. We need more money for capacity building and new research programmes. Small islands such as French Polynesia, which are already economically and physically vulnerable, will become even more so. Small Island Developing States have common problems, such as fragile economies, said Vaia Tuuhia, Special Representative of French Polynesia. Extreme weather phenomena are increasing. The Intergovernmental Panel on Climate Change said that given the speed at which change is happening, Small Island Developing States will be most affected. Now the only way we have is to get Small Island States together to speak as one. Tuuhia referred to the Many Strong Voices programme, which aims to ensure the well being, security and sustainability of coastal communities in the Arctic and Small Island Developing States in the face of climate change. It brings the two regions together to take collaborative and strategic actions on climate change mitigation and adaptation. EXECUTIVE SUMMARY 15

18 Programme participants include international organisations, government agencies, NGOs, indigenous peoples' organisations, research institutes, communities and individuals. We are developing a tool kit of goods and services for (climate change) adaptation, she said. Tuuhia described the myriad challenges that climate change is posing for Small Island Developing States: cyclones, high tides, flooding, tsunamis, disappearing atolls. We are doing modelling on rising sea levels. Of course we need money to help us do this. We call on the EU and the international community to come to our aid. Security and quality of life are European values we ask you to act now because tomorrow is too late, she said. Security and quality of life are European values we ask you to act now because tomorrow is too late. Vaia Tuuhia, Special Representative of French Polynesia 16 EUROPEAN DEVELOPMENT DAYS 2007

19 SPECIAL ADDRESS Mitigation and adaptation measures essential Kemal DERVIS Historically, major technological changes create multiplier effects that stand to benefit society. As we search for new technologies for mitigation, adaptation and energy efficiency, we could trigger innovation and side effects that support growth. Kemal Dervis, Administrator of the United Nations Development Programme Kemal Dervis made an impassioned plea for action on all fronts to combat climate change. Mitigation and adaptation measures must not be decoupled, but rather should be regarded as essential to meeting the challenges of climate change challenges that could come in this century or the next. He acknowledged that we now have the science, but there is still uncertainty about the speed of climate change. But to use uncertainty to justify inaction is wrong, he told participants. Uncertainty over how climate change will take place should spur us to action, not inaction... we must take out global insurance against what could result in devastating, catastrophic changes for the entire globe, he warned. Besides long-term catastrophic effects, countries in the south, including small islands, are facing more frequent extreme events. It so happens that these most vulnerable peoples are the ones who are the poorest... (Given) this extreme unfairness, rich countries are faced with a huge ethical issue and the historical issue of responsibility, he added. Financing the global public good It is important to view the atmosphere as a global public good that must be protected by the international community, Dervis noted. To this end, it is key to inform the citizens of the world that climate change concerns them. They must realise that by supporting climate change mitigation or adaptation measures in India, for example, they are financing their own future and the global public good that is our atmosphere. This will become increasingly important as the real cost of meeting the many challenges surface. Dervis pointed out that both concessional and commercial resources are necessary to help the poorest countries adapt to and mitigate the potentially devastating effects of climate change. Dervis noted that access to energy and development are intrinsically linked. Because poor people have huge energy needs, there will be a need for burden sharing. Meeting the energy needs of the planet s poor carries a price tag of US$ 300 billion investment per year until About 10% of this cost needs to covered by additional resources over the next decade, he said. He advocated blending concessional and commercial resources in middle income countries; in developing countries, a blend of concessional resources and private sector investment in sustainable energy solutions would be needed. EXECUTIVE SUMMARY 17

20 A fair and feasible framework This means we need to look at what kind of framework is fair and politically feasible. This is the burden-sharing problem. The poorest countries will need additional resources for adaptation, he said. But it has become quite clear that the old estimates for realising the MDGs (Millennium Development Goals) and fighting poverty beyond that are no longer sufficient. Burden sharing will involve directing more concessional resources to the poorest countries facing the challenges of climate change. Dervis recognised that mobilising such resources would be difficult, but warned against dressing up old resources in new clothes. For these countries, additional resources for climate adaptation must come from the development community. Middle-income countries can meet adaptation funding needs with a combination of non-concessional resources and private investment, but if we want them to join mitigation efforts, rich countries must share the cost burden, he added. Rich countries must accept that they have to shoulder the burden of mitigation in middle income countries, Dervis said. Some economists are arguing to separate adaptation and mitigation issues, which is possible conceptually but not in terms of policymaking. He pointed out that if we don t mitigate fast, it will result in huge adaptation needs. Dervis admitted that in terms of instruments, there is no silver bullet or one policy that will resolve the issues. The Kyoto caps and trade approach has been promising, but critics have cited problems such as too much bureaucracy, poor enforcement... and rumours of false offsets. He acknowledged the debate about carbon taxation, but commented, carbon taxation and trade are not necessarily mutually exclusive. Considering the costs and the benefits Dervis urged participants and the international community to carefully consider the costs and benefits over the long term. He admitted that there will be considerable costs involved in meeting the challenges of climate change, but pointed to the potential benefits. Historically, major technological changes create multiplier effects that stand to benefit society. As we search for new technologies for mitigation, adaptation and energy efficiency, we could trigger innovation and side effects that support growth, he said. New technologies and clean energy will result in new jobs, new inventions and other complementary production techniques that will lead to greater prosperity. This may be difficult to measure, but don t underestimate the optimistic upside of all of this, he concluded. 18 EUROPEAN DEVELOPMENT DAYS 2007

21 ROUND TABLE Vulnerability and adaptation to climate change Protecting and empowering the poorest Aminda LEIGH Gareth THOMAS Anders WIJKMAN The panellists all recognised that climate change is an urgent problem, that it is no longer a problem for the future, that it s happening now. There was sincere and vocal interest in coming up with concrete solutions at a global level because climate change is a global problem. And there was a lot of discussion about how to get to those solutions. We need joined-up thinking that involves everyone from local, national, regional and international levels. Aminda Leigh, Amros Media Solutions, Moderator A SERIES OF FOUR MINISTERIAL ROUND TABLES TOOK PLACE 8 NOVEMBER 2007, WHICH BROUGHT TOGETHER THE MANY STAKEHOLDERS INVOLVED IN ADDRESSING THE URGENT, CROSSCUTTING ISSUES CONCERNING CLIMATE CHANGE. DISCUSSIONS AND DEBATES WERE OPEN TO THE AUDIENCE. THE ROUND TABLE REPORTS IN THIS EXECUTIVE SUMMARY ATTEMPT TO CAPTURE THE ESSENCE OF THE DISCUSSIONS. Moderator Aminda Leigh, Amros Media Solutions Lennert Båge, President, International Fund for Agricultural Development (IFAD) Mamadou Cissokho, Honorary President of the Network of West African Farmers and Producers Organisation Madeleen Helmer, Head of the Red Cross/Red Crescent Climate Centre Peter Jan Kalaš, former environment minister of the Czech Republic Chowdhury Sajjadul Karim, Advisor with Bangladesh s Ministry of Environment and Forest Ole Moesby, Under-Secretary of State for Multilateral Affairs, Denmark Josette Sheeran, Executive Director of the World Food Programme Antonio Cavaco Servinho, Director General for Humanitarian Aid, European Commission Thomas Gareth, Under-Secretary of State, Department for International Development (DfID), UK Anders Wijkman, Member of the European Parliament BACKGROUND After analysing scientific data, the Intergovernmental Panel on Climate Change (IPCC) presented the international community with three alarming conclusions: Climate change is happening. Human activity resulting in the emission of greenhouse gases (GHG) into the atmosphere is responsible for the recent acceleration of climate change. Most regions in the world, especially those in developing countries, will be increasingly affected by climate change. Developing countries have the fewest resources to prepare for a rise in temperatures and to adapt their way of life. As a result, climate change is likely to pose an obstacle for development and for achieving the Millennium Development Goals. The IPCC report concludes that Africa is one of the most vulnerable continents to climate variability and change because of multiple stresses. Water stress, food insecurity through droughts and desertification, sea level rise, new health risks, extreme weather events and migration pressures are some of the projected impacts. Other parts of the world, including Latin America and Asia, face similar challenges. At the same time, developing countries are the least responsible for the accumulation of GHG in the atmosphere and the resulting climate change. The poorest, most vulnerable societies are the worst hit by climate change as it exacerbates existing vulnerabilities. Climate change could well wipe out the results of years of previous development efforts. EXECUTIVE SUMMARY 19

22 Madeleen HELMER Ole MOESBY Mamadou CISSOKHO and Antonio CAVACO SERVINHO Integrating climate change into the development agenda Meeting the challenges of global warming will require a significant boost in funding to development programmes and greater cooperation and coordination between agencies that work in development, climate change and humanitarian relief. Participants agreed that integrating climate change into the development agenda is a pressing and urgent necessity for meeting the Millennium Development Goals (MDGs). Because of climate change, we may be facing the perfect storm for the world s poorest people, said Josette Sheeran, Executive Director of the World Food Programme. How to address climate change in the development context is the biggest challenge today, said Ole Moesby, Under-Secretary of State for Multilateral Affairs, Denmark. When we (signed on to) the MDGs seven years ago we did not include climate change in the equation. We must ensure that poor people today don t pay for rich people s mistakes of yesterday. The need to mobilise international funding is paramount. Madeleen Helmer, Head of the Red Cross/Red Crescent Climate Centre, suggested a way to ensure increased funding. There were targets for emissions included in the Kyoto Protocol, she said. The second protocol should include targets for increased funding for adaptation. Panellists agreed that too often efforts of governments and others are fractured and overlapping, which results in wasted resources. We all advocate for more cooperation and more coordination, said Helmer. It s easily said, but not easily done. What we need is more joined-up thinking that involves everyone from local, national, regional and international levels. MEP Anders Wijkman said that some people are arguing that there should be a separate path of funding to help poor people in developing countries cope with the effects of climate change. However, he and the other panellists did not agree with that approach. Adaptation cannot be a stand alone, said Wijkman. It must be part of the development agenda or funding will become even more fragmented. What will it do to the poor people? When discussing climate change, it is important to think of the people who it is affecting most not just as victims, but also as active players who can help solve the problem. 20 EUROPEAN DEVELOPMENT DAYS 2007

23 Josette SHEERAN Chowdhury Sajjadul KARIM Lennert BÅGE Peter Jan KALAŠ Mamadou Cissokho, Honorary President of the Network of West African Farmers and Producers Organisation, put the magnitude of the climate change problem in perspective as to how it will affect poor people in developing countries: Scientists are saying that it is the small people who are going to suffer the most from climate change. Scientists also said that the dinosaurs became extinct because of climate change, and dinosaurs weren t small. The implication is that if climate change could decimate big dinosaurs what will it do to small or poor people? Tackling climate change with proactive measures We will have a world that is growing in numbers and also growing in development so there will be more demand for food, said Lennert Båge, IFAD President. Poor people can be part of the solution to grow more food. We have to see to it that we make the right investments so they can do that. We need to help them strengthen their organisations. We have to think about how to pay them for managing natural resources in a sustainable way. We shouldn t confuse development aid with measures to tackle climate change. Climate change must be integrated, not used to siphon funds away from development aid. Until recently, resources for climate change were not considered by humanitarian relief organisations. But climate change has a strong link to humanitarian crises. We have to prepare local populations against these crises that are brought on by extreme weather events due to climate change, said Antonio Cavaco Servinho, Director General for Humanitarian Aid with the European Commission. You can tackle disasters with reactive measures, but we need to tackle climate change with proactive measures, said Chowdhury Sajjadul Karim, Advisor with Bangladesh s Ministry of Environment and Forest. After every flood there is some level of migration. But if climate change isn t checked, the level of migration will be enormous. It will be a problem of inordinate magnitude. Peter Jan Kalaš, former environment minister of the Czech Republic, said that in the Czech Republic, changes (in climate) have been observed. He noted that in joining the EU, the Czech Republic improved its environmental performance. Our ODA (Official Development Assistance) is still modest, but we are addressing adaptation in some countries. We have experience to share. EXECUTIVE SUMMARY 21

24 ROUND TABLE Global public goods and climate change Moving the global interest forward Bénédicte PAVIOT Kemal DERVIS and Anne GAZEAU-SECRET Moderator Bénédicte Paviot, Reporter France 24 TV Kemal Dervis, Administrator of the United National Development Programme Anne Gazeau-Secret, Director General, International Cooperation and Development, Ministry of Foreign and European Affairs, France Alice Kaudia, Regional Director for Eastern Africa, World Conservation Union (IUCN) Veronica Nataniel Macamo, Member of the Pan-African Parliament Koos Richelle, Director General of EuropAid, European Commission Claude-Yves Robin, Director General, France 5 TV Johan Schaar, Commissioner for Climate Change and Development, Swedish International Development Cooperation Agency (Sida) László Várkonyi, State Secretary for International Development, Hungary BACKGROUND This session showed that there are positive things happening. But there is still a lot of work to do. The key word is together work together for the global common good. The good news is that people are motivated. Some of the initiatives that are already being taken may later prove to be useful. A public good available throughout the world is a Global Public Good (GPG). For example, the climate and the atmosphere are GPGs. Greenhouse gas emissions contributing to climate change have the same effect regardless in which country they originate and are damaging the atmosphere, which is a GPG. Bénédicte Paviot, Reporter France 24 TV, Moderator All people of the world are affected regardless of whether and to what extent they contribute to the problem. Developed industrial nations contribute the lion s share of greenhouse gases, but the adverse effects of climate change disproportionately hurt Least Developed Countries (LDCs). Development achievements in the fight against poverty, disease and hunger risk being unravelled by climate change. Unless global warming slows down and remains below 2-degrees C, the incidence of extreme weather phenomena will increase, infectious diseases will expand their reach and many ecosystems will be put under great strain. Consider that a single extreme weather phenomena such as a hurricane may wipe out 10% to 15% of GDP in a small developing country. A modest temperature rise of 2-degrees C may drastically affect crop yields. Climate change coupled with population growth threatens to halve the amount of water available per person by For all GPGs, one of the challenges is to implement an equitable arrangement at international level. The atmosphere is considered by many to be a GPG. This is the subject of the negotiations of the UN Framework Convention on Climate Change and its Kyoto Protocol. Postponing action on climate change only by a few decades might make the cost inflicted almost surmountable. 22 EUROPEAN DEVELOPMENT DAYS 2007

25 Johan SCHAAR Alice KAUDIA László VÁRKONY Understanding the interconnectedness between all people Panellists considered the concept of Global Public Good as it relates to climate change challenges. Moderator Bénédicte Paviot opened the discussion by urging that we need to understand the interconnectedness between all people. Koos Richelle, of EuropAid, observed: Equitable access to and equitable distribution of resources throughout the world is desirable but as there is no world government to require it, we must rely on voluntary actions. He then described several of the EU s voluntary initiatives aimed at assisting the Least Developed Countries (LDCs) deal with the challenges of climate change. Anne Gazeau-Secret of France s Ministry of Foreign and European Affairs, France, noted several French initiatives to assist LDCs. The market alone cannot account for or supply Global Public Goods. International cooperation is needed, she commented. Sida s Johan Schaar described Swedish initiatives and noted that recent polls show that a majority of people are concerned about climate change. I think there is a popular mandate for politicians to act, he said. Completing the presentations from European speakers was László Várkonyi, Hungarian State Secretary for International Cooperation. Rich countries have a double responsibility UNDP Administrator Kemal Dervis told participants that while the UN is an appropriate forum for the voices of all nations to be heard, he did not believe that the UN should take a partisan position as to the appropriate climate change burden sharing formula. However, he noted that the rich, polluting countries have a double responsibility with respect to the costs of dealing with climate change. It is appropriate for donor nations to use some ODA funds to address climate change problems in recipient countries. But existing ODA cannot fully fund the climate change challenge. Additional money is needed, Dervis added. Dervis discussed the upcoming United Nations Climate Change Conference in Bali in December 2007 where the nations of the world will struggle to find ways of sharing the burden of addressing climate change between developed, developing and LDCs. He was doubtful that a final formula could be achieved in Bali. Maybe what is needed is a temporary formula to get things started, he suggested. EXECUTIVE SUMMARY 23

26 Claude-Yves ROBIN Veronica NATANIEL MACAMO Koos RICHELLE We need concrete action Veronica Nataniel Macamo of the Pan-African Parliament made a plea: We need concrete action to make sure that climate change won t put our lives in danger. In response from an intervention from the audience, she acknowledged that Africa, must be responsible to move towards greater democracy and better governance. IUCN s Alice Kaudia told participants that Africa needs assistance in capacity building, energy efficiency and clean energy technology transfer. Developed nations must assist in making efficient energy technologies affordable for Africans, she emphasised. 24 EUROPEAN DEVELOPMENT DAYS 2007

27 ROUND TABLE Climate change and poverty, human settlements and migration Promoting a human-centred and holistic approach Femi OKE Urmas PAET For me what comes of this is what a complex issue it is. There are so many countries involved, so many agencies involved. It is difficult to say, This is the solution. When you get to the level of the European Union or the African Union, how do you decide? There are so many interests. Climate change is making development issues trickier. It is not just a question of where people move to. Do they move to cities? Can cities sustain them? Climate change is an added thing. The NGOs, the UN and the EU hadn t thought about this with any urgency before. Now there is getting to be a sense of urgency, one that goes beyond high-level conferences. Femi Oke, CNN, Moderator Moderator Femi Oke, Inside Africa Programme, CNN Mozaharul Alam, Research Fellow, Centre for Advanced Studies Bineta Diop, Executive Director, Femmes Africa Solidarité Ndioro N Diaye, Deputy Director General, International Organization for Migration (IOM) Urmas Paet, Minister of Foreign Affairs, Estonia Anna Tibaijuka, Executive Director, UN-HABITAT Mathis Wackernagel, Executive Director, Ecological Footprint BACKGROUND Climate change acts as a multiplier, intensifying already existing threats to populations. The most vulnerable will be the hardest hit they risk plunging into a vicious circle of economic and social exclusion. The negative spin-offs of climate change are manifold as populations compete for resources, face insecurity due to rising waters, migrate causing stress on already fragile infrastructures, incur increased health risks and are thrust into situations of social unrest, ethnic or religious tensions and radicalisation. For these reasons, investments in mitigation and adaptation to climate change are also investments in development and future stability. This is a formidable challenge to policymakers who are facing a real conundrum: how best to avoid contradiction and competition between attaining today s development objectives and increasing climate change mitigation and adaptation efforts? A new paradigm for thinking about development Climate change and other environmental factors are exacerbating many of the problems with which the development community has been struggling for years. Panellists made numerous suggestions of how to protect the most vulnerable by integrating climate change mitigation and adaptation measures into development policy Mathis Wackernagel of Ecological Footprint outlined what he called a new paradigm for thinking about development. Why is the model of the developed versus the developing world passé? Because if the goal is to transform developing countries into developed countries, we would need three times the capacity of the world s resources to satisfy the demand for consumption. EXECUTIVE SUMMARY 25

28 Ndioro N DIAYE Mozaharul ALAM and Anna TIBAIJUKA Bineta DIOP The status quo is untenable There seemed to be a consensus among the panelists that the status quo is untenable. But that assumption invoked some hard questions. Current consumption patterns are not sustainable, but who is ready to get out of the comfort zone? asked Anna Tibaijuka of UN-HABITAT. Or, as Wackernagel asked: Is the economy future proof? Bineta Diop of Femmes Africa Solidarité offered one suggestion on how to reward and punish those on the right and wrong sides of carbon emissions and environmental degradation: We need to look at who the good and bad guys are. Who is going to point fingers? Rather than denounce those who don t do the right things, maybe we can award those who do. And give red cards to those who do nothing. Wackernagel suggests dividing the world into places where people consume more resources than they have and those who consume less. This concept is measured by the term biocapacity. Through some still-undefined market mechanism similar to carbon credits, those who consume less could be compensated for their efforts. Wealthy countries love to export their externalities, he said. But climate change is an issue that will affect the entire planet and thus could force rich country politicians to act. Most of these issues have been on the table since the 1972 United Nations Conference on the Human Environment in Stockholm, said Tibaijuka. Adaptation is nothing more than the HABITAT agenda. But, as many panellists pointed out, the problems have become worse in the 35 years. I remember when there were nomad and sedentary populations, said Ndioro N Diaye, IOM. They had different needs. The nomads moved with the seasons and there was a balance with the natural resources. Now the population has soared in Africa. There are more people to use the resources, and this is being exacerbated by climate change. Good governance is key Much of the discussion revolved around ways to make foreign assistance more effective. Talking about foreign aid, someone told me that development aid is when you take money from poor people in developed countries and give it to rich people in developing countries, said Urmas Paet, Minister of Foreign Affairs, Estonia. We d like to change that. Most panellists agreed that resources need to be better managed. Good governance is an issue that we need to address, said N Diaye. We invest a lot more in wars than in development. 26 EUROPEAN DEVELOPMENT DAYS 2007

29 Mathis WACKERNAGEL Mozaharul Alam, Centre for Advanced Studies agreed: We need good governance and poverty reduction independent of climate change. The issue here is how climate change will affect development. How do we do things in a different way so that development will withstand the challenge of climate change? Panellists also agreed that one important step towards evaluating foreign aid and other initiatives would be reliable monitoring systems. One thing is missing an accounting of it all, said N Diaye. We need an assessment system, an audit. Somebody should be responsible. Added Wackernagel: We need good environmental statements, [much] like the financial statements of companies. EXECUTIVE SUMMARY 27

30 Climate change represents a great technological opportunity for developing countries to leapfrog the high-carbon phase of development. José Manuel Barroso, President of the European Commission Poor people, and particularly women, are most impacted by adverse consequences from climate change,. Wahida Bashar Ahmed, ActionAid International Resources are limited and there is one crisis swiftly followed by another. We can rebuild houses, roads and schools, but we can never give back life when it has been taken away. Kofi Annan, President, Global Humanitarian Forum There were targets for emissions included in the Kyoto Protocol, the second protocol should include targets for increased funding for adaptation. Madeleen Helmer, Head of the Red Cross/ Red Crescent Climate Centre We have failed to reach consensus on too many occasions, We have let short-term profits dictate over long-term global benefits for far too long. Let us go forth to Bali with a mindset to succeed. Maumoon Abdul Gayoom, President of the Republic of Maldives 28 EUROPEAN DEVELOPMENT DAYS 2007

31 Why is the model of the developed versus the developing world passé? Because if the goal is to transform developing countries into developed countries, we would need three times the capacity of the world s resources to satisfy the demand for consumption. Mathis Wackernagel of Ecological Footprint We need concrete action to make sure that climate change won t put our lives in danger. Veronica Nataniel Macamo of the Pan-African Parliament The poor countries need additional resources to adapt to climate change. It is quite clear that the estimated costs for reaching the UN Millenium Goals and fighting poverty are no longer realistic. The rich countries and their citizens must share their part of the burden. It is in their interest. It is not about using Overseas Development Assistance, but finding alternative ways to finance a resource that is a global public good. Kemal Dervis, Administrator, United Nations Development Programme Why not a worldwide organisation to address this problem? Is it because we don t believe in it or because there are vested interests? Josep Borrell Fontelles, Member of the European Parliament, President of the Development Committee EXECUTIVE SUMMARY 29

32 Talking about foreign aid, someone told me that development aid is when you take money from poor people in developed countries and give it to rich people in developing countries. We d like to change that. Urmas Paet, Minister of Foreign Affairs, Estonia Rich and poor inhabit the same exhausted planet. We should all save ourselves or nobody will be saved. Despite our differences, we are bound by a common fate... international cooperation is the only rational and viable way. Bruno Rodriguez Parrilla, Cuba s First-Vice Minister of Foreign Affairs We need a change of thinking among the donor countries. Instead of calling it aid, it should be called compensation, which better reflects the role of the economic players in developing countries working to reduce climate problems. Ndidi Nnoli-Edozien, Executive Director, Growing Business Foundation, Nigeria Green development will spur economic growth. We must make private money go where private money has never gone before. Yvo de Boer, Executive Secretary, United Nations Framework Convention on Climate Change 30 EUROPEAN DEVELOPMENT DAYS 2007

33 Locally, climate change is already affecting people s lives. Greenland s ice cap is melting faster than ever imagined. Globally, this could be a disaster, especially for Small Island Developing States. Arkalo Abelson, Minister of the Environment, Greenland Rather than denounce those who don t do the right things, maybe we can award those who do... and give red cards to those who do nothing Bineta Diop, Executive Director, Femme Africa Solidarité After every flood there is some level of migration. But if climate change isn t checked, the level of migration will be enormous. It will be a problem of inordinate magnitude. Chowdhury Sajjadul Karim, Advisor, Ministry of Environment and Forest, Bangladesh Let s come-up with a creative way to design this global loan which would allow us the resources to deal with these climate issues. Louis Michel, European Commissioner for Development and Humanitarian Aid EXECUTIVE SUMMARY 31

34 ROUND TABLE Climate change mitigation, opportunities and financing Combining the fight against poverty and climate change Anya SITARAM Mahamadou SAKO Moderator Anya Sitaram, Broadcaster and Journalist Thijs Berman, Member of the European Parliament Richard Hosier, Team Leader for Climate and Chemicals, Global Environment Facility (GEF) Secretariat Manfred Konukiewitz, Commissioner for Climate Policy, Head of the Global and Sectoral Policies Directorate, German Federal Ministry for Economic Cooperation and Development Ndidi Nnoli-Edozien, Executive Director, Growing Business Foundation, Nigeria Rolph Payet, Special Advisor to the President of the Republic of Seychelles Bernard Petit, Deputy Director General, Directorate General of Development, European Commission Mahamadou Sako, Deloitte Managing Director and former minister of privatisations, Niger Marina Ploutakhina, Climate Change Specialist for the United Nations Industrial Organization Theodoros Skylakakis, Secretary General for International Economic Relations and Development Cooperation, Ministry of Foreign Affairs, Greece BACKGROUND In the December 2007 negotiations at the Bali conference of the United Nations Framework Convention on Climate Change, one the major challenges participants face is how to ensure global mitigation efforts. International climate change mitigation requires leadership by industrialised countries and for all major emitters to step up and take action. At the same time, developing country emissions are growing rapidly and are likely to overtake those by industrialised countries by the year This means that developing countries will also have to take action. Rather than take on binding absolute emission reduction commitments, a range of other models are possible for developing countries, which can also deliver immediate economic and social benefits. Such options include increasing energy efficiency, promoting renewable energies or capturing methane from sources such as landfills. The whole debate has illustrated the complexity of the issues involved in addressing climate change, in particular issues such as the transfer of technology and reducing greenhouse gases, while simultaneously trying to eliminate poverty... Amongst the experts themselves, the views diverge greatly on how can you achieve the Millennium Development Goals on poverty reduction and at the same time reduce greenhouse gas emissions. It is clear there are no easy answers and clearly no silver bullet. Anya Sitaram, Broadcaster and Journalist, Moderator All of these measures can significantly reduce energy costs. At the same time, they help improve energy security and create new jobs. In addition, improving local air quality can deliver significant health benefits. Slowing emission growth can be turned into an opportunity to leapfrog towards cleaner and more efficient means of economic development. Climate-friend energy policies create incentives for technological change that could respond to the development of a growing market for renewable energies such as wind, solar, biomass and hydropower. 32 EUROPEAN DEVELOPMENT DAYS 2007

35 Thijs BERMAN Bernard PETIT Marina PLOUTAKHINA Richard HOSIER Sustainable policies needed for tackling climate change Panellists debated the complex interplay of issues surrounding how to implement and finance climate change mitigation measures. They generally agreed that mitigation, adaptation and technology transfer are three pillars of equal importance in sustainable policies for tackling climate change. Bernard Petit of the EC s DG Development highlighted the importance of the upcoming United Nations Climate Change Conference in Bali in December 2007: With a view to the Bali meeting, the EU has proposed a reduction of 20% in its emissions by In Bali everyone must assume their responsibility and work towards a joint reduction in emissions. Richard Hosier of the Global Environment Facility explained that his organisation had been working to remove barriers to energy efficient renewable projects. We believe that by removing barriers and creating the enabling environment for sustainable investments, we have reduced a billion tons of CO 2 emissions, he stated. We have the technology Marina Ploutakhina from UNIDO pointed to the broad consensus emerging that a vast array of technological solutions are necessary to address mitigation issues. The good news, she said, is that the vast majority of the technologies needed are already in the public domain. Given that industry accounts globally for some 37% of greenhouse gases, UNIDO has focused much of its effort on the optimisation of industrial systems. But to maximise efficiency gains one must optimise the whole system. This is complex and requires an extra effort, particularly for developing countries. But many mitigation technologies for improving energy efficiency are inexpensive. Rolph Payet, Special Advisor to the President of the Republic of Seychelles, agreed that all the necessary technologies are already out there. Sometimes we are creating barriers by holding onto the patents to make private financial gain, he said. We have to push harder to put these technologies into use. Photovoltaic cells, for example, have been around for 25 years. Why aren t they mass produced and cheap? Think outside the box MEP Berman encouraged people to think outside of the box: Agriculture needs a new place in climate change policy. We need to support farmers not just to provide food, but for non-food reasons like preventing desertification, and minimising the use of fossil fuels, he said. Theodoros Skylakakis of the Greek Ministry of Foreign Affairs believes that the growing developing world economies must urgently adopt low greenhouse gas growth paths. The rights decisions must be taken early on since the first stages such as transportation and industrial technologies are binding for the remainder of a country s development and cannot be reversed, he explained. EXECUTIVE SUMMARY 33

36 Manfred KONUKIEWITZ Rolph PAYET Ndidi NNOLI-EDOZIEN Theodoros SKYLAKAKIS Ndidi Nnoli-Edozien of the Growing Business Foundation in Nigeria urged a change in thinking among donor countries. A lot of what is called aid, should be called compensation, which better reflects the role being bestowed on the economic players in developing countries ranging from forestry workers to farmers to help reduce climate problems, she said. Training and education play an important role at the local level to increase awareness, explained Mahamadou Sako of Niger. Climate change science should be taught in universities from primary school level. Our education polices should cater for looking at ways to fight climate change, he advised. Who will pay and how? Manfred Konukiewitz from the German Federal Ministry for Economic Cooperation and Development pointed out that the mitigation costs of reducing greenhouse gases involve sizeable sums of money, but not as much as people think. In fact, it is just a fraction of today s GDP. Full implementation he said would bring us back to the GPD levels of the 1980s where we didn t actually live badly, he said. It can be financed. Berman commented that innovation is driven by laziness, need or obligation. Our role at the European Parliament is to create obligation, he said. But what we are asking for costs money. We must therefore create new sources of money. We could consider raising taxes on the kerosene used in air transportation. It seems ridiculous that such a pollution-intensive resource is tax free. The tax could be redeployed on mitigation measures to counteracting climate change. Payet pointed out that such an airline tax would signal the demise of the principal industry of the Seychelles and many other small economies tourism. Simplistic solutions need to be fully thought through, he added. Why not look at the business of carbon trading, Payet suggested. This has become a billion dollar business. How about taking a percentage of the commissions being made and putting it towards adaptation? 34 EUROPEAN DEVELOPMENT DAYS 2007

37 HIGH LEVEL PANEL Partnerships and global environmental governance Tumi MAKGABO Nuno RIBEIRO DA SILVA If we re prepared to delegate powers to the market, why not delegate a little of our sovereignty to global governance? Valentine Sendanyoye Rugwabiza, Deputy Director General, WTO Moderator Tumi Makgabo, CNN International Alberto Binger, Director, Centre for Environment and Development, University of the West Indies Josep Borrell Fontelles, Member of the European Parliament, President of the Development Committee Louis Michel, European Commissioner for Development and Humanitarian Aid Nuno Ribeiro da Silva, President of the Portugese Industrial Association (AIP) Environment Strategic Board Valentine Sendanyoye Rugwabiza, Deputy Director General, World Trade Organization (WTO) Achim Steiner, Executive Director, United Nations Environment Programme (UNEP) Which way forward? Panellists debated on how best to achieve global environmental governance. Two main proposals for global environmental governance emerged from the High Level Panel. The first, addressed by many panellists in different ways, would involve creating a new multilateral agency or strengthening and empowering an existing body that would be responsible for matters related to climate change. The second, offered by Louis Michel, Commissioner for Development and Humanitarian Aid, would be a global loan mechanism to fund initiatives designed to meet the challenges of climate change. Though he admitted that the details of the scheme have yet to be hashed out, Michel proposed an international lending programme to be funded by the rich countries, perhaps managed by the World Bank or the IMF to immediately provide cash to address the issue of climate change. Clearly, we at the political level should look at additional funding, he said. We can suggest to our partners that they include these concerns in their development plans, but if there are additional costs we should provide assistance. By proposing a loan mechanism rather than a grant scheme, Michel was accepting political realities. If we ask EU members if they are ready to finance this, the answer would be no, he said. The loan idea is politically possible. It would encourage investments and could be self-financing. Alberto Binger of the University of the West Indies outlined a technological fix that could conceivably receive financing under Michel s loan scheme. Ocean Thermal Energy Conversion, discovered in 1888, uses sea water and the differences in temperature between the ocean s surface and lower depths to produce energy with zero carbon emissions. A multilateral agency? Several speakers championed the idea of a new or improved multilateral agency to take responsibility for climate change initiatives. Why not a worldwide organisation to address this problem? asked MEP Josep Borrell. Is it because we don t believe in it or because there are vested interests? EXECUTIVE SUMMARY 35

38 Josep BORRELL FONTELLES, Louis MICHEL, Achim STEINER, Valentine SENDANYOYE RUGWABIZA and Alberto BINGER The short-term electoral imperatives of national politicians hinder their ability to take tough decisions to solve long-term problems such as climate change, agreed many panellists. Many also agreed that a step removed global organisations can withstand many of the immediate pressures. If we re prepared to delegate powers to the market, why not delegate a little of our sovereignty to global governance? asked Valentine Sendanyoye Rugwabiza of the World Trade Organization. Rugwabiza suggested that climate change could be addressed using the current set of multilateral agencies if national governments seriously set out to implement already existing international agreements on the environment and development. We need coherence at the national level if we are going to have coherence at the international level, she said. Achim Steiner of UNEP expressed frustration because two decades after the Brundtland Report (also known as Our Common Future), there has been no improvement on any of the key indicators highlighted in that document. He added that, according to his figures, CO 2 emissions are up by 35% since 2000, meaning since the Kyoto accord was signed. There is still a level of contradiction and hypocrisy, he said. The sundry international environmental agreements signed over the last 30 years have proven ineffective, he recognised. But neither is he enthusiastic about the creation of a new multilateral body. I am sceptical about jumping to form a new institution, Steiner said. Function follows form and there is no consensus about how to do this. Rational tax and pricing policies needed Nuno Ribeiro da Silva of Portuguese Industrial Association (AIP) pointed out that producers and consumers sometimes receive contradictory messages from governments on environmental protection. In Portugal, the value added tax (VAT) on electricity is 5%, but when consumers retrofit their homes to make them more energy efficient, they pay 21% VAT on the necessary equipment. Rational tax and pricing policies, such as those that encouraged meat packers to replace outdated freezers in the United States in the 1970s and 1980s, could produce interesting results, he said. 36 EUROPEAN DEVELOPMENT DAYS 2007

39 CLOSING CEREMONY The best adaptation mitigation with development Louis MICHEL If we don t include climate change in the development equation we will lose much of what we have already invested. Louis Michel, European Commissioner for Development and Humanitarian Aid Louis Michel, European Commissioner for Development and Humanitarian Aid Francisco Nunes Correia, Minister for Environment, Spatial Planning and Regional Development, Portugal Bruno Rodriguez Parrilla, First Vice-Minister of Foreign Affairs, Cuba Andrej Šter, State Secretary for Foreign Affairs, Slovenia The 2 nd European Development Days provided a forum for debate, discussion and knowledge sharing about the inextricable linkages between climate change and development. At the Closing Ceremony, Bruno Rodriguez Parrilla, Cuba s First Vice- Minister of Foreign Affairs, reminded participants why it is important to act now. He said that little had been done and the situation today is a lot more critical than the meeting in Rio de Janeiro 15 years ago at the United Nations Conference on Environment and Development. Parrilla gave a sobering snapshot of the devastation done to the planet thus far and made an impassioned plea for the richer countries to take up their responsibilities: The mitigation... and adaptation... strategies would be wishful thinking if there is no change in the untenable production and consumption patterns of the wealthy societies, which are mainly responsibly for the environmental damage visited upon the whole planet... the rich countries must bear the brunt of mitigation. He set the stage for partnership and cooperation of all nations: Rich and poor inhabit the same exhausted planet. We should all save ourselves or nobody will be saved. Despite our differences, we are bound by a common fate... international cooperation is the only rational and viable way. Climate change must be included in the development equation Louis Michel, European Commissioner for Development and Humanitarian Aid, summed up some of the major themes of the three-day European Development Days: Climate change is no longer a hypothesis but a reality. Climate change will disproportionately affect those least responsible for the phenomenon. Climate change can no longer be perceived as just an environmental issue. Climate change is no longer an issue of the future as its effects are already becoming evident. If we don t include climate change in the development equation we will lose much of what we have already invested, he said. Michel reiterated his proposal to create a global loan mechanism to fund initiatives for climate change mitigation and adaptation and called upon the world community to compensate developing countries for protecting their natural environments. EXECUTIVE SUMMARY 37

40 Andrej ŠTER Bruno RODRIGUEZ PARRILLA Francisco NUNES CORREIA Echoing the comments of many participants during the 2 nd European Development Days 2007, Andrej Šter, State Secretary for Foreign Affairs, Slovenia, noted: Least developed countries and small island nations will be the most affected by climate change despite having contributed the least. For those who lack the capacity to adapt, we must step up to help. This would include development assistance in priority areas such as adaptation, monitoring, food security, disaster relief, education and the development of clean energy, he said. The latter would include technology transfer to ensure low greenhouse gas emissions in the energy, transportation and agricultural sectors. We believe that the best adaptation is mitigation with development, Šter said. Unprecedented levels of cooperation needed. Francisco Nunes Correia, Minister for Environment, Spatial Planning and Regional Development, Portugal, called for what he believes must be unprecedented levels of international cooperation and integration of public policies to address climate change. He too recognised that countries and regions are unequally equipped to confront the problem. It is important to intertwine development and climate change policies, he said. The paradigm of the development model must be changed. Both Šter and Nunes Correia called attention to the importance of the United Nations Climate Change Conference in Bali, Indonesia, and the EU-African Union Summit in Lisbon, both coming up in December The Bali conference is the next step in the effort to develop global standards for carbon emissions after the Kyoto accord runs out in Šter noted that the EU-African Union Summit is an appropriate forum to discuss initiatives that fuse development and climate change policies. 38 EUROPEAN DEVELOPMENT DAYS 2007

41 PARALLEL EVENTS Forums for innovative thinking Running alongside the European Development Days plenary sessions, highlevel panels, workshops and special addresses were a number of Parallel Events offering a diverse mix of sessions. More than 50 organisations and countries showcased their activities, addressed specific topics or explored climate change and development issues in depth. The objective of Parallel Events was to create an interactive platform where development practitioners could meet, exchange experiences, share best practices and lay the foundation for future collaboration and partnership. Following are highlights from some of this year s sessions. Civil society from a number of different areas is now joining in the climate change discussions. We are here together, even today, bridging the divide. Matthias Duwe, Director, Climate Action Network Europe When we started thinking about this, climate change was a term from an alien language. From 2004 we started to pick up on the fact that climate change adaptation is not too different from disaster risk reduction. Wahida Bashar Ahmed, ActionAid Local and regional governments are closer to the people than national governments and day-to-day they must deal with actions for adaptation and mitigation of climate change impacts and issues in the such areas of water supply, transport policy, disaster planning and relief, housing and waste management. Climate Justice Beyond 2012 Climate change and development are intrinsically entwined and must be considered in tandem when world leaders meet to hammer out a post-kyoto agreement at the Conference of the UN Framework Convention on Climate Change and the 3 rd Meeting of the Parties to the Kyoto Protocol in Bali in December This was the consensus of panel members from both climate change and development agencies who attended this panel presentation, organised jointly by CAN-Europe, a leading network working on climate and energy issues, and CONCORD, the European confederation of relief and development NGOs. Reducing Vulnerability Organised by VOICE Disaster Risk Reduction and EU-CORD (a network of Christian organizations involved in relief and development), this session explored disaster risk reduction, climate change adaptation and development cooperation. Local Authorities, Development and Climate Change Participants focused on the critical role of local authorities in addressing interfaces between development and climate change. Organised by Committee of the Regions, Commonwealth Local Government Forum, African Caribbean Pacific Local Government Platform, Council of European Municipalities and Regions and International Association of Francophone Regions. Tasneem Essop, Minister of Environment, Planning and Economic Development for the Western Cape Province of South Africa EXECUTIVE SUMMARY 39

42 Policy Coherence for Development what next? Ensuring the coherence of policies to support development is high on the agenda of international organisations. The European Commission published in September 2007 its first report on Policy Coherence for Development, which covers initiatives at EU level and measures taken by Member States. Participants discussed how to achieve more coordinated development. Organised by Vermeer Stichting, OECD, the European Commission and the Center on Global Development. Forum on Tropical Forests in Central Africa Until recently, Democratic Republic of the Congo s tropical forests have had relatively low rates of deforestation. This is changing as illegal and legal logging are now serious threats. Rising populations mean that forests there will face ever more pressure from people who need firewood and want to clear land for agriculture. This session, organised by the Belgian Development Cooperation office, examined avoided deforestation to combat climate change. We have to increasingly take on board political reality... in making decisions: where are the special interests when decisions are taken and how can the interests of the public be represented? Raili Lahnalampi, Organisation for Economic Cooperation and Development (OECD) From Cairo to Lisbon: Open Forum on the Joint EU-Africa Strategy The EU-Africa Summit the Lisbon Summit scheduled to take place in Lisbon 8 to 9 December 2007 should include the launch of a new strategy and action plan for future cooperation between the EU and Africa in economic development and poverty reduction. The European Parliament s Development Committee and the Pan- African Parliament have been working together to prepare the groundwork for this new strategy and action plan. In this session, parliamentarians from the two bodies met to discuss this landmark agreement. It was organised by the European Parliament and the Pan-African Parliament. The new strategy should give us the structure and direction for successful collaboration in the future. Poverty alleviation and the Millennium Development Goals will remain the central pillars of the development programmes... Forty-one percent of sub-saharan Africans still live on less than one dollar per day. Marwiki T. Khumalo, Pan-African Parliament, head of delegation working with European parliamentarians 40 EUROPEAN DEVELOPMENT DAYS 2007

43 [Climate change] adaptation needs to be designed locally and supported globally. Effective and accountable local governments are crucial to successful adaptation... Poverty reduction is central. Gordon McGranahan, Director, Human Settlements Programme, International Institute for Environment and Development How do you assess a project where the social return may be high but the financial perspectives are weak? How are trade offs resolved between for example a low ERR (External Rate of Return) and high MDG impact project? Christopher Wright, Researcher, Centre for Development and the Environment at the University of Oslo Adaptation to Climate Change in the Urban Century More people now live in urban than in rural areas and 80% of greenhouse gases come from towns and cities Participants addressed specific aspects of climate change that relate to urban areas, looking at both the problems and some programmes that are attempting to devise local solutions to mitigation and adaptation. Organised by Swedish International Development Cooperation Agency. The EU Strategic Response to Situations of Fragility in African Countries The purpose of this session was a discussion between parliamentarians from Africa and Europe about their role and responsibilities in promoting the prevention of conflict and the emergence of failed states. The event was sponsored by the European Parliamentarians for Africa (AWEPA), an international NGO, whose 1,500 members are past and present parliamentarians from the European Parliament and most EU member states. AWEPA seeks to support and strengthen the capacities of parliaments in African nations. EIB Workshop: How to integrate social and environmental criteria in project financing in developing countries As part of its ongoing dialogue with civil society, the European Investment Bank (EIB) held its autumn 2007 workshop for civil society organisations (CSOs). The workshop brought together CSO delegates and EIB representatives to discuss topics of common interest. The focal point of much of the discussion was EIB s project financing role in non-eu countries in particular developing countries and whether the EIB employs the most appropriate criteria in its investment decision-making process. EXECUTIVE SUMMARY 41

44 Integrating Climate Change into Development Policies and Projects The call for integrating adaptation to climate change into the global development agenda was heard loud and clear at the 2 nd European Development Days. But how can that daunting challenge be met? The panel presented their organisations strategies and discussed case studies. Three main recommendations came out of the case studies and workshop: poverty and inequality alleviation should be at the centre of all projects; NGOs need to develop a new concept of north-south solidarity; and ties between development and relief organisations must be strengthened. Organised by the French Ministry of Foreign Affairs, UK Department for International Development, Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ), French Development Agency, French Fund for World Environment, and the Association for International Solidarity and Cooperation Carbon against Poverty This session marked the launch of a new environmental and development initiative, Carbono contra a Pobreza (Carbon against Poverty). The initiative is a joint venture of two Portuguese entities, Oikos, a non-profit organisation specialising in development and cooperation issues, and Ecoprogresso, an environmental consultancy. Carbon against Poverty aims to promote strategies, projects and investments at local, regional, national and international levels for climate change mitigation and adaptation, which at the same time reduce poverty and support economic development. Achieving More Effective EU aid delivery but how? Organised by the Practitioners' Network for European Development Cooperation, this session consisted of a panel Discussion between high-level representatives from agencies and administrations that are implementing development policies in the field. The Practitioners' Network was showcased as a means towards more effective European development cooperation. The other Parallel Events: Innovative Partnerships in Combating Climate Change (MFA-Austria, MFA-Finland, IUCN) African Economic Outlook (2007) (IPAD) Climate Change and Pastoralists (Irish Aid, IIED) Slovenian Development Cooperation (CEP, ITF, Together Foundation, CEF) Exchanging Experience in Communicating Climate Change as a Development Issue (SLOGA, Focus, Slovene Philanthropy) Voices from the Field How Climate Changes Agriculture in Rural ACP Countries? (CTA, EUFORIC, UNITAR, IIED) DECIM: Civic Engagement for Development Coordinating Donor Support for Civil Society Addressing the Reproductive Health Supplies Challenge (IPPF-EN, Countdown 2015 Europe) Integrated Approaches to Human and Social Development and Environment (DSW, GEO - Rainforest Conservation) Regards sur la Terre (AfD, IDDRI) 42 EUROPEAN DEVELOPMENT DAYS 2007

45 Cuba-Europe Sustainable Development and Cooperation Expanding the Response to HIV/TB, Malaria and broader Health Challenges (UNAIDS, GFATM, WHO, The World Bank) Hungarian National Climate Strategy Voices from Continents Exchange of leadership experiences on the ways to address the challenges of climate change and development cooperation (Club de Madrid) Global Networking for International Development Professionals Development Executive Group Feeding the World the Day After Tomorrow (IFAD, FAO, WFP) Poverty Reduction and Environmental Governance Initiative (IUCN) Islands and the European Union (IUCN) Kyrgyzstan s Glacial Lakes: Will we prevent Disastrous Floods? Presentation of a Czech Project (MFA - Czech Republic, Czech Development Centre) Development education and public awareness Education and awareness raising is critical as the European Union steps up its funding for development and poverty reduction. The Development Education Multistakeholder Group unveiled its statement at the European Development Days. The European Consensus on Development: the contribution of Development Education & Awareness Raising is a contribution to the implementation of the European Consensus on Development (2005), with particular reference to the declaration that,... the EU will pay particular attention to development education and raising awareness among EU citizens. The joint statement provides a framework for the development of strategy at local, regional, national and European levels. This framework has been the result of a year-long process of the European Development Education Multistakeholder Group, which has been facilitated by the Development Education Exchange in Europe Project (DEEEP). The statement was followed by a broader discussion on the importance of European public awareness about international development issues and its inclusion within national and EU policies. To download the statement: strategy/european_consensus_ pdf Promise or Peril? Avoided deforestation and bio-sequestration projects have already demonstrated their capacity to channel resources from the carbon markets to poor communities in support of their development and adaptation goals. One of the most pressing issues facing those concerned with the global challenges of climate change, persistent poverty and environmental degradation is how to move multiple-benefit Agriculture, Forestry and other Land Use (AFoLU) projects into the mainstream. The CARE/Climate, Community and Biodiversity Alliance parallel explored the evidence that multiple-benefit projects can simultaneously reduce atmospheric greenhouse gases, reduce poverty and conserve biodiversity. EXECUTIVE SUMMARY 43

46 DEVELOPMENT VILLAGE A crossroad for sharing experiences T he Development Village offered more than 120 development, climate change and environment professionals the chance to showcase their work. NGOs, ACP institutions, foundations, research institutes, international organisations, governments and EU Member States participated by setting up often-interactive stands. The layout created a lively village atmosphere where people learned about each other, shared experiences, debated the issues and laid the groundwork for future collaboration. Thursday 8 November, the Development Village opened its doors to the public. About 650 people dropped in, many of who were students curious to learn more about the nexus of climate change and development. 44 EUROPEAN DEVELOPMENT DAYS 2007

47 EXECUTIVE SUMMARY 45

48 46 EUROPEAN DEVELOPMENT DAYS 2007

49 Carbon Free! The 2 nd European Development Days was conceived to be a carbon free event, demonstrating the European Commission s commitment to continue taking the lead in the fight against climate change. To carbon offset the three-day event, the Commission worked with one of the NGOs active in carbon offsetting. The Action Carbon programme of the GoodPlanet.org assessed and compensated the greenhouse case emissions linked to the energy consumption of the participants transportation, accommodation, on-site building and set up, and utility bills. Action Carbon calculated the emissions and compensations linked to the event in real time, displaying the results on two thermometers that greeted visitors to the Development Village. Emissions were displayed in red on one and offsets were displayed in green on the other. The European Commission paid compensation for the emissions linked the event and part of the cost of individual transportation. Participants were urged to compensate their outstanding emissions at the Action Carbon Stand and received a Carbon Offset button to demonstrate their commitment to offsetting their carbon footprint. Over the last two years, Action Carbon has financed the compensation of 50,000 tonnes of CO 2 through nine projects in Africa, South America and Asia. Action Carbon only selects projects that meet the criteria set by the Clean Development Mechanism, which is defined by the United Nations Convention on Climate Change. EXECUTIVE SUMMARY 47

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