On 15 December 2007, the 187 countries represented at the UN Climate Change Conference in Bali reached consensus on parameters for the negotiation of a new international climate change agreement over the next two years.
The new agreement is expected to enter into force following expiry of current commitments under the Kyoto Protocol in 2012. It will establish a global emissions reduction objective that will entail emissions reduction commitments for participating developed countries but also 'monitorable, verifiable and reportable actions' on the part of participating developing countries.
These actions will in many cases need to be enabled by financial and technical assistance from developed countries or financed by investment income from carbon trading.
As part of the negotiations, consideration will be given to ways of creating more effective incentives for developing countries to reduce emissions from deforestation and other high-emissions activities, and to ways of ensuring an adequate response to the adaptation assistance needs of developing countries, particularly the poorest and most vulnerable.
A number of programs that pilot incentive-based approaches to reducing emissions are likely to be implemented over the next four years in order to inform the UN negotiations and achieve some early gains. Given the importance of donor support for developing country engagement in a new global climate regime, and for early action through pilot programs, AusAID will work closely with the Department of Climate Change as negotiations proceed over the coming two years.