The 16th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP-16) was concluded with an agreement on 10 December 2010. With the adoption and signing of the agreements drafted by the working groups, the participating member states ratified the continuation of the Kyoto Protocol and declared the necessity of drafting a new climate treaty. The adopted documents also set out the commitments of the United States and developing countries relating to climate policy and the reduction of greenhouse gases. The Hungarian delegation was led by Péter Olajos, deputy state secretary of the Ministry of National Development responsible for the development of the green economy and climate policy. The Hungarian delegation included several climate policy experts of the ministry.

“Although the experience related to the Copenhagen climate summit dampened the expectations of the participants and public opinion before the Cancun climate conference, nevertheless a balanced package of decisions was delivered, which reopens the possibility of a global climate change treaty after the failure of Copenhagen,” said Péter Olajos, deputy state secretary responsible for the development of the green economy and climate policy, head of the Hungarian delegation, summarising in a flash report the 16th Conference of the Parties to the United Nations Framework Convention on Climate Change.

In the report, the deputy state secretary notes the following: the two documents adopted on Friday, of over 100 pages, collect the interim decisions modifying the Kyoto Protocol and the decisions preparing the global climate change framework after 2012. The adoption of the Cancun agreements also has a major impact on the upcoming Hungarian EU presidency, as Hungary will be responsible for promoting a uniform position of the EU on numerous issues dealt with in the documents that require clarification or are intentionally left open, and thereby contribute to the success of an international agreement. These tasks are related to two key areas: adaptation to the negative consequences of climate change and the necessary financing.

With a view to supporting the latter target, the decisions propose the set-up of a Green Climate Fund and fund manager, which could function as the world’s largest such fund, managing an annual amount of 100 billion USD. During its upcoming EU presidency, Hungary will be responsible for coordinating and commencing the elaboration of the EU concepts relating to the form and operation of the fund manager. This fund and the Hungarian payments to the fund offer major opportunities for Hungarian companies to implement green economy development projects in third countries and increase their exports. Following adaptation, the Hungarian EU presidency needs to work out by February 21 the EU proposals relating to the composition, function and role of the committee coordinating this process.

Ministry of National Development

Communications Department

Budapest, 13 December 2010