Key points of the SB60 program

Following a global assessment at the COP28 conference in Dubai last year, which found that the world is not on track to meet the Paris Agreement's temperature targets, the parties to the Paris Agreement will meet again at the SB60 conference. This conference, also known as the Bonn Climate Change Conference, will take place from 3 to 13 June 2024 at the headquarters of the United Nations Framework Convention on Climate Change (UNFCCC) in Bonn, Germany. It is an interim session where members, observers and stakeholders come together for discussions and negotiations on climate issues. SB60 aims to follow up on the decisions from COP28 and prepare recommendations for COP29, which will be held in Baku, Azerbaijan, in November.

In this article, we'll provide an overview of SB60 and highlight key issues on the agenda for the next two weeks.

What is SB60?
SB60 is the 60th meeting of the Subsidiary Bodies under the UNFCCC, which includes the Subsidiary Body for Science and Technology Advice (SBSTA) and the Subsidiary Body for Implementation (SBI). These bodies help achieve the goals of the UNFCCC by carrying out preparatory work for the annual Convention of the Parties to the UNFCCC (COP). The results of SB60 will inform the next COP and provide important inputs for global climate change decision-making and action.

The SB60 sessions, held twice a year in June and at each COP, provide background knowledge on the UNFCCC's goals. The SBSTA links scientific knowledge, including the findings of the Intergovernmental Panel on Climate Change, with strategic needs, while the SBI oversees the implementation of the UNFCCC together with the Kyoto Protocol and the Paris Agreement. Together, SBSTA and SBI address common challenges and offer an integrated approach to addressing climate issues that includes technical, scientific and implementation aspects of mitigation, adaptation, financing and capacity building.

The work done on SB60 will lay the foundation for an effective and successful COP29 conference. The session will be attended by the COP29 Presidency, which will hold informal consultations with stakeholders to inform the work program and key outcomes that COP29 seeks to achieve. At the conclusion of the SB60 negotiations, a comprehensive action plan for COP 29 should be announced.

Key issues the industry will be watching over the next two weeks:

Carbon markets and Article 6

Article 6 will again be a key agenda item in SB60 after not enough texts were adopted at COP28 to progress the implementation of international carbon markets under Articles 6.2 and 6.4 of the Paris Agreement. These articles introduce a mechanism for trading emissions reductions between countries under the auspices of the UNFCCC, which is key to achieving the goals of the Paris Agreement and providing funding for developing countries.

Despite the lack of progress at COP28, countries will continue to engage in cooperation under Article 6 paragraph 2, with 84 bilateral agreements concluded between 10 buyers and 46 host countries by May 1, 2024. Issues around transparency, reporting and permissions remain unresolved. Permitting, including the question of whether host countries can revoke permits, is one of the challenges. The framework for the international register has not yet been agreed either.

Insufficient agreement on the methodologies of Article 6, par. 4 at COP28 caused a delay in the UNFCCC centralized credit mechanism. The supervisory body and a group of experts worked on the harmonization of the methodologies that will be provided on SB60 as an additional basis for decision-making.

In an informal note, the SBSTA chairman drew attention to the need to address a significant number of issues in a limited time. Issues of permits and registries will be the subject of negotiations on SB60, with draft text of decisions for electronic format for Article 6 para. 2 for notification of permitted activities. The Chair of the SBSTA invites the Parties to express their views and provide input on the draft text of the decisions. SB60 aims to ensure full operation of Article 6 in Baku.

The Lima Work Program on Gender Equality

The Lima Work Programme, established in 2014 at the COP20 conference, focuses on gender mainstreaming in climate policy and action. The first Gender Equality Action Plan (GAP) was created at COP23, and a five-year extension of the LWPG and GAP was agreed at COP25. The expanded GAP focuses on five priorities, including capacity building, gender balance, coherence, implementation and monitoring. A final review will begin at SB60 and conclude at SBI61 in November, taking stock of progress and identifying challenges and priorities.

Financing measures in the field of climate change

Global financial goals

One of the main areas to watch is progress on the creation of a new global financial goal (NCQG) at the end of SB60, with a decision expected at COP29. The previous goal of mobilizing USD 100 billion per year by 2020 was not met until 2022. The new goal, if ambitious enough, is expected to mobilize and implement financial flows between developed and developing countries.

Losses and damages

Loss and damage funding will be another important area of SB60, especially after the fund is agreed at COP28. This fund is intended to address the economic and non-economic impacts of climate change in developing countries. The third and final Glasgow Dialogue on Loss and Damage will take place on SB60. In the framework of the dialogue, they will focus on strengthening the coherence and coordination of funding, especially in terms of technical discussions and the development of new funding mechanisms.

The May 2023 Notes highlighted the limitations of existing mechanisms in providing funding for loss and damage compensation, which the Bridgetown Agenda 2022 seeks to address. Loss and damage funding is expected to be part of the new NCQG.

Strengthening the links between the technological and financial mechanisms of the UNFCCC calls on developed countries to support the transfer of climate technologies to developing countries. To support this goal, a financial mechanism was established in 1994 and a technology mechanism in 2010. SB60 will host a workshop to assess the linkages between these mechanisms to improve their coordination and effectiveness.