Last week I attended the 12th meeting of the Parties (COP12) to the UN Framework Convention on Climate Change (UNFCCC), in Nairobi.

It was clear from the discussions that the science of climate change is now overwhelmingly accepted. Sir Nicholas Stern, who was in Nairobi to present the findings of his review of the economics of climate change, has made a historic dent in the economic argument that the world cannot afford to reduce its emissions. The findings of the Stern review show that climate change, not action to tackle it, is the threat to growth.

The conference therefore faced three tests. Firstly, to help developing countries, particularly in Africa, adapt to the consequences of climate change. The conference made good progress, reaching agreement on a five-year programme (the Nairobi Work Plan) which will help developing countries consider the impacts of climate change, their vulnerability, and how they can best adapt. Agreement was also reached on the principles of the Adaptation Fund which will finance concrete projects to help the most vulnerable countries adapt. The UK has committed to playing a full role in this work, and has so far committed over £40 million to help build developing countries' understanding of how climate change will affect them and to improve integration of climate risks within development plans. The UN Secretary-General, who addressed the opening of the ministerial section of the conference, also committed the UN to work for ‘carbon-proofing’ of aid programmes which the UK is determined to support.

Second, achieving real change in the decisions of the public and private sectors, and better joint-working, to drive investment in low-carbon technology. The UN Secretary-General announced an important initiative to help developing countries—especially those in Africa—to participate in the Kyoto Protocol’s Clean Development Mechanism (COM), by promoting greater coherence between the UN, bilateral and multilateral agencies. The UK supports the COM as a vital symbol of global commitment, and UK companies are now the largest investors in COM projects. We will play our part by linking London-based carbon market experts with those developing projects in Africa, and call on business to work with us to deliver early investment on the ground.

Thirdly, the conference considered how to advance agreement on a global framework for emissions reductions to build on the first Kyoto commitment period which finishes in 2012. This needs to be based on the core principle of the UN Climate Change Convention: common but differentiated responsibilities, with every country part of the drive to prevent dangerous climate change, and each country making a contribution according to their circumstances. The UK also argued strongly for global agreement to be reached in time to ensure that there is no gap between commitment periods.

In discussions under the Kyoto Protocol, those developed countries who have ratified the Protocol demonstrated their leadership in addressing climate change by establishing a substantial work plan for arriving at new reduction targets, which will send a clear signal to the carbon market that Parties are serious about reducing global emissions by at least 50 per cent. from 2000 levels. The Protocol (under Article 9) also provides for a review of implementation to be undertaken. An initial review took place at COP12 and there was further agreement on a process that would lead to a fully comprehensive review by 2008, which will look at how best we can build on the work that has already been done in implementing the Protocol to ensure that it remains fit for purpose.

COP 11 in Montreal established a Dialogue to enhance the implementation of the Climate Change Convention. The second workshop under the Convention Dialogue, held during COP12, focused on advancing development in a sustainable way and on realising the full potential of market-based opportunities. Sir Nicholas Stern also presented his report to the workshop. The Dialogue provided welcome space for further deliberation and exploration of key issues facing the international community.

During 2007, the UK will work across all fronts, including the EU, G8 and UN, to inject greater urgency and momentum into the process of driving down global emissions. The UK is committed to a 60 per cent. reduction in carbon dioxide emissions by 2050, and we are calling for an EU target of 30 per cent. greenhouse gas emissions reduction by 2020 and at least 60 per cent. by 2050. The science tells us clearly that action is needed urgently: the economics tells us that we cannot afford not to act to ensure that global emissions peak over the next 10-15 years.