President, Excellencies, and distinguished delegates,

I would like to congratulate you on your election as President of the Fifth Conference of Parties. We pledge to you the w hole-hearted cooperation of the Indian delegation in your efforts to guide the Conference to a productive session. Your election symbolises the commitment of Poland towards this process. I also convey our sincere appreciation to the Government of Germany for hosting this Conference.

The Fourth Conference of Parties last year adopted the Buenos Aims Plan of Action. The Plan provides a road-map for working on the decisions and indicative time-lines for the implementation of the Kyoto Protocol Mechanisms. Substantial progress is to be achieved by the time of the Sixth Conference of Parties. The Conference would thus be in a position to adopt major decisions on the various elements of the Buenos Aires Action Plan. These will include decisions on the principles, nature and scope, operational modalities mid Institutional arrangements for the Kyoto Protocol Mechanisms. We believe that the current meeting in Bonn will pave the way for the attainment of these objectives.

The Framework Convention on Climate Change explicitly underlined the conspicuous North-South disparities by recognising the "common but differentiated responsibilities" and respective capabilities. Thus the Convention underpins the principle of equity, differentiating the levels of commitments for the developed and the developing countries. The extent to which the developing countries will effectively implement their commitments will depend on the effective implementation by the developed countries of their commitments related to transfer of financial resources and transfer of technology. The Convention also acknowledges the development and poverty eradication are the first and over-riding priorities of the developing countries, consequent to which their greenhouse gas (GHG) emissions would grow. We need to remind ourselves constantly that in our current work, there must be no discounting of the inequities, disparities and differentiated capabilities between the North and the South. There must also not be any freezing, perpetuating or exacerbating of existing inequities between the developed and the developing countries as a consequence of any of our decisions. The right to development of the developing countries must not be affected adversely in any way.

Our work on the Kyoto Mechanisms should address and settle comprehensively the basic principles at the outset to enable rapid progress in the implementation of the Protocol. Once the basic principles and the nature and scope of the Mechanisms are decide it would be possible to address the methodological, operational and institutional issues accordingly. The integrity, effectiveness and environmental credibility of the Mechanisms must be above board. It must be ensured that domestic policies and measures by the developed countries remain the principal means for stabilising GHG atmospheric concentrations. Domestic initiatives should not get eclipsed by action overseas through the Mechanisms.

The design of the Mechanisms must not in any way compromise the modification of longer-term trends in emissions, consistent with the objectives of the Convention. The GHG reduction achieved should be real and verifiable. The importance of a compliance regime cannot be over-emphasised. There are a number of other questions for enhancing credibility, including. that of comparability and transparency, and monitoring and verification. There are also questing of responsibility, accountability and liability in relation to the Mechanisms.

Priority is to be given to the Clean Development Mechanism in conformity with the decision at Buenos Aires. The difference in the nature and scope, purpose and participation of the three Mechanisms should be kept in constant view. With regard to the CDM, its needs to be reiterated that the only host governments which can decide whether a particular project conforms to national sustainable development priorities. They would also be best placed to decide on the choices of areas and technologies for developing the CDM projects.

Considerable significance has been attached to the need for capacity building in the developing countries. This aspect has been an important undercurrent in the approach of the developing countries in the designing of the work programme relating to the Kyoto Mechanisms. The build-up of endogenous expertise is essential for the identification of technology needs and helping enhance capacities for assimilation of technologies. Capacity-building is also required for assisting the developing countries for carrying out adaptation activities.

India's per capita greenhouse gas emissions arc many times below the world average. and, of come, far lower than the average of developed countries. Nevertheless, we have pursued policies for conserving energy and promotion of renewable energy. We have raised the conversion efficiency of our power plants. Industries are reducing their energy intensity by cutting production costs. New fiscal policies are promoting low emission technologies. In the automobile sector, too, new technologies and corresponding regulations are reducing emissions. In the field of non-conventional energy sources, we have attained much acclaimed success in the installation of solar and wind generated energy. While coal will continue to be the mainstay of commercial energy, there has been fuel-switching to oil and natural gas. In the agricultural sector, there is emphasis on replacement of fuel-inefficient irrigation pump-sets. This is how India is responding to various challenges and opportunities in sustaining its development.

In India, public awareness about issues related to climate change is growing. Environmental matters are getting articulated effectively in India through a vigilant media and an active NGO community. More importantly, the judicial process has recognised the citizen's right to a clean environment as a component of the right to life and liberty. The courts have also elaborated on concepts relating to sustainable development. The Indian industry has also initiated several measures to respond to the challenges of environmental protection.

Even as we discuss several aspects of the implementation of the Kyoto Protocol, we should not lose sight of the fact that the developed countries have, by and large, fallen far short of fulfilling their commitments under the Convention for reduction of GHG emissions. On the contrary, the latest available data indicate that many developed countries have registered substantial increases in their emissions, in recent years. The developing countries have demonstrated their commitment to cooperative global action in dealing with the threat of climate change. References to voluntary commitments and meaningful participation by the developing countries only serve to detract lion-i the lack of progress in emission reductions by devc1oped countries, in conformity with the commitments undertaken by them in the Convention and the Protocol. This situation ought to be put right. The issue of climate change should continue to be addressed in a frame of reference that puts equity and re-distributive justice at the centre of our efforts, and measures human welfare directly.

Thank you, Mr. President.