Madam President,

1. I have the honor to deliver this statement on behalf of the Group of 77 and China. Allow me at the outset to express my appreciations to the Government and people of Mexico for hosting this important meeting in the beautiful city of Cancun, and to the Convention's Secretariat for the excellent arrangements.

2. The developing countries are now experiencing the very real impacts of climate change, which are undermining our development prospects and aggravating the vulnerability of our poor communities, particularly indigenous peoples. The Group of 77 and China expects the AWG- KP to forward ambitious quantified emission reduction targets for Annex 1 Parties for the second commitment period which was mandated to be concluded one year ago as per the Decision 1 CMP1.

Madam President,

3. The Group of 77 and China would also like to recall that by decision 1/CMP.1 we agreed that the AWG-KP "would aim to complete its work and have its results adopted by the COP/MOP as early as possible and in time to ensure that there is no gap between the first and second commitment periods". The central goal of our work is to define ambitious quantified emission reductions for Annex I countries for the second and subsequent commitment periods that will significantly contribute to the minimization of future impacts of climate change. This is a goal we have not yet delivered.

4. Instead, the process so far has taken us on many circular pathways which seem designed to delay agreement on new commitments from Annex I Parties. During this year's sessions, the AWG-KP experienced such slow progress on its work that it has become clear that our partners seek to delay the process through continued reference to array of technical issues and perhaps to dismantle Kyoto-Protocol itself. KP is the only treaty instrument that spells out the legally binding obligation for Annex 1 Parties to reduce their emissions.

5. The Group of 77 and China strongly reaffirms its position that a second commitment period under the Kyoto Protocol must be established for a period beyond 2012 as the basis for comparable Annex I emission reduction commitments. Therefore the Group stresses the urgency of completing the mandate of Decision 1/CMP.1 to ensure emission reductions by Annex I Parties and to avoid the gap between the first and second commitment periods. The AWG-KP must deliver the results of its work for adoption at CMP6 in Cancun, in accordance with Decision 1/CMP.5. The adoption of the second commitment period of the Kyoto Protocol is the cornerstone of the successful outcomes in Cancun and will greatly facilitate the work of the AWG-LCA.

Madam President,

6. The Group notes that currently there is a big gap between the very low aggregate level of ambition being put forward by Annex I Parties and what the science requires and what is needed to restore balance of our Mother Earth. In this context, the group insists that the work here in Cancun must focus on reaching agreement on the ambitious economy wide quantified emission reduction commitments of all Annex 1 Parties.

7. The Group of 77 and China will continue to engage openly and constructively in the work of the AWG-KP to define the second and subsequent commitment periods for the Kyoto Protocol. The Group would also like to urge all Parties, particularly Annex I Parties to engage faithfully in the negotiations to complete the mandate of the AWG-KP and to build a strong Kyoto Protocol which is the foundation and basis for a fair, just, effective and equitable outcome in Cancun.

I thank you.