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International Trade Regulation and the Mitigation of
Climate Change World Trade Forum 1st Edition Thomas
Cottier Digital Instant Download
Author(s): Thomas Cottier, Olga Nartova, Sadeq Z. Bigdeli
ISBN(s): 9780521766197, 0521766192
Edition: 1
File Details: PDF, 2.11 MB
Year: 2009
Language: english
This page intentionally left blank
INTERNATIONAL TRADE
REGULATION AND THE MITIGATION
OF CLIMATE CHANGE

What can trade regulation contribute towards ameliorating the GHG


emissions and reducing their concentrations in the atmosphere? This
collection of essays analyses options for climate change mitigation
through the lens of the trade lawyer. By examining international law,
and in particular the relevant WTO agreements, the authors address the
areas of potential conflict between international trade law and interna-
tional law on climate mitigation and, where possible, suggest ways to
strengthen mutual supportiveness between the two regimes. They do so
taking into account the drivers of human-induced climate change in
energy markets and of consumption.

t h o m a s c o t t i e r is Professor of European and International


Economic Law at the University of Bern and Director of the Institute of
European and International Economic Law. He is also Managing
Director of the World Trade Institute.
o l g a n a r t o v a is a qualified lawyer in Russia, a research fellow at the
Swiss National Centre for Competence in Research (NCCR) Trade
Regulation of the University of Bern, and alternate leader of the project
on energy in WTO law and policy.
s a d e q z . b i g d e l i is a graduate of the University of Tehran Faculty of
Law and Political Science and a summa cum laude graduate of the MILE
programme at the World Trade Institute in Bern, Switzerland.
INTERNATIONAL TRADE
R E G U L A T I O N A N D TH E
MITIGATION OF
CLIMATE CHANGE
World Trade Forum

Edited by
THOMAS COTTIER
OLGA NARTOVA
and
SADEQ Z. BIGDELI
CAMBRIDGE UNIVERSITY PRESS
Cambridge, New York, Melbourne, Madrid, Cape Town, Singapore,
São Paulo, Delhi, Dubai, Tokyo

Cambridge University Press


The Edinburgh Building, Cambridge CB2 8RU, UK

Published in the United States of America by Cambridge University Press, New York

www.cambridge.org
Information on this title: www.cambridge.org/9780521766197
© Cambridge University Press 2009

This publication is in copyright. Subject to statutory exception and to the


provision of relevant collective licensing agreements, no reproduction of any part
may take place without the written permission of Cambridge University Press.
First published in print format 2009

ISBN-13 978-0-521-76619-7 Hardback

Cambridge University Press has no responsibility for the persistence or accuracy


of urls for external or third-party internet websites referred to in this publication,
and does not guarantee that any content on such websites is, or will remain,
accurate or appropriate.
CONTENTS

Contributors page viii


List of figures x
List of tables xi
List of abbreviations xii
Preface xvii

PART 1 Climate change mitigation: scientific, political


and international and trade law perspectives 1
1 Earth in the greenhouse — a challenge for the twenty-first
century 3
THOMAS STOCKER

2 A survey of Kyoto tools for greenhouse gas reductions:


speculations on post-Kyoto scenarios 13
JOSÉ ROMERO AND KARINE SIEGWART

3 International environmental law and the evolving concept


of ‘common concern of mankind’ 21
THOMAS COTTIER AND
SOFYA MATTEOTTI-BERKUTOVA

4 Domestic and international strategies to address climate change:


an overview of the WTO legal issues 48
ROBERT HOWSE AND ANTONIA L. ELIASON

PART II Climate change mitigation and trade


in goods 95
5 How to think about PPMs (and climate change) 97
DONALD H. REGAN

6 Tilting at conventional WTO wisdom 124


DANIEL C. CROSBY

v
vi contents
7 Private climate change standards and labelling schemes
under the WTO Agreement on Technical Barriers
to Trade 131
ARTHUR E. APPLETON

PART III Trade in renewable energy sources 153


8 Incentive schemes to promote renewables and the WTO
law of subsidies 155
SADEQ Z. BIGDELI

9 The WTO and climate change ‘incentives’ 193


GARY N. HORLICK

10 Certifying biofuels: benefits for the environment,


development and trade? 197
SIMONETTA ZARRILLI AND JENNIFER BURNETT

PART IV Climate change mitigation and trade in


services 229
11 GATS, financial services and trade in renewable energy
certificates (RECs) — just another market-based solution
to cope with the tragedy of the commons? 231
PANAGIOTIS DELIMATSIS AND DESPINA MAVROMATI

12 Assessment of GATS’ impact on climate change


mitigation 259
OLGA NARTOVA

13 GATS’ commitments on environmental services: ‘hover through


the fog and filthy air’? 274
RUDOLF ADLUNG

PART V Climate change and technology transfer,


investment and government procurement: legal
issues 281
14 International transfer of technologies: recent developments
in the climate change context 283
FELIX BLOCH
contents vii
15 TRIMS and the Clean Development Mechanism —
potential conflicts 298
STEFAN RECHSTEINER, CHRISTA PFISTER AND
FABIAN MARTENS

16 Balancing investors’ interests and global policy objectives


in a carbon constrained world: the interface of international
economic law with the Clean Development
Mechanism 319
JACOB D. WERKSMAN

17 Procurement policies, Kyoto compliance and the WTO


Agreement on Government Procurement: the case of
the EU green electricity procurement and the PPMs
debate 328
GARBA I. MALUMFASHI

18 Procurement and the World Trade Organization: purchase


power or pester power? 351
GEERT VAN CALSTER

PART VI Institutional challenges and the way


forward 369
19 Institutional challenges to enhance policy co-ordination —
how WTO rules could be utilised to meet climate
objectives? 371
MIREILLE COSSY AND GABRIELLE MARCEAU

20 Environmental goods and services: the Environmental Area


Initiative approach and climate change 395
THOMAS COTTIER AND DONAH BARACOL-PINHÃO

Index 420
CONTRIBUTORS

rudolf adlung Senior Economist, Trade in Services Division, WTO


Secretariat, Geneva
arthur e. appleton Partner, Appleton Luff — International
Lawyers, Geneva
donah baracol-pinha~ o Former Research Fellow, World Trade
Institute, Bern
sadeq z. bigdeli Former Research Fellow, World Trade Institute, Bern
felix bloch European Commission, Brussels
jennifer burnett United Nations Conference on Trade and
Development (UNCTAD) Secretariat, Geneva
mireille cossy Counsellor, Trade in Services Division, WTO
Secretariat, Geneva
thomas cottier Professor of European and International Economic
Law, Managing Director, World Trade Institute, University of Bern
daniel c. crosby Partner, Budin & Partners, Geneva
panagiotis delimatsis Assistant Professor of Law, Tilburg
University, the Netherlands, Senior Research Fellow, World Trade
Institute, Bern
antonia l. eliason Associate, Allen & Overy, London
gary n. horlick Partner, WilmerHale, Washington, DC
robert howse Alene and Allan F. Smith Professor of Law, University
of Michigan Law School, Visiting Professor of Law, Fordham Law School
and New York University School of Law (2007–2008), Principal Trade
Expert, Renewable Energy and International Law (REIL)

viii
list of contributors ix
garba i. malumfashi Research Fellow, The Centre for Energy,
Petroleum and Mineral Law & Policy, University of Dundee
gabrielle marceau Counsellor, the Office of the WTO Director-
General Pascal Lamy, Geneva
fabian martens Attorney at law, Vischer, Zurich
sofya matteotti-berkutova Research Fellow, World Trade
Institute, Bern
despina mavromati Legal Counsel at the Court of Arbitration for
Sport, Lausanne, Switzerland
olga nartova Research Fellow, World Trade Institute, Bern
christa pfister Attorney at law, Vischer, Zurich
stefan rechsteiner Attorney at law, Vischer, Zurich
donald h. regan William W. Bishop, Jr. Collegiate Professor of Law
and Professor of Philosophy, University of Michigan
jose romero Senior Scientific Advisor, Swiss Federal Office for the
Environment, Bern
karine siegwart Head of Section, Swiss Federal Office for the
Environment, Bern
thomas stocker Professor of Climate and Environmental Physics
and Co-director, Physics Institute, University of Bern
geert van calster Professor of Regulatory Law at K.U. Leuven
Belgium, visiting lecturer at Oxford University, of Counsel (practising)
with DLA Piper, London
jacob d. werksman Program Director, World Resources Institute,
Washington, DC
simonetta zarrilli Legal Officer, the Division on International
Trade and Commodities, United Nations Conference on Trade and
Development (UNCTAD) Secretariat, Geneva
FIGURES

Figure 1 Reconstruction of the atmospheric CO2 concentration over the last


650,000 years page 5
Figure 2 Temperature change in the twentieth century on the six
continents 6
Figure 3 Estimate of likelihood that for a given CO2 concentration, a maximum
warming will not be exceeded 7
Figure 4 Schematic probability distribution of summer temperature 9
Figure 5 Patterns of commitments in selected service sectors 276

x
TABLES

Table 1 Spotlight on Cramer Commission page 202


Table 2 Select examples of monitoring needed to evaluate macro-level effects
of biomass production 209
Table 3 Examples of key mitigation technologies and practices by sector 413

xi
ABBREVIATIONS

AB Appellate Body
AEP American Electric Power
AG Advocate General
AMS aggregate measure of support
AoA Agreement on Agriculture
AOSIS Alliance of Small Island States
APEC Asia-Pacific Economic Cooperation
ASCM Agreement on Subsidies and Countervailing Measures
BTA Border Tax Adjustment
CAFE Corporate Average Fuel Economy
CBD Convention on Biological Diversity
CDM Clean Development Mechanism
CEC Commission for Environmental Cooperation
CERs certified emission reductions
CIEL Center for International Environmental Law
CITES Convention on International Trade in Endangered Species
CLASP Collaborative Labelling and Appliance Standards Programme
CO2 carbon dioxide
COP Conference of the Parties
COP 13 thirteenth Conference of the Parties
CPC United Nations Provisional Central Product Classification
CTE Committee on Trade and Environment
CTESS Committee on Trade and Environment Special Session
CVD Countervailing duty
DDA Doha Development Agenda
DEFRA Department for Environment, Food and Rural Affairs
DMD Doha Ministerial Declaration
DNA Designated National Authority
DSB Dispute Settlement Body
DSU Dispute Settlement Understanding
EAI Environmental Area Initiative
EC European Community
ECJ European Court of Justice

xii
l ist of abbreviati ons xiii
ECN Energy Research Centre of the Netherlands
EFTA European Free Trade Association
EGS environmental goods and services
EISA Energy Independence and Security Act 2007 (US)
EPA Environmental Project Approach
EPACT Energy Policy Act 2005 (US)
EPFL Ecole Polytechnique Fédérale de Lausanne
EPPs environmentally preferable products
ERUs emission reduction units
ESIS Energy Standards Information System
ESTs environmentally sound technology
ETS Emissions Trading Scheme
EU European Union
FAO Food and Agriculture Organization (United Nations)
FDI foreign direct investment
FSC Forest Stewardship Council
GATS General Agreement on Trade in Services
GATT General Agreement on Tariffs and Trade
GEF Global Environment Facility
GHG greenhouse gas
GMOs genetically modified organisms
GPA Government Procurement Agreement
GSP General System of Preferences
HFCs hydrofluorocarbons
HS Harmonized System
HWWI Hamburgisches Weltwirtschafts Institut
IBEW International Brotherhood of Electrical Workers
ICJ International Court of Justice
IEA International Energy Agency
IEC International Electrotechnical Commission
IGOs intergovernmental organisations
IIAs international investment agreements
IISD International Institute for Sustainable Development
ILC International Law Commission
IMF International Monetary Fund
IMO International Maritime Organization
INC Intergovernmental Negotiating Committee
INMETRO National Institute of Meteorology, Standardization and Industrial
Quality (Brazil)
IPCC Intergovernmental Panel on Climate Change
IPRs intellectual property rights
ISEAL International Social and Environmental Accreditation and Labelling
xiv list of abbreviations
ISO International Organization for Standardization
ITO International Trade Organization
KP Kyoto Protocol
LDCs least developed countries
LNG liquefied natural gas
MDGs Millenium Development Goals
MEAs multilateral environmental agreements
MEP Member of European Parliament
MFN most-favoured-nation
NAFTA North American Free Trade Agreement
NAMA non-agricultural market access
NGOs non-governmental organisations
NPR-PPMs non-product related processes and production methods
NTBs non-tariff barriers
ODA Official Development Assistance
OECD Organisation for Economic Co-operation and Development
OIE World Organisation for Animal Health (formerly International Office
of Epizootics)
PFCs perfluorocarbons
PPMs production and process methods
R&D research and development
RE renewable energy
RECs renewable energy certificates
RES renewable energy standards
RFS renewable fuel standard
RPS renewable portfolio standards
RRS Round Table on Responsible Soy
RSB Round Table on Sustainable Biofuels
RSPO Round Table on Sustainable Palm Oil Production
RTFO Renewable Transport Fuel Obligation Programme
S&D support and development
SCM Subsidies and Countervailing Measures Agreement
SGS Société Générale de Surveillance
SPS Sanitary and Phytosanitary Measures Agreement
STOs specific trade obligations
TBT Technical Barriers to Trade Agreement
TEDs turtle excluder devices
TPA third party access
TPES total primary energy supply
TRECs tradeable renewable energy certificates
TRIMS Trade Related Investment Measures Agreement
TRIPS Agreement on Trade-Related Aspects of Intellectual Property Rights
l ist of abbreviati ons xv
UK United Kingdom
UN United Nations
UNCED United Nations Conference on Environment and Development
UNCLOS United Nations Conference on the Law of the Sea
UNCTAD United Nations Conference on Trade and Development
UNDP United Nations Development Programme
UNEP United Nations Environment Programme
UNFCCC United Nations Framework Convention on Climate Change
UNGA United Nations General Assembly
US United States
WCO World Customs Organization
WIPO World Intellectual Property Organization
WSSM World Standards Services Network
WTO World Trade Organization
WWF World Wildlife Fund
PREFACE

The World Trade Forum series was established in 1997 to offer an


opportunity for an international in-depth discussion of issues facing
the world trading system. The topic chosen for the 11th World Trade
Forum was: International Trade Regulation and the Mitigation of
Climate Change. On 21 and 22 September 2007 more than seventy-five
people representing international organisations and governments, as
well as distinguished academic scholars, climate scientists and students
of international economic law from many different countries met at the
World Trade Institute of the University of Bern to discuss what role the
multilateral trading system could play in promoting state participation in
the fight against global warming. The forum was opened by a leading
climatologist from the NCCR ‘Climate’, Martin Grosjean, who provided
the forum with an overview of the science behind the climate change
debate.
The theme of climate change is particularly timely because the
Intergovernmental Panel on Climate Change (IPCC) 4th Assessment
Report, the first volume of which was published in February 2007, re-
affirms that human activities have indeed contributed to the warming of
the globe. Earlier, in 2006, the Stern Review on the economics of climate
change, supported by many economists, some of whom are Nobel Prize
winners, stated that ‘the benefits of strong and early action far outweigh
the economic costs of not acting’. This year’s World Trade Forum, after
touching briefly upon the current state of scientific knowledge on climate
change, outlined the background for the legal ways forward after the
expiry of the Kyoto Regime in 2012. Scholars and experts participating
in the various sessions of the Forum addressed the WTO Agreements
relevant to the climate change debate and made suggestions which led to
this collection of essays.
Such a high-level exchange of expertise would not have been possible
without the guidance of Professor Dr Thomas Cottier, Managing
Director of the World Trade Institute. The co-editors of this volume
xvii
xviii preface
Sadeq Z. Bigdeli and Olga Nartova are indebted to Thomas Cottier for
selecting the theme of the conference and his significant role in helping
shape the programme and encouraging high-level participation in the
Forum. The editors are also indebted to the authors of the chapters in this
collection not only for their valuable input to the content of the con-
ference but also for making the effort to revise their drafts for publica-
tion. At the same time, the World Trade Forum could not have taken
place without support of the discussants and participants who with their
openness and active involvement in the debates contributed to the
success of the event.
Organising the conference requires the work of a dedicated team and
the efforts of all those involved were much appreciated. We wish to
express our gratitude to Susan Kaplan and her assistants, Josephina
Delahaye and Jane Müller, for preparing the manuscript. Many thanks
also go to Sofya Matteotti-Berkutova, NCCR research fellow, for her
work in preparing the conference web page, preparing online abstracts
for the preliminary and final programmes and for undertaking many
other tasks. Moreover, we would like to extend our sincere thanks to the
administrative staff of the World Trade Institute, in particular Margrit
Vetter for doing everything it takes to put on a successful conference.
Special thanks are due to Christian Steiger who supervised the audio-
visual equipment.
The World Trade Forum is a non-profit event, and we are very grateful
for the support provided by the Ecoscientia Foundation. Also, this con-
ference would not have been possible without funding from the Swiss
National Science Foundation in support of the NCCR Trade Regulation
and the invaluable counsel and guidance of Dr Susan Brown-Shafii,
Scientific Coordinator of the NCCR project.
Our special thanks are due to Finola O’Sullivan of Cambridge
University Press and her staff, in particular Brenda Burke and Richard
Woodham, for their commitment to the book project and excellent
support.
PART I

Climate change mitigation: scientific, political and


international and trade law perspectives
1

Earth in the greenhouse — a challenge for the


twenty-first century
thomas stocker

Greenhouse gas concentrations in the long-term perspective


As part of the European Project for Ice Coring in Antarctica (EPICA), an
ice core of 3,270 metres in length was drilled at Dome Concordia (75° 06′ S,
123° 21′ E, 3233 m.a.s.l., −54.5°C mean annual temperature, 2.5 cm H2O
precipitation per year). This ice contains information on climate evolu-
tion over the last 800,000 years.1 Important results of the analysis of the
ice and the enclosed gas are now available and provide a unique context
within which the present changes in the climate system should be
interpreted.
The top layers of a polar ice sheet consist of firn (compacted snow),
which is in contact with the atmosphere above. Air is exchanged with the
atmosphere and can circulate freely in channels of the porous firn.
Beyond a depth of about 80 metres, the high pressure of the overlying
ice constricts the channels progressively until air bubbles are formed.
Analysis of the air enclosed in these bubbles permits the reconstruction
of past concentrations of the most important greenhouse gases: carbon
dioxide (CO2), methane (CH4) and nitrous oxide (N2O). Measurements
demonstrate that the current concentration of CO2 is higher by 27 per
cent, and that of CH4 by 130 per cent, than any concentration during the
last 650,000 years before industrialisation. Many different and indepen-
dent studies show that these increases are caused primarily by the burn-
ing of fossil fuels, the change of land use and the production of cement.2

1
EPICA Community Members, ‘Eight glacial cycles from an Antarctic ice core’, Nature
429 (2004), 623–8.
2
The major raw materials for cement (3CaO·SiO2 and 2CaO·SiO2) are limestone (CaCO3)
and sand (SiO2). The production process involves sintering at temperatures exceeding
1000°C during which the CaCO3 dissociates into CaO and CO2. The former builds a
structure with sand, the latter is emitted to the environment. In 2004, CO2 emissions

3
4 international trade regulation and climate change
Figure 1 shows the CO2 concentration over the last 650,000 years from
measurements of the air entrapped in several different Antarctic ice
cores.3,4 The increase in the concentration of CO2 during the past fifty
years has passed beyond the range of natural fluctuations. These analyses
also demonstrate the tight relationship between the CO2 concentrations
and temperature estimates: during ice ages, concentrations are low and
in the range of about 200 parts per million (ppm), whereas during
interglacials they are about 280 to 300 ppm. The present concentration
is higher than 380 ppm and continues to increase.5

The challenge of the twenty-first century


It is beyond doubt that the accelerated warming of the last fifty years has
been caused primarily by the increase in the concentration of greenhouse
gases and is hence man-made.6 Numerous model simulations demon-
strate that natural forcings, such as the change in solar radiation or
volcanic events, as well as natural cycles, are of only secondary impor-
tance.7 The evolution of the surface temperature over the last thirty years
can only be explained in a quantitative way by the radiative forcing
caused by an increase in greenhouse gases (figure 2). Climate sensitivity,
i.e. the global mean warming due to a doubling of the atmospheric CO2
concentration, and a fundamental measure of the effect of greenhouse
gases, can now be better constrained owing to better paleoclimate recon-
structions.8 These two results reinforce and consolidate the basis on
which calculations of future climate change rest.

associated with global cement production amounted to 3.8 per cent of the global
CO2 emissions of 7.9 × 109 tonnes of carbon per year (G. Marland, T. A. Boden and
R. J. Andres, ‘Global, regional, and national CO2 emissions’ in Trends: A Compendium of
Data on Global Change (Oak Ridge, Tenn.: Carbon Dioxide Information Analysis Center,
Oak Ridge National Laboratory, US Department of Energy, 2007). http://cdiac.esd.ornl.
gov/trends/emis/tre_glob.htm.
3
U. Siegenthaler, T. F. Stocker, E. Monnin, et al., ‘Stable carbon cycle-climate relationship
during the Late Pleistocene’, Science 310 (2005), 1313–17.
4
R. Spahni, J. Chappellaz, T. F. Stocker, et al., ‘Atmospheric methane and nitrous oxide of
the Late Pleistocene from Antarctic ice cores’, Science 310 (2005), 1317–21.
5
Current data on CO2 from Mauna Loa (Hawaii) are available at www.cmdl.noaa.gov/
ccgg/trends
6
S. Solomon, et al. (eds.), Climate Change 2007: The Physical Science Basis (Cambridge
University Press, 2007).
7
P. A. Stott, J. F. B. Mitchell, M. R. Allen, et al., ‘Observational constraints on past attribu-
table warming and predictions of future global warming’, J. Climate 19 (2006), 3055–69.
8
G. C. Hegerl, T. J. Crowley, W. T. Hyde, et al., ‘Climate sensitivity constrained by tem-
perature reconstructions over the past seven centuries’, Nature 440 (2006), 1029–32.
380
360
340
320
300
280
CO2 (ppm)

260
240
–50
220
–52
–54 200
–56 180
–58
–60
–62
–64

Temperature Antarctica (°C)


650,000 600,000 550,000 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0
Age (years before present)

Figure 1 Reconstruction of the atmospheric CO2 concentration over the last 650,000 years measured in different Antarctic ice cores,
combined with the increase in CO2 of the last fifty years directly measured in the atmosphere (upper curve). Temperature in Antarctica is
estimated based on measurements of the stable isotopes of water (lower curve). Data sources: U. Siegenthaler, T. F. Stocker, E. Monnin,
D. Lüthi, J. Schwander, B. Stauffer, D. Raynaud, J.-M. Barnola, H. Fischer, V. Masson-Delmotte, and J. Jouzel, Stable carbon cycle-climate
relationship during the Late Pleistocene, Science, 310, 1313–17, 2005. J. R. Petit, J. Jouzel, D. Raynaud, N. I. Barkov, J.-M. Barnola,
I. Basile, M. Bender, J. Chappellaz, M. Davis, G. Delaygue, M. Delmotte, V. M. Kotlyakov, M. Legrand, V. Y. Lipenkov, C. Lorius, L. Pépin,
C. Ritz, E. Saltzman, and M. Stievenard, Climate and atmospheric history of the past 420,000 years from the Vostok ice core, Antarctica,
Nature, 399, 429–36, 1999. A. Indermühle, T. F. Stocker, F. Joos, H. Fischer, H. J. Smith, M. Wahlen, B. Deck, D. Mastroianni, J. Tschumi,
T. Blunier, R. Meyer, and B. Stauffer, Holocene carbon-cycle dynamics based on CO2 trapped in ice at Taylor Dome, Antarctica, Nature,
398, 121–6, 1999. EPICA Community Members, Eight glacial cycles from an Antarctic ice core, Nature, 429, 623–8, 2004.
Europe

1.0

North America 0.5

1.0 0.0 Asia

Temperature anomaly (°C)


0.5
1900 1950 2000 1.0
Year
0.0 0.5
Africa

Temperature anomaly (°C)


1900 1950 2000 0.0
Year 1.0

Temperature anomaly (°C)


1900 1950 2000
0.5
Year
South America
0.0
Australia
1.0

Temperature anomaly (°C)


1900 1950 2000 1.0
0.5 Year
0.5
0.0

0.0

Temperature anomaly (°C)


1900 1950 2000 Temperature anomaly (°C)
Year
1900 1950 2000
Year

Global Global Land Global Ocean

1.0 1.0 1.0

0.5 0.5 0.5

0.0 0.0 0.0


Temperature anomaly (°C)

Temperature anomaly (°C)


Temperature anomaly (°C)
1900 1950 2000 1900 1950 2000 1900 1950 2000
Year Year Year

Figure 2 Temperature change in the twentieth century on the six continents. Measurements (black curves) are compared with
simulations using different climate models, which consider only changes of solar radiation and volcanic events (darker grey bands), or
which also take into account the increase of greenhouse gas and aerosol concentrations as observed (lighter grey bands, following the
observations in the last decades of the twentieth century).9
earth in the greenhouse — challenge for 21st century 7
A question of fundamental importance for policy-makers is how large
the probability is of staying below an agreed global warming target. This
can only be addressed using climate models which permit a large number
of simulations. Knutti et al.10 have used the climate model of reduced
complexity of the University of Bern11 and assumed an estimated prob-
ability density function for climate sensitivity.12 The results are sum-
marised in figure 3. They show that the agreed climate target of the
European Union, i.e. to limit global warming at 2°C, can be achieved, but
that this requires rapid implementation and efficient reduction of CO2
emissions. A capping of atmospheric concentrations at twice the pre-
industrial concentrations, i.e. at around 560 ppm, would permit a global

1000
likely

900
CO2 Concentration (ppm)

very un

ely

800
unlik

700
ely
lik

y
600 el
lik
r y
500 ve

400

0 2 4 6 8 10
Maximum Warming (°C)
Figure 3 Estimate of likelihood that for a given CO2 concentration, a maximum
warming will not be exceeded. ‘Very unlikely’ denotes < 10%, ‘unlikely’ < 33%,
‘likely’ > 66%, and ‘very likely’ > 90%.
Source: Knutti et al.13

9
IPCC, ‘Summary for Policymakers’ in S. Solomon, et al. (eds.), Climate Change 2007: The
Physical Science Basis (Cambridge University Press, 2007), p. 18 et seq.
10
R. Knutti, F. Joos, S. A. Müller, et al., ‘Probabilistic climate change projections for CO2
stabilization profiles’, Geophys. Res. Lett. 32 (2005), L20707.
11
T. F. Stocker, D. G. Wright and L. A. Mysak, ‘A zonally averaged, coupled ocean-
atmosphere model for paleoclimate studies’, J. Climate 5 (1992), 773–97.
12
R. Knutti, T. F. Stocker, F. Joos, et al., ‘Constraints on radiative forcing and future climate
change from observations and climate model ensembles’, Nature 416 (2002), 719–23.
13
R. Knutti, F. Joos, S. A. Müller, et al., ‘Probabilistic climate change projections for CO2
stabilization profiles’, Geophys. Res. Lett. 32 (2005), L20707.
8 international trade regulation and climate change
warming target of about 3°C. It is evident from these calculations that the
challenge increases rapidly with increasing CO2 concentrations and
more stringent temperature limits.
A global increase in temperature of 2°C is often assumed to be toler-
able and has been declared as a climate target by the European Union.
However, four points need to be considered.
First, while global temperature changes are an abstract metric, it is the
regional changes that are relevant for the environment and society. Due to
fundamental physical processes, the warming will be greater in areas of
seasonal snow and ice cover. This is the snow/ice albedo feedback. In
particular, at latitudes north of 60°N, the warming will be increased by at
least a factor of two. Towards the end of the twenty-first century, large-scale
melting of the Arctic sea ice cover14 as well as accelerated loss of mass of the
Greenland ice sheet are expected.15 This feedback process is also responsible
for a shortening of the winter season in Alpine areas. Even if the very
ambitious climate target of 2°C can be achieved, tourism, water and hydro-
power economies will be seriously affected in these areas.
Second, changes in the occurrence of extreme events have captured the
attention of the public because these are costly and immediate burdens to
society. Simple statistical considerations show that the frequency of the
occurrence of extreme events is particularly sensitive to small changes
in the mean values (figure 4). Therefore, changes in the mean climate
manifest themselves in changing statistics of extreme events. A small
increase in the mean summer temperature, as illustrated in figure 4, will
lead to a strongly increased probability of heat waves. Calculations
suggest that the historic heat wave of 2003 can already be attributed to
global warming.16 Estimates of the future probability of the occurrence of
such heat waves show that a situation such as the heat wave of 2003 or
stronger could occur two to three times per decade towards the end of the
twenty-first century.17 Paleoclimate reconstructions corroborate these

14
G. M. Flato and Participating CMIP Modeling Groups, ‘Sea-ice and its response to CO2
forcing as simulated by global climate change studies’, Clim. Dyn. 23 (2004), 220–41.
15
P. Huybrechts, J. Gregory, I. Janssens, et al., ‘Modelling Antarctic and Greenland volume
changes during the 20th and 21st centuries forced by GCM time slice integrations’, Glob.
Planet. Change 42 (2004), 83–105.
16
P. A. Stott, D. A. Stone and M. R. Allen, ‘Human contribution to the European heatwave
of 2003’, Nature 432 (2004), 610–13.
17
C. Schär, P. L. Vidale, D. Lüthi, et al., ‘The role of increasing temperature variability in
European summer heat waves’, Nature 427 (2004), 332–6.
earth in the greenhouse — challenge for 21st century 9
Increase in mean and variance

current
Probability of occurrence

climate more hot

much more
extreme
hot
more
cold
new
climate

Cold Average Hot


Figure 4 Schematic probability distribution of summer temperature. A small increase
of the mean (shift of the curve towards the right) causes a decrease of the frequency
of cold summers. The occurrence of hot summers and extreme hot summers will
increase by many factors of ten (light and dark shaded areas on the right, respectively).

analyses and demonstrate that the heat wave of 2003 was unique in the
last 500 years!18
Third, long-term changes must be considered, too. The greenhouse
gases already emitted have a long lifetime. In particular, about 15 per cent
of the emitted CO2 will remain in the atmosphere for centuries. Due to its
large thermal inertia, the ocean is far from being in equilibrium. The
increase in sea levels will persist well into the twenty-second century and
would do so even if emissions were reduced today. This is due to the slow
uptake of heat into the ocean. This so-called climate commitment implies
that we have not yet experienced all the consequences of past greenhouse
gas emissions.
Fourth, the latest climate research has shown that several components in
the climate system exhibit non-linear behaviour and tipping points. Among
the best known is the northward extension of the Gulf Stream. Strong and
rapid warming has the potential to destabilise this circulation, causing a
strong reduction in it, or even a cessation.19 Model simulations point to the
possibility of an ice-free Arctic if fossil fuel emissions continue at a high

18
J. Luterbacher, D. Dietrich, E. Xoplaki, et al., ‘European seasonal and annual temperature
variability, trends, and extremes since 1500’, Science 303 (2004), 1499–503.
19
T. F. Stocker and A. Schmittner, ‘Influence of CO2 emission rates on the stability of the
thermohaline circulation’, Nature 388 (1997), 862–5.
10 international trade regulation and climate change
rate.20 The latest simulations suggest that there is a threshold in the range of
a warming between 1.9 and 4.6°C beyond which Greenland could melt
completely.21 Vegetation cover, in particular the tropical rainforest, could
also reach tipping point if warming continues.22

Is there a magic fix?


Magic fixes for global warming are regularly proposed and make head-
lines in the media. But the large amounts of greenhouse gases which have
been emitted during the past 250 years cannot be removed from the
atmosphere within just a few years. Short-term measures such as piping
greenhouse gas emissions into abandoned mines, or reforestation of
some land areas, are futile efforts in comparison to the huge amounts
of emissions. Only long-term strategies and global measures, such as the
increase of fossil fuel efficiency and the gradual worldwide reduction in
emissions will enable us to meet climate targets.
In addition to these indispensable mitigation measures which concern
the origin of global warming, adaptation to the effects of past emissions
and related climate change commitments will be necessary. Adaptation
is highly region-specific. Not only climate change mitigation (as often
claimed), but also climate change adaptation will be associated with high
costs and the necessity for changes and investments in infrastructure.
These costs are highly unlikely to scale linearly with the warming. Rather,
greater warming and related changes will cause disproportionately large
costs for adaptation. Whether we will be faced with a global warming of
2°C or 4°C is solely determined by the amount of greenhouse gases
emitted from today onwards and hence is directly determined by our
decisions at the local, regional and global levels.

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Cox, P. M., Betts, R. A., Collins, M., et al., ‘Amazonian forest dieback under
climate-carbon cycle projections for the 21st century’, Theor. Appl. Clim.
78 (2004), 137–56.

20
M. M. Holland, C. M. Bitz and B. Tremblay, ‘Future abrupt reductions in the summer
Arctic sea ice’, Geophys. Res. Lett. 33 (2006), L23503.
21
J. M. Gregory and P. Huybrechts, ‘Ice-sheet contributions to future sea-level change’,
Phil. Trans. Roy. Soc. Lond. Ser. A 364 (2006), 1709–31.
22
P. M. Cox, R. A. Betts, M. Collins, et al., ‘Amazonian forest dieback under climate-carbon
cycle projections for the 21st century’, Theor. Appl. Clim. 78 (2004), 137–56.
earth in the greenhouse — challenge for 21st century 11
EPICA Community Members, ‘Eight glacial cycles from an Antarctic ice core’,
Nature 429 (2004), 623–8.
Flato, G. M. and Participating CMIP Modeling Groups, ‘Sea-ice and its response to
CO2 forcing as simulated by global climate change studies’, Clim. Dyn. 23
(2004), 220–41.
Gregory, J. M. and Huybrechts, P., ‘Ice-sheet contributions to future sea-level
change’, Phil. Trans. Roy. Soc. Lond. Ser. A 364 (2006), 1709–31.
Hegerl, G. C., Crowley, T. J., Hyde, W. T., et al., ‘Climate sensitivity constrained by
temperature reconstructions over the past seven centuries’, Nature 440
(2006), 1029–32.
Holland, M. M., Bitz, C. M. and Tremblay, B., ‘Future abrupt reductions in the
summer Arctic sea ice’, Geophys. Res. Lett. 33 (2006), L23503.
Huybrechts, P., Gregory, J., Janssens, I., et al., ‘Modelling Antarctic and Greenland
volume changes during the 20th and 21st centuries forced by GCM time
slice integrations’, Glob. Planet. Change 42 (2004), 83–105.
IPCC, ‘Summary for policymakers’ in Solomon, S., et al. (eds.), Climate Change 2007:
The Physical Science Basis (Cambridge University Press, 2007).
Knutti, R., Joos, F., Müller, S. A., et al., ‘Probabilistic climate change projections for
CO2 stabilization profiles’, Geophys. Res. Lett. 32 (2005), L20707.
Knutti, R., Stocker, T. F., Joos, F., et al., ‘Constraints on radiative forcing and
future climate change from observations and climate model ensembles’,
Nature 416 (2002), 719–23.
Luterbacher, J., Dietrich, D., Xoplaki, E., et al., ‘European seasonal and annual
temperature variability, trends, and extremes since 1500’, Science 303
(2004), 1499–503.
Marland, G., Boden, T. A. and Andres, R. J., ‘Global, regional, and national CO2
emissions’ in Trends: A Compendium of Data on Global Change (Oak Ridge,
Tenn.: Carbon Dioxide Information Analysis Center, Oak Ridge National
Laboratory, US Department of Energy, 2007). http://cdiac.esd.ornl.gov/
trends/emis/tre_glols.htm
Schär, C., Vidale, P. L., Lüthi, D., Frei, C., et al., ‘The role of increasing tempe-
rature variability in European summer heat waves’, Nature 427 (2004),
332–6.
Siegenthaler, U., Stocker, T. F., Monnin, E., et al., ‘Stable carbon cycle-climate
relationship during the Late Pleistocene’, Science 310 (2005), 1313–17.
Solomon, S., et al. (eds.), Climate Change 2007: The Physical Science Basis
(Cambridge University Press, 2007).
Spahni, R., Chappellaz, J., Stocker, T. F., et al., ‘Atmospheric methane and nitrous
oxide of the Late Pleistocene from Antarctic ice cores’, Science 310 (2005),
1317–21.
Stocker, T. F. and Schmittner, A., ‘Influence of CO2 emission rates on the stability
of the thermohaline circulation’, Nature 388 (1997), 862–5.
12 international trade regulation and climate change
Stocker, T. F., Wright, D. G. and Mysak, L. A., ‘A zonally averaged, coupled ocean-
atmosphere model for paleoclimate studies’, J. Climate 5 (1992), 773–97.
Stott, P. A., Mitchell, J. F. B., Allen, M. R., et al., ‘Observational constraints on past
attributable warming and predictions of future global warming’, J. Climate
19 (2006), 3055–69.
Stott, P. A., Stone, D. A. and Allen, M. R., ‘Human contribution to the European
heatwave of 2003’, Nature 432 (2004), 610–13.
2

A survey of Kyoto tools for greenhouse


gas reductions: speculations on
post-Kyoto scenarios
jose romero and karine siegwart

The United Nations regime for the protection of the global climate
contains provisions related to trade. So far, there has been no conflict
between climate protection and existing rules for international trade.
But, in the future, conflicts may occur in a number of sectors when new
investments in both mitigation and adaptation will be mobilised, and the
development and transfer of environment friendly technologies to devel-
oping countries may pose problems related to intellectual property rights
(IPRs). The Johannesburg Rio + 10 agreement provides the basic princi-
ple for mutual supportiveness of trade and multilateral environmental
agreements (MEAs), in particular for climate protection.

A. The threat of climate change


Given its potential impact on ecosystems and human activities,1 climate
change is recognised as one of the most important challenges for this
century. Given also that greenhouse gas (GHG) emissions resulting from
anthropogenic activities, such as the burning of fossil fuels, agriculture
and deforestation, are among the causes of the recently observed changes
in the climate system2 substantial mitigation action and adaptation is
urgently needed. The measures adopted are relevant to trade.

B. Provisions of the UNFCCC and its Kyoto Protocol


relevant to trade
The United Nations Framework Convention on Climate Change
(UNFCCC) and its Kyoto Protocol (KP)3 make numerous references to
1
IPCC, Fourth Assessment Report, 2007, www.ipcc.ch 2
Ibid. 3
www.unfccc.int

13
14 international trade regulation and climate change
trade. The decisions adopted for their implementation by their supreme
organ, the Conference of the Parties (COP), consistently provide oppor-
tunities for both mutually supportive and conflicting situations with the
current rules on international trade.
Provisions of the UNFCCC relevant to international trade are con-
tained in Articles 2, 3 and 5. Article 2 provides that a time-frame
sufficient to enable economic development to proceed in a sustainable
manner should be allowed. This is in order for the UNFCCC to achieve
its ultimate objective of stabilising GHG concentrations in the atmo-
sphere at a level that would potentially prevent dangerous anthropogenic
interference with the climate system.4 Article 3, paragraph 5, provides
that measures taken to combat climate change, including unilateral ones,
should not constitute a means of arbitrary or unjustifiable discrimination
or a disguised restriction on international trade. Finally, Article 5, para-
graph 3, provides that Parties have to co-operate to promote a supportive
and open international economic system that would lead to sustainable
economic growth and development of all Parties, particularly developing
country Parties, thus helping them to address the problems of climate
change more effectively. The UNFCCC has introduced policies and
measures that are trade relevant such as:
— those related to policies and measures pursuant to Article 4, paragraph 1;
— the provision of new and additional financial means through bilateral
and multilateral channels according to Article 4, paragraph 3; and
— the transfer of technology (Article 4, paragraph 5, of the UNFCCC),
in particular to developing countries.
The KP also has provisions relevant to trade in its Articles 2 and 3. Article
2, paragraph 2, provides that ‘the Parties included in Annex I shall pursue
limitation or reduction of emissions of greenhouse gases not controlled
by the Montreal Protocol from aviation and marine bunker fuels, working
through the International Civil Aviation Organization and the International
Maritime Organization, respectively’. According to Article 2, paragraph 3 of
the UNFCCC, Annex I Parties ‘shall strive to implement policies and
measures … in such a way as to minimize adverse effects … on interna-
tional trade, and social, environmental and economic impacts on other
Parties …’ The KP has similar provisions in Article 3, paragraph 14.

4
Science establishes a direct link between global warming and the increase of atmospheric
concentrations of GHG. The higher the concentrations the greater the warming and
therefore the greater the potential to disrupt the climate system and the society.
kyoto ghg reduction and post-kyoto scenarios 15
Furthermore, specific provisions of the KP that have a highly trade-
relevant content are:
— Article 2, paragraph 1 (a): sectoral policies and measures that may
lead to conflicts with trade rules;
— the realisation of the reduction objectives contained in Article 3 has
led to specific measures such as insurance (e.g. ‘catbonds’), carbon-
content accounting and transparency, labels, and public awareness in
particular by consumers;
— innovative economic instruments, the so-called Kyoto mechanisms
for carbon trading: joint implementation (Article 6 of the KP); Clean
Development Mechanism (CDM) (Article 12 of the KP); and emis-
sions trading (Article 17 of the KP).
So far, the implementation of the UNFCCC and its Kyoto Protocol has
generated no conflicts with the established rules of international trade.
Nevertheless, countries have considered it necessary to clarify the legal
relationship between the instruments of the climate regime and trade, the
fear of the climate policy-makers being that trade rules would supersede
climate agreements. Following a proposal made by Switzerland, the Rio
+ 10 conference5 that took place in 2002 in Johannesburg decided that
MEAs and trade agreements should be mutually supportive,6 as provided
for in Article 3, paragraph 5, of the UNFCCC: ‘Promote mutual suppor-
tiveness between the multilateral trading system and the multilateral
environmental agreements, consistent with sustainable development
goals, in support of the work programme agreed through WTO, while
recognizing the importance of maintaining the integrity of both sets of
instruments.’
In the interests of trade, the World Trade Organization (WTO)
Ministerial Declaration in Doha in 20017 launched negotiations to
enhance the mutual supportiveness of trade and the environment with
a view to contributing to global sustainability as provided for in Article 3,
paragraph 5, of the UNFCCC. In addition to the exchanges on national
experiences, there have also been detailed exchanges and numerous
submissions8 on the concept of specific trade obligations (STOs) and

5
www.iisd.ca/download/pdf/enb2251e.pdf
6
World Summit on Sustainable Development, Johannesburg, 2002, Plan of Implementation.
7
www.wto.org/english/thewto_e/whatis_e/tif_e/doha1_e.htm
8
e.g. TN/TE/W/2 of 23 May 2002 (Argentina), TN/TE/W/4 of 6 June 2002 (Switzerland),
TN/TE/W/72 of 7 May 2007 (Argentina, Australia).
16 international trade regulation and climate change
the role they can play in enhancing the mutual supportiveness of trade
and the environment. These have encompassed a wide range of STOs
that are directed at complex environmental concerns. In particular, the
negotiations to date have underlined that MEAs are an essential mechan-
ism through which countries can address environmental objectives. It is
also clear that trade measures will continue to be a feature of some MEAs.
But it is also a fact that to date no specific difficulty has arisen in the
relationship between MEAs and the WTO Agreements. Therefore, in
principle, the international climate regime and international trade
should neither interfere nor conflict with one another if the relationship
between the trade and environment regime is clarified according to
the principles of no hierarchy, mutual supportiveness, and deference.
Such a clarification could take place within the Dispute Settlement
Understanding of the WTO.9 In view of the lack of practical experience
within the WTO system it could be useful for WTO dispute settlement
bodies to take advantage of the expertise available from MEAs in envir-
onmental issues.

C. Relationship between actions to tackle climate


change and trade
Climate policies have to deal with the essential nature of our production
and consumption patterns and are therefore recognised as a global
development challenge. Mitigating the effects of climate change and
adapting to its impacts will necessitate measures in all sectors.10 It is
envisaged that efficient and cost-effective means of mitigation and adap-
tation would make use of economic and market instruments.11 This will
require appropriate incentives which are likely to include agreements
and regulations that will have an impact on international trade.
Since the entry into force of the UNFCCC in 1994 and its Kyoto
Protocol in 2005, countries have been adopting appropriate policy and
legal frameworks at the national12 and international levels.13 Enabling
environments for investment and financial flows for the development of

9
e.g. TN/TE/W/68 of 30 June 2006 (European Communities).
10
Organisation for Economic Co-operation and Development (OECD), Climate Change:
national policies and the Kyoto Protocol, OECD, 1999, Paris.
11
OECD, Environmental taxation in the OECD countries: issues and strategies, OECD,
2001, Paris.
12
http://unfccc.int/national_reports/annex_i_natcom_/items/1095.php
13
EU Greenhouse Gas Emissions Trading Directive (2003/87/EC).
kyoto ghg reduction and post-kyoto scenarios 17
effective mitigation and adaptation strategies have to be created in both
developed and developing countries. Existing mechanisms, such as the
CDM, will be strengthened and further developed and new ones will be
created to provide incentives for investments and capital flows. For
example, the CDM has not yet realised its full potential with respect to
technology transfer. Projects that are effective in protecting the climate
(e.g. the destruction of hydrofluorocarbons (HFC 23)) do not really
address technology transfer and sustainable development.14 An exten-
sion of the CDM with a more efficient mechanism for technology
transfer in new sectors and countries is required.

D. The future of the international climate regime


What will the future climate regime after 2012 look like and what are the
likely impacts of this regime on international trade? These questions
should be considered in the light of current and foreseeable provisions
resulting from the negotiations under the UNFCCC and its Kyoto
Protocol.
The thirteenth Conference of the Parties (COP 13) in Bali in
December 2007 will adopt decisions on these matters. Most probably
the COP 13 will adopt a road map for negotiations to be concluded in
2009 for a comprehensive global climate regime with the participation of
all countries. Depending on the objectives of the Bali road map, this
agreement may well contribute to the ‘greening’ of investments and
financial flows in the coming decades.15
Currently, the negotiations aim mainly at determining reduction
commitments for Annex I Parties.16 Based on scientific information17
industrialised countries are requesting that developing countries parti-
cipate in the global emission reduction efforts in view of their large share
in global emissions which already amounts to more than 50 per cent. The
extension of the international climate regime in the period after 2012 has
been investigated by scholars and non-governmental organisations that
have made proposals on these matters.18 Their suggestions range from

14
Axel Michaelowa, ‘CDM: current status and possibilities for reform’, Paper No. 3 by the
Hamburgisches Weltwirtschafts Institut (HWWI) Research Programme International
Climate Policy, 2005.
15
For the outcomes of the Bali Conference see http://unfccc.int/meetings/cop_13/items/
4049.php
16
www.unfccc.int
17
IPCC, Fourth Assessment Report, 2007, www.ipcc.ch 18 www.ccap.org
18 international trade regulation and climate change
realistic and politically acceptable proposals to idealistic or unacceptable
schemes. They concern not only the targets and the instruments, but also
the extent of participation of developing countries in commitments to
GHG reduction. Within the framework of the discussions under the
UNFCCC and its Kyoto Protocol, Parties have already identified a
number of elements of the future climate regime: mitigation, adaptation,
technology and financing.
For mitigation, additional global investment and financial flows
amounting to US$ 200–210 billion will be necessary in 2030 to return
global GHG emissions to the current levels. These figures are from a
recent study by the UNFCCC19 and include the costs of technology
research and development (R&D) related to climate change. Part of
these investments and financial flows will need to be in developing
countries where they are likely to be particularly cost effective.
For adaptation, the UNFCCC study estimates the overall additional
investments and financial flows needed in 2030 to be US$ 30–50 billion.
These estimates also include spending on technological R&D. A signifi-
cant share of these resources will be needed in non-Annex I Parties (US$
28–67 billion). Private sources of funding can be expected to cover a
portion of the adaptation costs. Public resources will be needed in
developing countries and to cover adaptation costs related to the impacts
of climate change on the public infrastructure.
These amounts exceed the current funding available under the
UNFCCC and its Kyoto Protocol, but are small in relation to the esti-
mated global gross domestic product (0.3–0.5 per cent) and global
investment (1.1–1.7 per cent) in 2030.
Potential areas of conflict between climate protection priorities and
trade and new perspectives may be imagined that might conflict with
international trade. In fact, new forms of intervention by the states
are expected to foster technology transfer and new financial means
for mitigation and adaptation. The potential conflicting areas are as
follows:
— The carbon market: the carbon market will doubtless continue and
expand after 2012. In fact, the European Union Emissions Trading
Scheme (EU ETS) is almost independent of the Kyoto regime. Other

19
UNFCCC, ‘Report on the analysis of existing and potential investment and financial
flows relevant to the development of an effective and appropriate international response
to climate change’, 2007, http://unfccc.int/files/cooperation_and_support/financial_
mechanism/financial_mechanism_gef/application/pdf/dialogue_working_paper_8.pdf
kyoto ghg reduction and post-kyoto scenarios 19
regimes introducing the carbon certificates trade will be connected to
the Kyoto regime and to the EU ETS. The carbon market may be
challenged by some states or companies because it creates a sort of
‘appropriation’ of the atmosphere and the right to emit.
— Technology development and transfer: developing countries request
preferential and non-commercial terms of access to technologies.
They argue that these technologies are some sort of ‘common
goods’ because they serve to combat a problem for which they are
not mainly to blame. The promotion of technologies that are not yet
commercially viable should be encouraged.
— IPRs: developing countries have requested that the period of rights
over intellectual property is shortened. Some countries may not
respect IPRs.
— Compensation for the impacts of response measures and assistance for
their economic diversification: requested by oil exporting countries.
— The CDM: sectoral CDM, policy-based CDM. By establishing base-
lines and approved methodologies, the CDM establishes, de facto, a
positive list of technologies and (‘best’ or ‘better’) practices that may
be seen as discriminating against other practices.
— Protectionism: taxes based on the carbon content of the imported
goods from countries that have not made GHG reduction commit-
ments under the Kyoto Protocol.
— Discrimination against users of fossil fuels: de facto through policies
aiming at reducing CO2 emissions, but also of agriculture and for-
estry goods that do not satisfy certain environmental and/or climate
standards.
— Production and consumption patterns may be addressed in the future
as part of the international climate regime, as well as greening of the
markets.
— Financial issues: the financial mechanism of the Convention, the
Global Environment Facility (GEF), Official Development
Assistance (ODA), specific national taxation policies and the mobil-
isation of new and additional resources may give rise to trade issues.
The way forward is through the participation of all the countries in
combating and adapting to climate change. The Bali Plan of Action20
adopted at the COP 13 in Bali in December 2007 corroborates this
approach. Within the WTO Committee on Trade and Environment

20
For the outcomes of the COP 13, consult www.ccap.org
20 international trade regulation and climate change
Special Session (CTESS) it has been decided at the ministerial level that
efforts to safeguard the non-discriminatory multilateral trading system
must go hand-in-hand with the commitment to sustainable develop-
ment. The overall objective of the Climate Change Convention is to
stabilise GHG concentrations at a safe level. The objectives of the
WTO focus on the growth in economic welfare, employment, and pro-
duction of and trade in goods and services. Sustainable development is
also recognised by the WTO as a key objective. Turning to the principle
of ‘mutual supportiveness’, the UNFCCC is coherent because it upholds
an open and non-discriminatory international economic system and the
special and differential treatment of developing countries. At the same
time, the UNFCCC contributes to the overall goal of well-being by
establishing rules, principles and institutions for the protection of the
environment.
A final question: Principle 21 of the Stockholm Declaration (1972) as
amended by the Rio Summit (1992) states that: ‘States have, in accor-
dance with the Charter of the United Nations and the principles of
international law, the sovereign right to exploit their own resources
pursuant to their own environmental and developmental policies, and
the responsibility to ensure that activities within their jurisdiction or
control do not cause damage to the environment of other States or of
areas beyond the limits of national jurisdiction.’ Does this responsibility
impose restrictions on the trade of natural resources?
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The other whirled toward him, snarling; their wrists crashed together.
They swerved and twisted, trying to gain advantage, the caballero
silent and deliberate as he went about his business of killing this
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while the girl crouched in the corner, clasped hands to her breast
and breathed deeply and watched from narrowed eyes.
“If you have prayers to say, renegade, say them now!” the caballero
shouted. “Rojerio Rocha, scion of a noble family—you! In a moment
we shall see whether your blood is blue. You have committed
enough crimes to merit ten deaths, yet I can cause you but one!”
They separated for an instant, clashed again. The caballero spoke
no more, and the watching girl saw that his face was white and that
he bit at his lip and seemed to be growing weak. For the wound in
his shoulder was paining, and he was struggling to keep the film
from before his eyes, conserving strength for the final effort. His
antagonist sensed the advantage and pressed the fighting. A cry of
fear for the caballero came from the girl’s throat.
But he was not to be defeated yet. He braced himself and assumed
the aggressive once more, and again they fought to the centre of the
room. Now fear clutched at the heart of the caballero’s antagonist,
and he showed his craven spirit and love of unfairness.
“Ho!” he shrieked, to be heard above the din of battle in the plaza.
“To the rescue! Hostiles! Your general is being slain! To the rescue!”
A wounded man sitting before the door heard him and spread the
alarm. A score of hostiles left the church and ran across the plaza to
peer through the window of the guest house. They had been told not
to enter there, but what they saw caused them to disregard their
orders. In an instant they were battering at the door and shrieking to
their comrades.
They appeared at the windows, some of them holding muskets ready
to fire, but they dared not for fear of sending a bullet to the heart of
their leader. Purposely, the caballero circled so that his enemy was
between him and the windows; and now, feeling his strength going,
half sick because of the pain his shoulder gave him, he attempted a
quick end to the combat.
There flashed through his mind what fate was in store for the
señorita if he went down before this man. He remembered other
things, too, that gave him an unnatural strength.
“The hole in the wall—get to the hole in the wall,” he cried to the girl;
and she glided past the fireplace, not taking her eyes from the
combatants an instant, until she stood where he had commanded.
A heavy timber was being crashed against the door now. Hostiles
had left the windows to help break in. The caballero fell back toward
the aperture, gasping, half reeling, blood flowing from cuts on his
forearm. He staggered, and his antagonist rushed.
And then they were locked in each other’s arms for an instant while
the caballero, calling upon all his remaining strength, bent the other
man backward, broke his hold, drove home the knife!...
He stepped back, and the body of the other crashed to the floor.
There was no question of the man’s death, for the caballero knew his
poniard had found the heart.
Reeling toward the corner, as the heavy door began to splinter,
hearing the cries of the girl in his ears as she begged him to make
haste, he stopped an instant to pick up his sword from the floor. And
then he was by her side, and she was half supporting him with her
arms, and the big door fell with a crash to let a score of hostiles pour
over it into the guest house.
A flash of flame—a bullet struck the wall within a foot of his head!
The caballero laughed wildly, hurled his poniard at the nearest
Indian, stumbled into the dark tunnel and swung shut the section of
the wall. They could hear the hostiles crashing against it on the other
side.
They could not see each other in the darkness, yet Señorita Anita
guessed that he was bowing before her; and there was the ring of
proud victory in his voice when he spoke:
“Señorita, I have kept my promise—I have slain this man you called
Rojerio Rocha. ’Ware my arm—it is wet! Perspiration—again—
señorita!”
Quiet in the tunnel for a moment, save for the caballero’s heavy
breathing and the girl’s gasps, as she still clung to his arm while he
leaned against the dirt wall trying to recover breath and strength.
In the guest house the hostiles were shrieking news of the fact that
their leader had been slain, and telling by whom, and screeches of
rage came from them as they hammered against the strong adobe
wall, some searching in vain for a way of opening the aperture,
others doubting whether the aperture had been there. Some,
superstitious, began to creep away, thinking there was a ghost
somewhere in this business.
They could hear, too, the roaring of flames from the burning
buildings, and the volleys of shots continued, showing that the
defenders of the mission still kept up the unequal battle.
“You saved me—saved me,” Anita was breathing.
“I merely kept my promise, señorita. Thank you for remaining in the
guest house—for your faith in my words.”
“Yet I doubted at times,” she said.
“No more than natural, since the words were spoken by such a
worthless being as myself.”
“Call yourself worthless no longer!” the girl exclaimed. “Men must
have told falsehoods concerning you. I cannot believe Captain Fly-
by-Night to be the man they say.”
“Worthless compared to yourself, at least, señorita. Made better
perhaps by my sudden love for you! But I must not speak of that,
since you will think I insult you again.”
“Ah, it is not an insult now. Have you not saved me?”
“I do not ask love as a reward for service, señorita. And—I am strong
again now, and we must be going.”
“Where?” she asked.
“Through this tunnel, though I scarcely know which way to go. The
hostiles may open that hole in the wall soon, then this will be no safe
place for us. I hope I have not saved you to have you placed in
danger again.” He put an arm around her—nor did she protest—and
led her slowly along the narrow cut in the earth, trying to shield her
from falling dirt. Where the tunnel branched, he stopped.
“That way leads to the well in the orchard,” he said. “We dare not go
there now, for the hostiles would see us. This leads to the mortuary
chapel of the mission, a place that can be defended against both
sides, señorita. I think it would be the better place. If I must die,
where more appropriate than in a mortuary chapel, eh?”
“Do not speak of dying,” she said. “You must live!”
“Had I something for which to live——!”
“More than I have,” she replied. “What is there in the future for me?
Where is there escape from this present predicament? Where can
Anita Fernandez hold up her head, even if she escaped, since all will
know one of her blood did this thing?”
“Think of your own sweet character, señorita! The faults of another
cannot change that. You must live—live! We will make our way to the
chapel, and please the saints I can hold it until the Governor comes!
I pray he arrives soon, else he will find nothing but ruins and dead
men.”
“If he does not come—? If he stops at San Luis Rey de Francia to
give aid there——?”
“Then perhaps we are lost,” the caballero replied.
“You will not let them take me. You will slay me first?”
“You ask me to kill the thing I love,” he said. “Yet my love is great
enough, I think, to do even that to save you from a worse fate. I
promise, señorita. Yet I pray nothing of the sort will be necessary. I
pray the Governor comes, and I can save you until then, and hand
you over to him safely.”
“And—yourself—?” she asked.
“I am not concerned about myself. Life means nothing to me,
señorita, when it does not hold your affection. Ah, do not turn away
——”
“I am not turning away.”
“You have called me gambler, swindler, wronger of women. I swear I
am not the last, señorita, nor have I ever swindled a man. Yet I am
the notorious Captain Fly-by-Night, you say. I made a foolish boast
that was an insult to you and was ostracized by all at San Diego de
Alcalá—that is what I was told when I first came. I suffered—and you
were kind. I saw you—and I knew what love was. Can you conceive
that love would purify a man, señorita, make him over, make him
regret every mean and petty thing he had done in his life?”
“I—do not know.”
“We are in darkness here and you cannot see my face, but, if you
could, I’d not be afraid you could read deceit there now. I’d gladly die
a thousand deaths to save you a moment’s pain. I’d die ten thousand
if I could feel your lips on mine an instant, know that your heart was
mine! I often have laughed at love, but now I know its depth and
sacredness. Dios! If there was but the slightest hope——”
Her hand tightened on his arm; her voice was the ghost of a whisper
when she answered:
“How do you know there is not?”
“You play with me!” he said.
“And why should I, caballero? Since you met me you have given me
no affront. Twice you have saved me——”
“It is gratitude makes you speak!”
“It is not gratitude, caballero. And, whatever it is, I have fought
against it in vain.”
“It is pity!”
“It is—is love,” she said.
“For me?”
“For you, caballero. I hated your name before you came to San
Diego de Alcalá. I hated you when you arrived. I tried to keep on
hating you, and could not. Ah, have pity and be kind to me! Father,
mother, friends—all are gone. There remains but you. Have pity—
and be kind.”
“You need not offer me love to gain my protection, señorita. You
have that always.”
“Can you not understand? I loved you even before you rescued me
this day. When we were coming from the rancho I would have been
glad had you covered my face with kisses. That is immodest,
perhaps, but I care not. It seems that love only counts now.”
“But if I am Captain Fly-by-Night, a rogue and outcast——”
“I love you!”
“Spurned by loyal men and traitors alike——?”
“I love you!”
“The man who boasted he would win you, señorita——?”
“You have made good your boast—you have won—still I love you!”
she cried.
“Dios! The saints are good at last! Ah, loved one, could I but see
your face now!”
“There would be no deceit in it, caballero. I love you! Have pity, and
be kind!”
“Kind! May the saints teach me new ways of kindness! We must live
—we must live now!”
He clasped her close, rained kisses on her face, felt her own lips
respond to his, knew that tears were streaming down her cheeks. In
the darkness that put night to shame they plighted troth, while the
shrieks of hostiles came to their ears, and the cracking of flames,
and the knowledge of violence and pain and death was in their
minds. Yet in their hearts was a song such as love always causes,
and a new courage to face whatever was to come....
“To the chapel—it is the only chance,” he said, after a time. “I pray
the Governor arrives soon!”
“And then—?” she asked. There was sudden fear in her heart for her
caballero. Had not the Governor ordered him taken alive or dead?
Where was the way out?
But he had no chance to answer. Behind them a shaft of light struck
into the tunnel; the shrieks came nearer. The hostiles had found the
opening at last. Now they advanced swiftly, pistols ready, holding
torches above their heads, crying vengeance on the caballero who
had slain their leader.
With the girl still clasped in his arms, he stumbled on through the
tunnel, making better progress than his pursuers since he had been
through it so often before. He stopped once to discharge his pistol
and check them for a moment, and then staggered on, bending low
where the tunnel was small, running at times, shielding the señorita
at the sharp turns.
He stopped. Far behind were the cries of their pursuers; ahead was
the din of battle. The caballero peered through the crack into the
mortuary chapel and saw one wounded soldier there tying a
bandage on his arm. The door to the main part of the church was
almost closed.
He hesitated only long enough to whisper instructions to the girl,
then tugged at the section of wall so that it swung inward. With a
bound he was in the chapel, his empty pistol menacing the trooper.
Anita ran in behind him.
“Hold!” the caballero cried. “Not a move, señor, else you die!”
Covering the soldier with the weapon, he went back and swung the
section of wall shut again. Then he whirled and advanced toward the
other man, drove him ahead, hurried him through the door into the
main body of the church and dropped the heavy bar.
“The last stand,” he laughed, clasping the girl to him again. “Foes
behind; foes ahead; here we fight it out, beloved!”
They could hear the wounded soldier screeching the news to
soldiers and frailes. Captain Fly-by-Night had appeared from
nowhere in the mortuary chapel; Señorita Anita was with him! She
was in the power of Captain Fly-by-Night!
But the caballero paid scant attention to the wails of the trooper he
had startled. He was working frantically to block the opening in the
wall. Benches, railings, adobe blocks, huge cubes of stone he tore
from their places and piled against the movable section of masonry.
The hostiles would have difficulty entering that way!
They heard the Indians in the tunnel screeching their anger at being
thus blocked. Light from their torches came through the crack. From
the main part of the church rolled the sound of volleys, the ringing of
blades, groans, screams. Someone was pounding on the door of the
mortuary chapel.
Anita Fernandez stood against the wall, breathing quickly, a
whimsical smile on her lips, something of timidity in her manner now,
and watched the man to whom she had given her kisses. For,
despite danger and noise of battle, the caballero sat on a block of
stone and loaded his pistol again—and as he loaded it he smiled and
hummed a song.
CHAPTER XXIV

LOVE PROVES TRUE

The hammering at the door of the mortuary chapel ceased after a


time, for those in the main part of the church had more serious
business to occupy their attention than the attempted capture of
Captain Fly-by-Night.
The front doors of the church had been battered in, and several
times hostiles had invaded the building, but always to be driven back
after suffering heavy losses, for men can fight with thrice their usual
strength and courage when making a last stand against an
overwhelming foe.
Now storehouse and hospital building and guest house were
burning, the most of the loot having been removed, and clouds of
heavy smoke poured into the church, half suffocating the defenders
there, yet at the same time proving a blessing, since the dense pall
made it impossible for those in the plaza to get good aim at a
defender.
In a corner Señora Vallejo, some wives of ranchers and a few loyal
Indian women and children crouched, the most of the time at their
prayers. Dead men were against one wall, wounded against another,
a fray attending to the latter. At the windows and both sides of the
doorway stern men waited with muskets and pistols to fire whenever
a hostile could be seen through the smoke. Thanks to the action of
the comandante in removing supplies from the presidio, there was
an abundance of ammunition.
Yet the defenders were being cut down one at a time, and it seemed
only a question of hours until the enemy would triumph. It was the
sudden, unexpected rushes those in the church feared, for if enough
hostiles could invade the church at one time the defenders would be
scattered and cut down.
“A ghost, eh?” Cassara was shouting in Gonzales’s ear. “So this
Captain Fly-by-Night is in the mortuary chapel, eh? I told you I saw
him go into the church. He has been hiding there!”
“The imbecile trooper declares Señorita Anita is with him, and how
can that be?” Gonzales wanted to know. “We are all aware that she
was left behind in the guest house, and that Rojerio Rocha went
there to save her. Since the guest house is in flames, it is to be
supposed both died there.”
“The trooper saw double,” Cassara replied. “He had been wounded.
But Captain Fly-by-Night is there, nevertheless, and presently we
shall attend to him. Hah! When I stand before him——”
“If I do not face him first,” Gonzales interrupted.
“Bar the door, will he? ’Twill not take me long to break it in when I am
at liberty to do so. ’Ware the window, good pirate! They are coming
again!”
The hostiles had prepared for another rush, and now they made it,
plunging through the smoke and into the church in an effort to
exterminate their foes. A concentrated fire met them, as it had
several times before. Some fell; others rushed on.
Here and there the combat was hand-to-hand. Every foot of the way
they found disputed by a determined man. They were driven out
again, leaving dead and wounded behind them; and those inside
placed another man against the wall and bound up more wounds.
The smoke was stifling now. Women and children hung around the
big water jars, gasping for breath. The faces of the men were grimy,
their eyes red. Comandante and ensign rushed from one part of the
church to another, alert for possible tricks of the enemy, taking
advantage where it was possible. Frailes were building a barricade in
a corner, preparing for the forlorn hope.
The Indians in the plaza seemed to be quiet for a moment, and then
their shrieks were redoubled, and another assault was launched.
Hoarse voices of chiefs shouted orders, a fusillade of shots tore
through the doorway, and for a moment no man could live at the
windows. Then came the rush!
More than one man felt that it was the last. The ranks of the
defenders had been cut down until a mere handful remained. The
frailes hurried women and children behind the barricade in the
corner, and the soldiers retreated foot by foot, resisting stubbornly
but in vain. At close quarters shots were exchanged, blades rang,
fingers tore at throats.
“Back—back! The barricade!” the comandante ordered.
Back they fell, step by step, still resisting, carrying wounded with
them. Behind them the frailes and women were loading muskets and
pistols, for the soldiers had no time to load now. One by one they
gained the shelter of the barricade, until all were behind it, and then
the hostiles faced a volley that drove them raging back toward the
doorway. But they were inside the church—and the end was near.

In the mortuary chapel the caballero had been listening at the door,
and when he turned to face the señorita his face held an expression
she never had seen in it before.
“What is it?” she asked.
“The hostiles are inside—they have driven the defenders to a
corner,” he replied.
“Then——?”
“Everything may end for us here. They will be before us and behind
us. Either they will enter, or else fire the building. It is best to tell you
the truth, señorita; we are in a trap.”
“If—they enter—you will remember your promise?”
He held out his arms, and she slipped into them, and for a moment
their lips met. He was almost sobbing when he answered.
“I’ll remember.”
“You’ll not let them take me alive?”
“Never that, señorita! I wish we might face a different future. I am just
beginning to find life worth the living,” he said. “But at least I can die
knowing your heart is mine.”
Hostiles in the tunnel were still battering against the wall, trying to
gain entrance. The caballero had been watching there carefully, yet
found no cause for alarm. One shot had come through the crack, but
it was an easy matter to stand in such part of the chapel that no
bullet could reach them.
He crept to the door again and listened, Anita close behind him. The
shots seemed to be scattering now, and he sensed that the Indians
were preparing for the last rush. He heard the comandante shouting
orders. Children were crying; the voice of a fray in prayer could be
heard above the din.
Again the men in the tunnel assaulted the wall, and the caballero left
the door quickly to stand in the centre of the room, pistol and sword
ready in case an entrance should be made. But the barricade he had
constructed against the section of masonry held despite the furious
attack upon it.
In the church there was another chorus of shrieks, a volley, cries of
pain and rage—for the final attack had begun. The caballero clasped
Anita in his arms again, and so they waited for the end, the girl with
her face against his shoulder and fingers in ears to keep out the
death wails and frenzied cries.
The defenders were shouting now, in mock courage the caballero
thought, going down to their deaths fighting, dying like men.
Suddenly the battering at the wall ceased, and cries from the tunnel
told that the Indians were retreating quickly. Word had been passed
to them, he supposed, that victory was in the front, and they were
eager to be in at the death. They would watch the outlets of the
tunnel, of course; there could be no escape that way.
“It is the end, beloved,” the caballero breathed. “Our love dies almost
as soon as ’twas born. You do not regret——?”
“I regret only that we cannot spend a life together, my caballero,” she
replied. “Ah, ’tis cruel!”
Again their lips touched, and then he half turned from her, and
motioned to the corner.
“Pray,” he whispered. “Pray there, beloved, with your back to me. I
could not do it if I looked into your face. Pray until the end——”
Now she was white of face, and her lips were trembling, but she only
looked him once in the eyes and then did as he said. Facing the wall,
she knelt and prayed, while the caballero looked to his pistol to see
that it was properly charged, and himself said a prayer under his
breath.
Six feet behind her he stood, his eyes upon the floor, his ears
strained to catch every sound from the church. The defenders were
putting up a stubborn resistance, for the comandante was still
screeching orders, and the volleys crashed, and the hostiles
shrieked their anger at being held from their prey.
And then the tone of the shrieks changed from anger to fear! The
caballero stepped swiftly close to the door. He heard the defenders
cheering; heard heavy volleying that was not inside the church;
heard strong voices raised in shouts and the sound of galloping
hoofs, the wailing cry of a fray.
“My God, I thank Thee!”
Sergeant Cassara’s great voice was raised in a howl of relief and
encouragement. Running feet sounded in the church. The
caballero’s heart was pounding at his ribs, and he was trying to beat
from his brain the sudden hope he felt for fear it would prove
unfounded.
Another volley; another chorus of shrieks as from a far distance;
more cries of anger, and gladness, and surprise! Then a strong voice
that had not been heard before:
“At those flames, some of you men! Help the wounded here! Get the
women and children out of the smoke! Lieutenant, see that every
hostile is run down—we want not one to escape! If we had been a
minute later——”
Señorita Anita, busy with her prayers and her agony of mind, had not
noticed these things. And now the caballero, with a glad cry, ran to
her, lifted her bodily from the floor, and covered her face with kisses.
“The Governor, beloved!” he cried. “His excellency has come—in
time! Oh, beloved—beloved!”
Once more the pounding on the door!
“Open, in the Governor’s name! We know you are there, Captain Fly-
by-Night! There is no escape! Open!”
The caballero stood in the centre of the chapel with Anita nestling
against his breast, and he spoke in whispers, giving no attention to
the summons at the door.
“You are safe now, beloved,” he said. “The world has not come to an
end, you see. It is pretty much as it was before this revolt. You can
be again with your friends, with people of your rank. Is life not good
—after all?”
“With you it is,” she whispered in reply.
“When all was dark you spoke of love to me,” he went on. “There
was nothing in the future for you then. But now there is everything in
the future. You can face the world again——”
“Stained by a relative’s act, caballero?”
“Who knows of that? It is believed Rojerio Rocha died a loyal man.
You know differently, and your duenna, and myself. None ever will
open lips to speak of it. None other ever will know, señorita. You can
hold up your pretty head as before, and live, and be happy. At the
rancho the months will dim the memories of this thing. Think,
señorita! You have no need of me now.”
“No need of you?” she asked.
“Have you, señorita? Things are different now. No longer do you
need the worthless caballero like myself. Could you hold up your
head if ’twas known Captain Fly-by-Night held your love?”
“I could,” she said, “and proudly!”
“If the man who boasted had won you——?”
“Still, I could!”
“Gambler, thief—renegade——?”
“The caballero who saved me, and whom I love—none other! And no
renegade!”
“Yet there were orders to take me, dead or alive. Think you these
dead and wounded men will change the Governor’s mind? I swear I
had no part in this revolt, señorita, but none will think so, except
perhaps your charitable self.”
They were pounding on the door again, but the caballero gave no
reply.
“I love you,” she said simply.
“You gave me word of your love while in deadly peril, señorita, at a
time when no other man could offer you protection, perhaps through
momentary gratitude at what I had done. Now it is not necessary,
señorita, for you to stand by that word. You have but to go through
that door to be with your friends again—you need not lower yourself
longer by companionship with Captain Fly-by-Night.”
“There is no one else,” she answered. “All are gone. And were there
a million, did to stand by you mean to be ostracized by all the world,
yet by your side I’d stand. Anita Fernandez does not give love for
gratitude, señor. And she gives it but once!”
“My beloved!” he cried, holding her close.
Now the battering at the door would be denied no longer, and the
Governor’s voice came to them.
“Inside, there! Open, Fly-by-Night, for there is no escape. If you have
harmed the señorita——”
“I am here and safe,” the girl called.
“Thank Heaven!” they heard the Governor exclaim. “Open and
surrender, Fly-by-Night! Surrender and take the consequences of
your act!”
The caballero looked down at the girl again.
“There is no other way,” he said. “There is no escape——”
“N—no! Have you forgotten? Even if you can prove you had no part
in the uprising, there is still another charge. Did you not slay Rojerio
Rocha? He was the Governor’s friend. My word, the señora’s, that
he was the real renegade, would not be taken in the absence of
other proof. Think you the Governor would believe ill of his dead
friend? They’d have your life——”
“There is no other way, beloved. One kiss—again—and I must open
the door!”
“No—no! I cannot lose you now!”
“It would be better for you to pretend no interest in me,” he said.
“Then my death as a felon will not stain you.”
“I stand by you, caballero, in the fact of whatever may occur; I tell my
love to the world as soon as you open that door; I fight to save you—
use every influence—and will be proud to let all know it! What care I
what the world says, caballero? I know the man who holds my love—
know him better than the world that has maligned him——”
“Ah!” he cried, and covered her face with kisses again. “This were
love indeed!”
“Open the door, or we batter it down!” thundered the Governor’s
voice.
“I’ll open it presently!” the caballero cried.
In the other room there was quiet for a moment while they awaited
the caballero’s appearance. Before the door were Gonzales,
Cassara, Ensign Sanchez, the lieutenant, all with swords drawn and
held ready, all of them wounded slightly, all fatigued, yet all eager to
cross blades with Captain Fly-by-Night.
“Back!” the Governor was ordering them. “I want this man alive, to
make an example of him!”
Inside, the caballero took his arms from around the girl, and stepped
to the door. In the face of such a predicament he still could smile and
hum a song. But, as he touched the bar, Anita grasped his arm.
“I go out first,” she said.
“No——”
“Ah, do not deny me! There is something I would say——”
“As you please, señorita.”
“Kiss me again—again! Now—open the door!”
He took down the heavy bar and threw the door open. Those outside
beheld Señorita Anita Fernandez standing before them, the
caballero behind her. The girl’s head was lifted proudly, and her eyes
flashed as of old, and she looked the Governor straight in the face as
she spoke:
“Before this man gives himself to you I want you to know that I love
him better than all the world——”
“Anita!” cried Señora Vallejo from one side.
“I want you to know that he denies being a leader of the hostiles, and
that I believe him. Twice he saved me from dishonour and death. No
affront has he offered. It is true he killed Rojerio Rocha, and, as for
that——”
She stopped; for suddenly the caballero had stepped beside her, the
whimsical smile playing about his face.
“Good day, your excellency!” he said, bowing low.
And his excellency, the Governor, bent forward, eyes bulging, lower
jaw sagging for a brief second, then straightened and roared aloud:
“By the saints! Killed Rojerio Rocha, eh, girl? Hah! By the saints, this
man before us is Rojerio Rocha, my good friend! Ah, boy, boy! They
told me you had been slain!”
Before them all he took the dishevelled caballero in his arms!
CHAPTER XXV

THE SERGEANT SLEEPS AGAIN

“Explain, rogue!” cried the Governor half an hour later. They were in
the plaza, where a temporary camp had been established. The fires
were out, the smoke had drifted away. Wounded had received
attention, and preparations were being made for burying the dead. In
all directions troopers pursued hostiles and cut them down.
His excellency had told how the revolt at San Luis Rey de Francia
and other missions had been quelled. The body on the floor of the
guest house had been examined and word passed that here was the
genuine Fly-by-Night, renegade and conspirator, and that the real
Rojerio Rocha had slain him.
“Explain?” the caballero echoed. “’Tis a simple matter. When I
reached San Diego de Alcalá I was mistaken for this Fly-by-Night. I
thought to have jest by assuming the rôle. Then the hostiles, taking
me for their leader through the same misunderstanding, came to tell
me their plans. Being a loyal man, I maintained my rôle to learn all
possible, and tried in every way to delay the attack until the force
from the north could arrive.”
“Very good, my boy!” his excellency exclaimed.
“But they grew suspicious and soon I found myself at outs with white
men and red. Then came word for Captain Fly-by-Night to be taken
dead or alive at all costs. To everyone here I was Fly-by-Night, of
course. The description sent——”
“A fool of a cleric copied your description from the pass record by
mistake,” cried the Governor. “I’ll send him packing when I return!”
“It was at San Juan Capistrano that I first met discourtesy,” the
caballero went on. “They knew of this Fly-by-Night’s insult to the
señorita, assumed I was the man come to win her, and gave me to
understand how they regarded me. Sorry trouble I faced by
pretending to be another man.
“Then the real Fly-by-Night came, and because Rojerio Rocha was
due, he was hailed as such. It amused him, no doubt, to be called
Rocha and introduced to the señorita, placed in a position to win her.
Moreover, it gave him a chance to continue plotting in security—for
who would suspect Rojerio Rocha? You understand? And I could
say nothing then, being known as Fly-by-Night. Oh, it was a pretty
mess! Things were happening with such rapidity that he was not
asked to show credentials, of course——”
“And you faced death,” said the Governor, “became fugitive, allowed
people to call you despicable in order to be of service to the state? A
worthy caballero!”
“That was not all the object,” the caballero replied, laughing lightly
and looking at Anita again. “I had heard of Fly-by-Night’s boast, you
see; and when they took me for him I thought it would be a lark to
approach the señorita in that guise. I was coming to wed her at her
father’s request, you see. We were as good as wed, you might say,
yet never had seen each other. How much better—I am sure you will
understand, excellency—to win her true love under another name, to
be sure she was wedding the man, not the distant relative her father
had commanded her to wed.
“You see my point? And, if I could win her love as Captain Fly-by-
Night, the man she despised—if I could turn her hatred and
repugnance to affection, would I not be sure it was real love?”
“Hah!” the Governor cried, and looked at the blushing girl.
“It was done,” the caballero said. “And—thank the saints, it has been
proved the love is real!”
And then he crossed before them, and Anita, seeing him coming, got
upon her feet, and he took her into his arms and kissed her there
before them all.
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