Sustainable development and

the Kyoto Protocol

Domenico SantinoDomenico SantinoENEA – Global Climate Project ENEA – Global Climate Project santino@casaccia.enea.itsantino@casaccia.enea.it

OUTLOOK

• Sustainability

• Climate Change

• The road to Kyoto

Sustainability

Giving economic development a future

Society capitals

1. Natural capital – Natural resources – Services provided for human activity – Ability of natural environment to maintain its long-term health

2. Human/social capital – Connectedness to people and society – Education, skills and health of population

3. Financial/Built capital – Manufactured goods, buildings, infrastructure – Information resources – Credit and debt

World Commission on Environment and Development,

also known as Brundtland Commission [1987] defined

sustainable development such as : “…development that meets

the needs of the present without compromising the ability of

future generations to meet their own needs"

Other definitions

"…our economic systems should be managed so that we

live off the dividend of our resources, maintaining and

improving the asset base (...) as development proceeds,

the composition of the underlying asset base changes”

Repetto R. 1985, "The global possible - Resources, development and the new century", Yale University Press, New Haven.

"Sustainability, like justice, is a value not achievable

by purely individualistic market process"

Daly H. E. 1986, "Thermodynamic and economic concept as related to resource-use policies: comment", Land Econ. 62."

"In simple terms, sustainable development argues for:

a) ... Resources harvest rates at levels no higher than

managed or natural regeneration rates; b)...wastes

disposal rates should not exceed rates of (natural or

managed) assimilation in the counterpart ecosystems"

Pearce D. W. 1988, "The sustainable use of natural resources in developing countries", in Turner R. K. (ed.) 1988

"We take development to be a vector of desirable social objectives, and elements may include:

• increase in real income per capita• improvements in health and nutritional status• educational achievement• access to resources• a 'fairer' distribution of income• increases in basic freedoms

... sustainable development is then a situation in which the development vector increases monotonically over time".

Pearce D., Barbier E. and Markandya A. 1990, "Sustainable development. Economics and environment in the Thirld World", Earthscan Publications.

WEAK SUSTAINABILITY

Manufactured capital of equal value can take the place of natural

capital

STRONG SUSTAINABILITY

The existing stock of natural capital must be maintained and enhanced because the functions it performs cannot be duplicated by manufactured capital

SUSTAINABILITY different levels

Sustainable development can also be seen

as the answer from human societies to the

increasing concern of the world wide

environmental issues

Global environmental issues

• Climate change

• Ozone layer depletion

• Desertification

• Endangered biodiversity

• Acid rains

CLIMATE CHANGE

A global challenge

Variations of earth surface temperature

1.1. Climate change “Climate change “mitigation”mitigation” strategy strategy

Anthropogenic intervention to reduce the sources of ghgs and/or enhance their

absorption (sinks)

Action Strategies

Interventions to reduce the impacts of Interventions to reduce the impacts of climate change climate change

2.2. Climate change Climate change “adaptation”“adaptation” strategy strategy

Action Strategies

1. Short term : stabilization of anthropogenic greenhouse gas

emissions

2. Long term : stabilization of greenhouse gas concentrations

in the atmosphere at a level that would prevent

dangerous anthropogenic interference with the

climate system

Mitigation purposes

• Lowering emissions Efficient use of energy

Carbon sequestration

Renewable energies

New energy vectors (hydrogen) Nuclear energy

• Enhancing ghgs removal (sinks) Forestation, reforestation, afforestation

Curbing soil degradation

Optimization of forestry management

Mitigation options

The road to Kyoto

A first step for a long path

• 1972: Club of Rome publishes controversial Limits to Growth. (Meadows D.H et al.). It predicts dire consequences if growth is not slowed.

1972 UN Conference on Human Environment (UNEP) held in Stockholm. The conference is rooted in the regional pollution and acid rain problems of northern Europe. Leads to the establishment of many national environmental protection agencies and the United Nations Environment Program (UNEP).

Significant events in the development of a global awareness of the environmental issues

• 1983 World Commission on Environment and

Devolopment, also known as Brundtland Commission

• 1987 Our Common Future (Brundtland Report). Report of

the World Commission on Environment and Development

weaves together social, economic, cultural and

environmental issues and global solutions. Popularizes

term "sustainable development.".

• 1992 First Earth Summit: UN Conference on Environment

and Development (UNCED) held in Rio de Janeiro.

Agreements reached on the action plan "Agenda 21" and

on the Convention on Biological Diversity, the Framework

Convention on Climate Change (UNFCCC) and

non-binding Forest Principles.

• 1997 Kyoto Protocol: international agreement on

greenhouse emissions

UNFCCC

Its negotiations lasted from 1991 untill

1992.

It entered into force on 21 March 1994.

Its objective is written in art. 2

"The ultimate objective (...) is to achieve, in accordance with the relevant provisions of the Convention, stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interferencewith the climate system. Such a level should be achieved within a time-frame sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food production is not threatened and to enable economic development to proceed in a sustainable manner ".

Art. 2 of UNFCCC

Art. 3 of UNFCC 1/2

"The Parties should protect the climate system for the benefit

of present and future generations of humankind, on the basis

of equity and in accordance with their common but

differentiated responsibilities and respective capabilities.”

Art. 3 of UNFCC 2/2

(...) The Parties should take precautionary measures to

anticipate, prevent or minimize the causes of climate change

and mitigate its adverse effects. Where there are threats of

serious or irreversible damage, lack of full scientific certainty

should not be used as a reason for postponing such measures,

taking into account that policies and measures to deal with

climate change should be cost-effective so as to ensure global

benefits at the lowest possible cost".

The Kyoto Protocolagreed on 7 December 1997

The Protocol has since been ratified by over 150

countries, and entered into force (became legally

binding) on 16 February 2005.

The Kyoto Protocol deals with:

• the 1st phase of mitigation strategy

• only developed countries (as in Annex B of the

Protocol)

Developed countries (OCSE and East and Central Europe

countries) agreed to targets that will reduce their overall

emissions of six greenhouse gases by 5.2% below 1990

levels over the period 2008-2012.

Purpose

The ghgs of the Kyoto Protocol

• carbon dioxide (CO2),

• methane (CH4),

• nitrous oxide (N2O),

• sulphur hexafluoride (SF6),

• hydrofluorocarbons (HFC),

• perfluorocarbons (PFC).

Country Target (1990* - 2008/2012)

EU-15, Bulgaria, Czech Republic, Estonia, Latvia, Liechtenstein, Lithuania, Monaco, Romania, Slovakia, Slovenia, Switzerland

-8%

US** -7%

Canada, Hungary, Japan, Poland -6%

Croatia -5%

New Zealand, Russian Federation, Ukraine 0

Norway +1%

Australia +8%

Iceland +10%

*Some economies in transition (EITs) have a baseline other than 1990.** The US has not ratified the Kyoto Protocol.

Countries included in Annex B to the Kyoto Protocol and their emissions targets

How to reach the goal?

• Domestic Policies and Measures;

• Flexible Mechanisms :

– Emissions Trading;

– Joint Implementation;

– Clean Development Mechanism.

Emissions Trading

According to art.17 to PK, countries may acquire assigned

amount units (AAUs) from other countries that find it easier

to meet their emissions targets

Joint Implementation

According to art.6 to PK, "any Party included in Annex I

(Developed Countries) may transfer to, or acquire from, any

other such Party emission reduction units resulting from

projects aimed at reducing anthropogenic emissions by

sources or enhancing anthropogenic removals by sinks of

greenhouse gases in any sector of the economy, provided

that: (...) (b) Any such project provides a reduction in

emissions by sources, or an enhancement of removals by

sinks, that is additional to any that would otherwise occur".

Clean Development Mechanism

According to art. 12 of KP: “The purpose of the clean

development mechanism shall be to assist Parties not

included in Annex I in achieving sustainable development

and in contributing to the ultimate objective of the

Convention, and to assist Parties included in Annex I in

achieving compliance with their quantified emission

limitation and reduction commitments under Article 3 “

Additionality

According to the Kyoto Protocol Articles on

Joint Implementation and the

Clean Development Mechanism, Emissions Reduction Units

(ERUs) will be awarded to project-based activities provided

that the projects achieve reductions that are "additional to

those that otherwise would occur"..

Additionality

A distinction is made between environmental additionality and economic/financial additionality

Financial additionality means projects will only earn credit if funds additional to other commitments are specifically committed to achieve the greenhouse gas reductions

Environmental additionality requires that emission reductions represent a physical reduction or avoidance of emissions over what would have occurred under a business as usual scenario

European Union ratified the Kyoto Protocol during the Meeting of the Ministries of the Environment on 4 March 2002.

Under the Kyoto Protocol, the European Union

and its Member States have agreed to meet a

joint target of a -8% reduction in greenhouse

gas emissions below 1990 levels by 2012.

This 'bubble' arrangement allows the EU's target to be

redistributed between member states to reflect their

national circumstances, requirements for economic

growth, and the scope for further emission reductions.

In June 1998, environment ministers agreed how the

target should be shared out.

Member State Reduction target (%)

Austria -13

Belgium -7,5

Denmark -21

Finland 0

France 0

Germany -21

Greece 25

Holland -6

Ireland 13

Italy -6,5

Luxemburg -28

Portugal 27

Spain 15

Sweden 4

United Kingdom -12,5

Total UE -8

EU Emissions Trading Directive 2003/87/EC

The EU Emissions Trading Directive 2003/87/EC was agreed on 22 July 2003 following discussions between the European Commission, the European Parliament and the European Council.

The Directive came into force on 25 October 2003 when it was published in the EU's Official Journal.

The scheme is based on six fundamental principles :• It is a “cap-and-trade” system. • Its initial focus is on CO2 from big industrial emitters. • Implementation is taking place in phases, with periodic

reviews and opportunities for expansion to other gases and sectors.

• Allocation plans for emission allowances are decided periodically.

• It includes a strong compliance framework. • The market is EU-wide but taps emission reduction

opportunities in the rest of the world through the use of the CDM and JI, and provides for links with compatible schemes in third countries.

About 11500 installations in the 25

Member States are covered by the

Directive, accounting for around 45% of

the EU's total CO2 emissions or about 30%

of its overall greenhouse gas emissions.

Thanks for your attention!