KYOTO PROTOCOL

Group 6Ankita Mahajan (110)

Briji Komban (115)Ramya UK (144)

Introduction The Kyoto Protocol is a protocol to the United Nations 

Framework Convention on Climate Change (UNFCCC), aimed at fighting global warming

The UNFCCC is an international environmental treaty with the goal of achieving the "stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system.“

The Protocol was initially adopted on 11 December 1997 in Kyoto, Japan, and entered into force on 16 February 2005

 As of September 2011, 191 states have signed and ratified the protocol

Brown = Countries that have signed and ratified the treaty             (Annex I & II countries in dark brown)Blue = No intention to ratify at this stage.Dark blue = Canada, which withdrew from the Protocol in December 2011.Grey = no position taken or position unknown

Participation in Kyoto Protocol as of 2011

Kyoto Parties with first period (08-12) greenhouse gas emissions limitations targets and the percentage change in their carbon dioxide emissions from fuel combustion b/w 1990 and 2009

Objectives Under the Protocol, 37 countries ("Annex I

countries") commit themselves to a reduction of four greenhouse gases (GHG) (carbon dioxide, methane, nitrous oxide, sulphur hexafluoride) and two groups of gases (hydro fluorocarbons and per fluorocarbons) produced by them, and all member countries give general commitments

At negotiations, Annex I countries (including the US) collectively agreed to reduce their greenhouse gas emissions by 5.2% on average for the period 2008-2012. 

Since the US has not ratified the treaty, the collective emissions reduction of Annex I Kyoto countries falls from 5.2 % to 4.2% below base year

Each Annex I Party has a binding commitment to limit or reduce GHG emissions and innovative mechanisms have been established for Parties to facilitate compliance with this commitment.

Other commitments include:• Each Annex I Party must undertake domestic policies and

measures to reduce GHG emissions and to enhance removals by sinks;

• In implementing these policies and measures, each Annex I Party must strive to minimize any adverse impact of these policies and measures on other Parties, particularly developing country Parties;

• Annex I Parties must provide additional financial resources to advance the implementation of commitments by developing countries;

• Both Annex I and non-Annex I Parties must cooperate in the areas of:

(a) The development, application and diffusion of climate friendly technologies;

(b) Research on and systematic observation of the climate system;

(c) Education, training, and public awareness of climate change; (d) The improvement of methodologies and data for GHG

inventories

Objectives

Major Greenhouse Gas trends

2012 Emission Targets

Austria – 87%Belarus – 95% Belgium – 92.5%Bulgaria – 92% Canada – 94% Croatia – 95% Czech Republic – 92% 

     Denmark – 79%Estonia – 92% Finland – 100%France – 100%Germany – 79%Greece – 125%Hungary – 94% Iceland – 110% 

      Ireland – 113%Italy – 93.5%

Liechtenstein – 92% Lithuania – 92% Luxembourg – 72%Netherlands – 94%New Zealand – 100% Norway – 101% Poland – 94% Portugal – 127%Romania – 92% Russian Federation – 100% Slovakia – 92% Slovenia – 92% Spain – 115%Sweden – 104%United Kingdom – 87.5%United States of America – 93%

Contd...

Five Parties have an alternative base year: Bulgaria: 1988; Hungary: the average of the years 1985-1987; Poland: 1988; Romania: 1989; Slovenia: 1986

The Kyoto Mechanisms 1. International Emissions Trading (IET)

Under this mechanism, an Annex I Party may transfer Kyoto units to or acquire units from another Annex I Party. 

Emissions trading does not affect the total assigned amount of Annex I Parties collectively; rather, it re-distributes the assigned amount among them. 

A Party may acquire an unlimited number of units. The number of units that a Party may transfer to other Parties       is limited by the Party’s commitment period reserve (CPR).  The CPR is the minimum level of units that a Party must hold in its 

national registry at all times. The requirement for each Party to maintain a CPR prevents a Party from over-transferring units, and thus impair its ability to meet its commitments

2. Joint implementation (JI)

It is a project-based mechanism by which one Annex I Party can invest in a project that reduces emissions or enhances sequestration in another Annex I Party, and receive credit for the emission reductions or removals achieved through that project. 

The unit associated with JI is called an emission reduction unit (ERU). The total projected emission savings from JI by 2012 are about one tenth that of 

the CDM.  Russia accounts for about two-thirds of these savings, with the remainder divided 

up roughly equally between the Ukraine and the EU's New Member States.

The Kyoto Mechanisms

3. Clean Development Mechanism CDM credits may be generated from emission reduction projects or from 

afforestation and reforestation projects in non-Annex I Parties.   Unlike emissions trading and JI, projects under the CDM create new Kyoto units and 

their acquisition by Annex I Parties increases both the total assigned amount available for those Annex I Parties collectively and their allowable level of emissions. 

CDM projects result in three types of Kyoto units.   Certified emission reductions (CERs) are issued for projects that reduce emissions Temporary CERs (tCERs)  Long-term CERs (lCERs)  both of which may be issued for projects that enhance 

removals through afforestation  and reforestation projects.

Annex 1 Country e.g. J apan

Non-Annex 1 Country e.g. Thailand

I nvestment

Revenues

CERs (negotiated)

The Kyoto Mechanisms

Details of the agreement National emission targets exclude international

aviation and shipping Land use and forestry (‘sink’ activities) can be used

in meeting targets Common but differentiated responsibility

Largest share of emissions originated in developed countries

Relatively low emissions in developing countries Share of emissions in developing countries will

grow to meet their social and development needs Per capita emissions

Financial Commitments: Developed countries have to pay billions of

dollars and supply technology to other countries for climate related studies. E.g. The Adaptation Fund

Enforcement: If a country is not in compliance with its

emissions limitation, it is required to make up the difference during the 2nd commitment period plus an additional 30%

It will also be suspended from making transfers under an emissions trading program

Details of the agreement

Emissions as a percentage of the global total, per capita emissions in tons of GHG per capita

China 15%, 5.8 United States 16%, 24.1 European Union 11%, 10.6 Indonesia 6%, 12.9 India 5%, 2.1

Source: International Energy Agency (IEA, 2007,p.201)

Top 5 Emitters

Negotiations

Industrialized countries were committed to ‘take the lead’ in reducing emissions

They were required to stabilize their emissions at 1990 levels by 2000

Failure to do so made Kyoto move to binding commitments

Developing countries were not subject to emission reduction commitments in the first Kyoto commitment period

Clean Development Mechanism was designed to limit emissions in developing countries

The G77 wanted strong uniform emission cuts across the developed worldHowever, countries such as the US made

suggestions to reduce their responsibility to reduce emissions (inclusion of carbon sinks, ignoring historical emissions)Countries over achieving in their first period

commitments were allowed to ‘bank’ their unused allowances for use in the subsequent periodThe EU suggested a ‘bubble’ commitmentThe US was obliged to cut back emissions more

than other countries

Emission Cuts

Cost Estimates and Emissions

Exceptions to Kyoto Targets :Belarus, Malta, and Turkey are Annex I Parties but do not have Kyoto targets. The US has a Kyoto target of a 6% reduction relative to the 1990 level, but has not ratified the treaty. But Emissions in the US have increased 11% since 1990

The Energy sector is found to be the largest source of emissions

Due to non-US participation in the Kyoto treaty, cost estimates were found to be much lower than those estimated in IPCC third assessment report

Kyoto Protocol effect on MNEs For multinationals, the Kyoto Protocol’s entry into

force means new restrictions, a new source of income, or both

Companies operating in industrialized countries will be subject to the programs developed by those countries to meet their Kyoto obligations.

Companies with facilities in developing countries might be in a position to take advantage of a new source of “carbon” financing through the Clean Development Mechanism (CDM)

Example: Through their Southeast Asian subsidiaries, companies such as Unocal have explored ways to use CDM transactions to finance new clean energy projects.

The Unresolved issues in Kyoto No details on specific policies and

measures to meet reduction targets No commitments from developing nations No details on implementing permits

system including penalties No details on funding mechanisms for

developing nations ‘bunkers fuels’ issue unresolved (i.e. The

fuel used in shipping and air travels)

Why U.S. won’t Ratify…

The United States has not ratified the Kyoto Protocol, but it hasn't withdrawn from it, either

The main objection of the US to ratification is regarding the nature of participation of developing countries. The US will not ratify the Protocol unless developing countries are also required to keep greenhouse gas levels at targeted minimums.

The US feels that the Kyoto Protocol is unfair in that countries like itself will be harmed economically because they will have to make the most changes in order to adhere to targeted levels of CO2 levels set forth in the Kyoto Protocol.

Recent Advances in Kyoto Protocol

May 2011: Russia, Japan and Canada told the G8 they would not join a second round of carbon cuts under the Kyoto Protocol at United Nations talks and the US reiterated it would remain outside the treaty. They argued that the Kyoto format did not require developing countries, including China, the world’s No. 1 carbon emitter, to make targeted emission cuts

Aug 2011: The European Union, the major developing countries, and most African and Pacific island nations declared that they would like to see the Kyoto process extended as a prelude to a more ambitious, binding international agreement that would take effect by 2020

United Nations Climate Change Conference-Durban, 2011(1/2)

A primary focus of the conference was to secure a global climate agreement as the Kyoto Protocol's first commitment period (2008–2012) was about to end

Also expected to focus on finalising at least some of the Cancun Agreements such as co-operation on clean technology, as well as forest protection, adaptation to climate impacts, etc

Canada's environment minister Peter Kent announced his country's withdrawal from the Kyoto Protocol

Continued...(2/2) After two weeks of negotiations a deal was reached only on the

last day, Sunday 11 December, after a 60-hour marathon negotiation session. Negotiators agreed to be part of a legally binding treaty to address global warming

The terms of the future treaty are to be defined by 2015 and become effective in 2020.

The agreement, referred to as the "Durban platform" includes developing countries such as China and India, as well as the US which refused to sign the Kyoto Protocol

Green fund : The conference led to progress regarding the creation of a Green Climate Fund for which a management framework was adopted. The fund is to distribute US$100bn per year to help poor countries adapt to climate impact

India and Kyoto Protocol

India will not sign any legally binding global agreement for emission reduction as the country needs to eradicate poverty through economic growth

India argues that since the CO2 in the atmosphere is from developed countries it is their responsibility to cut down the emissions. However India will make all efforts to cut down on green house gas emissions but that would be voluntary

India being a developing country is still not stable enough to take up global warming as the emission cuts will slow down its development and cripple it economically

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