Kyoto protocol and cdm presentation

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Kyoto Protocol and the CDM

Mohit Kumar GauttamEEE, 5th Sem.UE104034

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Introduction to Climate Change

Some basic facts

• Human activities are releasing greenhouse gases (GHG) into the atmosphere

• Climate change is a global issue• Rising levels of greenhouse gases are

already changing the climate• Climate models predict the global

temperature will rise by about 2 degrees by 2030.

• Climate change is likely to have a significant impact on the global environment, economy and society

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The greenhouse effect

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4) Infra-red radiations emitted from Earth

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1) Solar radiation

22) Reflected back to space

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3) Absorbed by atmosphere

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5) Some of the IR passesthrough the atmosphere

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6) Some is absorbed and re-emitted by greenhousegas molecules

The effect is increasing temperatures on Earth

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1 oC increase since 1986

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The greenhouse gases

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Greenhouses are rising

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température increases

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Major impacts

> Temperature increase> Sea level rise> More rain

Agriculture and food securityCrop yields, irrigation demands...

ForestComposition, health and productivity...

Water resourcesWater supply, water quality...

Coastal areas Erosion, inundation, cost of prevention...

Species and natural areasBiodiversity, modification of ecosystems...

Human healthInfectious diseases, human settlements...

Consequences of climate change:

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United Nations Framework Convention on Climate Change (UNFCCC)

• A global legal instrument (international agreement) to protect the climate system and stabilize GHG emissions

• Adopted in 1992, entered into force in 1994

• Status of participation: 189 Parties

• Contains 2 annexes: – Annex 1: countries with obligations to take measures to

mitigate the effects of climate change

– Annex 2: countries with obligations to provide financing to developing countries for their obligations under UNFCCC

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Kyoto Protocol – Key points

• Adopted at third Conference of Parties (COP) to the UNFCCC in Kyoto in 1997

• Required ratification of > 55 countries representing > 55% of GHG emissions

• Entered into force on February 16th, 2005 after ratification of the Russian Federation

• Now 163 countries covering 61.6% of global emissions have ratified the protocol

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Kyoto Protocol – Key points

• Six emissions: CO2, CH4, N2O, PFCs, HFCs, SF6

• Binding emission reduction targets for Annex I countries of 5.2% below 1990 over 2008-2012

• Non-Annex I countries have no binding targets but must report on their actions

• Annex I countries can achieve targets through domestic policies and three market mechanisms

• Non-Annex I countries can participate through the Clean Development Mechanism to facilitate sustainable development

• Rules for implementation worked out at annual COP meetings

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AustraliaAustriaBelarusBelgiumBulgariaCanada CroatiaCzech RepDenmarkEC

EstoniaFinlandFranceGermanyGreeceHungaryIcelandIrelandItalyJapan

Latvia LiechtensteinLithuaniaLuxembourgNetherlandsNew ZealandNorwayPolandPortugal Romania

Russia Slovakia SloveniaSpainSwedenSwitzerlandTurkeyUkraineUK USA

* Countries with economies in transition to a market economy.

* Countries which did not ratify Kyoto protocol.

Annex B countries (= Annex I under UNFCCC)

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Flexible Mechanisms

ET - Emissions TradingAAU (Assigned Amount Units) are exchanged between Annex I countries

JI - Joint ImplementationAnnex I investors receive ERUs (Emission Reduction Units) by investing in a project in another Annex I nation which reduces GHG emissions

CDM - Clean Development MechanismAnnex I investors receive CERs (Certified Emission Reductions) by investing in a project in a non-Annex I nation which reduces GHG emissions

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What Annex I countries can do

Limitations of CO2 emissions in developed countries (Annex I)

4 options for companies

1/ Pay expensive fines.

2/ Carry out carbon reduction through processes improvement.

3/ Buy emissions credits on the CO2 market (ETS).

4/ Carry out carbon reduction through technology transfers in CDM or JI project.

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Kyoto Protocol and CDM at a Glance

Opportunities for industry

• Technology transfer to improve process and energy efficiency

• Co-finance investments by selling emission credits

• Prepare for future commitments (after 2012)

• Achieve sustainable development

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Need of CDM

• Emission reductions more expensive in developed than developing countries

• Two objectives:– Help Annex 1 countries meet their

objectives in a cost-effective way– Contribute to sustainable development

of the host country

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How the CDM Works

• Annex I country invests in GHG reduction project in non-Annex I country

• Annex I country receives CERs• Non-Annex I country receives

revenues from CERs

Annex 1 Country e.g. J apan

Non-Annex 1 Country e.g. Thailand

I nvestment

Revenues

CERs (negotiated)

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References

• www.energyefficiencyasia.org• http://unfccc.int/kyoto_protocol/

mechanisms/clean_development_mechanism/items/2718.php

• www.cd4cdm.org• http://en.wikipedia.org/wiki/

Kyoto_Protocol • http://cdmrulebook.org/152 • http://cdmrulebook.org/305• http://en.wikipedia.org/wiki/

Clean_Development_Mechanism18

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Any Queries?

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