KYOTO PROTOCOL

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KYOTO PROTOCOL
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OUTLINE

• Climatic changes need for Climate policy
• Run up to Kyoto Protocol
• Kyoto Protocol
• Commitment
• Implementation
• Compliance
• Minimizing impact on developing countries
• Kyoto Protocol at Present
• Indian context
• Conclusions and the Way Ahead

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CLIMATIC ISSUES

• The greenhouse effect natural vs. human
• Since beginning of industrial revolution (1700)
  the major Green House Gases have increased
  (Greenhouse Gases CO2, CH4, N2O, HFCs, PFCs,
  SF6)
• Most of the warming (of 0.1C per decade)
  observed over the last 50 years, is attributable
  to human activities
• Potential impacts
• increase in frequency and intensity of extreme
  climate events
• increase in risk of desertification
• human health

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What could happen next !!!!!!!!!!!!!!!!!!!!!!!!

• 1990's was most likely the warmest decade
• ever, and 1998 the warmest year
• Precipitation patterns have changed
• Snow cover and ice extent have decreased
• Global average sea level has risen
• Oceans are warming
• Glaciers are shrinking
• Circulation patterns are changing

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WHY DO WE NEED CLIMATE POLICY?

• Because
• Climate change is human induced
• Climate change is complex issue and economic
  characteristics highlight difficulty to cope with
• Joint international efforts, collective actions
  and control are needed, but
• Due to large economic and environmental
  asymmetries among world regions, actions are
  needed internationally coordinated and harmonized
  

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Mauna Loa Curve
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Green House Gases
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SCIENTIFIC FACTS 1
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SCIENTIFIC FACTS 2
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• Time Line of the Kyoto Protocol

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Political initiatives
1988 Establishment of IPCC by the WMO and UNEP
1989 Establishment by the UNGA of the Intergovernmental Negotiating Committee (INC)
1992 UN Framework Convention on Climate Change (UNFCCC) signed in Rio de Janeiro, Brazil
1994 UNFCCC entered into force
1995 First Conference of the Parties (COP1) to the UNFCCC.
1997 Kyoto Protocol adopted at COP3 in Kyoto, Japan.
February 16, 2005 Kyoto Protocol entered into force
2005 First Conference of the Parties serving as Meeting of the Parties to the Kyoto Protocol (COP/MOP1)
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• KYOTO PROTOCOL

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What is the Kyoto Protocol?

• The Kyoto Protocol is an agreement made under the
  United Nations Framework Convention on Climate
  Change (UNFCCC). Countries that ratify this
  protocol commit to reduce their emissions of
  carbon dioxide and five other greenhouse gases,
  or engage in emissions trading if they maintain
  or increase emissions of these gases.

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Kyoto Protocol

• Greenhouse gas emissions reduction in the
  industrialized countries at 5 percent below 1990
  levels by 2008 2012
• Quantitative emissions limitation and reduction
  commitments by industrialized countries.
• Can be undertaken individually or jointly with
  other countries through flexibility mechanisms
• Emissions Trading
• Joint Implementation
• Clean Development Mechanism

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4 elements of Kyoto Protocol

• Commitments ( general specific)
• Implementation
• Compliance
• Minimizing Impacts on developing countries

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Participants

• The Convention divides countries into three main
  groups according to differing commitments
• Annex I Parties OECD countries with economies
  in transition (the EIT Parties), including the
  Russian Federation, the Baltic States, and
  several Central and Eastern European States.
• Annex II Parties OECD members of Annex I
  excluding the EIT Parties.
• Usually net buyers of emission permits
• Non-Annex I India is part of this.
• Usually net sellers of emission permits

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Commitments General

• All Parties to the Protocol are subject to a set
  of general commitments that mirror those of the
  Framework Convention.
• These include
• Taking steps to improve the quality of emissions
  data.
• Promoting environmentally-friendly technology
  transfer.
• Supporting climate change education, training and
  public awareness.
• Cooperating on international climate observation.

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Commitments Specific

• At the real heart of the Kyoto Protocol lies its
  set of legally-binding emissions targets for
  industrialized countries. These emissions targets
  amount to a total cut, among all Annex I Parties,
  of at least 5 from 1990 levels by 2008-2012.
• The collective 5 reduction is shared out so that
  each Annex I Party has its own individual
  emissions target.
• However, all individual emissions targets must be
  achieved by the same commitment period of
  2008-2012.
• All individual targets are listed in Annex B of
  the Protocol

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1. Commitments Annex B
Country Target 1990
EU-15 -8
US -7
Canada -6
Japan -6
Russian Federation 0
Norway 1
Australia 8
Iceland 10
Some EITs have baseline year other than
1990. US does not intend to ratify the Protocol.
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GHG REGULATED BY KP

• Carbon dioxide (CO2)
• Methane (CH4)
• Nitrous oxide (N20)
• Hydrofluorocarbons (HFCs)
• Perfluorocarbons (PFCs)
• Sulphur hexafluoride (SF6)

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Commitments Conclusion

• Ultimately, the Kyoto Protocols targets may
  appear relatively modest. However, given the fact
  that the emissions of many industrialized
  countries except for developing countries
  have continued to rise since 1990 the task of
  achieving the Protocols collective 5 reduction
  target becomes much more difficult than it
  sounds.

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Commitments United States
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Implementation Policies and Measures

• To achieve the Protocols targets, Annex I
  Parties will need to implement domestic climate
  change policies and measures.
• Possible policies/measures include
• Enhancing energy efficiency
• Protecting/enhancing GHG sinks
• Promoting sustainable agriculture
• Promoting renewable energy and environmentally
  friendly technologies
• Tackling transport sector emissions

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Implementation LULUCF Sector

• The LULUCF (Land Use Land Use Change and
  Foresty) sector can provide national governments
  with relatively low cost opportunities to combat
  climate change, either by
• Increasing the removal of greenhouse gases from
  the atmosphere through carbon sinks, or by
• Reducing emissions from the LULUCF sector itself.

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Implementation Mechanisms

• The Kyoto Protocol broke new ground with its
  three innovative mechanisms
• Joint implementation
• Clean development mechanism (CDM)
• Emissions (carbon) trading.
• All three mechanisms aim to maximize the
  cost-effectiveness of climate change mitigation
  by allowing Parties to pursue opportunities to
  cut emissions, or enhance carbon sinks, more
  cheaply abroad than at home.2

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Implementation Mechanisms

• All three mechanisms operate on the basis of
  accounting units.
• Joint implementation projects result in emission
  reduction units (ERUs)
• CDM projects generate certified emission
  reductions (CERs) and,
• Under emissions trading, Annex I Parties may
  exchange assigned amount units (AAUs).

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Implementation Joint Implementation

• Joint implementation (JI) allows Annex I Parties
  to implement projects that reduce emissions, or
  increase removals by sinks, in the territories of
  other Annex I Parties.
• ERUs generated by JI projects can then be used by
  the investing Annex I Parties to help meet their
  own emissions targets.

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Implementation Clean Development Mechanism(1)

• Allows Annex I Parties to implement projects that
  reduce emissions in territories of non-Annex I
  Parties.
• CERs are generated
• Like ERUs, CERs can also be used by Annex I
  Parties
• CDM serves two purposes
• Help to achieve sustainable development
• contribute to the objective of the Framework
  Convention.

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How does CDM work?
Targeted Emissions Reduction
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Implementation Clean Development Mechanism(2)

• CERs generated subject to a levy
• Contribution towards a common fund
• Helps vulnerable developing countries

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Implementation Emissions Trading(1)

• Assigned amount units (AAUs) can be acquired
• An assigned amount refers to the total emissions
  that an Annex I Party may emit over the
  commitment period and still meet its emissions
  target.
• Specific assigned amount for each country

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Implementation Emissions Trading(2)

• Also allows to acquire
• CERs (from CDM projects),
• ERUs (from JI projects), or
• RMUs (from sink activities)
• The minimum level (90 of the assigned amount) is
  known as the commitment period reserve and cannot
  be traded

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Compliance

• Consists of a Compliance Committee
• Has two branches
• Facilitative branch and
• An Enforcement branch

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Compliance Facilitative Branch

• Acts as a facilitator
• Responsibilities include
• Advice and assistance
• Early-warning to parties
• Mobilize financial and technical resources

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Compliance Enforcement Branch

• More power
• Ensures parties adhere to their commitments
• In cases of non-compliance with emission targets,
  Annex I Parties are granted 100 days after the
  current commitment period to make up any
  shortfall in compliance

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Minimizing the impacts on developing countries(1)

• The Protocol commits Annex I Parties to strive to
  implement their emissions targets through
  policies that will minimize adverse impacts on
  developing countries.
• Furthermore, the Marrakech Accords require Annex
  I Parties to report (on an annual basis) on the
  actions they are taking to meet this commitment.

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Minimizing the impacts on developing countries(2)

• Lastly, the aforementioned Adaptation Fund is to
  funded not only by the adaptation levy on CDM
  projects, but also by additional contributions
  from Annex I Parties.
• The Adaptation Fund will finance concrete
  adaptation projects and programs in developing
  countries especially least developed countries
  (LCDs).

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• KYOTO PROTOCOL AT PRESENT

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Kyoto Protocol at Present

• Where are we now?
• Ratified in 2005
• US pulled out, but Russia's participating
• CDM and JI are operational
• EU ETS is in test phase
• The protocol is a first and small step compared
  to what will be needed

Commitments so far defined for the period from
1990 (base year) to 2012
New commitment discussions for 2nd period
Test Period EU Emission Trading
1st Commitment Period
2nd Commitment Period
3rd Commitment Period
Year
2022
2017
2012
2008
2005
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Result Upto Date
Country Change in GHG (1990-2004) EU assigned Objective for 2012 Treaty Obligation 2008-2012
Germany -17 -21 -8
Canada 27 N/A -6
Spain 49 15 -8
US 16 N/A N/A
France -0.8 0.0 -8
Greece 27 25 -8
Japan 6.5 N/A -6
UK -14 -12.5 -8
EU -15 -0.8 N/A -8
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• KYOTO PROTOCOL
• INDIA

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CDM - INDIA
Designated National Authorities (DNA)
India The National Clean Development
Mechanism (CDM) Authority Ministry of
Environment and Forests115, Paryavaran
Bhawan,CGO Complex,Lodhi Road,New Delhi, India

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National CDM Authority is a single window
clearance for CDM projects in the country
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Benefits likely to be derived from CDM Projects
in India

• Cost of Emission Reduction

Country US/Ton of Carbon
Japan 400
USA 200
India 25
Source EY Report on CDM Project Development
dated 07 February, 2005
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Some Statistics
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CDM Projects

• The National Clean Development Mechanism
  Authority (CDM) has cleared 200 CDM projects as
  of March 2006.
• Projects include
• 62 - Renewables including biomass based
  cogeneration projects
• 28 for energy efficiency
• 8 for Industrial Processes
• 6 in Fuel switching
• 3 in Municipal Solid Wastes
• Projects approved to generate 132 million CERs
  and facilitate investment of Rs 7,816 crores in
  India.
• - Ministry of
  Environment Forests (Climate Change Division)

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CERs

• Gujarat Fluorochemicals to generate 4-6 million
  carbon credits annually
• a deal to sell them to the Netherlands and a
  Japanese firm
• Tyre cord maker SRF Ltd. signed deal with a unit
  of Royal Dutch Shell Plc to sell 500,000 CERs
  from a project it aims to commission.
• Firms with approval include Tata Steel Ltd., JSW
  Steel Ltd., Balrampur Chini Mills Ltd. Dhampur
  Sugar Mills Ltd., Indo Gulf Fertilisers Ltd. and
  Gujarat Ambuja Cements Ltd.

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List of Companies at various stages of UNFCC
Approval with Host Country Approval
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The Way Ahead

• In the non-binding 'Washington Declaration'
  agreed on February 16, 2007, Presidents or Prime
  Ministers from Canada, France, Germany, Italy,
  Japan, Russia, United Kingdom, the United States,
  Brazil, China, India, Mexico and South Africa
  agreed in principle on the outline of a successor
  to the Kyoto Protocol. They envisage a global
  cap-and-trade system that would apply to both
  industrialized nations and developing countries,
  and hoped that this would be in place by 2009