Unit 7

KYOTO Protocol and its ramifications, Paris Agreement and its implications

Q.1 Explain Kyoto Protocol and state its features

The Kyoto Protocol is an international treaty established under the United Nations Framework
Convention on Climate Change (UNFCCC) to address global warming and reduce greenhouse gas
emissions. It was adopted in 1997 and entered into force in 2005. The protocol set binding emission
reduction targets for industrialized countries (known as Annex I countries) for the period from 2008 to
2012.
Key features of the Kyoto Protocol include:
1. Emission Reduction Targets: The Kyoto Protocol set legally binding emission reduction targets for
Annex I countries. These targets varied for each country, and the overall goal was to collectively reduce
emissions by at least 5% below 1990 levels during the commitment period.
2. Flexible Mechanisms: The protocol introduced three flexible mechanisms to assist countries in
meeting their emission reduction targets:
a. Emissions Trading: Annex I countries could trade emission allowances to buy and sell their emissions
credits.
b. Clean Development Mechanism (CDM): Annex I countries could invest in emission reduction
projects in developing countries and earn Certified Emission Reduction (CER) credits.
c. Joint Implementation (JI): Annex I countries could implement emission reduction projects in other
Annex I countries and earn Emission Reduction Units (ERUs).
3. Compliance and Reporting: The Kyoto Protocol established a compliance system to ensure that
countries fulfill their emission reduction obligations. Countries were required to regularly report their
emissions and measures taken to meet their targets.
4. Adaptation and Finance: The protocol recognized the need for adaptation to the impacts of climate
change and established the Adaptation Fund to support developing countries in implementing
adaptation projects. It also emphasized the importance of providing financial resources and technology
transfer from developed to developing countries.
5. Second Commitment Period: The Kyoto Protocol's first commitment period ended in 2012.
Subsequently, negotiations took place to establish a second commitment period from 2013 to 2020.
However, not all major emitters participated in the second commitment period, and its impact was
limited.
The Kyoto Protocol marked a significant step in international efforts to combat climate change and
reduce greenhouse gas emissions. However, it faced some challenges, including the limited
participation of major emitters such as the United States and China, and the fact that emission reduction
commitments only applied to a subset of countries. The protocol's effectiveness in addressing global
warming was also questioned due to its limited scope.
The Kyoto Protocol was succeeded by the Paris Agreement, adopted in 2015, which aimed to achieve
more comprehensive and ambitious global climate action by involving all countries and setting broader
emission reduction goals.
Q.2 Ramifications of Kyoto Protocol
The Kyoto Protocol had several ramifications, both positive and challenging, in the global efforts to
address climate change. Here are some key ramifications of the Kyoto Protocol:
1. Emission Reductions: One of the primary goals of the Kyoto Protocol was to achieve emission
reductions among Annex I countries. This led to the implementation of various measures and policies
aimed at reducing greenhouse gas emissions. Some countries successfully met their targets and achieved
emission reductions during the protocol's first commitment period.
2. International Cooperation: The Kyoto Protocol fostered international cooperation and dialogue on
climate change. It brought together countries from around the world to negotiate emission reduction
targets, establish flexible mechanisms, and address common challenges related to climate change. It
helped to raise awareness about the importance of collective action and shared responsibility.
3. Flexible Mechanisms: The Kyoto Protocol introduced flexible mechanisms such as emissions trading,
the Clean Development Mechanism (CDM), and Joint Implementation (JI). These mechanisms
provided economic incentives for countries to reduce emissions more cost-effectively and promoted
technology transfer and investment in emission reduction projects.
4. Promotion of Clean Technology: The Kyoto Protocol emphasized the need for technology transfer
from developed to developing countries to support sustainable development and emission reduction
efforts. This led to the promotion and implementation of clean technologies and renewable energy
solutions, facilitating the transition to a low-carbon economy.
5. Compliance Challenges: The Kyoto Protocol faced challenges related to compliance and
participation. Some countries struggled to meet their emission reduction targets, while others withdrew
or did not participate in the protocol. The absence of major emitters, such as the United States, limited
the global impact of the protocol and highlighted the need for broader international participation.
6. Shift to the Paris Agreement: The Kyoto Protocol laid the groundwork for future climate change
agreements, including the Paris Agreement. While the Kyoto Protocol had limitations in terms of
participation and scope, it provided valuable lessons and insights that informed the development of the
Paris Agreement, which aims to achieve more comprehensive and ambitious global climate action.
7. Awareness and Momentum: The Kyoto Protocol contributed to raising awareness about the urgency
of addressing climate change and the need for international cooperation. It helped to create momentum
and build political will for subsequent climate change agreements and initiatives, including the Paris
Agreement and other global efforts to mitigate and adapt to climate change.
Overall, the Kyoto Protocol played a significant role in shaping the international response to climate
change and advancing global efforts to reduce greenhouse gas emissions. It set the stage for subsequent
agreements and initiatives, highlighting the importance of international collaboration and the need for
comprehensive and ambitious action to address the challenges of global warming.
Q.3 Paris Agreement and its features
The Paris Agreement is an international treaty adopted in 2015 under the United Nations Framework
Convention on Climate Change (UNFCCC). Its primary goal is to combat climate change and limit
global warming to well below 2 degrees Celsius above pre-industrial levels, while striving to keep it
below 1.5 degrees Celsius. The agreement also aims to enhance countries' ability to adapt to the impacts
of climate change and foster climate resilience.
Key features and objectives of the Paris Agreement related to environmental protection include:
1. Nationally Determined Contributions (NDCs): The Paris Agreement requires each participating
country to submit their NDC, which outlines their voluntary climate action plans, including emission
reduction targets and adaptation measures. NDCs are expected to be ambitious, progressive, and
updated every five years.
2. Long-Term Goals: The agreement sets a long-term goal of achieving a balance between
anthropogenic greenhouse gas emissions and removals by sinks in the second half of this century. This
goal emphasizes the importance of achieving net-zero emissions and transitioning to a low-carbon and
climate-resilient future.
3. Enhanced Transparency and Accountability: The Paris Agreement promotes transparency and
accountability by establishing a robust system for monitoring, reporting, and verifying countries'
progress in implementing their NDCs. It aims to enhance the transparency of mitigation efforts,
adaptation actions, and support provided by developed countries to developing countries.
4. Climate Finance: The agreement recognizes the need for financial resources to support developing
countries in their climate change mitigation and adaptation efforts. It encourages developed countries
to provide financial assistance to developing countries, helping them transition to low-carbon and
climate-resilient pathways.
5. Technology Transfer and Capacity Building: The Paris Agreement emphasizes the importance of
technology transfer, innovation, and capacity building to support developing countries in their climate
actions. It encourages collaboration and the sharing of knowledge, expertise, and technologies to
facilitate sustainable development and environmental protection.
6. Global Stocktake: The agreement establishes a process called the Global Stocktake, which occurs
every five years to assess collective progress towards achieving the agreement's goals. The Global
Stocktake evaluates the adequacy of countries' efforts and identifies areas where further action is needed
to address environmental challenges effectively.
The Paris Agreement represents a significant global effort to address climate change and protect the
environment. It provides a framework for international cooperation, encourages ambitious action, and
promotes sustainable development practices to safeguard the planet for future generations.
Q.4 Ramifications of The Paris Agreement
The Paris Agreement has had several ramifications since its adoption in 2015. Here are some key
ramifications of the agreement:
1. Increased Global Commitment: The Paris Agreement has increased global commitment to addressing
climate change. It has brought together nearly all countries under a common framework, with 197
parties signing the agreement and 190 parties ratifying it. This widespread participation signifies a
shared recognition of the urgency to tackle climate change.
2. Enhanced Ambition: The Paris Agreement has encouraged countries to enhance their climate action
and set more ambitious targets. The agreement emphasizes the importance of regularly updating and
strengthening Nationally Determined Contributions (NDCs). Many countries have revised their initial
NDCs to align with the agreement's goals, demonstrating increased ambition in reducing greenhouse
gas emissions.
3. Net-Zero Emissions Pledges: The Paris Agreement has spurred a wave of net-zero emissions pledges.
Countries, cities, regions, and businesses worldwide have committed to reaching net-zero greenhouse
gas emissions by mid-century or soon thereafter. These pledges represent a major shift towards
decarbonization and a low-carbon future.
4. Transparency and Accountability: The Paris Agreement has established a robust transparency
framework to enhance accountability. Countries are required to regularly report on their emission
reductions, adaptation efforts, and support provided or received. The transparency framework promotes
openness, enables tracking of progress, and facilitates the sharing of best practices and lessons learned.
5. Adaptation and Resilience: The agreement has increased focus on adaptation and building resilience
to climate change impacts. Parties are encouraged to develop and implement adaptation plans and
prioritize the needs of vulnerable communities. The agreement also established the Adaptation Fund,
which provides financial support for adaptation projects in developing countries.
6. Climate Finance: The Paris Agreement has reinforced the commitment to climate finance, particularly
for developing countries. Developed countries are encouraged to provide financial resources to support
mitigation and adaptation efforts in developing countries. The agreement aims to mobilize $100 billion
annually by 2020, with a goal to increase financial flows beyond that target.
7. International Cooperation and Partnerships: The Paris Agreement has fostered international
cooperation and partnerships to address climate change. Collaboration among governments, businesses,
civil society, and other stakeholders has increased, leading to the development of joint initiatives,
knowledge sharing, and the scaling up of innovative solutions.
8. Shifting Investment Patterns: The Paris Agreement has triggered a shift in investment patterns
towards low-carbon and climate-resilient infrastructure. More financial resources are being directed
towards renewable energy, energy efficiency, sustainable transport, and other climate-friendly sectors.
Investors are increasingly factoring climate risks and opportunities into their decision-making
processes.
While the Paris Agreement has generated significant momentum and positive outcomes, challenges
remain. These include the need for increased ambition to meet the agreement's temperature goals,
addressing climate finance gaps, and ensuring equitable and just transitions for all. Continued efforts
and collaboration are necessary to fully realize the potential of the Paris Agreement and effectively
address the impacts of climate change.
Q.5 Relationship between climate change and business
Climate change has a significant impact on businesses across various sectors, and there is a complex
relationship between the two. Here are some key aspects of the relationship between climate change
and business:
1. Physical Risks: Climate change brings about physical risks such as extreme weather events, rising
sea levels, and changing temperature patterns. These risks can directly impact businesses through
damage to infrastructure, disruption of supply chains, increased insurance costs, and loss of assets.
2. Regulatory Landscape: Governments worldwide are implementing policies and regulations to address
climate change. These measures include emissions reduction targets, carbon pricing mechanisms, and
stricter environmental standards. Businesses need to adapt to these regulations, comply with reporting
requirements, and adjust their operations to remain in compliance.
3. Market Shifts and Consumer Demand: Climate change is influencing consumer preferences and
behaviors. There is a growing demand for sustainable products, renewable energy solutions, and
environmentally friendly practices. Businesses that adapt and align their strategies with these shifting
market dynamics can gain a competitive advantage.
4. Reputation and Stakeholder Engagement: Climate change has become a prominent societal concern,
and stakeholders such as customers, investors, and employees increasingly expect businesses to take
responsible environmental actions. A company's response to climate change can significantly impact its
reputation, brand value, and relationships with stakeholders.
5. Transition Risks and Opportunities: The transition to a low-carbon economy presents both risks and
opportunities for businesses. Companies heavily reliant on fossil fuels or carbon-intensive industries
may face risks related to stranded assets, changing market dynamics, and increased costs. Conversely,
businesses that embrace renewable energy, energy efficiency, and sustainable practices can benefit from
new market opportunities and operational efficiencies.
6. Supply Chain Management: Climate change can disrupt global supply chains, affecting sourcing,
transportation, and logistics. Extreme weather events, changing weather patterns, and resource scarcity
can impact the availability and cost of raw materials, as well as the resilience of supply chains.
Businesses need to assess and manage climate-related risks throughout their supply chains.
7. Innovation and Green Technologies: Climate change mitigation and adaptation efforts require the
development and deployment of innovative technologies and solutions. This creates opportunities for
businesses to invest in research and development, collaborate on clean technologies, and offer climate-
friendly products and services.

Read the following article for examples of impact of climate change on businesses
https://online.hbs.edu/blog/post/climate-change-affecting-businesses