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Kyoto Protocol and Carbon

trading

Dr. P. I. Ayantha Gomes


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• Global warming
• United Nations Frame work convention on
Climate Change (UNFCC)
• (Montreal protocol) Kyoto protocol

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Background to Kyoto protocol
• Depletion of ozone above the Antarctic was first announced in
Nature ( a journal) by Farman et al. (1985)
• The Montreal Protocol, which was originally established in 1987,
and was to end the production of substances that deplete ozone,
which included the phasing out of CFCs.
• Agreed on 1987 and entered into force in 1989. Since then
undergone a few number of revisions
• The Montreal Protocol was trying to phase out and curb more
chemicals that deplete the ozone layer.
• By 2009 CFC emissions in world were almost zero.
• The Montreal Protocol was established to phase out substances
that deplete ozone, whereas the Kyoto Protocol was set in place to
reduce the emissions of greenhouse gases
• The reduction of CO2 has been significantly smaller per year in
comparison to how quickly CFCs were phased out. This is due to
disagreements between countries.

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Kyoto protocol
The Kyoto Protocol is an international treaty, and an
extension of the UNFCC that commits State Parties
to reduce greenhouse gases emissions, on the basis
that
(a) global warming exists and
(b) man-made CO2 emissions have caused it.

The Kyoto Protocol was adopted in Kyoto, Japan, in


1997 and entered into force in 2005.
There are currently 192 countries signed

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Carbon foot print
• The total CO2 and/or other green house gases
emissions for which an individual or an
organisation is responsible for.
• Foot print usually expressed in equivalent tons
of CO2
• Organizations CO2 footprint includes direct
emissions (e.g. emissions during
manufacturing) as well as indirect emissions
(e.g. supply chain)

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www.interfacecutthefluff.com

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How to calculate Carbon footprint
(Basic Carbon footprint)
• Basic Carbon foot print calculation is quick and several
software are available in this regard
• Need to cover all direct emissions, but may exclude some
indirect emissions (in other words identify major emission
sources)
• Major emission sources include: fuel for manufacturing,
electricity , transport (if the company owns) etc
• Collect all data (e.g. utility meters, mileage by vehicles)
• Using a proper method convert above consumption data to
CO2 (many cases standard emission factors are available)
• Accurate carbon foot print calculation needs specialized
involvement

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Can use a suitable software, and in market
many available

http://www.carbonfootprint.com/calculator.aspx
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http://www.gabi-software.com/software/gabi-
https://www.carbontrust.com/software software/

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Carbon trading

• Carbon trading, sometimes called emissions trading, is a


market-based tool to limit GHG.
• The carbon market trades emissions under cap-and-trade
schemes or with credits that pay for or offset GHG reductions.
• The scheme's governing body (Kyoto protocol, and then the
respective governments) begins by setting a cap on allowable
emissions.

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What is meant by Cap and trade
schemes?

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Carbon credits
• Quantifiable recognition that given to countries (countries
will give regonition to the organizations in that country)
when they reduce GHGs
• Expressed in terms of CO2
• One Carbon credit = one ton of CO2
• Other GHG can be expressed as equivalents of CO2
(e.g.CH4 one ton = 21 ton of CO2). This is because heat
trapping capacity of CH4 is 21 times that of CO2
• There is a limit (cap) for every organisation with respect to
GHG- if exceeds needs to pay a fine
• Therefore, if the limit is exceeded the organisation needs to
invest in clean development mechanism (CDM) projects
that to reduce GHG or buy carbon credits

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• Invest in CDM can also include sell of a
technology that reduces GHGs, and get the
credits obtained by using that technology

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Carbon trading and Opportunities for
Sri Lanka
• Carbon Trading is a new international market introduced by the Kyoto
Protocol
• The Kyoto Protocol has created a large international market for emission
reductions of about 5.0 to 5.5 billion tones of CO2
• Carbon trading can be undertaken by companies and individuals through
implementing two types of projects, as stated before: CDM and Green
House Gas Removal or sink projects.
• The type of projects that have been submitted for carbon trading include:
– biomass fired co-generation ,
– landfill gas capture,
– Renewable energy projects (wind power, mini-hydropower)
– fuel switching
– waste to energy
• If any company, industry or an individual reduce GHG emissions through
implementing a CDM they can earn around 15 USD per ton of emission
reduced.

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http://www.energy-without-carbon.org/CarbonPrice

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Thank you

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