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KYOTO PROTOCOL

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

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

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

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 :

Mauna Loa Curve

Green House Gases

SCIENTIFIC FACTS 1

SCIENTIFIC FACTS 2

Time Line of the Kyoto Protocol

Political initiatives
1988 1989 Establishment of IPCC by the WMO and UNEP Establishment by the UNGA of the Intergovernmental Negotiating Committee (INC)

1992

UN Framework Convention on Climate Change (UNFCCC) signed in Rio de Janeiro, Brazil UNFCCC entered into force First Conference of the Parties (COP1) to the UNFCCC. Kyoto Protocol adopted at COP3 in Kyoto, Japan. Kyoto Protocol entered into force

1994 1995 1997 February 16, 2005

2005

First Conference of the Parties serving as Meeting of the Parties to the Kyoto Protocol (COP/MOP1)

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KYOTO PROTOCOL

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.

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

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.

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

1. Commitments: Annex B
Country EU-15 Target 1990* -8%

US**
Canada Japan Russian Federation Norway Australia Iceland

-7%
-6% -6% 0 +1% +8% +10%

*Some EITs have baseline year other than 1990. **US does not intend to ratify the Protocol.

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.

Commitments : United States

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

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.

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 costeffectiveness of climate change mitigation by allowing Parties to pursue opportunities to cut emissions, or enhance carbon sinks, more cheaply abroad than at home.2

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).

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.

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.

How does CDM work?

Emissions Reduction

Industrialized countries
Developing countries

Targeted Emissions Reduction

Certified 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

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

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

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

Compliance: Facilitative Branch


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

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

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.

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).

KYOTO PROTOCOL AT PRESENT

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 1st Commitment Emission Trading Period 2nd Commitment Period 3rd Commitment Period

2005

2008

2012

2017

2022

Year

Result Upto Date


Country
Change in GHG (1990-2004)
EU assigned Objective for 2012 Treaty Obligation 2008-2012

Germany Canada
Spain US France

Greece
Japan UK EU -15

-17% +27 % +49 % +16 % -0.8 % +27 % +6.5 % -14 % -0.8 %

-21 % N/A +15 %


N/A 0.0 %

-8 % -6 % -8 %
N/A -8 %

+25 % N/A
-12.5 % N/A

-8 %
-6 % -8 % -8 %

KYOTO PROTOCOL & INDIA

CDM - INDIA

Designated National Authorities (DNA) India

The National Clean Development Mechanism (CDM) Authority


Ministry of Environment and Forests 115, 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 Japan USA India US$/Ton of Carbon 400 200 25

Source: E&Y 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