KYOTO AND BEYOND In fulfillment As Part of

KYOTO AND BEYOND In fulfillment, As Part of Submission for Sustainable Development, Parag Kadam Pragya Gupta Under the Guidance of, Prof. Archana Gaikwad

Index KYOTO AND BEYOND Introduction to UNFCC 3 Introduction to Kyoto Protocol 4 Kyoto - Timeline 5 Parties to Kyoto Protocol 6 Brief History of Kyoto Protocol 8 Aim of Kyoto Protocol 11 Understanding the Protocol 12 Flexible Mechanisms 17 India And Kyoto 24 The Debate 27 Bibliography 30

UNFCC The United Nations Framework Convention on Climate Change (UNFCCC or FCCC) is an international environmental treaty negotiated at the United Nations Conference on Environment and Development (UNCED), informally known as the Earth Summit, held in Rio de Janeiro from 3 to 14 June 1992. The objective of the treaty is to "stabilize greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system". The treaty itself set no binding limits on greenhouse gas emissions for individual countries and contains no enforcement mechanisms. In that sense, the treaty is considered legally non-binding. Instead, the treaty provides a framework for negotiating specific international treaties (called "protocols") that may set binding limits on greenhouse gases. 1 In 1997, the Kyoto Protocol was concluded and established legally binding obligations for developed countries to reduce their greenhouse gas emissions.

Introduction • The Kyoto Protocol is an international agreement linked to the United Nations Framework Convention on Climate Change, which commits Parties by setting internationally binding emission reduction targets. • Recognizing that developed countries are principally responsible for the current high levels of GHG emissions in the atmosphere as a result of more than 150 years of industrial activity, the Protocol places a heavier burden on developed nations under the principle of "common but differentiated responsibilities. “ 2 • There are 192 parties to the convention, including 191 states (all the UN members, except Andorra, Canada, South Sudan and the United States) and the European Union. 3 The United States signed but did not ratify the Protocol and Canada withdrew from it in 2011. 4 The Protocol was adopted by Parties to the UNFCCC in 1997, and entered into force in 2005. 5

Adopted in Kyoto, Japan Entered into force on 16 February 2005 on 11 December 1997 The detailed rules for and are referred to as the "Marrakesh Accords. ” Its first commitment period started in 2008 and ended in 2012 the implementation adopted at COP 7 in Marrakesh, Morocco, in 2001 The second commitment is between 2013 -2020. But this amendment has (as of January 2013) not entered into legal force.

Kyoto Protocol participation map (commitment period: 2013 -2020) Parties; Annex I & II countries with binding targets Parties; Developing countries without binding targets* States not Party to the Protocol Signatory country with no intention to ratify the treaty, with no binding targets Countries that have renounced the Protocol, with no binding targets* Parties with no binding targets in the second period, which previously had targets* *Note: As part of the 2010 Cancun agreements, 76 developed and developing countries have made voluntary pledges to control their emissions of greenhouse gases.

Annex I countries Annex II countries Non Annex I countries Annex II countries are a sub-group of the Annex I countries Parties to UNFCCC are classified as – Industrialized countries and economies in transition countries – Developed countries which pay for costs of developing countries – Developing countries

History 1988 The Intergovernmental Change (IPCC) is formed. Panel on Climate A conference held in Toronto (not affiliated with the IPCC) recommends a set of political targets to reduce anthropogenic emissions of carbon dioxide. The conference recommends that by 2005, industrialized countries should reduce their carbon dioxide emissions by 20 percent, compared to 1988 levels. 1990 IPCC issues a report declaring its certainty that human activity is resulting in pollutants that will intensify the greenhouse effect. 1992 The UN Conference on the Environment and Development is held in Rio de Janeiro. It results in the Framework Convention on Climate Change ("FCCC" or "UNFCCC") among other agreements. 1995 Parties to the FCCC meet in Berlin (the 1 st Conference of Parties (COP) to the UNFCCC) to outline specific targets on emissions.

History 1997 Parties conclude the Kyoto Protocol in Kyoto Japan, in which they agree to the broad outlines of emissions targets. 2000 Efforts to accommodate U. S. and Australian objections to the Kyoto draft agreement fail at a meeting of signatories in the Hague. The U. S. Senate votes unanimously against any binding agreement that does not set binding goals for developing countries, as well. 2001 President George W. Bush, following the Senate's lead, withdraws U. S. endorsement of the Kyoto Protocol. In November, the COP meeting in Marrakesh finalizes the provisions of the Kyoto Protocol without U. S support. 2002 Russia and Canada ratify the Kyoto Protocol to the FCCC bringing the treaty into effect on 16 February 2005. 2004 Several countries had ratified the Kyoto Protocol, including Japan, Canada, New Zealand, and most European signatories. Collectively, these ratifying countries represented approximately 44 percent of the total greenhouse gas emissions produced in 1990 – only 11 percent shy of the 55 percent target cited in the Protocol’s

History 2004 Russian President Vladimir Putin announced his government would indeed pass the agreement, ensuring the Protocol would come into effect in 2005. On February 16, 2005 The Kyoto Protocol formally came into effect, committing key industrialized countries, including Canada, to specific targets for reducing or limiting their greenhouse gas emissions between 2008 and 2012 2011 Canada withdraws from the protocol under the Harper government, having greatly increased emissions over the target, citing the intent to create a made-in-Canada solution

Aim The main aim of the Kyoto Protocol is to contain emissions of the main anthropogenic (i. e. , human-emitted) greenhouse gases (GHGs) in ways that reflect underlying national differences in GHG emissions, wealth, and capacity to make the reductions. 6 The treaty follows the main principles agreed in the original 1992 UN Framework Convention. The Protocol establishes a structure of rolling emission reduction commitment periods. It set a timetable starting in 2006 for negotiations to establish emission reduction commitments for a second commitment period. 7

The Concept Some of the principal concepts of the Kyoto Protocol are: Binding commitments for the Annex I Parties. 8 The commitments were based on the Berlin Mandate, which was a part of UNFCCC negotiations leading up to the Protocol. Implementation. In order to meet the objectives of the Protocol, Annex I Parties are required to prepare policies and measures for the reduction of greenhouse gases in their respective countries. In addition, they are required to increase the absorption of these gases and utilize all mechanisms available, such as joint implementation, the clean development mechanism and emissions trading, in order to be rewarded with credits that would allow more greenhouse gas emissions at home. Minimizing Impacts on Developing Countries by establishing an adaptation fund for climate change. Accounting, Reporting and Review in order to ensure the integrity of the Protocol. Compliance. Establishing a Compliance Committee to enforce compliance with the commitments under the Protocol.

Understanding Kyoto Under the Kyoto Protocol, 37 industrialized countries and the European Community (the European Union-15, made up of 15 states at the time of the Kyoto negotiations) commit themselves to binding targets for GHG emissions. 8 The targets apply to the four greenhouse gases: carbon dioxide (CO 2), methane (CH 4), nitrous oxide (N 2 O), sulphur hexafluoride (SF 6), and two groups of gases, hydrofluorocarbons (HFCs) and perfluorocarbons (PFCs). 9 The six GHG are translated into CO 2 equivalents in determining reductions in emissions. 10 These reduction targets are in addition to the industrial gases, chlorofluorocarbons, or CFCs, which are dealt with under the 1987 Montreal Protocol on Substances that Deplete the Ozone Layer.

Top Ten Emitters 4% 3% 3% 24% 6% 7% 7% 8% 23% 15% China USA EU Indonesia India Russia Brazil Japan Canada Mexico

Understanding Kyoto Under the Protocol, only the Annex I Parties have committed themselves to national or joint reduction targets (formally called "quantified emission limitation and reduction objectives" (QELRO) – Article 4. 1). 9 Parties to the Kyoto Protocol not listed in Annex I of the Convention (the non-Annex I Parties) are mostly low-income developing countries, and may participate in the Kyoto Protocol through the Clean Development Mechanism. The emissions limitations of Annex I Parties varies between different Parties. Some Parties have emissions limitations reduce below the base year level, some have limitations at the base year level (i. e. , no permitted increase above the base year level), while others have limitations above the base year level. Emission limits do not include emissions by international aviation and shipping.

Flexible Mechanisms Annex I Parties can achieve their targets by allocating reduced annual allowances to major operators within their borders, or by allowing these operators to exceed their allocations by offsetting any excess through a mechanism that is agreed by all the parties to the UNFCCC, such as by buying emission allowances from other operators which have excess emissions credits. The Protocol defines three "flexibility mechanisms" that can be used by Annex I Parties in meeting their emission limitation commitments. The flexibility mechanisms are: International Emissions Trading (IET) The Clean Development Mechanism (CDM) and Joint Implementation (JI). IET allows Annex I Parties to "trade" their emissions (Assigned Amount Units, AAUs, or "allowances" for short)

Flexible Mechanisms The CDM and JI are called "project-based mechanisms, " in that they generate emission reductions from projects. The difference between IET and the project-based mechanisms is that IET is based on the setting of a quantitative restriction of emissions, while the CDM and JI are based on the idea of "production" of emission reductions. The CDM is designed to encourage production of emission reductions in non-Annex I Parties, while JI encourages production of emission reductions in Annex I Parties. The emission reductions produced by the CDM and JI are both measured against a hypothetical baseline of emissions that would have occurred in the absence of a particular emission reduction project. The emission reductions produced by the CDM are called Certified Emission Reductions (CERs); reductions produced by JI are called Emission Reduction Units (ERUs). The reductions are called "credits" because they are emission reductions credited against a hypothetical baseline of emissions.

Green investment Scheme Green Investment Scheme A Green Investment Scheme (GIS) refers to a plan for achieving environmental benefits from trading surplus allowances (AAUs) under the Kyoto Protocol. The Green Investment Scheme (GIS), a mechanism in the framework of International Emissions Trading (IET), is designed to achieve greater flexibility in reaching the targets of the Kyoto Protocol while preserving environmental integrity of IET. However, using the GIS is not required under the Kyoto Protocol, and there is no official definition of the term. Under the GIS a Party to the Protocol expecting that the development of its economy will not exhaust its Kyoto quota, can sell the excess of its Kyoto quota units (AAUs) to another Party. The proceeds from the AAU sales should be "greened", i. e. channelled to the development and implementation of the projects either acquiring the greenhouse gases emission reductions (hard greening) or building up the necessary framework for this process (soft greening)

Clean Development Mechanism This mechanism allows developed (or Annex 1) nations to receive emission credits towards their own emission targets by participating in certain projects in developing (or Nonannex 1) countries. These Clean Development projects must be approved by members of the Protocol and must contribute to sustainable development and greenhouse gas emission reductions in the host developing country. Between 2001, which was the first year CDM projects could be registered, and 2012, the end of the Kyoto commitment period, the CDM is expected to produce some 1. 5 billion tons of carbon dioxide equivalent (CO 2 e) in emission reductions. Most of these reductions are through renewable energy, energy efficiency, and fuel switching. By 2012, the largest potential for production of CERs are estimated in China (52% of total CERs) and India (16%). CERs( Certified emission reduction) produced in Latin America and the Caribbean make up 15% of the potential total, with Brazil as the largest producer in the region (7%).

Clean Development Mechanism Under the Clean Development Mechanism, for example, the Annex 1 nation receives emission credits for reducing greenhouse gas emission in a developing nation. Hence, while emissions in the Annex 1 nation have in actuality remained the same, overall global emissions have been reduced.

Joint Implementation This mechanism allows Annex 1 nations to receive emission credits towards their own emission targets by participating in certain projects with other Annex 1 nations. These Joint Implementation projects must be approved by all nations participating in the project, and must either reduce greenhouse gas emissions or contribute to enhanced greenhouse gas removal through emission sinks (i. e. reforestation). The formal crediting period for JI was aligned with the first commitment period of the Kyoto Protocol, and did not start until January 2008 (Carbon Trust, 2009, p. 20). In November 2008, only 22 JI project had been officially approved and registered. The total projected emission savings from JI by 2012 are about one tenth that of the CDM. Russia accounts for about two-thirds of these savings, with the remainder divided up roughly equally between the Ukraine and the EU's New Member States. Emission savings include cuts in methane, HFC, and N 2 O emissions.

Emissions Trading or Carbon Trading This mechanism allows Annex 1 nations to purchase emission ‘credits’ from other Annex 1 countries. Some countries will be below the emission targets assigned to them under the Protocol and, as such, will have spare emission credits. Under the emissions trading system, other nations may purchase these spare credits and use them towards their own emission targets. International Emissions Trading (Article 17 of the Kyoto Protocol) specifies that Annex I countries be allowed to trade assigned amount units (AAUs) with each other. The objective and idea of emissions trading Through emissions trading, an environmental (quantitative) target with a defined absolute upper load limit is to be achieved at minimum cost. Emitters will be assigned an emissions limit and receive permission to emit the specified emission quantity. The emitters receive certificates for the permitted amount of emissions.

Emissions Trading Emitters who want to emit amounts exceeding the assigned amount must obtain an additional certificate for each additional emissions unit. These can be purchased from other emitters who do not use up all the certificates assigned to them. Through the trading mechanism, a market price for the emissions certificates is established which reflects the costs of emission reduction. Each emitter can decide whether it is cheaper to reduce emissions through reduction measures or to purchase certificates for the generated emissions. For trading purposes, one allowance or CER is considered equivalent to one metric ton of CO 2 emissions. These allowances can be sold privately or in the international market at the prevailing market price.

Emissions Trading Procedure Ø A central authority sets a limit / cap on amount of pollutant that can be emitted. Ø A company/ industry are issued emission permits and are required to hold an equivalent number of allowances ( credits). Ø Total amount of allowances and credits can not exceed the cap. Ø The transfer of allowances and credits is referred as a trade. Ø Buyer is paying a charge for polluting while seller is being rewarded for having reduced emissions. Ø Those can easily reduce emissions most cheaply will achieve pollution reduction at lower possible cost. Ø This system is called as cap and trade or carbon trading.

India And Kyoto India, whose economy has grown by 8 -9 per cent a year in recent years, is one of the world's top polluters, contributing around 4 -5 % of global greenhouse gas emissions as its consumption of fossil fuels gathers pace. As a developing nation, India is not required to cut emissions (said to be rising by between 2 and 3 per cent a year)under the Kyoto Protocol, despite mounting pressure from environmental groups and industrialized nations. India made it clear on September 16, 2011 that it wanted extension of the current Kyoto Protocol on emission cuts, but said it would not accept any further legally binding emission framework. As a developing country, India has already taken substantial and ambitious actions at great cost. The issue of a legally binding agreement has acquired huge political sensitivities in India Although around 80 per cent of world growth in carbon emissions is coming from fast growing economies like India and China, India has argued that even if India's economy continues to grow at current levels for the next decade or two, its per capita emissions would still be below those of the developed countries.

India And Kyoto Without any financial and technological assistance, countries like India will not be willing to open their efforts at greenhouse emissions reductions to international verification. Climate change talks not only involve competing economic interests but also raise matters of broad principle for the West's relationship with developing nations India has committed itself to a mandatory fuel efficiency cap to begin in 2011, a change in its energy matrix whereby renewable sources will account for 20 per cent of India's power usage by 2020 as well as announced an ambitious solar energy plan.

THE DEBATE In a Wall Street Journal Report on Environment, Steven Hayward makes the case that carbon energy use is central to the world economic prospects and emission reductions are too expensive, while Robert Stavins argues that gradual reductions are both possible and affordable. 6 Not having the USA ratify the Kyoto Protocol is a big problem as the USA also roughly contributes a quarter of the world’s greenhouse gases. A number of countries have not so far met the Kyoto Protocol emission targets. Current projections call for the need of much bigger cuts in emissions than the Kyoto Protocol requires. The United Nations now predict a rise of 10% in greenhouse emissions since 1990. KYOTO AND BEYOND However its symbolic value may be its greatest asset. Any effort is better than none.

THE DEBATE World Bank (2010) commented on how the Kyoto Protocol had only had a slight effect on curbing global emissions growth. The treaty was negotiated in 1997, but in 2006, energy-related carbon dioxide emissions had grown by 24%. [World Bank (2010) also stated that the treaty had provided only limited financial upport to developing countries to assist them in reducing their emissions and adapting to climate change. 10 Some environmentalists have supported the Kyoto Protocol because it is "the only game in town, " and possibly because they expect that future emission reduction commitments may demand more stringent emission reductions (Aldy et al. . , 2003, p. 9). 11 In 2001, seventeen national science academies stated that ratification of the Protocol represented a "small but essential first step towards stabilising atmospheric concentrations of greenhouse gases. “ 12 Some environmentalists and scientists have criticized the existing commitments for being too weak (Grubb, 2000, p. 5). 13 KYOTO AND BEYOND

BIBLIOGRAPHY 1. United Nations Framework Convention on Climate Change. (n. d. ). Retrieved from http: //en. wikipedia. org/: http: //en. wikipedia. org/wiki/United_Nations_Framework_Convention _on_Climate_Change 2. UNFCCC Kyoto Protocol. (n. d. ). Retrieved from http: //unfccc. int/: http: //unfccc. int/kyoto_protocol/items/2830. php 3. "Status of Ratification of the Kyoto Protocol". United Nations Framework Convention on Climate Change. Retrieved 15 August 2011. 4. Star. Tribune - Canada formally pulls out of Kyoto Protocol on climate change Retrieved 4 May 2012. 5. "Status of ratification". UNFCC Homepage. Retrieved 5 June 2012 6. Grubb, M. (2004). "Kyoto and the Future of International Climate Change Responses: From Here to Where? " (PDF). International Review for Environmental Strategies 5 (1): 2 (PDF version). 7. Grubb & Depledge 2001, p. 269 8. "Article 2". The United Nations Framework Convention on Climate Change. Retrieved 15 November 2005. "Such a level should be achieved within a time-frame sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food production is not threatened and to enable economic development to proceed in a sustainable manner" KYOTO AND BEYOND

BIBLIOGRAPHY 9. "Industrialized countries to cut greenhouse gas emissions by 5. 2%" (Press release). United Nations Environment Programme. 11 December 1997. Retrieved 6 August 2007. 10. "5. Integrating development into a global climate regime" (PDF), , in World Bank 2010, p. 233 11. Aldy, J. E. et al. (9 September 2003). "Thirteen Plus One: A Comparison of Global Climate Policy Architectures". Climate Policy 3 (3): 373– 397. doi: 10. 1016/j. clipol. 2003. 09. 004. Retrieved 2 April 2010. 12. "The Science of Climate Change (editorial)", Science 292 (5520), 18 May 2001: 1261, doi: 10. 1126/science. 292. 5520. 1261 13. Grubb, M. (April 2000). The Kyoto Protocol: An Economic Appraisal. FEEM Working Paper No. 30 2000. SSRN. doi: 10. 2139/ssrn. 229280. SSRN 229280. KYOTO AND BEYOND