More on the Kyoto Protocol
Currently 176 countries have ratified the Kyoto Protocol, which entered into force on 16 February 2005. By ratifying the Protocol, countries commit to reducing the emissions of a basket of greenhouse gases. The levels of reduction are specified in the Protocol for the 2008 - 2012 commitment period. The United States of America is the only developed country not to ratify the Protocol.
Developing countries (including China and India) who have ratified the Protocol, do not have binding targets. However, these countries do recognise the shared responsibility of reducing greenhouse gases.
Under the Protocol, the developed countries can reduce emissions through domestic action and through the use of the Kyoto Flexible Mechanisms. These mechanisms enable developed countries to make cost-effective GHG emissions reductions.
The Flexible Mechanisms are;
- International Emissions Trading,
- The Clean Development Mechanism
- Joint Implementation.
Emissions Trading The EU Emissions Trading Scheme (EU ETS) is the largest international emissions trading scheme and the main policy introduced across the EU to tackle emissions of carbon dioxide and other greenhouse gases. The first phase ran from 2005 to 2007. The second phase started in 2008 and will run until 2012, and is timed to coincide with the first Kyoto commitment period. The scheme works on a "Cap and Trade" basis. All EU 25 governments are required to set an emission cap for all installations covered by the scheme. Each installation is allocated allowances for the particular commitment period. The number of allowances allocated to each installation for any given period is determined on the basis of the National Allocation Plan.
The Kyoto Protocol allows for emission reductions to be carried out in projects implemented abroad through the Clean Development Mechanism (CDM) and Joint Implementation (JI). These “project-based” mechanisms allow Parties to the Kyoto Protocol to implement emission reduction projects in other countries in exchange for credits, which can be used towards achieving the Kyoto target.
Clean Development Mechanism (CDM) When projects are carried out in countries without a Kyoto target (non-Annex 1 Parties) they opperate under the "Clean Development Mechanism" and the credits earned are called " Certified Emission Reductions" (CERs). The CDM generates investment in developing countries, especially from the private sector, and promotes the transfer of environmentally friendly technologies. This mechanism gives installations a degree of flexibility, allowing them an alternative to potentially expensive emision reductions in their own countries, while still fulfilling their obligations under the EU ETS and resulting in a net decrease in greenhouse gas emissions.
Joint Implementation (JI) This mechanism opperates in a similar manner to the CDM, however when projects are carried out in countries with a Kyoto target (Annex1 Parties) they operate under "Joint Implimentation". The credits earned through Joint Implimentation are called "Emissios Reduction Units" (ERUs).