KYOTO

PROTOCOL

Group 6
Ankita Mahajan (110)
Briji Komban (115)
Ramya UK (144)

Introduction

TheKyoto Protocolis aprotocolto theUnited Nations

Framework Convention on Climate Change(UNFCCC),
aimed at fightingglobal warming
The UNFCCC is an internationalenvironmentaltreatywith
the goal of achieving the "stabilization of greenhouse gas
concentrations in theatmosphereat a level that
wouldprevent dangerous anthropogenic interference with
the climate system.
The Protocol was initially adopted on 11 December 1997
inKyoto, Japan, and entered into force on 16 February
2005
As of September 2011,191 states have signed and
ratifiedthe protocol

Participation in Kyoto Protocol

as of 2011

Brown = Countries that have signed and ratified the treaty

(Annex I & II countries in dark brown)
Blue = No intention to ratify at this stage.
Dark blue = Canada, which withdrew from the Protocol in
December 2011.
Grey = no position taken or position unknown

Kyoto Parties with first period (08-12) greenhouse

gas emissions limitations targets and the
percentage change in their carbon dioxide
emissions from fuel combustion b/w 1990 and
2009

Objectives

Under the Protocol, 37 countries ("Annex I

countries") commit themselves to a reduction of
fourgreenhouse gases (GHG) (carbon
dioxide,methane,nitrous oxide,sulphur
hexafluoride) and two groups of gases (hydro
fluorocarbonsand per fluorocarbons) produced
by them, and all member countries give general
commitments
At negotiations, Annex I countries (including the
US) collectively agreed to reduce their
greenhouse gas emissions by 5.2% on average
for the period 2008-2012.
Since the US has not ratified the treaty, the

Objectives
Each Annex I Party has a binding commitment to limit or reduce
GHG emissions and innovative mechanisms have been
established for Parties to facilitate compliance with this
commitment.
Other commitments include:
Each Annex I Party must undertake domestic policies and
measures to reduce GHG emissions and to enhance removals
by sinks;
In implementing these policies and measures, each Annex I
Party must strive to minimize any adverse impact of these
policies and measures on other Parties, particularly developing
country Parties;
Annex I Parties must provide additional financial resources to
advance the implementation of commitments by developing
countries;
Both Annex I and non-Annex I Parties must cooperate in the
areas of:

Major Greenhouse Gas trends

2012 Emission Targets

Austria 87%
Belarus 95%
Belgium 92.5%
Bulgaria 92%
Canada 94%
Croatia 95%
Czech Republic 92%
Denmark 79%
Estonia 92%
Finland 100%
France 100%
Germany 79%
Greece 125%
Hungary 94%
Iceland 110%
Ireland 113%

Liechtenstein 92%
Lithuania 92%
Luxembourg 72%
Netherlands 94%
New Zealand 100%
Norway 101%
Poland 94%
Portugal 127%
Romania 92%
Russian Federation
100%
Slovakia 92%
Slovenia 92%
Spain 115%
Sweden 104%
United Kingdom 87.5%
United States of America

Contd...
Five Parties have an alternative base year:
Bulgaria: 1988;
Hungary: the average of the years 19851987;
Poland: 1988;
Romania: 1989;
Slovenia: 1986

The Kyoto Mechanisms

1.

International Emissions Trading (IET)

. Under

this mechanism, an Annex I Party may transfer Kyoto

units to or acquire units from another Annex I Party.
. Emissions trading does not affect the total assigned
amount of Annex I Parties collectively; rather, it redistributes the assigned amount among them.
. A Party may acquire an unlimited number of units.
. The number of units that a Party may transfer to other
Parties
is limited by the Partys commitment period reserve
(CPR).
. The CPR is the minimum level of units that a Party must
hold in its national registry at all times. The requirement for
each Party to maintain a CPR prevents a Party from over-

The Kyoto Mechanisms

2. Joint implementation (JI)

It is a project-based mechanism by which one Annex I Party can

invest in a project that reduces emissions or enhances
sequestration in another Annex I Party, and receive credit for the
emission reductions or removals achieved through that project.
The unit associated with JI is called an emission reduction unit
(ERU).
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.

The Kyoto Mechanisms

3.

Clean Development Mechanism

CDM

credits may be generated from emission reduction projects or from

afforestation and reforestation projects in non-Annex I Parties.
Unlike emissions trading and JI, projects under the CDM create new Kyoto
units and their acquisition by Annex I Parties increases both the total
assigned amount available for those Annex I Parties collectively and their
allowable level of emissions.
CDM projects result in three types of Kyoto units.
Certified emission reductions (CERs) are issued for projects that reduce
emissions
Temporary CERs (tCERs)
Long-term CERs (lCERs) both of which may be issued for projects that
enhance removals through afforestation and reforestation projects.
Investment
Annex 1 Country
e.g. Japan

CERs (negotiated)
Revenues

Non-Annex 1 Country
e.g. Thailand

Details of the agreement

National emission targets exclude international
aviation and shipping
Land use and forestry (sink activities) can be used
in meeting targets
Common but differentiated responsibility
Largest share of emissions originated in
developed countries
Relatively low emissions in developing countries
Share of emissions in developing countries will
grow to meet their social and development needs
Per capita emissions

Details of the agreement

Financial

Commitments:

Developed countries have to pay billions of

dollars and supply technology to other

countries for climate related studies. E.g. The
Adaptation Fund
Enforcement:
If a country is not in compliance with its

emissions limitation, it is required to make up

the difference during the 2nd commitment
period plus an additional 30%
It will also be suspended from making transfers
under an emissions trading program

Top 5 Emitters
Emissions as a percentage of the global
total, per capita emissions in tons of GHG
per capita
China 15%, 5.8
United States 16%, 24.1
European Union 11%, 10.6
Indonesia 6%, 12.9
India 5%, 2.1

Source: International Energy Agency (IEA,

2007,p.201)

Negotiations
Industrialized countries were committed to
take the lead in reducing emissions
They were required to stabilize their
emissions at 1990 levels by 2000
Failure to do so made Kyoto move to
binding commitments
Developing countries were not subject to
emission reduction commitments in the
first Kyoto commitment period
Clean Development Mechanism was
designed to limit emissions in developing

Emission Cuts
The G77 wanted strong uniform emission cuts

across the developed world

However, countries such as the US made
suggestions to reduce their responsibility to
reduce emissions (inclusion of carbon sinks,
ignoring historical emissions)
Countries over achieving in their first period
commitments were allowed to bank their unused
allowances for use in the subsequent period
The EU suggested a bubble commitment
The US was obliged to cut back emissions more
than other countries

Cost Estimates and

Emissions

Exceptions to Kyoto Targets :Belarus, Malta,

and Turkey are Annex I Parties but do not have
Kyoto targets. The US has a Kyoto target of a 6%
reduction relative to the 1990 level, but has not
ratified the treaty. But Emissions in the US have
increased 11% since 1990
The Energy sector is found to be the largest
source of emissions
Due to non-US participation in the Kyoto treaty,
cost estimates were found to be much lower than
those estimated in IPCC third assessment report

Kyoto Protocol effect on MNEs

For multinationals, the Kyoto Protocols entry into

force means new restrictions, a new source of
income, or both
Companies operating in industrialized countries
will be subject to the programs developed by
those countries to meet their Kyoto obligations.
Companies with facilities in developing countries
might be in a position to take advantage of a new
source of carbon financing through the Clean
Development Mechanism (CDM)
Example: Through their Southeast Asian
subsidiaries, companies such as Unocal have
explored ways to use CDM transactions to
finance new clean energy projects.

The Unresolved issues in

Kyoto
No details on specific policies and
measures to meet reduction targets
No commitments from developing nations
No details on implementing permits
system including penalties
No details on funding mechanisms for
developing nations
bunkers fuels issue unresolved (i.e. The
fuel used in shipping and air travels)

Why U.S. wont Ratify

The United States has not ratified the Kyoto Protocol,
but it hasn't withdrawn from it, either
The main objection of the US to ratification is regarding
the nature of participation of developing countries. The
US will not ratify the Protocol unless developing countries
are also required to keep greenhouse gas levels at
targeted minimums.
The US feels that the Kyoto Protocol is unfair in that
countries like itself will be harmed economically because
they will have to make the most changes in order to
adhere to targeted levels of CO2 levels set forth in the
Kyoto Protocol.

Recent Advances in Kyoto Protocol

May 2011: Russia, Japan and Canada told the G8

they would not join a second round of carbon cuts
under the Kyoto Protocol at United Nations talks and
the US reiterated it would remain outside the treaty.
They argued that the Kyoto format did not require
developing countries, including China, the worlds
No. 1 carbon emitter, to make targeted emission cuts
Aug 2011: The European Union, the major
developing countries, and most African and Pacific
island nations declared that they would like to see
the Kyoto process extended as a prelude to a more
ambitious, binding international agreement that
would take effect by 2020

United Nations Climate Change Conference-Durban,

2011(1/2)

primary focus of the conference was to secure a

global climate agreement as the Kyoto Protocol's first
commitment period (20082012) was about to end
Also expected to focus on finalising at least some of the
Cancun Agreements such as co-operation on clean
technology, as well as forest protection, adaptation to
climate impacts, etc
Canada's environment minister Peter Kent announced
his country's withdrawal from the Kyoto Protocol

Continued...(2/2)

After two weeks of negotiations a deal was reached only on the

last day, Sunday 11 December, after a 60-hour marathon
negotiation session. Negotiators agreed to be part of a legally
binding treaty to address global warming

The terms of the future treaty are to be defined by 2015 and

become effective in 2020.

The agreement, referred to as the "Durban platform" includes

developing countries such as China and India, as well as the US
which refused to sign the Kyoto Protocol

Green fund : The conference led to progress regarding the

creation of a Green Climate Fund for which a management
framework was adopted. The fund is to distribute US$100bn per
year to help poor countries adapt to climate impact

India and Kyoto Protocol

India will not sign any legally binding global

agreement for emission reduction as the country
needs to eradicate poverty through economic growth
India argues that since the CO2 in the atmosphere is
from developed countries it is their responsibility to
cut down the emissions. However India will make all
efforts to cut down on green house gas emissions but
that would be voluntary
India being a developing country is still not stable
enough to take up global warming as the emission
cuts will slow down its development and cripple it
economically

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