Kyoto Protocol

Dr. Gargi Chakrabarti

• The Kyoto Protocol is an international agreement linked to the
United Nations Framework Convention on Climate Change,
which commits its Parties by setting internationally binding emission
reduction targets.
• The Kyoto Protocol was adopted in Kyoto, Japan, on 11 December
1997 and entered into force on 16 February 2005. The detailed rules
for the implementation of the Protocol were adopted at COP 7 in
Marrakesh, Morocco, in 2001, and are referred to as the "Marrakesh
Accords." Its first commitment period started in 2008 and ended in
2012.
• The Protocol's major feature is that it has mandatory targets on
greenhouse-gas emissions for the world's leading economies
which have accepted it.
• These targets range from -8 per cent to +10 per cent of the
countries' individual 1990 emissions levels "with a view to reducing
their overall emissions of such gases by at least 5 per cent below
existing 1990 levels in the commitment period 2008 to 2012.“
• In almost all cases -- even those set at +10 per cent of 1990 levels --
the limits call for significant reductions in currently
projected emissions.
• Future mandatory targets are expected to be established for
"commitment periods" after 2012. These are to be negotiated well
in advance of the periods concerned.
• Commitments under the Protocol vary from nation to nation. 
• The overall 5 per cent target for developed countries is to be met through cuts (from
1990 levels)
• 8 per cent in the European Union (EU[15]), Switzerland, and most Central and East
European states;
• 6 per cent in Canada;
• 7 per cent in the United States (although the US has since withdrawn its support for the
Protocol); and
• 6 per cent in Hungary, Japan, and Poland. New Zealand, Russia, and Ukraine are to
stabilize their emissions,
• while Norway may increase emissions by up to 1 per cent,
• Australia by up to 8 per cent (subsequently withdrew its support for the Protocol), and
• Iceland by 10 per cent.
• The EU has made its own internal agreement to meet its 8 per cent target by
distributing different rates to its member states. These targets range from a 28 per cent
reduction by Luxembourg and 21 per cent cuts by Denmark and Germany to a 25 per
cent increase by Greece and a 27 per cent increase by Portugal.
• To compensate for the sting of "binding targets," as they are called,
the agreement offers flexibility in how countries may meet their
targets.
• For example, they may partially compensate for their emissions by
increasing "sinks" -- forests, which remove carbon dioxide from the
atmosphere. That may be accomplished either on their own
territories or in other countries. Or they may pay for foreign projects
that result in greenhouse-gas cuts. Several mechanisms have been
set up for this purpose.
• The Kyoto Protocol is a complicated agreement that has been slow
in coming--there are reasons for this.  The Protocol not only has to
be an effective against a complicated worldwide problem -- it also
has to be politically acceptable. 
• As a result, panels and committees have multiplied to monitor and
referee its various programmes, and even after the agreement was
approved in 1997, further negotiations were deemed necessary to
hammer out instructions on how to "operate" it. These rules,
adopted in 2001, are called the "Marrakesh Accords."
• There is a delicate balance to international treaties. Those
appealing enough to gain widespread support often aren't strong
enough to solve the problems they focus on. (Because the
Framework Convention was judged to have this weakness, despite
its many valuable provisions, the Protocol was created to
supplement it.) Yet treaties with real "teeth" may have difficulty
attracting enough widespread support to be effective.
• Some mechanisms of the Protocol had enough support that they
were set up in advance of the Protocol's entry into force.
• The Clean Development Mechanism, for example -- through which
industrialized countries can partly meet their binding emissions
targets through "credits" earned by sponsoring greenhouse-gas-
reducing projects in developing countries -- already had an
executive board before the Kyoto Protocol entered into force on 16
February 2005.
• The Pros of Carbon Tax
• 1. Lessen the production of carbon dioxide. Businessmen who will
attempt to produce carbon dioxide will be required to pay a high amount
of tax. In this way, the production of carbon dioxide will decrease.
• 2. Encourage to use alternative engines. Due to the high payment of tax,
businessmen will decide to use safe and efficient engines that don’t
produce and release carbon dioxide in the environment.
• 3. Show the way to social efficient outcome. It is possible that electrical
power plant will use green sources in producing electrical energy. Aside
from that, people will never depend on utilizing fuel or oil.
• 4. Increases revenue. The increase of revenue in carbon tax can be used
in the production of green electricity. It can also be used in repairing
damages that can cause by weather disturbance or the pollution in the
environment.
• The Cons Of Carbon Tax
• 1. Businessmen will move in other countries which doesn’t implement the carbon tax.
With the high payment of tax, it is possible that many businessmen will move to other
countries which don’t promote or follow carbon tax.
• 2. Expensive. Promoting this kind of tax is expensive and that’s why the government will
need a big amount of money in order make it more effective.
• 3. Provide higher tax. Higher tax payment can also encourage businessmen to produce
carbon dioxide secretly.
• 4. Hold back the development process in the world. The global carbon tax will hold back
the developmental process in the world due to the expensive rate of energy.
• 5. Disregarding of the latest tax. Due to the latest payment of tax, many people will
disregard it and they will never be guaranteed if they will become revenue neutral.
• 6. Inelastic of price. Whether the price will get inelastic or not, the tax payment will
surely increase and it will decrease the essential demands of the people.
• 7. Difficulty in knowing the amount of tax that will pay. For businessmen, they will
surely have difficulty to know how much tax they will pay and also the external cost.
• A carbon footprint is defined as:
• The total amount of greenhouse gases produced to directly and
indirectly support human activities, usually expressed in equivalent tons
of carbon dioxide (CO2).
• In other words: When you drive a car, the engine burns fuel which
creates a certain amount of CO2, depending on its fuel consumption and
the driving distance. (CO2 is the chemical symbol for carbon dioxide).
When you heat your house with oil, gas or coal, then you also generate
CO2. Even if you heat your house with electricity, the generation of the
electrical power may also have emitted a certain amount of CO2. When
you buy food and goods, the production of the food and goods also
emitted some quantities of CO2.
• Your carbon footprint is the sum of all emissions of CO2 (carbon
dioxide), which were induced by your activities in a given time
frame. Usually a carbon footprint is calculated for the time period of a
year.
• Examples:
• For each (UK-) gallon of petrol fuel consumed, 10.4 kg carbon
dioxide (CO2) is emitted.
• For each (US-) gallon of gasoline fuel consumed, 8.7 kg carbon
dioxide (CO2) is emitted.
• If your car consumes 7.5 liter diesel per 100 km, then a drive of 300
km distance consumes 3 x 7.5 = 22.5 liter diesel, which adds 22.5 x
2.7 kg = 60.75 kg CO2 to your personal carbon footprint.
CLEAN DEVELOPMENT MECHANISM (CDM)
CDM Concept
 Typical Clean Development Mechanism
Projects
• Energy—Renewable energy projects, such as hydropower, wind,
solar, and biomass; energy efficiency measures, such as energy-
savings lamps; and energy efficiency measures in industries
• Transport—Low-carbon transport, such as bus rapid transit and
electric vehicles
• Urban—Methane recovery and utilization from wastewater and
solid waste treatment
• Agriculture and natural resource management—Biogas and forestry
 ADB Initiatives of CDM
• As developing member countries (DMCs) of the Asian Development Bank (ADB)
begin to systematically address the low-carbon transition, the Clean
Development Mechanism (CDM)—already at €8.3 billion ($12 billion) worth of
transactions in the first half of 2011—is one of the few areas that has an obvious
upside to their operations.
• By tapping this CDM market, DMCs will be able to obtain additional resources
needed to implement clean energy and other GHG mitigation projects once
those projects are registered under the CDM.
• The CDM allows emission reduction projects in developing countries to earn
certified emission reductions (CERs), each equivalent to 1 ton of carbon dioxide
(CO2). CERs can be traded and sold, and used by industrialized countries to meet
part of their emission reduction targets under the Kyoto Protocol.
• The CDM helps host countries achieve sustainable development and reduce
emissions, while giving industrialized countries some flexibility in how they meet
their emission targets.
 The Carbon Market
Program
• The Carbon Market Program (CMP) is a value-added service extended to clean energy
and greenhouse gas (GHG) mitigation projects in Asia and the Pacific that are suitable for
financing by the Asian Development Bank (ADB). Through the CMP, ADB uses the carbon
market as a tool and offers technical and financial services to developing member
countries in conjunction with regular financing operations.
• The CMP boosts ADB’s efforts to promote energy efficiency, renewable energy, and
urban sanitation sector projects where carbon credit revenues can enhance project
viability.
The CMP has three components:
• An up-front carbon co-financing vehicle through the Asia Pacific Carbon Fund (purchases
certified emission reductions up to 2012) and Future Carbon Fund (purchases certified
emission reductions post-2012)
• Technical assistance to prepare and implement Clean Development Mechanism projects
through the Technical Support Facility
• Marketing support for carbon credits through the Credit Marketing Facility
JOINT IMPLEMENTATION, EMISSION TRADING
& CDM
 CDM Projects in India
• The National Clean Development Mechanism Authority (NCDMA) is the Designated
National Authority (DNA) for Host Country Approval (HCA) in India, required for the
CDM mechanism.
• The NCDMA acts as the single window for clearance of the CDM projects in the country.
Once the members of the Authority are convinced that the project contributes to the
sustainable development goals of the country, HCA letter is issued by the Member-
Secretary of the Authority.
• The NCDMA captures the entire lifecycle of the CDM projects and have provision to
monitor the commitment of the project proponents for sharing of the CER revenue.
• The NCDMA has all the information provided by the project proponents in various
modules starting from user registration, prior intimation, submission of projects, host
country approval, validation, registration, issuance and transaction of CERs.
• Till date, 3023 projects have been approved by the NCDMA for the CDM. Maharashtra
(398) has the highest number of approved projects followed by Gujarat (391) and Tamil
Nadu (379). The project share of Maharashtra is around 13% of total approved projects.
State-wise Distribution of CDM
Projects
Sector-wise Distribution of CDM
Projects