The Kyoto Protocol

The Kyoto Protocol is a protocol to the international Framework Convention on Climate Change with the objective of reducing greenhouse gases in an effort to prevent antropogenic (man-made) climate change.

It was adopted on 11 December 1997 by the 3^rd Conference of the Parties, which was meeting in Kyoto, and it entered into force on 16 February 2005. As of May 2008, 182 parties have ratified the protocol. Of these, 36 developed countries (plus the EU as a party in its own right) are required to reduce greenhouse gas (GHG) emissions to the levels specified for each of them in the treaty (representing over 61.6% of emissions from Annex I countries), with three more countries intending to participate. One hundred thirty-seven (137) developing countries have ratified the protocol, including Brazil, China and India, but have no obligation beyond monitoring and reporting emissions. The United States has not ratified the treaty. Among various experts, scientists, and critics, there is debate about the usefulness of the protocol, and there have been cost-benefit studies performed on its usefulness.

At its heart, the Kyoto Protocol establishes the following principles:

- Kyoto is underwritten by governments and is governed by global legislation enacted under the UN’s aegis.

- Governments are separated into two general categories: developed countries, referred to as Annex I countries (who have accepted greenhouse gas emission reduction obligations and must submit an annual greenhouse gas inventory), and developing countries, referred to as Non-Annex I countries (who have no greenhouse gas emission reduction obligations but may participate in the Clean Development Mechanism).

- Any Annex I country that fails to meet its Kyoto obligation will be penalized by having to submit 1.3 emission allowances in a second commitment period for every ton of greenhouse gas emissions they exceed their cap in the first commitment period (i.e., 2008-2012).

- As of January 2008, and running through 2012, Annex I countries have to reduce their greenhouse gas emissions by a collective average of 5% below their 1990 levels (for many countries, such as the EU member states, this corresponds to some 15% below their expected greenhouse gas emissions in 2008). While the average emissions reduction is 5%, national limitations range from an 8% average reduction across the European Union to a 10% emissions increase for Iceland; but, since the EU’s member states each have individual obligations, much larger increases (up to 27%) are allowed for some of the less developed EU countries.

- Kyoto includes “flexible mechanisms” which allow Annex I economies to meet their greenhouse gas emission limitation by purchasing GHG emission reductions from elsewhere.

These Kyoto mechanisms are in place for two main reasons:

- there were fears that the cost of complying with Kyoto would be expensive for many Annex I countries, especially those countries already home to efficient, low greenhouse gas emitting industries, and high prevailing environmental standards. Kyoto therefore allows these countries to purchase (cheaper) carbon credits on the world market instead of reducing greenhouse gas emissions domestically, and

- this is seen as a means of encouraging Non-Annex I developing economies to reduce greenhouse gas emissions through sustainable development, since doing so is now economically viable because of the investment flows from the sale of Carbon Credits.

The objectives of these opposing groups are quite different. Annex I entities want Carbon Credits as cheaply as possible, whilst Non-Annex I entities want to maximize the value of Carbon Credits generated from their domestic Greenhouse Gas Projects.

Notes: antropogenic climate change – зміни клімату, викликані діяльністю людини

cost-benefit studies – видатково-прибуткові дослідження

aegis – егіда; протегування

to reduce emissions – зменшити викиди

to be penalized – 1) бути покараним

2) ставити в невигідне становище

to exceed one’s cap – перевищувати норму

to submit an inventory – подавати опис на розгляд

GHG – greenhouse gas