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Explore the UN Framework Convention on Climate Change (UNFCCC) and Kyoto Protocol, including flexible mechanisms, Clean Development Mechanism (CDM), carbon market, and geographical distribution.
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International cooperation Part IV
The UNFCCC and the Kyoto Protocol Session 7
The UN Framework Convention on Climate Change (UNFCCC) • Main outcome of IPCC and the Rio Earth Summit (1992), and first international agreement on climate • Choice between 2 possible options: • A global treaty on the atmosphere • A treaty focused on climate change • General objective: the stabilisation of a GHG concentration at a level that would avoid dangerous interference with the climate • Two key priciples: • Common but differentiated responsibility • Respective capacities.
Not binding, no mandatory limits for GHG emissions. Sole obligation: GHG inventory to be submitted each year. • Three important mechanisms: • Mandatory protocols • Countries divided in Annex I countries, Annex II countries (a subset of Annex I) and developing countries • This division has not changed since. • COP to be held every year
The Kyoto Protocol • Mandatory update of UNFCCC • Opened for signature in 1997, entered into force 8 years later • Conditions: 55 parties, and 55% of CO2 emissions • 176 countries have ratified. Only 37 have to reduce their emissions
General design of the Protocol • Fixed term: expires in 2012 • General objectives: cut GHG emissions by an average 5% from 1990 (base year) • Underpinning principle: common but differentiated responsibility • Distinction between Annex I countries and non Annex I countries • Flexible mechanisms • Heavy emphasis on mitigation, little emphasis on adaptation
Kyoto and Europe • All EU-members’ ratifications deposited simultaneoulsy on 31 May 2002 • EU counted as an individual entity • EU produces about 22% of gas emissions • Agreed to a cut of 8% from 1990 levels • One of the major supporters of the treaty • EU elected to be treated as a ‘bubble’, and created an EU Emissions Trading Scheme • France: 0%. No need to cut emissions • Germany: -21%. Has reduced its emissions by 17.2% between 1990 and 2004. • UK: -12.5%. Appears to be on course to meet its target.
Flexible mechanisms • Innovative aspect of the Kyoto Protocol • Mechanisms relying on the market, rather than on states • Highly criticised as paramount of ‘environmental liberalism’ • Three mechanisms: • Carbon market (‘cap and trade’) • Clean Development Mechanism • Joint Implementation
The carbon market:The EU Emission Trading Scheme • General principle: maximisation of economic efficiency – at the expense of ethics? • Industries are given quotas of emission allowances • Application of the ‘polluter pays’ principle • Scheme started in 2005, all 27 countries take part • Problems: • Price of carbon highly versatile • Covers about half of the EU’s CO2 emissions • Too many quotas on the market • Third phase 2013-2020, with auctioning and a central authority • Crippled with corruption problems
Clean Development Mechanism (CDM) • Aims to combine development and climate, equity and efficiency • Economic efficiency: costs of abatment are cheaper in developing countries • Functioning: • Alternative to domestic reductions • Allow Annex I countries to invest in projects that reduce emissions in developing countries • New carbon credits: Certified Emission Reductions (CERs)
Criticism • Reality of avoided emissions • Principle of additionality • Incentive to misrepresent reality • Overpricing and overestimation • Unlimited credits • A country could completely externalise its efforts • Transfer of emissions? • Development objectives ? • Almost no CDM projects in Africa
Joint implementation • Similar mechanism as CDM, but in Annex I countries (i.e. In Eastern Europe and Russia) • Provides Emission Reduction Units (ERUs), where 1 ERU = 1 ton of CO2 • No new credits • Long and fastidious process
Some final words • Kyoto is an agreement betweenindustrialised countries, wheredeveloping countries are mostlyoberservers: • No limits on emissions • Do not benefitfrom flexible mechanisms • Treatyfocused on mitigation, not adaptation • Role of civil society in international cooperation? • Role of local entities?