11 ratification of kp

8/2/2019 11 Ratification of KP

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International Ratification of

Kyoto Protocol and CleanDevelopment Mechanism

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Chen Gang, Ph.D.

Research Fellow,

East Asian Institute, NUS

Background: Climate Change

Global warming becomes one of the

most serious environmental problemsMost scientists believe climate

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emission

In the Kyoto Protocol, GHGs include:

CO2, CH4, N2O, HFCs, PFCs, SF6

Global GHG emissions increased 70%between 1970 and 2004

4IPCC Fourth Assessment Report, Working Group III, 2007


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Disastrous Consequences

Frequent drought,

flood, tropical stormsRising sea levels

Species extinction

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20-30% o spec estemperatureincreases exceed 1.5-2.5C)

Insect populationincrease andepidemic outbreak

International Climate Negotiations

UNFCCC (1992)

Kyoto Protocol (1997)

Under KP, industrialized countries should

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cut em ss ons an average o 5.2%below 1990 levels by 2008-2012

KP became first international treaty setting

legally-binding targets

UNFCCC (1992)

Birth: an international environmental treaty produced atthe United Nations Conference on Environment andDevelopment (UNCED), informally known as the EarthSummit, held in Rio de Janeiro, Brazil, from 314 June1992

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ect ve: sta zat on o green ouse gasconcentrations in the atmosphere at a level that wouldprevent dangerous anthropogenic interference with theclimate system

Legally non-binding, but set framework for future climatetalks.

It marks the beginning of international collective actionagainst climate change. After 1995, a COP to theUNFCCC was held every year.

UNFCCCs Principle of Common butDifferentiated Responsibilities

the largest share of historical and currentglobal emissions of greenhouse gases hasoriginated in developed countries,

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countries are still relatively low,

the share of global emissions originating indeveloping countries will grow to meet

their social and development needs.


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COP-3 & the Kyoto Protocol

The Kyoto Protocol to the UNFCCC was adopted byCOP-3, in December 1997 in Kyoto, Japan after heatednegotiations.

It becomes a milestone, for the first time in history settingmandatory emission cutting targets on sovereign states.

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,collective GHG emissions by 5.2% in 2008-2012compared to the year 1990.

It adheres to the UNFCCC principle of common butdifferentiated responsibilities.

Implementation details were to be worked out in futurenegotiations. (final details were established in COP7,2001, in Marrakech)

Countries in Kyoto Protocols Annex Band their emissions targets

Country Target (1990-2008/2012)

EU-15, Bulgaria, Czech Republic, Estonia,Latvia, Liechtenstein, Lithuania, Monaco,Romania, Slovakia, Slovenia, Switzerland

-8%

-

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Canada, Hungary, Japan, Poland -6%

Croatia -5%

New Zealand, Russia, Ukraine 0%

Norway +1%

Australia +8%

Iceland +10%

Kyoto ProtocolsFlexible Mechanisms

To provide incentives and attract more nations to join thecollective actions, the KP introduced three flexiblemechanisms.

Emission Trading (ET): directly sell emission permits

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Joint Implementation (JI): an Annex B countryimplements a project that reduces emissions in anotherAnnex B country, and counts the resulting emissionreduction against its own target

Clean Development Mechanism (CDM): similar to JI, butthe projects should be located in developing countries

Global Warming Potential (GWP)

CO2: 1

CH4

: 23N2O: 296

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HFC-23: 12,000

PFC: 6,500-9,200

SF6: 22,200


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CDM Examples

Chinas First large-scale CDM business:

Japan's JMD provides fund, technologies todecompose HFC23 discharged by Juhua.JMD buys emission credits at price ofUS$6.5 er ton, e uivalent to US$255.8

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million for seven contractual years based onanticipated annual reduction of 5.62 milliontons of CO2

Changshu 3F Co. receives 438 million eurosfrom World Bank for cutting HFC-23emissions by equivalent of 10.43 milliontons of carbon dioxide annually for 7 years

Case Study: Juhua

1st HFC23 Project: sell CERs to JMD at price ofUS$6.5/ton (JMD provides fund, technologies), JMDpays $38 million/y, 35% of which goes to Juhua, or 108million yuan/year. After tax, cost deduction, Juhua gotadditional net profit of 44 million yuan.

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2nd Project: sell CERs to UK Climate Change Capital atminimum price of 9 euro/ton (no tech, fund aid), 5 milliontons/year (7 year). Buyer pays 45 million/y, 35% ofwhich goes to Juhua. After tax, cost deduction, Juhuaincreased profit of 77 million yuan.

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KP and USA

United States signed the KP during Clinton

AdministrationBushs not ratifying the KP harms US soft

ower reatl

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U.S. is still the largest per capita emitter ofcarbon dioxide from the burning of fossilfuels

More states and local governments joinemission limitation actions

Criticism

Environmentalists: the 5% cut is too low;

flexibility mechanism should not be used

Some western countries: China, India are

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Economists: Industrialized economies mayslow down; cost may be too high

Opposition to 1990 baseline and cap-and-trade approach

Dr. Chen Gang

[email protected]

Tel: 65164181

11 ratification of kp

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