Kyoto Protocol: The Kyoto Protocol is a protocol to the United Nations Framework Convention on Climate Change (UNFCCC or FCCC),

, aimed at fighting global warming. The UNFCCC is an international treaty adopted in 1992 in Rio de Janeiro that provided strategies and mandatory targets for the reduction of greenhouse gas emissions for all signatories The UNFCCC is an international environmental treaty with the goal of achieving "stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system."

Participation in the Kyoto Protocol, as of December 2010, Green = Countries that have signed and ratified the treaty (Annex I & II countries in dark green) Grey = Countries that have not yet decided Brown = No intention to ratify at this stage.

History of kyoto protocol: In the 1980s & early 1990s, the issue of global warming came to the forefront of international politics. In 1992, 154 countries, including Canada, signed the United Nations Framework Convention on Climate Change in Rio de Janeiro, Brazil. The central element of the Convention was a commitment to stabilize greenhouse gas levels in the atmosphere within a timeframe that would be sufficient to allow ecosystems to adapt naturally to climate change. Nations agreed, moreover, that developed countries (countries with modern, fully developed economies) were to take a leadership role in reducing greenhouse gas emissions.

Implicit in this understanding was the recognition that developed nations had been the primary greenhouse gas emitters over the last century, and that emission stabilization would be more problematic for non-developed or developing countries At the third Conference of the Parties, held in Kyoto, Japan, member countries signed the Kyoto Protocol. The 1997 Protocol document was a comprehensive agreement that included precise greenhouse gas emission targets for each member country, the general framework of a greenhouse gas emissions-trading program The 1997 agreement also provide a specific procedure for bringing the Protocol into full force and effect. The Protocol would have to be formally ratified by at least 55 industrialized nations accounting for a minimum of 55 percent of the total global greenhouse gas emissions produced in 1990. In 1997, the Clinton Administration committed the United States to the Kyoto Protocol agreement, both as a signatory and as an active participant in its implementation negotiations. In 2001, following the election of George W. Bush in 2000, the Bush Administration announced a change in direction for the US; the US would no longer be formally ratifying the agreement. While accepting the general principles of global warming, and the need for international cooperation to reduce levels of greenhouse gases in the earths atmosphere, the Bush Administration was highly critical of many of the Protocols components, in particular the exemption granted to China, the second largest emitter of greenhouse gases (after the United States). Under the Protocol, China is recognized as a developing nation and is, accordingly, exempt from emission reduction targets. The Bush Administration has also expressed concerns over uncertainty in the precise impacts of global warming, as well as the potential impacts of the Protocol on the US economy. By January 2004, several countries had ratified the Kyoto Protocol, including Japan, Canada, New Zealand, and most European signatories. Collectively, these ratifying countries represented approximately 44 percent of the total greenhouse gas emissions produced in 1990 only 11 percent shy of the 55 percent target cited in the Protocols terms. The deciding factor in the eventual implementation of the Protocol was Russia, which represented 17 percent of total 1990 emissions. Russia had been unclear about whether it would ratify the Protocol, However, in November 2004, Russian President Vladimir Putin announced his government would indeed pass the agreement, ensuring the Protocol would come into effect in 2005.

On February 16, 2005, the Kyoto Protocol formally came into effect, committing key industrialized countries, including Canada, to specific targets for reducing or limiting their greenhouse gas emissions between 2008 and 2012 Parties to UNFCCC are classified as Annex I countries industrialized countries and economies in transition Annex II countries developed countries which pay for costs of developing countries Non Annex I countries - Developing countries Annex II countries are a sub-group of the Annex I countries A transition economy or transitional economy is an economy which is changing from a centrally planned economy to a free market. Transition economies undergo economic liberalization, where market forces set prices rather than a central planning organization and trade barriers are removed, privatization of government-owned enterprises and resources, and the creation of a financial sector to facilitate macroeconomic stabilization The Kyoto Protocol requires 55 industrialised countries to reduce their greenhouse gas emissions to target levels 5.2% below that of 1990. If unable to, they must buy emission credits from countries that are under these levels it provides that developed countries pay for costs of developing countries. Developing countries have no requirements under the Protocol. They may sell emission credits and receive funds and technology from Annex II countries for climate-related studies and projects. Many Annex I and Annex II countries overlap Annex I countries There are 40 Annex I countries and the European Union is also a member. These countries are classified as industrialized countries and countries in transition: Australia, Austria, Belarus, Belgium, Bulgaria, Canada, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Latvia, Liechtenstein, Lithuania, Luxembourg, Monaco, Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Russian Federation, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom, United States of America Anex II countries. There are 23 Annex II countries and the European Union.

These countries are classified as developed countries which pay for costs of developing countries: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Japan, Luxembourg, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom, United States of America Notable exceptions remains the USA as a major emitter of greenhouse gases. Australia signed the Treaty on the 3rd December 2007 The Protocol was initially adopted on 11 December 1997 in Kyoto, Japan and entered into force on 16 February 2005. As of November 2009, 187members have signed and ratified the protocol The major feature of the Kyoto Protocol is that it sets binding targets for industrialized countries for reducing greenhouse gas (GHG) emissions.. As of August 2011, 191 members have signed and ratified the protocol. The only remaining signatory not to have ratified the protocol is the United States. Other states yet to ratify Kyoto include Afghanistan, Andorra and South Sudan, after Somalia ratified the protocol on 26 July 2010. Under the Protocol, 39 industrialized countries and the European Union(called "Annex I countries") commit themselves to a reduction of four greenhouse gases (GHG) (carbon dioxide, methane, nitrous oxide, sulphur hexafluoride) and two groups of gases (hydrofluorocarbons and perfluorocarbons) produced by them, and all member countries give general commitments. Annex I countries agreed to reduce their collective greenhouse gas emissions by 5.2% from the 1990 level. Emission limits do not include emissions by international aviation and shipping, but are in addition to the industrial gases, chlorofluorocarbons, or CFCs, which are dealt with under the 1987 Montreal Protocol on Substances that Deplete the Ozone Layer. The benchmark 1990 emission levels were accepted by the Conference of the Parties of UNFCCC were the values of "global warming potential" calculated for the IPCC Second Assessment Report. These figures are used for converting the various greenhouse gas emissions into comparable CO2 equivalents (CO2-eq) when computing overall sources and sinks Some targets for some countries are higher than for others, depending on their emission status. For instance, the emission cut target for the European Union is set at 8% and 7% for the USA.

Top-ten emitters: Ranking of the world's top ten emitters of GHGs for 2005.

The first figure is the country's or region's emissions as a percentage of the global total. China 17% United States 16% European Union 11% Indonesia - 6% India 5% Russia 5% Brazil 4% Japan 3% Canada 2% Mexico 2% Key Dates 1992 - UNFCCC adopted providing targets and framework for international regulation of greenhouse gases. 12/11/97 - Kyoto Protocol is finalized and Opened For Signature55 parties accounting for at least 55% of 1990 GHG emissions necessary for Kyoto Protocol to enter into force. 2/16/05 - Kyoto Protocol enters into force as Russia ratifies the Kyoto Protocol. 12/06 - 169 Countries and Governmental Entities Have Ratified the Kyoto Protocol. D2008-12 - deadline for Annex I Countries To Reduce GHG emissions to target levels. Each country assigned target. Average reduction is 5% below 1990 Levels

Objectives: The objective is the "stabilization and reconstruction of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. objective of the Kyoto climate change conference was to establish a legally binding international agreement, whereby all the participating nations commit themselves to tackling the issue of global warming and greenhouse gas emissions. The target agreed upon was an average reduction of 5.2% from 1990 levels by the year 2012.

According to the treaty, in 2012, Annex I countries must have fulfilled their obligations of reduction of greenhouse gases emissions established for the first commitment period (2008 2012)

Principle Concepts: 1.Commitments. The heart of the Protocol lies in establishing commitments for the reduction of greenhouse gases that are legally binding for Annex I countries, as well as general commitments for all member countries. 2.Implementation. In order to meet the objectives of the Protocol, Annex I countries are required to prepare policies and measures for the reduction of greenhouse gases in their respective countries. In addition, they are required to increase the absorption of these gases and utilize all mechanisms available, such as joint implementation, the clean development mechanism and emissions trading, in order to be rewarded with credits that would allow more greenhouse gas emissions at home 3.Minimizing Impacts on Developing Countries by establishing an adaptation fund for climate change. 4.Accounting, Reporting and Review in order to ensure the integrity of the Protocol. 5.Compliance. Establishing a Compliance Committee to enforce compliance with the commitments under the Protocol.

Kyoto Mechanisms: Under the Treaty, countries must meet their targets primarily through national measures. However, the Kyoto Protocol offers them an additional means of meeting their targets by way of three market-based mechanisms. They are Emissions trading known as the Carbon market" Clean development mechanism (CDM) Joint implementation (JI).

Important element of the Kyoto Protocol is its flexibility mechanisms. These enable participating nations to achieve their emission targets by means other than simply reducing their own national emissions of greenhouse gases hence, the term flexibility mechanisms. The Protocol provides for three such mechanisms Clean Development: This mechanism allows developed (or Annex 1) nations to receive emission credits towards their own emission targets by participating in certain projects in developing (or Non-annex 1) countries. These Clean Development projects must be approved by members of the Protocol and must contribute to sustainable development and greenhouse gas emission reductions in the host developing country. Clean Development Mechanism Between 2001, which was the first year CDM projects could be registered, and 2012, the end of the Kyoto commitment period, the CDM is expected to produce some 1.5 billion tons of carbon dioxide equivalent (CO2e) in emission reductions. Most of these reductions are through renewable energy, energy efficiency, and fuel switching By 2012, the largest potential for production of CERs are estimated in China (52% of total CERs) and India (16%). CERs( Certified emission reduction) produced in Latin America and the Caribbean make up 15% of the potential total, with Brazil as the largest producer in the region (7%). Under the Clean Development Mechanism, for example, the Annex 1 nation receives emission credits for reducing greenhouse gas emission in a developing nation. Hence, while emissions in the Annex 1 nation have in actuality remained the same, overall global emissions have been reduced. Joint Implementation: This mechanism allows Annex 1 nations to receive emission credits towards their own emission targets by participating in certain projects with other Annex 1 nations. These Joint Implementation projects must be approved by all nations participating in the project, and must either reduce greenhouse gas emissions or contribute to enhanced greenhouse gas removal through emission sinks (i.e. reforestation). Joint Implementation The formal crediting period for JI was aligned with the first commitment period of the Kyoto Protocol, and did not start until January 2008 (Carbon Trust, 2009, p. 20). In November 2008, only 22 JI project had been officially approved and registered.

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. Emission savings include cuts in methane, HFC, and N2O emissions. Emissions Trading: This mechanism allows Annex 1 nations to purchase emission credits from other Annex 1 countries. Some countries will be below the emission targets assigned to them under the Protocol and, as such, will have spare emission credits. Under the emissions trading system, other nations may purchase these spare credits and use them towards their own emission targets. International Emissions Trading The most advanced emissions trading system (ETS) is the one developed by the EU suggested that during its first two years in operation, the EU ETS turned an expected increase in emissions of 1-2 percent per year into a small absolute decline. The CDM and JI are called "project-based mechanisms," in that they generate emission reductions from projects. The difference between IET and the project-based mechanisms is that IET is based on the setting of a quantitative restriction of emissions, while the CDM and JI are based on the idea of "production" of emission reductions. The CDM is designed to encourage production of emission reductions in non-Annex I countries, while JI encourages production of emission reductions in Annex I countries.

2012 emission targets and "flexible mechanisms" 39 of the 40 Annex I countries have ratified the Protocol. Of these 34 have committed themselves to a reduction of greenhouse gases (GHG) produced by them to targets that are set in relation to their 1990 emission levels, The targets apply to the four greenhouse gases carbon dioxide, methane, nitrous oxide, sulphur hexafluoride, and two groups of gases, hydrofluorocarbons and perfluorocarbons. The six GHG are translated into CO2 equivalents in determining reductions in emissions. Carbon trading Carbon trading or emission trading is an administrative approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants. Procedure

A central authority sets a limit / cap on amount of pollutant that can be emitted. A company/ industry are issued emission permits and are required to hold an equivalent number of allowances ( credits) Total amount of allowances and credits cannot exceed the cap The transfer of allowances and credits is referred as a trade. Buyer is paying a charge for polluting while seller is being rewarded for having reduced emissions. Those can easily reduce emissions most cheaply will achieve pollution reduction at lower possible cost. This system is called as cap and trade or carbon trading. Advantages Better approach than direct regulation. Can be cheaper and politically preferable for existing industries as earlier allowances are allocated within proportion to historical emissions. Most of the money in the system is spent on environmental activities. How Co is traded CER is sold at a price negotiated between buyer and seller. CER is offered with a guarantee of delivery regulator. According to World Bank 374MMT of Co were exchanged through the projects in 2005. How Does the Kyoto Protocol Work? 1. The world is divided into two categories: Annex I Countries (Developed Countries) and Annex II Countries (Developing Countries). The U.S., EU countries, Japan, etc., are Annex I. China, India and others are Annex II. 2. Each Annex I country is assigned a target emissions reduction relative to its 1990 GHG emissions. The country must meet this target for the period between 2008 and 2012. This will be a calculated average over a five-year period. Annex II countries have no emissions reduction targets but are encouraged to adopt environmentally friendly technologies to reduce GHG emissions Annex I countries can meet the target in one of three ways: (a) actual emissions reduction from sources within its borders; (b) the purchase of emission reduction credits on financial

exchanges from other signatory countries; or (c) participation in Clean Development Mechanism (CDM) projects that generate emission reduction credits in Annex II countries. Note that the credits must be Certified Emission Reductions (CERs) approved by the CDM Executive Board. Enforcement/PenaltyFailure to meet the targets will result in having a 30% penalty on excess emissions. 5. Most signatories that have ratified the Kyoto Protocol have established Designated National Authorities to develop, adopt and enforce the Kyoto process, including the CDMs. Success of kyoto protocol. not having the USA ratify the Kyoto Protocol is a big problem as the USA also roughly contributes a quarter of the worlds greenhouse gases. A number of countries have not so far met the Kyoto Protocol emission targets. current projections call for the need of much bigger cuts in emissions than the Kyoto Protocol requires. The United Nations now predict a rise of 10% in greenhouse emissions since 1990. The Kyoto Protocol is a unique international initiative that recognises the dire environmental straits that we are in. Its processes seem painfully slow and its results small against daily reports of serious global warming effects. However its symbolic value may be its greatest asset. Any effort is better than none and if governments are slow, people everywhere are doing what they can do. Recycling, green power, wearing a jumper rather than turning up the heater, and so on. Some local governments are not waiting for their national governments to come to the party and introduce their own individual carbon trading schemes or offer incentives for solar heating

India and Kyoto Protocol: India, whose economy has grown by 8-9 per cent a year in recent years, is one of the world's top polluters, contributing around 4-5 % of global greenhouse gas emissions as its consumption of fossil fuels gathers pace. As a developing nation, India is not required to cut emissions -- said to be rising by between 2 and 3 per cent a year -- under the Kyoto Protocol, despite mounting pressure from environmental groups and industrialised nations.

India made it clear on sept 16, 2011 that it wanted extension of the current Kyoto Protocol on emission cuts, but said it would not accept any further legally binding emission framework. As a developing country, India has already taken substantial and ambitious actions at great cost. The issue of a legally binding agreement has acquired huge political sensitivities in India Although around 80 per cent of world growth in carbon emissions is coming from fast growing economies like India and China, India has argued that even if India's economy continues to grow at current levels for the next decade or two, its per capita emissions would still be below those of the developed countries. Without any financial and technological assistance, states like India will not be willing to open their efforts at greenhouse emissions reductions to international verification. Climate change talks not only involve competing economic interests but also raise matters of broad principle for the West's relationship with developing nations India has committed itself to a mandatory fuel efficiency cap to begin in 2011, a change in its energy matrix whereby renewable sources will account for 20 per cent of India's power usage by 2020 as well as announced an ambitious solar energy plan.