The Kyoto Protocol
In 1997, representatives from over 170 nations met in Kyoto, Japan to put together a new global treaty - the Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCCC) — laying down legally binding reductions in greenhouse gas emissions throughout developed countries.
The Kyoto Protocol strengthens the obligations under the UNFCCC by committing developed countries and economies in transition (Annex B countries) to collectively reduce greenhouse gas emissions by 5% within the first Kyoto commitment period of 2008 to 2012, against 1990 emissions levels. Within this collective target each country has a designated individual reduction commitment which must be met, with some economies in transition having also negotiated alternative base years to 1990 as shown in Table 1 .
Of the initial agreements made by parties to adopt the Kyoto Protocol, some have famously withdrawn their support including the United States and Australia. Lack of support by these world leading economies and delays by others has, up until recently, halted the entry into force of the Protocol.
However, the Kyoto Protocol entered into force on 16th February of this year committing 35 industrialised nations to reducing their emissions of six greenhouse gases by 2012. The protocol finally entered into force when Russia ratified the Protocol, ensuring that all ratified nations together emitted at least 55% of the industrial world's CO2 emissions in 1990.
As stated by UNFCCC Secretariat, the features of the Kyoto Protocol are now in place:
It sets legally binding targets for emissions of 6 major greenhouse gases in industrialised countries and defines a specific time period for reaching those targets;
It creates a new commodity (carbon) that can be traded through new international market-based mechanisms; and
It will facilitate the initials of sustainable development while providing additional support to developing nations to achieve this goal.
TABLE 1:
Greenhouse Gas Reduction Targets as Established Under the
It should be noted that, while the list of parties represents those committing to reducing targets at COP3, some have since withdrawn their support.)
Australia
108
Austria
92
Belgium
92
Bulgaria (1989 base year)
92
Canada
94
Croatia
95
Czech Republic
92
Denmark
92
Estonia
92
European Community
92
Finland
92
France
92
Germany
92
Greece
92
Hungary (1985-87 base year)
94
Iceland
110
Ireland
92
Italy
92
Japan
94
Latvia
92
Liechtenstein
92
Lithunania
92
Luxembourg
92
Monaco
92
Netherlands
92
New Zealand
100
Norway
101
Poland (1988 base year)
94
Portugal
92
Romania
92
Russian Federation
100
Slovakia
92
Slovenia
92
Spain
92
Sweden
92
Switzerland
92
Ukraine
100
UK of Great Britain & Northern Ireland
92
United States of America
93
As noted above, one of the Kyoto Protocol's features is the establishment of three flexible market-based mechanisms: emissions trading, joint implementation (JI) and the clean development mechanism (CDM) that enable countries to meet their emission reduction targets, while at the same time providing opportunities for the development of cleaner technologies. Further information on CDM and JI is detailed in additional fact sheets.
Although the Protocol has only just entered into force, the private sector has already commenced pursuing the project-based opportunities that these market-based mechanisms provide. Moreover, a number of multilateral institutions such as the World Bank have established funding programs for project activities under the Protocol.
At the national level, countries have begun adopting various regulatory regimes that directly implement the principles of the Kyoto Protocol within their own jurisdictions. For example, a number of European nations are well down the path to establishing domestic emission trading regimes, e.g. within the UK. A range of Governments are involved in investing in Kyoto Protocol projects and in crediting early abatement action. In Australia, the Federal Government is investigating a national emissions trading scheme and some State Governments have passed legislation providing legal rights to carbon sequestration from forestry activities.
Furthermore, many consortiums have entered into early carbon trades and internal corporate emission targets. Others are participating in voluntary trading markets such as the Chicago Climate Exchange.
