The International

Climate Change Regime:

The Kyoto Protocol

International Climate Change and

Energy Law

Spring semester 2015

Dr. Christina Voigt

UNFCCC

Stronger commitments needed!

…. Art. 17: Protocol necessary (more specific obligations)

Kyoto Protocol - CPI

• Adopted 11.12.1997, Entered into force 16.02.2005,

Members: 192 States and the EU

• Sets quantified emissions limitation and reduction

obligations (QELRO) for Annex-I Parties (37 States)

• Art. 3.1 KP: overall emissions from Annex I Parties

shall be reduced to at least 5% below 1990 levels within

2008-2012 (First Commitment Period)

• Assigned Amounts (Annex B)

• Art. 3.1 KP: Annex I Parties shall not exceed their

Assigned Amounts)

Kyoto Protocol CPII

Amendments to the KP in Decision 1/CMP.8:

– Second commitment period (2013-2020) for KP

Annex-I countries, minus CA (no member), RUS,

NZL, J (no KPII)

– Objective of reducing GHG emisions by at least

18% below 1990 (translation of voluntary pledges

into QUELROs – no strengthening of

commitments), IPCC suggested: range of 25-40%)

15% of global emissions

– Party may «propose an adjustment to decrease»

its QUELRO, review in 2014 – P: link to ADP

– When does it enter into force? (provisional

application/ implementation consistent with

national legislation or domestic processes)

Kyoto Protocol

Countries included in Annex B to the Kyoto Protocol and their emissions targets

Country Target (1990- 2008/2012)

EU-15, Bulgaria, Czech Republic,

Estonia, Latvia, Liechtenstein,

Lithuania, Monaco, Romania,

Slovakia, Slovenia, Switzerland

-8%

US -7%

Canada, Hungary, Japan, Poland -6%

Croatia -5%

New Zealand, Russian

Federation, Ukraine 0

Norway +1%

Australia +8%

Iceland +10%

Kyoto Protocol

Countries included in Annex B to the Kyoto Protocol and their emissions targets

Country 2008-2012 2013-2020

EU-15, Bulgaria, Czech Republic,

Estonia, Latvia, Liechtenstein,

Lithuania, Monaco, Romania,

Slovakia, Slovenia, Switzerland

-8% -20%

US -7% 0

Canada, Hungary, Japan, Poland -6% -20%

Croatia -5% -20%

New Zealand, Russian

Federation, Ukraine 0 -24%

Norway +1% -16%

Australia +8% - 0,5%

Iceland +10% -20%

Kyoto Protocol

• Rules focus on:

• Commitments: legally binding individual emissions

targets and general commitments

• Implementation: domestic masures and three novel

implementing mechanisms (flexibility mechanisms)

• Minimizing impacts on developing countries

• Accounting, Reporting and Review

• Compliance: Compliance Committee to assess and

deal with problems of non-compliance

The Carbon Market

International Climate Change and

Energy Law

Spring semester 2015

Dr. Christina Voigt

Quiz

1. What does the KP contain and the UNFCCC doesn’t?

2. Which countries have obligations to reduce their GHG emissions under the KP?

3. What is the ADP?

4. Which flexibility mechanisms are set up by the KP?

10

Institutional Structure

UNEP/WHO

IPCC

UNFCCC KP

COP, art. 7 CMP, art. 13 KP

SBSTA Art. 9 UNFCCC

SBI Art. 10 CDM EB

Art. 12 KP

JISC Art. 6

Compliance Committee

art. 18 KP

Facilitative Branch

Enforce-ment

Branch

Annex I: OECD + EiT Annex II: OECD Non-Annex: developing countries Groups: EU Umbrella: USA, CAN, NO, AUS, NZ, RF, UK G77 and China (subgroups: AOSIS and LDC, African Group) EIG: Sveits, MX, South Korea OPEC BASIC: Brazil, India, China, South Africa

Secretariat

Art. 8 UNFCC, 14 KP

ADP

12

The compliance system of the Kyoto

Protocol

• Three functions

–Fact-finding

–Legal assessment

–Determination of consequences

•Legal basis

–Expert Review Teams (KP art. 8)

–Non-compliance procedure (KP art. 18)

Dec. 24/CP.7 (Marrakesh Accords)

Dec. 27/CMP.1

Rules of Procedure (Dec. 4/CMP.2 revidert Dec.

4/CMP. 4)

13

Decision of the Compliance

Committee

14

15

XI. Appeals

1. The Party in respect of which a final decision has been taken may appeal to

the Conference of the Parties serving as the meeting of the Parties to the

Protocol against a decision of the enforcement branch relating to Article 3,

paragraph 1, of the Protocol if that Party believes it has been denied due

process.

2. The appeal shall be lodged with the secretariat within 45 days after the Party

has been informed of the decision of the enforcement branch. The Conference

of the Parties serving as the meeting of the Parties to the Protocol shall

consider the appeal at its first session after the lodging of the appeal.

3. The Conference of the Parties serving as the meeting of the Parties to the

Protocol may agree by a three-fourths majority vote of the Parties present and

voting at the meeting to override the decision of the enforcement branch, in

which event the Conference of the Parties serving as the meeting of the Parties

to the Protocol shall refer the matter of the appeal back to the enforcement

branch.

4. The decision of the enforcement branch shall stand pending the decision on

appeal. It shall become definitive if, after 45 days, no appeal has been made

against it. the Protocol shall consider the appeal at its first session after the

lodging of the appeal.

Flexibility Mechanisms

• Geographic location of abatement measures is

climatically irrelevant

• Aim: global cost-effectiveness and reduction of

compliance costs

• Assigned amounts (AU) can be divided up into units

(Assigned Amount Units – AAUs) allowing Annex I

Parties (37 + EU) to participate in the flexibility

mechanisms

• Units create a tradable currency (1 unit= 1 t CO2 eqv.)

Flexibility Mechanisms

4 Types of Mechanisms:

• International Emissions Trading, Art. 17 (allows for

trade with AAUs, ERUs, CERs)

•Clean Development Mechanism (CDM) Art. 12

• Resulting in Certified Emissions Reductions – CERs

• Non-Annex I/ Annex I Projects

• Joint Implementation (Art. 6)

•Resulting in Emission Reduction Units – ERUs

•Annex I /Annex I Projects

•Joint Fulfillment of Commitment (Art. 4)

Kyoto Protocol: Flexibility Mechanisms

Eligibility Requirements:

• Annex I Party

• Ratification of KP

• Compliance

• Methodological and reporting infrastructure in place

• Establishment of designated national entities and registries

• Inventories for accounting the tradable units

Supplementarity

• Art. 17, Art. 12.3(b), Art. 6.1 (d) Kyoto Protocol

• Marrakesh Accords: (Decision 15/CP.7)

“The Conference of the Parties: ...

Affirming that the use of the mechanisms shall be supplemental to domestic action and that domestic action shall thus constitute a significant element of the effort made by each Party included in Annex I to meet its quantified emission limitation and reduction commitments under Article 3, paragraph 1.”

(15/CP.7, preamble)

19

20

21

AUS ETS

(1.1.2012)

L (Lithuania)

Annex-I

China Non-Annex I

NOK 40

10 mil kvoter

= 400 mil NOK

ERUs

NOK 20

10 mil CERs

40 mil NOK

10 mil ERUs

200 mil NOK

CERs

NOK 4

20 mil t CO2

8 Mrd NOK

IET

N (Norge)

Annex I

International

Emissions Trading

Art. 17,

3.10, 3.11 KP

Joint Implementation

Art. 6 KP

Clean Development

Mechanism

Art. 12 KP

USA:

Federal?

WCI

RGGI

(2012)

EU ETS

Siden 2005

NZ ETS

2010

The Global Carbon Market

Others?

Japan

South Korea

China