THE UNFCCC, KYOTO PROTOCOL AND AN INTRODUCTION TO CDM
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Transcript of THE UNFCCC, KYOTO PROTOCOL AND AN INTRODUCTION TO CDM
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JOYCELINE A. GOCO
Head, IACCC Secretariat
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Call for Global Action:
In response to the scientific findings that the earth is getting warmer and may lead to irreversible adverse impacts, the United Nations Framework Convention on Climate Change (UNFCCC) was adopted on May 9, 1992 at the United Nations Headquarters in New York.
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“Earth Summit” in Rio (June1992)United Nations Conference on Environment
and Development (UNCED)
Signing of the UNFCCC The Philippines was among the first
154 nations to sign As of Dec. 2001, 186 nations (including
the Philippines) have ratified the
Convention
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THE UNITED NATIONS FRAMEWORK CONVENTION ON
CLIMATE CHANGE
The centerpiece of global efforts to combat global warming
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CONVENTION’S OBJECTIVECONVENTION’S OBJECTIVE
Seeks to stabilize atmospheric concentration of greenhouse gases “ at a level that would prevent dangerous anthropogenic [human-induced] interference with the climate system”.
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The Convention’s Guiding Principles
The lack of full scientific certainty should not be used as an excuse to postpone action.
The “common but differentiated responsibilities” of states assigns the lead to developed countries in combating climate change.
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GENERAL COMMITMENT
All Parties to develop “national communications” containing inventories of GHG emissions by source and GHG removals by sinks.
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Commitments of Parties
Annex 1 Country Parties
• Developed countries and countries whose economies are in transition
• Adopt policies and measures to limit their anthropogenic emissions of GHGs and protect/enhance their GHG sinks and reservoirs to demonstrate that they are taking the lead in modifying longer-term trends.
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• Submit their national communications on regular basis with the following information:
Projected anthropogenic GHG emissions by sources and sinks with the aim of returning them to 1990 levels, individually or jointly
Policies and measures to limit GHG emissions and protect/enhance sinks and reservoirs
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Annex II Country Parties
Under Article 4.2 of the UNFCCC, developed country parties included in Annex II (Annex 1 countries minus the economies in transition) have the following additional commitments:
• Provide new and additional financial resources to meet the agreed full costs incurred by developing country Parties in complying with their obligations under Article 12.
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• Provide financial resources, including transfer of technology to meet the agreed full incremental costs of measures to be undertaken by developing country Parties under Article 4.
• Promote, as appropriate, the transfer of, or, facilitate and finance access to, environmentally sound technologies and know-how to other Parties, particularly the developing ones to enable them to implement the provisions of the Convention.
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Non-Annex 1 Country Parties
Non-annex 1 country Parties or developing countries
Have no commitments to reduce their GHG emissions, but only to “develop, periodically update, publish and make available to the Conference of Parties, their national inventories of GHG emissions by sources and removals by sinks”.
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Institutional Bodies Conference of Parties (CoP)
- supreme decision-making body of the Convention
- primary task is to promote and review the implementation of the Convention and any related legal instruments (such as the Kyoto Protocol, etc.)
- has convened six meetings since the Convention’s entry into force on March 21, 1004
- 1st Session of the COP was held in Berlin in 1995 which agreed on the “Berlin Mandate” calling for the strengthening of Annex 1 commitments through the adoption of a protocol or another legally binding instrument.
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Institutional Bodies
Subsidiary Bodies
- Subsidiary Body for Scientific and Technological Advise (SBSTA) - provides the CoP with information and advice on scientific and technological concerns
- Subsidiary Body for Implementation (SBI) - assists the CoP in the assessment and review of the implementation of the Convention.
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Institutional Bodies
UNFCCC Secretariat: tasked with administrative functions, taking charge of arrangements for sessions, facilitate assistance to parties, etc.
Global Environmental Facility (GEF): interim financial mechanism (Art. 11-21 [3])
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THE KYOTO PROTOCOLTHE KYOTO PROTOCOL
The Kyoto Protocol is an international agreement of 159 countries, which attended the 3rd Session of the Conference of the Parties to the UNFCCC held in December 1997 in Kyoto, Japan.
This formalized the adoption of the results of the Berlin Mandate (CoP 1) to reduce worldwide emissions in GHGs.
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Objective of the Kyoto ProtocolObjective of the Kyoto Protocol
The protocol was developed to meet the ultimate objective of the UNFCCC which is to “stabilize GHG concentrations in the atmosphere at a level that would prevent anthropogenic interference with the climate system”, through quantified emission targets within a specified time frame.
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Significant Provisions of the Significant Provisions of the Kyoto ProtocolKyoto Protocol
Annex 1 Country Parties, individually or jointly, ensure that their aggregate anthropogenic CO2 equivalent emissions of GHG do not exceed their assigned amounts.
Reduction of their overall emissions by at least 5% below 1990 levels in the commitment period 2008 to 2012.
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The Protocol commits Annex B countries that ratify the Protocol to reduce GHG emissions below 1990 levels by the first commitment period (2008-2012)
The Protocol will be legally binding when it enters into force. It must be signed and ratified by at least 55 countries, whose total emissions represent 55% of the emissions of the Annex I countries in 1990.
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Incorporation by Annex 1 Parties in its annual inventory of anthropogenic emissions the sources and removals by sinks of GHG gases.
Expert review process, providing a thorough and comprehensive technical assessment of the implementation of this protocol.
No introduction of new commitments for Parties not included in Annex 1.
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The Kyoto Protocol reinforces the principle of “common but “common but differentiated responsibilities”differentiated responsibilities”..
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THE KYOTO PROTOCOL FLEXIBILITY MECHANISMS
EMISSIONS TRADING
JOINT IMPLEMENTATION
CLEAN DEVELOPMENT
MECHANISM
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Emissions Trading (ET)Article 17
- Permits countries to transfer parts of their “allowed emissions” (assigned amount units)
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Joint Implementation (JI)Article 6
- Allows countries to claim credit for emission reductions that arise from investment in other industrialized countries, which result in a transfer of equivalent “emission reduction units” between the countries.
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Clean Development Mechanism (CDM)
Article 12 KP
Allows emission reduction projects that assist in creating sustainable development in developing countries to generate “certified emission reductions” (CERs) for use by the investor.
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Greenhouse Gasescovered by the Kyoto Protocol
Carbon dioxide (CO2)
Methane (CH4)
Nitrous Oxide (N2O)Hydrofluorocarbons (HFCs)Perflourocarbons (PFCs)Sulphur hexafluoride (SF6)
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ANNEX BANNEX 1 PartyANNEX 1 Party Quantified EmissionQuantified Emission
Limitation or ReductionLimitation or ReductionCommitment (fr. BaseCommitment (fr. Baseyear or period)year or period)
Australia 108European Community 92Japan 94Netherlands 92Russian Federation 92USA 93
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Achievements on the Achievements on the International LevelInternational Level
Conference of Parties Conference of Parties (COP)(COP)::
Convention’s ultimate authorityConvention’s ultimate authority
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COP 1: Adopted the Berlin MandateCOP 1: Adopted the Berlin Mandate
December 1:December 1: Parties should protect the climate system for the benefit of present and future generations of humankind, on the basis of equity and in accordance with their common but differentiated responsibilities and respective capabilities
1995: IPCC published its Second Assessment Report (SAR) and concluded that “the balance of evidence suggests that there is discernible human influence on global climate” and that the overall impact of this influence will be negative
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COP 3: Adopted the Kyoto ProtocolCOP 3: Adopted the Kyoto Protocol
The Kyoto Protocol, when it goes into force, will legally bind participating industrialized countries to reduce their aggregated greenhouse gas emissions by 5.2% compared to the 1990 baseline, by the end of the First Commitment Period (2008-2012)
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COP 4: Adopted the Buenos Aires COP 4: Adopted the Buenos Aires Plan of Action (BAPA) Plan of Action (BAPA)
The BAPA was worked out with the goal of finalizing the Kyoto Protocol by the year 2000. The BAPA also established a prompt beginning for the Clean Development Mechanism (CDM), eventually leading to a start in the year 2000.
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COP 6COP 6
July 2001July 2001: IPCC published its Third Assessment Report (TAR). The TAR concluded that the new scientific findings provided evidence that global warming is, indeed, brought about by human-induced activities.
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COP 7: Adopted the Marrakech COP 7: Adopted the Marrakech AccordsAccords
Delegates from over 170 countries agreed on the package of decisions, which elaborate a finely drawn structure for the implementation of the Kyoto Protocol. The “Marrakech Accords” completed the 1998 Buenos Aires Plan of Action and paved the way for the ratification of the Protocol.
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THE CLEAN DEVELOPMENT THE CLEAN DEVELOPMENT MECHANISMMECHANISM
(CDM)(CDM)Art. 12 KP
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Objectives of the CDM
• Assists non-Annex 1 countries in achieving their sustainable development objectives
• Enables Annex 1 parties in achieving compliance with their quantified emissions limitation and reduction commitments (QELRC)
• Investors benefit by obtaining GHG emission reduction credits
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Objectives of the CDM• Host countries benefit in the form of investment,
access to better technology, and local sustainable development
• Contribute to the ultimate objective of the Framework Convention on Climate Change
• Developing countries will benefit from the project activities resulting in certified emission reductions (CERS) and developed countries will benefit by using the CERs to meet their commitments.
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Principal Requirements for CDM Principal Requirements for CDM ProjectsProjects
Only Parties to the Protocol could participate;
Participation is voluntary and approved by each Party;
National CDM authority to be set up;
Non-Annex I Parties (host country) must benefit from project activities resulting in certified emission reductions (CERs);
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Principal Requirements for CDM Projects
Projects must assist host countries in achieving sustainable development and contributing to the ultimate objective of the Convention;
Projects must result in real, measurable and long-term benefits related to the mitigation of climate change;
Projects must result in reductions in emissions that are additional to any that would occur in the absence of the certified project activity.
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Principal Requirements for CDM Projects
The COP/MOP shall elaborate modalities and procedures that ensure transparency. Efficiency and accountability through independent auditing by operating entities and verification of project activities;
A share of proceeds from the CERs will be collected from the CERs issued to meet the administrative costs of the secretariat maintaing CDM activities as well as adaptation fund set up to assist developing countries that are seriously affected by climate change.
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Principal Requirements for CDM Projects
Projects formally initiated under the Activities Implemented Jointly are eligible to be converted into CDM effectively from January 2000 if they meet the criteria.
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Additionalities Environmental additionality - long-term real
and measurable reduction
Technology additionality - Transfer of environmentally safe and sound technology
Investment additionality - no diversion of ODAs
Some countries require foreign investment in CDM activities
Some other countries allow locally funded CDM projects (unilateral CDM projects)
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Decision 15/CP.7
Principles, Nature and Scope of thePrinciples, Nature and Scope of theMechanism (Article 16, 12 & 17 ofMechanism (Article 16, 12 & 17 of
the Kyoto Protocol)the Kyoto Protocol)KP has not created or bestowed any right,
title and entitlements of any kind on Annex I Parties.
Annex I Parties implement domestic action to reduce emissions in a manner conducive to narrowing per capita differences between developed and developing countries.
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Use of mechanism shall be supplemental to domestic action.
Environmental integrity to be achieved.
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Decision 17/CP.7
Modalities and Procedure for a Clean Development Mechanism
Host Party’s prerogative to confirm whether a CDM project activity assists in achieving sustainable development
Refrain from using CERs generated from nuclear facilities
Need to promote equitable geographic distribution of CDM project activities
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Public funding for CDM should not result in the diversion of ODA
CDM should lead to the transfer of environmentally safe and sound technology and know-how
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The CDM Executive Board (EB)
Supervises the CDM
Operates under the authority
of the COP/MOP
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Composed of 10 members:
- 1 representative from each of the 5 official UN Regions:
Africa Asia Latin America and the Caribbean Central and Eastern Europe OECD
- 1 from the small island developing state
- 2 each from Annex I and non-Annex I
Parties
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Executive Board Tasks
Recommend to the COP/MOP on further modalities and procedures for the CDM
Approve new methodologies related to baselines, monitoring plans and project
boundaries
Review provisions on simplified modalities, procedures and the definitions
of small scale project activities
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Accredit operational entities
Develop and maintain CDM registry
Report regional and subregional
distribution of CDM project activities
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Updates
Procedural guidelines for accrediting
operational entities Simplified modalities and procedures for
small-scale CDM project activities Guidelines for methodologies for baselines
and monitoring plans
- Meth Panel was organized
- Drafted and posted the CDM-PDD (project design document)
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National factors affecting the successful National factors affecting the successful implementation of CDM activitiesimplementation of CDM activities
Capacity building for government officials, private sectors and financial institutions
Clear guidance on CDM activities’ eligibilities
National institutional arrangements to consider CDM applications
- simple process and quick processing vs. multi-channel and lengthy processing procedures
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Some concerns of CDM activities
• Uncertainties in the ratification of the Kyoto Protocol
• Many prospectors but no real investors
• “Investors” that promised millions have not came back
• Many held “wait and see” attitude
• Low CER price may not even be enough for administrative costs
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Some concerns of CDM activities
• High cost of accreditation of operating entities
• The spirit of Article 12 is missing.
• The focus of CDM is to assist developing countries in achieving their sustainable development or to procure CERs at unreasonable low prices??
• “CER buying house” or CDM investor?
• Risk management is not clear.
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