THE UNFCCC KYOTO PROTOCOL AND AN INTRODUCTION TO CDM

THE UNFCCC KYOTO PROTOCOL AND AN INTRODUCTION TO CDM - Transcript

JOYCELINE A GOCO
Head IACCC Secretariat

C all 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

Earth Summit in Rio June1992
United Nations Conference on Environment and Development UNCED

v Signing of the UNFCCC v The Philippines was among the first 154 nations to sign v As of Dec 2001 186 nations including the Philippines have ratified the Convention

THE UNITED NATIONS FRAMEWORK CONVENTION ON CLIMATE CHANGE

The centerpiece of global efforts to combat global warming

CONVENTION S OBJECTIVE CONVENTION S Seeks to stabilize atmospheric concentration of greenhouse gases at a level that would prevent dangerous anthropogenic humaninduced interference with the climate system

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

GENERAL COMMITMENT
All Parties to develop national communications containing inventories of GHG emissions by source and GHG removals by sinks

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

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

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

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

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

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

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

Institutional Bodies
UNFCCC
tasked with administrative functions taking charge of arrangements for sessions facilitate assistance to parties etc

Secretariat

Global Environmental Facility GEF interim financial mechanism Art 11 21 3

THE KYOTO PROTOCOL THE
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

Objective of the Kyoto Protocol Objective
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

Significant Provisions of the Kyoto Protocol Kyoto
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

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

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

The Kyoto Protocol reinforces the principle of common but

differentiated responsibilities differentiated

THE KYOTO PROTOCOL FLEXIBILITY MECHANISMS

x EMISSIONS TRADING x JOINT IMPLEMENTATION x CLEAN DEVELOPMENT MECHANISM

Emissions Trading ET
Article 17

Permits countries to transfer parts of their allowed emissions assigned amount units

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

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

Greenhouse Gases covered by the Kyoto Protocol Carbon dioxide CO2 Methane CH4 Nitrous Oxide N2O Hydrofluorocarbons HFCs Perflourocarbons PFCs Sulphur hexafluoride SF6

ANNEX B
ANNEX 1 Party Quantified Emission Limitation or Reduction Commitment fr Base year or period 108 92 94 92 92 93

Australia European Community Japan Netherlands Russian Federation USA

Achievements on the International Level International Conference of Parties Conference COP COP Convention s ultimate authority Convention s

COP 1 Adopted the Berlin Mandate COP
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

COP 3 Adopted the Kyoto Protocol COP
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

COP 4 Adopted the Buenos Aires 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

COP 6 COP
July 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

COP 7 Adopted the Marrakech Accords Accords
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

THE CLEAN DEVELOPMENT MECHANISM MECHANISM CDM
Art 12 KP

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 emission reduction credits GHG

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

Principal Requirements for CDM Projects Projects
x Only Parties to the Protocol could participate x Participation is voluntary and approved by each Party x National CDM authority to be set up x Non Annex I Parties host country must benefit from project activities resulting in certified emission reductions CERs

Principal Requirements for CDM Projects
x Projects must assist host countries in achieving sustainable development and contributing to the ultimate objective of the Convention x Projects must result in real measurable and long term benefits related to the mitigation of climate change x Projects must result in reductions in emissions that are additional to any that would occur in the absence of the certified project activity

Principal Requirements for CDM Projects
x 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 x 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

Principal Requirements for CDM Projects
x Projects formally initiated under the Activities Implemented Jointly are eligible to be converted into CDM effectively from January 2000 if they meet the criteria

Additionalities
Environmental additionality long term real and measurable reduction Technology additionality Transfer 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 of

Decision 15 CP 7
Principles Nature and Scope of the Mechanism Article 16 12 17 of the Kyoto Protocol
q KP has not created or bestowed any right title and entitlements of any kind on Annex I Parties q Annex I Parties implement domestic action to reduce emissions in a manner conducive to narrowing per capita differences between developed and developing countries

q Use of mechanism shall be supplemental to domestic action q Environmental integrity to be achieved

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

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

The CDM Executive Board
EB
s Supervises the CDM s Operates under the authority of the COP MOP

s Composed of 10 members 1 representative from each of the 5 official UN Regions
x x x x x 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

Executive Board Tasks
v v 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

v

v Accredit operational entities v Develop and maintain CDM registry v Report regional and subregional distribution of CDM project activities

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

National factors affecting the successful implementation of CDM activities implementation
x Capacity building for government officials private sectors and financial institutions x Clear guidance on CDM activities eligibilities x National institutional arrangements to consider CDM applications simple process and quick processing vs multi channel and lengthy processing procedures

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

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