Kyoto Protocol and its Importance to Developing Countries - Report Example

April 2007 Kyoto Protocol and its Importance to Developing Countries Over the past several decades there has been considerable increase in the concentrations of greenhouse gases in the Earth’s atmosphere. “Carbon dioxide is the major culprit, accounting for 70-72% of the additional greenhouse effect accumulated since industrialization. In comparison, methane and nitrous oxide have contributed 21-22% and 6-7% respectively. Historically halocarbons have contributed about 10% to the additional greenhouse effect” (Oberthur 6). It has been theorized that if the present rate of emission of green house gases continues, it could lead to an increase in the average temperature of the Earth’s surface and result in changes in the global climate, sea level, agricultural patterns, and ecosystems - which could be detrimental in the long run. Developed countries have been found to be responsible for virtually all of the excess emissions that have accumulated in the atmosphere. According to Baumert, “Among the 25 major global emitters, Australia, the United States and Canada have the highest per capita emissions ranking 4th, 6th, and 7th respectively. Their per capita emissions are more than twice those of the European Union, six times those of China, and 13 times those of India” (21). In order to find some answers to this rapidly mounting situation, more than 160 nations met in Kyoto, Japan in December 1997. The outcome of the meeting was the Kyoto Protocol – made under the United Nations Framework Convention on Climate Change. Under the Kyoto protocol, developed countries accepted legally binding emission caps and agreed to limit their greenhouse gas emissions relative to the levels emitted in 1990. They are required to achieve this goal within the first commitment period from 2008 to 2012. However United States and Australia did not consent to the Kyoto Protocol, and are therefore not bound by its emission controls. The primary reason why the United States withdrew from the protocol in 2001 was because it believed that climate change control strategies should be inclusive of the developing nations since the protocol excludes them from any legal obligations towards achieving this goal (Suri 1). Some of the important features of the Kyoto Protocol as highlighted by Oberthur are listed below: 1. Kyoto is underwritten by governments and is governed by global legislation enacted under the United Nation’s aegis. 2. Governments are separated into two general categories: developed countries and developing countries. The developed countries have accepted greenhouse gases emission reduction obligations and must submit an annual greenhouse gas inventory. Developing countries on the other hand have no greenhouse gases emission reduction obligations under the principle of “shared but differentiated responsibility” but may participate indirectly towards this goal. 3. Kyoto provides for “flexible mechanisms” which allow developed countries to meet their greenhouse gases emission limitation by purchasing the emission reductions from elsewhere. These can be bought either from financial exchanges such as the new EU Emissions Trading Scheme or from projects which reduce emissions in developing countries under the Clean Development Mechanism (CDM) or in other developed countries under the Joint Implementation. 4. The Emissions Trading Scheme is the largest multi-national, greenhouse gas emissions trading scheme in the world under which each participating country is provided with specific caps on greenhouse gas emissions for individual power plants and other large point sources. Each facility gets a maximum amount of emission “allowances” for a particular period. To comply, facilities can either reduce their emissions or purchase allowances from facilities with an excess of allowances. The CDM enables developed countries to pay for emissions reductions that take place in developing countries and receive credits against their own emissions in return. This benefits both developing countries, which gain access to new, cleaner technologies, and developed countries, which are able to meet their targets at a lower cost. Joint Implementation is a process whereby a country with an emissions reduction target can reduce emissions in another country and count the emissions reduction against its own target. 5. As reported by the US Department of energy, participation in this treaty requires developed countries to reduce their greenhouse gas emissions by an average of 5% below their 1990 levels over the period 2008 - 2012. If they fail to meet their obligations, they will be penalized by having to submit 1.3 emission allowances in a second commitment period for every ton of greenhouse gas emissions they exceed their cap in the first commitment period (3-5). The Kyoto Protocol has primarily been directed at the developed countries because they are responsible for most of the greenhouse gas emissions. Since developing countries currently do not assume responsibility for climate change, their policy priorities lie in attaining sustained economic and social development within the country. While developing countries do not have emission reduction targets under the Kyoto Protocol, they may be the main beneficiaries of climate change control. This protocol gives the developing countries an opportunity to partner with the developed countries and work towards mutual gain. As highlighted by Pearce, following are some ways by which developing countries may benefit from the Kyoto Protocol: 1. Some developing countries are especially vulnerable to the impact of climate change - especially those that would be affected by rise in sea level and increase in the incidence of severe weather events like tsunamis, floods and hurricanes. As participating countries make several efforts to curb emission of greenhouse gases, it is hoped that the rate of global warming would reduce. Hence developing countries that have no legal obligations to work for this cause would benefit even if they take no direct action to achieve these goals. 2. The Kyoto protocol provides some leniency towards the developing nations as it provides for opportunities wherein developed nations can gain from investing in CDM projects in the developing countries. This feature of the protocol ensures much needed assistance from developed nations in the growth and development of the developing countries. Simultaneously, since developing countries are not bound by the climate controls, they can use their limited resources towards the socio-economic development, health and education for their own people. 3. One of the most important aspects of the Joint Implementation is the possibility of importing advanced technology into the host country. The technology may be physical - e.g. capital equipment embodying new technology or managerial - e.g. improved forest management techniques. Developing countries could therefore gain by partnering with developed countries under the CDM. An essential feature of the CDM is that any trades must contribute to the sustainable development of the host nation. 4. The Kyoto Protocol also enables emissions trading, a process whereby countries are allocated ‘permits’ to emit greenhouse gases and can buy and sell those permits in the open market. Currently, developing countries would probably not be included in any permit allocation, but it is widely argued that they should be able to enter such a permit trading system in the future. 5. The Clean Development Mechanism also has a provision for a fund to be generated by what is essentially a tax on Clean Development Mechanism projects. This fund is to be used for mitigation measures in countries that are especially vulnerable to climate change impacts (214-215). Although a lot has been said about the importance of the Kyoto Protocol for developing countries, meaningful participation from these countries is essential to effectively address the issues pertaining to global climate change. Since climate control is a global problem, individual countries can make little progress on their own, due to the “free rider” problem. Therefore all countries should agree to participate together to address the issue of global warming. As Frankel clearly points out, if the present trends continue, the rate of emissions of developing countries would soon surpass those of developed countries (2). Hence without the participation of major developing countries, emission cuts by the developed countries will not do much to overcome climate change. Cuts in greenhouse gas emissions in developing countries have the same global environmental benefit as reductions in developed countries and they are often much less costly (Frankel 2). It thus makes sense, from both an environmental and an economic perspective, to incorporate emission reductions in developing countries into the international system. Overall, the Kyoto Protocol has proved to be an important step in addressing the issue of global warming. Although it has proved to be very important to the developing nations, a more effective solution in the long run can come only when both the developed and developing nations work consciously and collaboratively to reduce the rate of greenhouse gases in the environment. Works Cited Baumert, Kevin A., Herzog, Timothy, And Pershing, Jonathan. Navigating the Numbers: Greenhouse Gas Data and International Climate Policy. United States of America: World Resources Institute, 2005. Frankel, Jeffrey A. “The Impact of a Revised Kyoto Protocol on Developing Countries.” Business and Economy. August 2004. March 29 2007. < http://ksghome.harvard.edu/ ~jfrankel /ImpactOfRevisedKyotoProtocol.pdf>. Oberthur, Sebastian, Ott, Hermann E., and Weizsdcker, Von E.U. The Kyoto Protocol: International Climate Policy for the 21st Century. Germany: Springer, 1999. Pearce, David. “How developing countries can benefit from policies to control climate change.” Climate Change and Development (2000). 29 March 2007 < http://environment.yale.edu/ 786/climate_change_and_development/>. Suri, Sanjay. “G8 SUMMIT: Developing Countries Stand Firm by Kyoto Protocol.” Inter Press Service News Agency (7 Jul. 2005). March 30 2007< http://ipsnews.net/news.asp?idnews =29409>. U.S. Department of Energy, Office of Integrated Analysis and Forecasting. Impacts of the Kyoto Protocol on U.S. Energy Markets and Economic Activity. Washington DC, 1998. Read More