The Kyoto Protocol Analysis - Term Paper Example

Environmental pollution is a buzz word and a serious problem for the entire globe. The time has come for all nations to unite and fight for a common cause. The rapid rise in warming and catastrophe the world is facing already signals of the coming days. It is imperative that energy crisis and warming is given a special thought as it will have an effect on everyone. The rapid melting of glaciers and rising of sea levels already indicate the risk the world has to encounter. Also the depleting resources and their wide usage for the greed by mankind is making it difficult to sustain the recent waves of problems faced. To bring a check on global warming and improve the environment it is important that “all individuals along with the economy start to contribute towards it as the contribution of each individual when added together will make a huge difference”. (Leape, 2008) To reduce emission it is important that “government sets hard targets and ensure the effective mechanism which contributes to it along with providing incentives so that more organisations work in that direction”. (Leape, 2008) Economies should look forward to integrating the environment and individuals need to understand their responsibilities. This calls for ways to ensure that individuals are educated and all unite and fight for a common cause thereby persuading the government of respective countries to understand the needs of the people and act accordingly. A move in that path was the Kyoto Protocol. It is an “international agreement which is linked to the United Nations framework for Climate change and binds 37 industrialised countries and the European Community to reduce the green house emission”. (Kyoto Protocol, 2010) “The cap for it has been to reduce it by 5% by the 1990 level for the period 2008-2012”. (Kyoto Protocol, 2010) The protocol has an advantage compared to the conventions that are held that it commits the countries to work and ensure that emission is reduced. (Kyoto Protocol, 2010) The importance of this can be seen by the fact that 187 countries are a part of it. Out of 187 countries 37 industrialized countries have the onus to reduce carbon emission and others are a part of it. These are the main countries contributing towards the environmental pollution so it is imperative a check is made by them. The Kyoto Protocol works on three market based mechanism to ensure that carbons in the environment reduces. They are as follows Emission Trading: Countries are permitted to trade in carbons. Here companies in a look out for more carbons can purchase from companies who have excess limits and need to pay for it. (Vijay, 2009, pg 11) This measure will help to ensure that there is a check between economic growth and greenhouse emission. The trading helps both the companies as it will have an effect on their economic outlook. Allowing trading ensures that the needy get the carbon at a economic cost which gets attributed to products and the companies who have excess carbons can trade thereby effecting their income potential. Clean Development Mechanism: This involves countries who don’t have a binding on them to reduce the green house emission. “Under the CDM, states receive Certified Emissions Reduction units (CERs) for the actual amount of greenhouse gas emissions reduction achieved in projects financed by them”. (Vijay, 2009, pg 2) The countries get added advantage as they have “access to better technology, and cheap power availability along with development”. (Vijay, 2009, pg 2) Joint Implementation: This mechanism of Kyoto Protocol looks into those aspect where countries unite and draft a common mechanism to fight global warming and ensure that they work in tandem to reduce carbon emission. (Vijay, 2009) This mechanism helps the developing countries to integrate their efforts and ensure that they learn the mechanism and use it for the economic well being of their own country. Thus, Kyoto Protocol helps countries to develop and adapt to the effect global warming will create. This is a first major step that will help to stabilize temperatures and improve emission. Countries to improve and develop it have been working on the phase II to bring about better reforms and ensure that growth is permitted. The implementation of phase II is creating obstacle as countries are facing certain issues which is making it difficult to implement it. (UNFCCC, 2009) The problems faced i the implementation of phase II are as follows Firstly, developing countries are finding it difficult to implement the norms as the benefits of it is directed towards developed countries and the benefits they will derive out of it is substantial. (Black, 2006) The developing and poor countries feel that the usage on the Kyoto Protocol is skewed in favour of developed countries. They will be able to benefit from it as developing countries have to follow a cap and that will hamper the economic growth of developing countries thereby creating a conflict between development and greenhouse emission. (UNFCCC, 2010) Secondly, “the target set of 240 mega tonne is substantial and it seems difficult to achieve those”. (Grady, 2003) The target set is highly unachievable. Meeting the target will make countries loose on the vital opportunities to grow and multiply the growth rate of the economy which ahs already been shaken by the wave of recession affecting all countries. (Grady, 2003) This problem has further been intensified by the fact that developed countries are not willing to adhere to the norms as it will have a direct implication on their development. (Grady, 2003) this will effect the relation between growth and emission. This has made it difficult as the difference between the bases has grown over the years and to comply with those would mean that developed countries will have to shed their usage for growth which will have an implication on the growth rates. Thirdly, the estimated cost on the economy is huge and will have an impact on the growth potential. (Grady, 2003) It is estimated that to achieve the targets set economies will have to shed “around 3% of their economic growth and have to spend somewhere around $40 billion every year”. (Grady, 2003) this has huge implications as countries will lose on the potential to grow. This will also affect the life of individuals as millions will lose their jobs. This has a direct confrontation with the potential for growth and economies are not willing to move in that direction which affects their future earning generating cost. Fourthly, “United States has not agreed to be a part of this protocol”. (Grady, 2003) United States is the biggest polluter and it being not the part of the protocol will make it difficult for other countries to ensure that emission reduces. This will bring in doubt the success of the protocol as it being a developed and powerful economy can influence the behaviour of other economies and this can help to ensure that carbons is reduced. United States not being part will have an economic implication for other economies. This will make the “exchange rate to rise making other countries currency to become weak which will have a conflict with the development the economies poses for the future”. (Grady, 2003) This will make the underdeveloped countries bear the brunt as they will have to stop emission which will affect their industries which is already in the nascent phase thereby effecting growth. (MAF Forestry, 2010) Fifthly, “the time span to get the reduced emission from the 1990 base is too short”. (Grady, 2003) the time line set to achieve the emission target is very little and this would means economies going to the extreme limits and closing down some of the industries which have a direct bearing on the emission. Managing emission on account of it will be stricter. Sixthly, the lack of corporate governance and bodies that will supervise the emission is creating doubt. (Grady, 2003) Developing economies is of the view that the board and governing bodies are looking for the goodwill of developed countries. Lack of proper activities and proper governing bodies is affecting the acceptability. The advantage the developing countries are getting due to this is making developing countries think otherwise as they will have to face the growth potential their economy will pose in the future. Seventhly, the estimation cost of carbon emission and measures to reduce those will increase as the range prescribed is $10 to $50 so if the range hits the high levels this would mean many economies lose vital money which could force the economy in a downturn. (Grady, 2003) This will thereby have a much bigger effect than expected and would lead many developing economies move backwards. Eighthly, nation are of the view that the current and proposed measure to reduce green house emission might not work as many economies are against it so countries who unite and come together to ensure ways to reduce emission wont be benefited greatly. (Grady, 2003) This will thus have an effect on the potential for growth and the economic cost outweighs the benefits the economies will be able to revive. Thus, we see that implementation of phase II to reduce carbon emission and to curb down green house emission faces several obstacles. This is due to the fact that economies are looking for their individual benefits and the differences in the opinion are widening the gap. It is important that economies from the world unite and fight for a common cause so that the environment problems are dealt in a better way and measures are taken to improve the condition of life which will also lead to protecting of resources. References Black R, 2006, “Nairobi Climate talks end in a deal”, BBC News, Kyoto Protocol, 2010, “Kyoto Protocol”, The Japan Times, retrieved on May 15, 2010 from http://ec.europa.eu/environment/climat/kyoto.htm Leape J, 2008, “Everyone can help protect the environment”, Credit Suissie Group, retrieved on May 15, 2010 from http://emagazine.credit-suisse.com/app/article/index.cfm?aoid=209943&fuseaction=OpenArticle&lang=EN Grady P, 2003, “the Challenges of complying with phase II of the Kyoto Protocol”, Global Economies Ltd Ministry of environment, 2010, “Ministry of environment”, retrieved on May 16, 2010 from http://www.mfe.govt.nz/index.html Vijay T, 2009, “Kyoto Protocol and its implication”, pg 2-30, Xavier Institute of Management, India UNFCCC, 2010, “United nation Framework Convention on Climate Change”, retrieved on May 16, 2010 from http://unfccc.int/2860.php UNFCCC, 2009, “United nation Climate Change Conference in Copenhagen”, retrieved on May 16, 2010 from http://unfccc.int/meetings/cop_15/items/5257.php MAF Forestry, 2010, “MAF Forestry”, retrieved on May 16, 2010 from http://www.maf.govt.nz/forestry/ Read More