[Kyoto]
The Kyoto Agreement
The Kyoto agreement of 1997 was a global step towards the reduction of
emissions of harmful greenhouse gases. Each country signed up to the agreement
has to fulfil its individual commitment to help achieve the global target
of a 5.2% reduction in greenhouse gases by 2012 compared to 1990 levels,
The EU has the overall target of reducing greenhouse gas emissions by
10% in 2010 compared to 1990 levels. Targets can be met with the help
of the three so-called Kyoto Mechanisms. The cost of fulfilling a reduction
commitment is country specific; these mechanisms allow reduction to occur
where it is the most cost effective, they are as follows:
[1] Joint Implementation
[2] Clean Development Mechanism
[3] International Emission Trading
[1] Joint Implementation
This is where two industrialised countries enter into an agreement on
the implementation of a specific project that will lead to the reduction
of greenhouse gas emissions. This enables one country to emit greenhouse
gas corresponding to the reduction in another, its own emissions will
therefore rise but International emissions will not increase. The Governments
of the two countries agree on how the emissions will be divided, the country
that hosts the project releases a quota to the other country in line with
the agreement. This arrangement could work in principle between two companies.
[2] Clean Development Mechanism
This is the same in principle as the Joint Implementation mechanism, but
takes place between one developing country and one industrialised country.
The agreement must make a contribution to sustainable development in the
developing country.
[3] International Emission
Trading
Applying only to industrialised countries; this mechanism comprises of
the exchange of tradable permits. Basically, one country buys quotas from
another, which entitles them to emit greenhouse gases in line with the
size of the quota. This means that they will be able to emit over their
specified amount but not cause a rise in international emissions. Obviously,
once the seller has handed over the quota, they cannot then emit that
share of greenhouse gases.
