KYOTO PROTOCOL

 The Kyoto Protocol was adopted in December 1997. Through this instrument many experts have placed great hope in the global carbon market as a means of enhancing carbon sinks, promoting agricultural activities, promoting energy efficiency and use of renewable energy.

The aim of the Kyoto Protocol is to contribute towards stabilizing atmospheric greenhouse gas emissions as set in the United Nations framework Convention on Climate Change (UNFCCC). To this end, Kyoto Protocol sets quantified targets for the industrialized Countries, committing them to reduce their emissions of greenhouse gases to an average 5% below 1990 levels in the period 2008-2012. Developing countries have no obligations to cut down their emissions of GHGs. The Kyoto Protocol has created a framework for the global trading of greenhouse gases by allowing industrialised countries to meet part of their emissions reduction obligations abroad from projects conducted abroad. The underlying intention is to ensure economic efficiency by enabling reduction in emissions to be made where the cost of doing so is the lowest.

The Clean Development Mechanism (CDM), established under Article 12 of the Kyoto Protocol allows the generation of tradable credits – known as Certified Emission Reductions (CERs) – for greenhouse gas emissions reductions achieved in developing countries. Industrialized countries can buy these carbon credits and use them towards achieving their Kyoto targets

Clean Development Mechanism (CDM)  More...