Climate Change Frameworks  – Kyoto Protocol and Paris Climate Deal

Stand 1: India wants developed countries to reduce their carbon space for developing countries to grow. For example, India’s per capita carbon emissions are one-third of the global average. Hence, developed countries should reduce their carbon emissions so that developing countries can grow. 

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Stand 2: Since India’s contribution to the world’s cumulative emissions is less than 4%, it should be provided a greater share of the remaining carbon budget. Simultaneously, developed countries should strive towards sustainable consumption, acknowledging their historical consumption of carbon budget. 

United Nations Framework Convention on Climate Change (UNFCCC)

UNFCCC is an inter-governmental treaty that opened for signature at the ‘Rio Earth Summit’ in 1992 and entered into force in 1994.

Objectives of UNFCCC

1. Stabilize the GHG concentration in the atmosphere to prevent dangerous anthropogenic interference with climate systems.
2. Ensure global food production is not threatened.
3. Enable sustainable economic development.

Operating Mechanism of UNFCCC

1. Conference of Parties (COP): All the countries that are parties to the convention meet every year at the Conference of Parties, which acts as the supreme decision-making body of the convention.
2. Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol (CMP): It oversees the implementation of the Kyoto Protocol.
3. Conference of the Parties serving as the meeting of the Parties to the Paris Agreement(CMA): It oversees the implementation of the Paris Agreement. 

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What is Kyoto Protocol?

• The Kyoto Protocol is an international treaty established as a result of the 3rd Conference of the Parties (CoP) to the United Nations Framework Convention on Climate Change (UNFCCC) held in Kyoto, Japan, in 1997. 
• Its primary objective is to address the issue of global warming by setting specific targets for industrialized nations to reduce their greenhouse gas (GHG) emissions.
• The protocol sets a target for industrialized countries to collectively reduce their GHG emissions by approximately 5.2% below the levels recorded in 1990.
• Kyoto Protocol came into force after the required number of Annex 1 Countries (industrialized nations) ratified it. This milestone was achieved in 2008.
• The Kyoto Protocol’s first commitment period was from 2008 to 2012. 

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Common But Differentiated Responsibilities (CBDR)

• CBDR suggests that while all nations share the common responsibility to reduce GHG emissions, there should be a distinction in the burden between developed and developing countries.
• Developed nations, being historical culprits, bear a greater responsibility for emission reduction.
• The Kyoto Protocol follows this principle.

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Annex under Kyoto Protocol

Annex refers to additional information provided at the end of a book or treaty.

Side Topic: More about GHGs

Gas	Global Warming Potential	Lifetime yrs	Relative Contribution to Global Warming
CO2	1	50-200	60%
CH4	21	12	20%
Nitrous oxide	310	120	6%
HFCs	140-1200	1-270	14%
PFCs	6500-9200	800-50,000	Rank 5
SF6	23,900	3200	Rank 6

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How the Kyoto Protocol really works

• Under the Kyoto Protocol, every Annex 1 country was given a specific number of Kyoto Units called Target Quota. E.g. in 2009, Australia was given approximately 3 Billion Kyoto units (1 Kyoto Unit= 1 ton of CO2) 
• If Australia limits their emissions within the target range, everything is well & good. The approach of the Australian government should be to take all steps so that they don’t cross the quota. E.g.
  • They can promote Solar energy and wind energy. 
  • Increase tax on polluting vehicles and industry.
  • Make strict Anti-pollution laws. 
• But if the country fails to limit GHG emissions within Target Quota, then the country will have to buy additional units from another country. Kyoto Protocol has 3 mechanisms for this.

#1 Emission Trading

• Each Annex 1 country gives a fixed quota to companies. 
  • Suppose an Iron factory was given 10 tons of GHG. 
  • Tyre company was also given 10 tons of GHG.
• If the tyre company owner increases the efficiency and uses less than given Kyoto Units, he will have some spare quota. Suppose the Iron Company owner needs more Quotas due to an increase in demand or any other factor. In this case, the Iron company owner can purchase the spare quota of the Tyre company. It is called Emission trading.
• Countries in Annex 1 can also do the same thing at national level if they think that they are breaching the limits.

#2 Clean Development Mechanism (CDM)

• Suppose an Annex 1 country like the UK is given a quota of 500 units but emits 520 units of GHG. In this case, the UK can finance a solar or wind project in India or any other non-annex country. They will get a certificate that it led to a reduction of 20 units of GHG to remain within their limit.
• Companies in Annex 1 country can also do the same thing if that company is breaching their limit. 

#3 Joint Implementation (JI)

• JI operates similarly to CDM but involves Annex 1 countries conducting emission reduction projects in other Annex 1 countries.
• In this context, the UK could initiate a beneficial project in another Annex 1 country, such as Australia, to offset excess emissions and earn certified emission reduction credits.

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Time Frame

1992	Earth Summit was held in Rio de Janeiro, and UNFCCC came into being.
1997	Kyoto Protocol signed, setting emission reduction targets for Annex 1 countries.
2008	The Kyoto Protocol came into force, but the US, the largest polluter at the time, did not ratify it (alleging that it would impact its economic interests negatively since China and India were not obliged to reduce their emissions)
2009	The Copenhagen Accord was signed at CoP-15, held in Copenhagen, where it was agreed that all countries (including developing countries) should pledge to reduce GHG emissions. However, all of the pledges made under the Copenhagen Accord were voluntary.
2011	Canada becomes the first country to quit the Kyoto Protocol, arguing its flaws and the exclusion of major emitters like the USA and China.
2015	COP21 in Paris delivers the Paris Agreement as successor to the Kyoto Protocol.
4 Nov 2016	Paris agreement entered into force, 30 days after being ratified by at least 55 countries representing 55% of global greenhouse gas emissions.

• The European Union (EU) realized a problem: its domestic industries had to follow strict carbon emission rules under the Emissions Trading System (ETS). But imported goods—say, steel from India or cement from China—are not held to the same standards. This created what’s called “carbon leakage”: industries moved production to countries with looser rules to escape EU climate costs.

• To address this issue, the EU introduced CBAM
  • It proposes a carbon tax on imports of carbon-intensive goods like steel, cement, aluminium, fertilisers, and electricity starting from 2026.
  • Importers in the EU will have to equal to the amount of carbon emissions embedded in the goods they bring in. If the product has already been taxed for carbon in the country of origin, that amount will be deducted.
  • The main idea is to ensure that foreign manufacturers do not get an unfair advantage over EU companies.
• The EU argues this levels the playing field.
• Concerns of Developing Countries like India:
  • Violates “Common But Differentiated Responsibilities” under the Paris Agreement.
  • Seen as a trade barrier that hurts exports from developing nations.
  • Unilateral in nature – introduced without global consensus.

• The Global Stocktake (GST) is a formal process under the Paris Agreement to assess whether the world is on track to meet its climate goals, especially the goal of limiting global warming to well below 2°C, preferably 1.5°C.
• It was agreed in the Paris Agreement (2015) that such a review would take place every 5 years, with the first-ever stocktake conducted in 2023 during the COP28 in UAE.
• The process looks at the collective progress of all countries (not individual country performance) and aims to inform future Nationally Determined Contributions (NDCs).

Key Highlights of the 2023 Global Stocktake

• The report confirmed that the world is currently off track to meet the Paris climate targets.
• To limit warming to 1.5°C, global greenhouse gas (GHG) emissions must be reduced by 43% by 2030, compared to 2019 levels.