Kyoto Protocol - 2012 Emission Targets and "flexible Mechanisms"

2012 Emission Targets and "flexible Mechanisms"

Under the Kyoto Protocol, 37 industrialized countries and the European Community (the European Union-15, made up of 15 states at the time of the Kyoto negotiations) commit themselves to binding targets for GHG emissions. The targets apply to the four greenhouse gases carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), sulphur hexafluoride (SF₆), and two groups of gases, hydrofluorocarbons (HFCs) and perfluorocarbons (PFCs). The six GHG are translated into CO₂ equivalents in determining reductions in emissions. These reduction targets are in addition to the industrial gases, chlorofluorocarbons, or CFCs, which are dealt with under the 1987 Montreal Protocol on Substances that Deplete the Ozone Layer.

Under the Protocol, only the Annex I Parties have committed themselves to national or joint reduction targets (formally called "quantified emission limitation and reduction objectives" (QELRO) – Article 4.1). Parties to the Kyoto Protocol not listed in Annex I of the Convention (the non-Annex I Parties) are mostly low-income developing countries, and participate in the Kyoto Protocol through the Clean Development Mechanism (explained below).

The emissions limitations of Annex I Parties varies between different Parties. Some Parties have emissions limitations reduce below the base year level, some have limitations at the base year level (i.e., no permitted increase above the base year level), while others have limitations above the base year level.

Emission limits do not include emissions by international aviation and shipping. Although Belarus and Turkey are listed in the Convention's Annex I, they do not have emissions targets as they were not Annex I Parties when the Protocol was adopted. Kazakhstan does not have a target, but has declared that it wishes to become an Annex I Party to the Convention.

For most Parties, 1990 is the base year for the national GHG inventory and the calculation of the assigned amount. However, five Parties have an alternative base year:

• Bulgaria: 1988;
• Hungary: the average of the years 1985-1987;
• Poland: 1988;
• Romania: 1989;
• Slovenia: 1986.

Annex I Parties can use a range of sophisticated "flexibility" mechanisms (explained in the following sections) to meet their targets. Annex I Parties can achieve their targets by allocating reduced annual allowances to major operators within their borders, or by allowing these operators to exceed their allocations by offsetting any excess through a mechanism that is agreed by all the parties to the UNFCCC, such as by buying emission allowances from other operators which have excess emissions credits.