Tuesday, 3 April 2012

CARBON CREDIT


Burning of fossil fuels is a major source of industrial greenhouse gas emissions, especially for power, cement, steel, textile, and fertilizer industries. The major greenhouse gases emitted by these industries are carbon dioxide, methane, nitrous oxide, hydrofluorocarbons (HFCs), etc, which all increase the atmosphere's ability to trap infrared energy and thus affect the climate.
Carbon credits are a key component of national and international emissions trading schemes. They provide a way to reduce greenhouse effect emissions on an industrial scale by capping total annual emissions and letting the market assign a monetary value to any shortfall through trading. Credits can be exchanged between businesses or bought and sold in international markets at the prevailing market price. Credits can be used to finance carbon reduction schemes between trading partners and around the world.

The United Nations Framework Convention on Climate Change (UNFCCC or FCCC) is an international environmental treaty produced at the United Nations Conference on Environment and Development (UNCED), informally known as the Earth Summit, held in Rio de Janeiro in 1992. The treaty is aimed at reducing emissions of greenhouse gas in order to combat global warming.

Annex I parties

Annex II countries

(23 countries and separately the European Union; Turkey was removed from the annex II list in 2001 at its request to recognize its economy as a transition one.)
Carbon projects have become increasingly important since the advent of emissions trading under Phase I of the Kyoto protocol in 2005. They may be used if the project has been validated by a Clean Development Mechanism (CDM) Designated Operational Entity (DOE) according the United Nations Framework Convention on Climate Change. The resulting emissions reductions may become Certified Emissions Reductions (CERs) when a DOE has produced a verification report which has been submitted to the CDM Executive Board.

The mechanism was formalized in the Kyoto Protocol, an international agreement between more than 170 countries, and the market.

Developing a carbon project is appropriate for renewable energy projects such as wind, solar, low impact-small hydro, biomass, and biogas. Projects have also been developed for a wide variety of other emissions reductions such as reforestation, fuel switching, carbon capture and storage, and energy efficiency.



Let’s look at trees. Most people see trees as the solution to the CO2 problem. The tree is the only known thing we can “control” that absorbs CO2. I want to see how many trees a Credit is worth so that I can grasp the size and scale of a Credit. The oceans absorb a lot of CO2 (there are lots of shells) but we have no control over this constant. Our farming methods and the way we handle our waste affect levels of CO2 but if you try to imagine what one Credit looks like, a tree or number of trees is a great way to give it context. So what is the market value of a tree and how much CO2 does it absorb?


According to terms of the UNFCCC, having received over 50 countries' instruments of ratification, it entered into force March 24, 1994. Since the UNFCCC entered into force, the parties have been meeting annually in Conferences of the Parties (COP) to assess progress in dealing with climate change, and beginning in the mid-1990s, to negotiate the Kyoto Protocol to establish legally binding obligations for developed countries to reduce their greenhouse gas emissions.

COP-1, The Berlin Mandate

The UNFCCC Conference of Parties met for the first time in Berlin, Germany in the spring of 1995, and voiced concerns about the adequacy of countries' abilities to meet commitments under the Convention. These were expressed in a U.N. ministerial declaration known as the "Berlin Mandate", which established a 2-year Analytical and Assessment Phase (AAP), to negotiate a "comprehensive menu of actions" for countries to pick from and choose future options to address climate change which for them, individually, made the best economic and environmental sense. The Berlin Mandate exempted non-Annex I countries from additional binding obligations, in keeping with the principle of "common but differentiated responsibilities" established in the UNFCCC­ even though, collectively, the larger, newly industrializing countries were expected to be the world's largest emitters of greenhouse gas emissions 15 years hence.

 COP-2, Geneva, Switzerland

The Second Conference of Parties to the UNFCCC (COP-2) met in July 1996 in Geneva, Switzerland. Its Ministerial Declaration was adopted July 18, 1996, and reflected a U.S. position statement presented by Timothy Wirth, former Under Secretary for Global Affairs for the U.S. State Department at that meeting, which
  1. Accepted the scientific findings on climate change proffered by the Intergovernmental Panel on Climate Change (IPCC) in its second assessment (1995);
  2. Rejected uniform "harmonized policies" in favor of flexibility;
  3. Called for "legally binding mid-term targets."

COP-3, The Kyoto Protocol on Climate Change

The Kyoto Protocol to the United Nations Framework Convention on Climate Change was adopted by COP-3, in December 1997 in Kyoto, Japan, after intensive negotiations. Most industrialized nations and some central European economies in transition (all defined as Annex B countries) agreed to legally binding reductions in greenhouse gas emissions of an average of 6 to 8% below 1990 levels between the years 2008-2012, defined as the first emissions budget period. The United States would be required to reduce its total emissions an average of 7% below 1990 levels, however neither the Clinton administration nor the Bush administration sent the protocol to Congress for ratification. The Bush administration explicitly rejected the protocol in 2001.

COP-4, Buenos Aires

COP-4 took place in Buenos Aires in November 1998. It had been expected that the remaining issues unresolved in Kyoto would be finalized at this meeting. However, the complexity and difficulty of finding agreement on these issues proved insurmountable, and instead the parties adopted a 2-year "Plan of Action" to advance efforts and to devise mechanisms for implementing the Kyoto Protocol, to be completed by 2000.

COP-5, Bonn, Germany

The 5th Conference of Parties to the U.N. Framework Convention on Climate Change met in Bonn, Germany, between October 25 and November 5, 1999. It was primarily a technical meeting, and did not reach major conclusions.

COP-6, The Hague, Netherlands

When COP-6 convened November 13-November 25, 2000, in The Hague, Netherlands, discussions evolved rapidly into a high-level negotiation over the major political issues. These included major controversy over the United States' proposal to allow credit for carbon "sinks" in forests and agricultural lands, satisfying a major proportion of the U.S. emissions reductions in this way; disagreements over consequences for non-compliance by countries that did not meet their emission reduction targets; and difficulties in resolving how developing countries could obtain financial assistance to deal with adverse effects of climate change and meet their obligations to plan for measuring and possibly reducing greenhouse gas emissions. In the final hours of COP-6, despite some compromises agreed between the United States and some EU countries, notably the United Kingdom, the EU countries as a whole, led by Denmark and Germany, rejected the compromise positions, and the talks in The Hague collapsed. Jan Pronk, the President of COP-6, suspended COP-6 without agreement, with the expectation that negotiations would later resume [2]. It was later announced that the COP-6 meetings (termed "COP-6 bis") would be resumed in Bonn, Germany, in the second half of July. The next regularly scheduled meeting of the parties to the UNFCCC - COP-7 - had been set for Marrakech, Morocco, in October-November, 2001.

COP-6 "bis," Bonn, Germany


When the COP-6 negotiations resumed July 16-27, 2001, in Bonn, Germany, little progress had been made on resolving the differences that had produced an impasse in The Hague. However, this meeting took place after President George W. Bush had become the U.S. President, and had rejected the Kyoto Protocol in March; as a result the United States delegation to this meeting declined to participate in the negotiations related to the Protocol, and chose to act as observers at that meeting. As the other parties negotiated the key issues, agreement was reached on most of the major political issues, to the surprise of most observers given the low level of expectations that preceded the meeting. The agreements included:
  1. Flexible Mechanisms: The "flexibility" mechanisms which the United States had strongly favored as the Protocol was initially put together, including emissions trading; Joint Implementation (JI); and the Clean Development Mechanism (CDM) which allow industrialized countries to fund emissions reduction activities in developing countries as an alternative to domestic emission reductions. One of the key elements of this agreement was that there would be no quantitative limit on the credit a country could claim from use of these mechanisms, but that domestic action must constitute a significant element of the efforts of each Annex B country to meet their targets.
  2. Carbon sinks: ­Credit was agreed to for broad activities that absorb carbon from the atmosphere or store it, including forest and cropland management, and re-vegetation, with no over-all cap on the amount of credit that a country could claim for sinks activities. In the case of forest management, an Appendix Z establishes country-specific caps for each Annex I country, for example, a cap of 13 million tons could be credited to Japan (which represents about 4% of its base-year emissions). For cropland management, countries could receive credit only for carbon sequestration increases above 1990 levels.
  3. Compliance: ­ final action on compliance procedures and mechanisms that would address non-compliance with Protocol provisions was deferred to COP-7, but included broad outlines of consequences for failing to meet emissions targets that would include a requirement to "make up" shortfalls at 1.3 tons to 1, suspension of the right to sell credits for surplus emissions reductions; and a required compliance action plan for those not meeting their targets.
  4. Financing: ­Three new funds were agreed upon to provide assistance for needs associated with climate change; a least-developed-country fund to support National Adaptation Programs of Action; and a Kyoto Protocol adaptation fund supported by a CDM levy and voluntary contributions.

COP-7, Marrakech, Morocco

At the COP-7 meeting in Marrakech, Morocco October 29-November 10, 2001, negotiators in effect completed the work of the Buenos Aires Plan of Action, finalizing most of the operational details and setting the stage for nations to ratify the Protocol. The completed package of decisions are known as the Marrakech Accords. The United States delegation continued to act as observers, declining to participate in active negotiations. Other parties continued to express their hope that the United States would re-engage in the process at some point, but indicated their intention to seek ratification of the requisite number of countries to bring the Protocol into force (55 countries representing 55% of developed country emissions of carbon dioxide in 1990). A target date for bringing the Protocol into force was put forward: ­the August-September 2002 World Summit on Sustainable Development (WSSD) to be held in Johannesburg, South Africa.

COP-8, New Delhi, India

COP-9, Milan, Italy

COP-10, Buenos Aires, Argentina

COP-11, Montreal, Canada

The meeting, the 11th Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC), was also the first Meeting of the Parties (MOP) to the Kyoto Protocol since their initial meeting in Kyoto in 1997. It was therefore one of the largest intergovernmental conferences on climate change ever. The event marked the entry into force of the Kyoto Protocol.
The Montreal Action Plan is an agreement hammered out at the end of the conference to "extend the life of the Kyoto Protocol beyond its 2012 expiration date and negotiate deeper cuts in greenhouse-gas emissions."

COP-12, Nairobi, Kenya

The second meeting of the Parties to the Kyoto Protocol (COP/MOP 2), in conjunction with the twelfth section of the Conference of the Parties to the Climate Change Convention (COP 12), was held in Nairobi, Kenya from 6 to 17 November 2006. At the meeting, the phrase climate tourists was coined to describe some delegates who attended "to see Africa, take snaps of the wildlife, the poor, dying African children and women".

COP-13, Bali, Indonesia


COP-13 and MOP-3 took place at Nusa Dua, in Bali, Indonesia, between December 3 and December 15, 2007. Agreement on a timelined negotiation on the post 2012 framework (a successor to the Kyoto Protocol) was achieved. These negotiations will take place during 2008 (leading to COP-14 and MOP-4 in Poznan, Poland)and 2009 (leading to COP-15 and MOP-5 in Copenhagen).

COP-14, Poznań, Poland

COP-15, Copenhagen, Denmark

The COP-15 TOOK PLACE in Copenhagen, Denmark in 2009. According to Danish Minister for the Environment, Connie Hedegaard, the summit's primary focusED to obtain an agreement about CO2 and other greenhouse gas reductions after 2012 when the first commitment period under the Kyoto Protocol expires.

2010: COP 16/MOP 6, Cancún, Mexico

COP 16 was held in Cancún, Mexico, from November 29 to December 10, 2010.

2011: COP 17/MOP 7, Durban, South Africa

The 2011 COP 17 was held in Durban, South Africa, from November 28 to December 9, 2011.

2012: COP 18/MOP 8, Qatar

Qatar will be the host of COP 18 which will take place from 26 November to 7 December 2012

AMAR
goswami248@gmail.com

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