The Kyoto Protocol - Part Two

IV. The Kyoto Mechanism 

1. Emissions Trading

The main objective of emissions trading is to minimize the cost of meeting the country’s target set of emissions. The Article 17 and the paragraphs 3.10 and 3.11 of the Kyoto Protocol discuss about the emissions trading.

Article 17:

"The Conference of the Parties shall define the relevant principles, modalities, rules and guidelines, in particular for verification, reporting and accountability for emissions trading. The Parties included in Annex B may participate in emissions trading for the purposes of fulfilling the commitments under Article 3. Any such trading shall be supplemental to domestic actions for the purpose of meeting quantified emission limitation and reduction commitments under that article." 

Article 3.10:

“Any emission reduction units, or any part of an assigned amount, which a Party acquires from another Party in accordance with the provisions of Article 6 or of Article 17 shall be added to the assigned amount for the acquiring Party."

Article 3.11:

"Any emission reduction units, or any part of an assigned amount, which a Party transfers to another Party in accordance with the provisions of Article 6 or of Article 17 shall be subtracted from the assigned amount for the transferring Party.”

This article and paragraph says that countries that have extra emission units, emissions that are permitted but not used, are allowed to sell the excess emissions to other countries that are over their target emissions.

Due to the Kyoto Protocol regulations in emissions reductions and removals, Carbon is now a commodity in the world market. Carbon is now traded and tracked in the market and it is known as “The carbon market”. The buyer is paying for the polluting charge and the seller is being rewarded for reducing emissions.

2. Clean development mechanism (CDM)
 

Clean development mechanism (CDM) is one of the mechanisms defined in the Kyoto Protocol. It aims to undertake carbon abatement projects for industrialized countries in developing countries. The Clean Development mechanism is defined in article 12 of Kyoto Protocol.
 

The Article 12 of the Kyoto Protocol allows country with emission-reduction or emission-limitation commitment under the Kyoto Protocol to implement a project on emission-reduction in developing countries. Projects that are made to developing countries earn a saleable CER (Certified Emission Reduction) credits, each of this certificate is equivalent to 1 tone of CO2, which can be counted towards meeting Kyoto targets. This mechanism stimulates sustainable development and emission reductions, while giving some flexibility in industrialized countries on how they meet their limitation targets.

3. Joint implementation (JI).

Is a mechanism where an Annex I country can invest in emission reduction projects, known as Joint implementation Projects, in other countries that are part of the Annex I and use this investment in a project to make an alternative to reducing emissions. This project is under the Article 6 of the protocol. The country that invested to the project will earn emission reduction units which can be used to count towards meeting the country’s Kyoto target.


These Kyoto Mechanisms are great motivation for those companies rejecting the Kyoto Protocol. It's very natural way of coming up ways for a certain country to earn and be rewarded thus, making it a win-win situation for everyone concerned.

Authorized yet unused emission can be traded. It also can be sold to other countries that will need to exceed their emissions above their target. There are also strategies of reducing the gas emission particularly, carbon emission.


Countries who have good gas emission standing can implement projects in other countries who do not have this advantageous protocol in order to promote the Kyoto Protocol and at the same time help that country. After all, we are accountable to each other, even countries are accountable to other countries.