Kyoto Mechanism and Paris Agreement, what’s the difference?
Renewable Energy Followers 18th Jihoon Oh
[Material 1. ETS and Carbon taxes in the world ]
On 31st October 2021 to 12th November, COP 26 (Conference of the Parties) which was not held last year will continue its conference at Glasgow, United Kingdom. As South Korean government’s updated NDC (Nationally Developed Contribution) is expected to be announced, COP26 will be discussing detailed issues in order to control rising earth temperature under 1.5℃. Through this article, let’s check out backgrounds of UNFCCC (United Nations Framework Convention on Climate Change) and differences between Kyoto Mechanism and Paris Agreement
In Rio de Janeiro 1992, as a United Nations framework to prevent global warming, Countries worldwide gathered establishing UNFCCC (United Nations Framework Convention on Climate Change). After the establishment, parties held COP to discuss countermeasures to nationally decrease the green gas emissions. The scientific and objective evidences that governments used were reports from IPCC (Intergovernmental Panel on Climate Change) which recently issued 6th Assessment Report. With the discussions shared, in Kyoto December 1997, COP3 announced Kyoto Mechanism that enable countries to achieve green house gas emission goals easily by implementing market system. Kyoto Mechanism can be classified into three methods and multiple commitment periods. The three methods introduced are ETS(Emissions Trading Scheme), JI(Joint Implementation) and CDM(Clean Development Mechanism). Let’s check out what exactly they are.
First, ETS is an allocating mechanism which primarily sets carbon discharge limits to specific countries and each country distributes carbon credits in various ways including paid allocation, free allocation or auction to companies or organizations. Then, the companies can trade their carbon credit through the market. For example, let’s assume there are two companies, A and B. A company discharged carbon less than expected which leaves them surplus carbon credit. However, Company B discharged carbon more than expected. In this situation, two companies can trade Carbon credits which are also called as AAUs (Assigned Amount Unit). Through this method, a country can efficiently and effectively control national greenhouse gas emissions.
Second, JI is an offsetting mechanism which allows Appendix 1 country’s organization to invest or participate in another Appendix 1 country’s greenhouse gas reduction program. Appedix 1 countries includes Unitied States of America, European Union, Canada, Russia and other countries mostly in OECD (Organization for Economic Co-operation and Development) that are widely acknowledged as developed countries. The amount reduced from investing and participating Greenhouse gas reduction program is called ERU (Emission Reduction Unit). This method can promote greenhouse gas reduction programs. Greenhouse gas reduction programs include CO2 reduction programs, Fuel transition program and other programs that can aid reducing carbon emissions.
[Material 2. Joint Implementation ]
Source : EthiCarbon
Third, CDM is also an offsetting mechanism which allows Appendix 1 country’s organization to invest or participate on non-Appendix 1 country’s greenhouse gas reduction program by considering investments or participation same as the one held in their own country. The amount reduced from investing and participating Greenhouse gas reduction program is called CER (Certified Emission Reduction). This method can benefit developing countries to learn technologies that can reduce greenhouse gas emission while global corporations from developed countries establish their own factories.
[Material 3. Clean Development Mechanism]
Source : EthiCarbon
Next, let’s move on to multiple commitment periods. The first commitment period was established from 2008 to 2012 and the second commitment period was established from 2013 to 2020. Compared to first commitment period, Second commitment period lacked participation from major countries that discharge greenhouse gas. With lack of participation, there were worrying voices from other countries about the effectiveness of the agreement which lead to Paris Agreement on December 2015 in COP21.
Major difference of Paris Agreement compared to Kyoto Mechanism is that almost all countries signed for UNFCCC participate for comprehensive countermeasures for the climate crisis. Under the Paris Agreement, each country has to submit their own NDC (Nationally Determined Contribution) every five years. Thus, similar to Kyoto mechanism, there will be cooperative approach including SDM (Sustainable Development Mechanism), NMA (Non-Market Approach). However, since there are some conflicts between developed countries and developing countries on setting out how the mechanism will be controlled and which countries will be included, implementation of the new agreement will take time.
Through these backgrounds, COP26 which could not be held due to COVID-19 is being continued. Today, humanity is moving towards the new era of climate crisis. I truly hope each country to cooperate effectively for future generations who will also be living on our good earth.
탄소배출권 에 대한 대학생신재생에너지기자단 기사 더 알아보기
1. "뜨거워지는 탄소배출권거래시장, 이해해봅시다.", 작성자(18기 오지훈), https://renewableenergyfollowers.tistory.com/3429?category=745296
2. "탄소세, 더 내야 하나요?", 18기 이시은, https://renewableenergyfollowers.org/3375?category=745296
1) 환경부, "교토의정서 이후 신 기후체제 파리협정 길라잡이", 2016.05
2) 한국외대 POSTRADE, "유럽 탄소시장과 향후 방향성 예측", 2020.08
3) 기후변화 홍보포털, "배출권 거래제", https://www.gihoo.or.kr/portal/kr/biz/kyoto.do
4) EthiCarbon by Energies 2050, "Carbon Market", https://energies2050.org/ethicarbon/carbon-markets/?lang=en
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