Can humanity stop climate change?
Kyoto Protocol financial mechanisms
Kyoto Protocol had not only formed major objectives, but also offered financial mechanisms for their achieving, stated in Articles 6, 12 and 17 of UNFCCC Kyoto Protocol.
Kyoto Protocol, Article 6 – Joint Implementation (JI) Projects
Mechanism is the joint realization (JR), based on joint realization of projects on greenhouse gases emission reduce between countries, accepted to the Annex I, which have obligations on emissions reduce according to the Kyoto Protocol, i.e. the mechanism works only for developed countries.
Mechanism is the joint realization (JR), based on joint realization of projects on greenhouse gases emission reduce between countries, accepted to the Annex I, which have obligations on emissions reduce according to the Kyoto Protocol, i.e. the mechanism works only for developed countries.
As Uzbekistan is Non-Annex I country, and has no emission limitations, joint realization of the projects is not suitable for our country.
Kyoto Protocol, Article 12– Clean Development Mechanism (CDM)
CDM gives an opportunity to industrial developed countries to finance "clean" projects in developed countries and Non-Annex I countries with economies in transition, and to earn credit in the form of "certified emissions reductions" (CER). It is expressed in ton equivalent of carbon gas. Financing country may use received units for fulfilling emission obligations or sell them to other countries. For Non-Annex I countries CDM projects are the source of new, so-called carbon income, it also helps in receiving of extra foreign investments, new technologies, attracting of new partners to the internal markets. For developed countries it is the opportunity to fulfill obligations on Kyoto Protocol with less expenses and new markets opening up.
CDM gives an opportunity to industrial developed countries to finance "clean" projects in developed countries and Non-Annex I countries with economies in transition, and to earn credit in the form of "certified emissions reductions" (CER). It is expressed in ton equivalent of carbon gas. Financing country may use received units for fulfilling emission obligations or sell them to other countries. For Non-Annex I countries CDM projects are the source of new, so-called carbon income, it also helps in receiving of extra foreign investments, new technologies, attracting of new partners to the internal markets. For developed countries it is the opportunity to fulfill obligations on Kyoto Protocol with less expenses and new markets opening up.
For Uzbekistan as for the country with economies in transition, from all mechanisms of Kyoto Protocol CDM is only one available. It is Clean Development Mechanism, i.e. fulfillment of technological projects on GHG emission reduce with the help of developed countries.
Kyoto Protocol, Article 17 – Emissions trading
Emissions trading give to developed countries an opportunity to sell and buy the part of their quotas. Country-seller may use received units for fulfillment of Protocol obligations. CDM certified emission reductions may be used in the system from the very beginning, and JI units – from the year 2008. Emission trading regime, based on Kyoto Protocol had started to function before Protocol took effect. This mechanism creates "Carbon market", where only industrial developed countries can participate.
Emissions trading give to developed countries an opportunity to sell and buy the part of their quotas. Country-seller may use received units for fulfillment of Protocol obligations. CDM certified emission reductions may be used in the system from the very beginning, and JI units – from the year 2008. Emission trading regime, based on Kyoto Protocol had started to function before Protocol took effect. This mechanism creates "Carbon market", where only industrial developed countries can participate.
Emissions trading regime is not suitable for Uzbekistan, as it requires significant financial fund for participation at the "Carbon market".
27-04-2006
Source:
Kyoto Protocol