1. 1
Kyoto Protocol and
the CDM
Mohit Kumar Gauttam
EEE, 5th Sem.
UE104034

2. 2
Introduction to Climate Change
Some basic facts
• Human activities are releasing greenhouse
gases (GHG) into the atmosphere
• Climate change is a global issue
• Rising levels of greenhouse gases are
already changing the climate
• Climate models predict the global
temperature will rise by about 2 degrees by
2030.
• Climate change is likely to have a significant
impact on the global environment, economy
and society

3. 3
Introduction to Climate Change
The greenhouse effect
4
4) Infra-red radiations
emitted from Earth
1
1) Solar radiation
2 2) Reflected back to space
3
3) Absorbed by atmosphere
5
5) Some of the IR passes
through the atmosphere
6
6) Some is absorbed and
re-emitted by greenhouse
gas molecules
The effect is increasing temperatures on Earth

4. 4
Introduction to Climate Change
1 oC increase since 1986

5. 5
Introduction to Climate Change
The greenhouse gases

6. 6
Introduction to Climate Change
Greenhouses are rising

7. 7
Introduction to Climate Change
température increases

8. 8
Major impacts
> Temperature increase
> Sea level rise
> More rain
Agriculture and food security
Crop yields, irrigation demands...
Forest
Composition, health and productivity...
Water resources
Water supply, water quality...
Coastal areas
Erosion, inundation, cost of prevention...
Species and natural areas
Biodiversity, modification of ecosystems...
Human health
Infectious diseases, human settlements...
Consequences of
climate change:

9. 9
United Nations Framework Convention
on Climate Change (UNFCCC)
• A global legal instrument (international
agreement) to protect the climate system
and stabilize GHG emissions
• Adopted in 1992, entered into force in 1994
• Status of participation: 189 Parties
• Contains 2 annexes:
– Annex 1: countries with obligations to take measures to
mitigate the effects of climate change
– Annex 2: countries with obligations to provide financing to
developing countries for their obligations under UNFCCC

10. 10
Kyoto Protocol – Key points
• Adopted at third Conference of Parties
(COP) to the UNFCCC in Kyoto in 1997
• Required ratification of > 55 countries
representing > 55% of GHG emissions
• Entered into force on February 16th, 2005
after ratification of the Russian Federation
• Now 163 countries covering 61.6% of global
emissions have ratified the protocol

11. 11
Kyoto Protocol – Key points
• Six emissions: CO2, CH4, N2O, PFCs, HFCs, SF6
• Binding emission reduction targets for Annex I
countries of 5.2% below 1990 over 2008-2012
• Non-Annex I countries have no binding targets
but must report on their actions
• Annex I countries can achieve targets through
domestic policies and three market mechanisms
• Non-Annex I countries can participate through
the Clean Development Mechanism to facilitate
sustainable development
• Rules for implementation worked out at annual
COP meetings

12. 12
Australia
Austria
Belarus
Belgium
Bulgaria
Canada
Croatia
Czech Rep
Denmark
EC
Estonia
Finland
France
Germany
Greece
Hungary
Iceland
Ireland
Italy
Japan
Latvia
Liechtenstein
Lithuania
Luxembourg
Netherlands
New Zealand
Norway
Poland
Portugal
Romania
Russia
Slovakia
Slovenia
Spain
Sweden
Switzerland
Turkey
Ukraine
UK
USA
* Countries with economies in transition to a market economy.
* Countries which did not ratify Kyoto protocol.
Annex B countries
(= Annex I under UNFCCC)

13. 13
Flexible Mechanisms
ET - Emissions Trading
AAU (Assigned Amount Units) are exchanged
between Annex I countries
JI - Joint Implementation
Annex I investors receive ERUs (Emission
Reduction Units) by investing in a project in another
Annex I nation which reduces GHG emissions
CDM - Clean Development Mechanism
Annex I investors receive CERs (Certified Emission
Reductions) by investing in a project in a non-Annex
I nation which reduces GHG emissions

14. 14
What Annex I countries can do
Limitations of CO2 emissions in
developed countries (Annex I)
4 options for companies
1/ Pay expensive
fines.
2/ Carry out carbon
reduction through
processes
improvement.
3/ Buy emissions
credits on the
CO2 market (ETS).
4/ Carry out carbon
reduction through
technology transfers
in CDM or JI project.

15. 15
Kyoto Protocol and CDM at a Glance
Opportunities for industry
• Technology transfer to improve
process and energy efficiency
• Co-finance investments by selling
emission credits
• Prepare for future commitments
(after 2012)
• Achieve sustainable development

16. 16
Need of CDM
• Emission reductions more expensive
in developed than developing
countries
• Two objectives:
– Help Annex 1 countries meet their
objectives in a cost-effective way
– Contribute to sustainable development
of the host country

17. 17
How the CDM Works
• Annex I country invests in GHG
reduction project in non-Annex I
country
• Annex I country receives CERs
• Non-Annex I country receives
revenues from CERs

18. References
• www.energyefficiencyasia.org
• http://unfccc.int/kyoto_protocol/mechanis
ms/clean_development_mechanism/items
/2718.php
• www.cd4cdm.org
• http://en.wikipedia.org/wiki/Kyoto_Protoc
ol
• http://cdmrulebook.org/152
• http://cdmrulebook.org/305
• http://en.wikipedia.org/wiki/Clean_Develop
ment_Mechanism
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19. Any Queries?
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