Background of FCCC

In 1992, UNFCC was signed during the Earth Summit at Rio de Janeiro and entered into force in 1994 (186 signatories till September 2002) It acknowledged that changes in the earth’s climate due to human induced greenhouse gases (GHGs) in the atmosphere would have adverse effects. They were treated as common concerns. It noted the high historic and current share of the industrialized countries. Vide Article 2, the ultimate objective is stabilization of GHGs concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. Industrialized countries agreed to the set initial targets to peg emission to the 1990 level by 2000. In brief, the progress is as in table below.

Progress on Ratification of the Kyoto Protocol

The Kyoto Protocol (ratified by India in August 2002) is by far the most politically charged issue. It directly addresses the issues of mitigation measures to curb GHG emission to control global warming and its resultant adverse climate change adverse effects. The Kyoto Protocol will enter into force 90 days after being ratified by 55 governments, including developed countries, representing at least 55% of the group’s carbon dioxide emissions. Poland and the Republic of Korea ratified the treaty during COP 8. Ninety-six parties have ratified the Protocol so far, including developed countries, accounting for 37.4 percent of global CO2 emissions. The Russian Federation is expected to ratify it in the near future. Thus the threshold to ratify would be achieved.

Delhi Declaration

The Delhi declaration, besides mitigation, spells out the need to give high priority to the adverse impact of climate change. Further promotion on less energy polluting technologies and renewable energy was stressed. It adopted a series of 24 decisions like guidelines for national communications of GHG inventory by both Annex1 and Non Annex 1 Parties, (in energy, industrial process, agriculture, forestry and waste) amongst other procedural steps to move forward. One important outcome has been the operationalisation of the Clean Development Mechanism (CDM).

Clean Development Mechanism (CDM)/Flexible Mechanism

To meet the Kyoto targets, Annex countries have of three “flexible” options mechanisms such as Joint Implementation (trading of emissions reduction units amongst Annex I parties), Emission Trading (it allows emission trading as per rules which are still evolving) and CDM. The purpose of CDM is to assist developing countries to achieve “sustainable development.” Annex I countries could count reduction in green house gases achieved against their own targets.

The basic rules of CDM were agreed at COP7. Projects starting in the year 2000 are eligible to earn certified emission reductions (CERs) or credits for the Annex 1 countries to invest in GHG mitigation projects in developing countries. In return the investing parties receive credits /CERs. While investors profit from CDM projects by obtaining reduction in costs lower than in their own countries, the gains to the developing country host parties are in the form of finance, technology, and sustainable development benefits. CERs are likely to become a tradable commodity by about 2005. Carbon may be listed on major commodity exchanged and traded just like any other commodity. During COP8 , the CDM’s executive board received seven application from entities that wish to become certifying agencies for emission reduction(called operational entities or OEs). OEs are designated to validate a CDM project. Before COP8, India had already endorsed six CDM projects on renewable energy worth 75 Megawatts (MW) with the Netherlands. Many EU countries have set an example by achieving their targets and are offering renewable energy technologies based on wind, solar power and biomass sources. Germany would similarly get “credits” when German companies l subsidize Brazilians to buy cars that run on sugar cane based ethanol (emitting less GHG than petrol which is imported at high costs ).

Comments

By COP 9 to be held in Italy in December 2003, the Kyoto Protocol is likely to have entered into force. Technologies under CDM would now come to India. Business interests would dominate these negotiations. We need to be selective in importing the technologies available under CDM. We should also look ahead beyond the commitment period of 2012, and evolve suitable strategies to adopt to climate change and also on what mitigation options would best suit our ecological and economic interests. Transparency and multidisciplinary debate is the need of the hour.