| The Kyoto
Protocol to the United Nations Framework Convention
on Climate Change (UNFCCC) is a major change document. It creates
a reasoned and structured process to fully value energy
in the interest of protecting the environment. As of
February 16th, 2005 the Kyoto Protocol came into force
as legally binding international law.
The Kyoto Protocol was an outcome of
the successful Montreal Accord and Rio Conference on
emissions. According to the UNFCCC website:
 The
text of the Protocol to the UNFCCC was adopted at
the third session of the 'Conference of the Parties'
to the UNFCCC in Kyoto, Japan, on 11 December 1997.
The protocol was open for signature from 16 March
1998 to 15 March 1999 at United Nations Headquarters,
New York. By that date the Protocol had received 84
signatures. Those Parties that have not yet signed
the Kyoto Protocol may accede to it at any time.
The Protocol is subject to ratification,
acceptance, approval or accession by Parties to the
Convention. It shall enter into force on the ninetieth
day after the date on which not less than 55 Parties
to the Convention, incorporating Annex I Parties which
accounted in total for at least 55% of the total carbon
dioxide emissions for 1990 from that group, have deposited
their instruments of ratification, acceptance, approval
or accession.
The Kyoto Protocol is a legally binding
agreement under which industrialized countries will
reduce their collective emissions of some greenhouse
gases by 5.2% below their 1990 emission levels. In comparison
to the emissions levels that would be expected by 2010
without the Protocol, this target represents a 29% cut.
The goal of the Kyoto Protocol is to
lower overall emissions from six greenhouse gases: carbon
dioxide, methane, nitrous oxide, sulfur hexafluoride,
HFCs, and PFCs. The reduction is to be calculated as
an average over the five-year period from 2008–2012.
National targets range from 8% reductions for the European
Union and some others, 7% for the US, 6% for Japan,
and 0% for Russia, to permitted increases of 8% for
Australia and 10% for Iceland.
The Kyoto Protocol has three important
periods during its implementation: prior to 2008; 2008
to 2012, and after 2012.
The recent approval of the Kyoto Protocol
by the Russian Cabinet, and expected acceptance by the
Russian Duma (Parliament), will bring the total signatories
past the 55% of the total carbon dioxide emissions threshold
necessary to bring the Protocol into force.
The Protocol also reaffirms the principle
that developed countries have to pay, and supply technology
to, other countries for climate-related studies and
projects. This was originally agreed in the UNFCCC.
Each Annex I country has agreed to
limit emissions to the levels described in the protocol,
but many countries have limits that are set above their
current production. These "extra amounts"
can be purchased by other countries on the open market.
So, for instance, Russia currently easily meets its
targets and can sell off its credits for millions of
dollars to countries that don't yet meet their targets,
e.g., Canada. This rewards countries that meet their
targets, and provides financial incentives to others
to do so as soon as possible.
Countries also receive credits through
various shared "clean energy" programs and
"carbon sinks" (forests and other systems
that remove carbon from the atmosphere).
Emission Credit trading is encouraged
by the Protocol as a way of providing financial incentives
to participants to meet their targets and obligations.
A global exchange mechanism is the most effective manner
in which to 'trade' in global emission credits and create
change.
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GHGx Corporation - Greenhouse Gas Exchange
Global Emissions Trading for a Brighter Future™
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