Environment - Global Climate Change

Global Climate Change

Climate Change Facts
January 23, 1998

Issue 6 U.S. House of Representatives

Minority Staff, Committee on Government Reform and Oversight

The Kyoto Protocol
From December 1-10, 1997, diplomats from more than 160 nations gathered for the Third Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC), in Kyoto, Japan. At the Conference, Parties approved a Kyoto Protocol to the Convention. This fact sheet outlines the major provisions in the Protocol. The Kyoto Protocol will be open for signature by the Parties in March of 1998. It will enter into force when 55 nations have ratified it, provided that they represent at least 55% of developed country carbon dioxide emissions in 1990. The next Conference of Parties is scheduled for November, 1998.

Targets and Timetables. Developed nations agreed to reduce emissions of six greenhouse gases to an aggregate of 5.2% below 1990 levels averaged over the years 2008-2012. The greenhouse gases covered are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6). The baseline year for reducing CO2, CH4, and N2O is 1990. For HFCs, PFCs and SF6, Parties may choose either 1990 or 1995 as the baseline. In order to meet the overall reduction goal, countries were permitted to adopt different emission limitation goals. Of the thirty-eight countries that adopted emission limitations under the Protocol, thirty-two countries have adopted reduction targets. The U.S. reduction is 7%, the European Union is 8% and Japan is 6%. The emissions limitation commitments are legally binding for all industrialized countries.

Trading Mechanism. Articles 3.10, 3.11, 6 and 16 (bis) firmly establish the overall right of emission reduction units to be traded and assigned between developed country Parties. Developed nations can elect to trade emission reductions, meaning that countries can agree to transfer or acquire any emission reductions that result from projects to reduce greenhouse gas emissions or those that are based on national budgets. The Protocol requires that non-project-based trading between countries be "supplemental" to domestic actions to meet emission targets, meaning that a country cannot purchase 100% of its reduction units abroad in order to achieve compliance. Specific verification procedures, rules, and guidelines for the trading system are to be determined at the next Conference of Parties.

Developing Countries. There are currently three aspects of the Protocol that involve developing nations.

Clean Development Mechanism (Includes elements of what was "Joint Implementation") -- This provision allows public and private entities in industrialized countries to receive emissions credits for investments that reduce greenhouse gas emissions in developing countries starting in the year 2000. This mechanism ensures that Parties can find the most cost-effective ways to achieve reductions while also facilitating transfer of efficient technologies to less developed nations. Participation of Parties is voluntary.
Emissions reduction projects that qualify for credit must have verifiable reductions and measurable, long-term benefits. Any projects that qualify for credit must be additional to reductions that would occur in the absence of the project. Specific procedures and guidance will be further elaborated at the next Conference of Parties, and an executive board will be established to oversee the mechanism. Final rules and procedures, including those needed to ensure transparency and accountability, are to be adopted at the first Meeting of Parties to the Protocol after it has entered into force.

Proceeds from certified projects will be used to fund the administrative costs associated with verifying, auditing, and tracking the projects. Funds will also be available to assist developing countries that are most at risk from the effects of climate change.

Article 10 -- All parties, including developing nations, must develop national and regional programs to reduce emissions in the energy, transportation, industry, and agricultural sectors. They must also submit national reports on their programs to address climate change, and formulate, implement, publish, and update national climate change adaptation programs.

Annex B -- Any developing country can be take on a legally binding emissions limit by amendment to the Protocol's Annex B at a Meeting of the Parties to the Protocol. Such an amendment would be adopted by consensus, or if that is not achievable, by a three-fourths majority vote of the Parties present and voting.
Additional Commitments. Under Article 20.7 no additional emission reduction commitments can be forced on a country without the written consent of the Party concerned. This provision ensures that each Party has the right to determine the acceptability of its own commitments under the Protocol.

Exempt Fuels. International aviation and marine bunker fuels, and emissions resulting from multilateral military operations pursuant to the UN charter, are exempted from emission limits. Any party can determine whether to limit emissions from its own military sector or to make reductions in other areas.

Sinks. Greenhouse gas emissions from sources and removals by carbon sinks since 1990 are included in the Protocol. Carbon sinks are defined as direct, human-induced land use change and forestry activities, specifically including afforestation, deforestation, and reforestation. The Protocol directs a Subsidiary Body of the UNFCCC to consider guidelines, rules, and methodologies for calculating additional carbon sinks and sources from agricultural soils, land use changes, and forestry categories before the next Conference of Parties.