| |
 |
Taking action on climate change. |
 ukr rus |
|
|
|
At the Kyoto Conference in 1997, the 161 countries that are parties to the United Nations Framework Convention on Climate Change (UNFCCC) agreed to limit greenhouse gas (GHG) emissions. With 169 countries representing over 61% of total emissions of GHG gases in 1990 having ratified this agreement, the Kyoto Protocol entered into force on 16 February 2005.
In the lead up to the first commitment period of the Kyoto Protocol, which covers 2008 to 2012, projects have been transacted with over 960 million tons of carbon dioxide-equivalent (MtCO2e).
On the supply side, the majority of these projects, representing 920 MtCO2e, have been sourced through the Clean Development Mechanism (CDM), which covers developing countries that did not sign on to firm commitments for their carbon emissions under the Kyoto Protocol. Joint implementation (JI) projects, which cover countries with economies in transition that have accepted firm commitments to limit their emissions under the Kyoto Protocol - including Ukraine - have been slower to develop, due to the more extensive regulations that are required for the country approval process. With 44 MtCO2e transacted from 2003 to 2006, Ukraine, Russia and Bulgaria have been the largest suppliers of carbon credits.
On the buy side, European and Japanese buyers have been the dominant buyers of volumes transacted in the CDM and JI markets, with the EU accounting for two-thirds of purchases from 2003 to 2006 and the Japanese for nearly 30%.
For the first commitment period from 2008 to 2012, European and Japanese entities are expected to purchase about 2.0 billion tCO2e through CDM and JI projects.
The average price for Certified Emission Reductions (CERs) - the unit for a GHG emission reduction of one tCO2e for under the Clean Development Mechanism - was ˆ8.40 in 2006, and for ERUs under JI projects, the average price in 2006 was ˆ6.70. The lower price for ERUs is likely to reflect greater risks of implementation for JI projects, which will likely diminish over time, thereby closing the price gap between CERs and ERUs.
If the price were to stabilize at ˆ8.40, for example, the total value of the Kyoto market for CDM and JI projects at 2.0 billion tCO2e would be ˆ16.8 billion.
|
|
© Copyright 2007, Carbon Plus Limited. All rights reserved.
made in 72dpi
|
|
|