Unit: 5

International and national legislative frameworks- UNFCCC 

The United Nations Framework Convention on Climate Change (UNFCCC) is an international treaty signed at the Earth Summit in Rio de Janeiro in 1992. The treaty sets out a framework for national and international efforts to address the issue of climate change, including the reduction of greenhouse gas emissions. The ultimate objective of the UNFCCC is to stabilize greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous human interference with the climate system.The treaty has been ratified by 197 countries, making it one of the most widely ratified international agreements. The UNFCCC also serves as the parent treaty for the 1997 Kyoto Protocol and the 2015 Paris Agreement.

IPCC and Kyoto protocol: Scientific and implementation bodies of Kyoto

The Intergovernmental Panel on Climate Change (IPCC) is a scientific body established by the United Nations in 1988. The IPCC's role is to assess the scientific information related to climate change and provide regular reports to the UNFCCC. The IPCC's assessment reports provide a scientific basis for the negotiations under the UNFCCC, including the Kyoto Protocol.

The Kyoto Protocol is an international treaty that was adopted in 1997 under the UNFCCC. It sets binding emissions reduction targets for developed countries, known as Annex I Parties, to reduce their greenhouse gas emissions. The protocol also established mechanisms for these countries to meet their emissions reduction targets, such as the Clean Development Mechanism and Joint Implementation.

The Conference of the Parties (COP) to the UNFCCC serves as the supreme decision-making body of the UNFCCC. The COP, which meets annually, is composed of representatives from all Parties to the Convention. The Parties to the Kyoto Protocol also meet annually at the Conference of the Parties serving as the Meeting of the Parties to the Kyoto Protocol (CMP). The CMP is the supreme body of the Protocol, it makes decisions on the implementation of the Protocol.

The Subsidiary Body for Implementation (SBI) and the Subsidiary Body for Scientific and Technological Advice (SBSTA) are two subsidiary bodies established under the UNFCCC to assist the COP and CMP in their work. The SBI is responsible for the implementation of the Convention and the Protocol, while the SBSTA is responsible for providing scientific and technological advice to the COP and CMP. 

Kyoto Mechanisms- CDM 

The Clean Development Mechanism (CDM) is one of the three market-based mechanisms established under the Kyoto Protocol to help Annex I Parties meet their emissions reduction targets. The CDM allows developed countries to invest in emission-reduction projects in developing countries, and earn certified emission reduction (CER) credits that can be used to meet their emissions reduction targets.The CDM aims to promote sustainable development in developing countries by providing an additional source of financing for emission-reduction projects and by transferring clean technology to these countries.

The CDM project cycle is composed of several steps: project design, validation, registration, monitoring and verification, and issuance and retirement of CERs. The CDM project design documents are submitted to the Designated National Authority (DNA) of the host country for review and endorsement. Once endorsed, the project design documents are submitted to the CDM Executive Board (EB) for validation.

After validation, the project is registered with the EB, and it starts generating CERs. The monitoring and verification of the project is done by an independent third-party verifier, and the CERs are issued by the EB. The CERs are retired by the Annex I Parties to demonstrate compliance with their emissions reduction targets. 

Joint implementation and Emission Trading : 

Joint Implementation (JI) is another market-based mechanism established under the Kyoto Protocol to help Annex I Parties meet their emissions reduction targets. JI allows Annex I Parties to implement emissions reduction projects in other Annex I Parties and earn emission reduction units (ERUs) that can be used to meet their emissions reduction targets.

Emissions trading is a way to use market mechanisms to reduce emissions by setting a cap on emissions and allowing companies or countries to buy and sell emissions allowances. The cap on emissions creates a market for emissions allowances, and companies or countries that are able to reduce their emissions below their allocated allowances can sell the excess allowances to others who are unable to meet their own emissions reductions.

Emission trading can be done through various mechanisms, such as cap-and-trade systems or project-based mechanisms like JI and the Clean Development Mechanism (CDM). Under the Kyoto Protocol, Annex I Parties can use ERUs and CERs generated from JI and CDM projects to meet their emissions reduction targets. These mechanisms help countries to achieve their emissions reduction targets at the lowest possible cost by allowing them to purchase emissions reductions from other countries rather than having to reduce their own emissions.

Decisions of Conference of Parties (COP) and Meeting of Parties (MOP) 

The Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC) is the supreme decision-making body of the UNFCCC. The COP, which meets annually, is composed of representatives from all Parties to the Convention. The COP makes decisions on the implementation of the Convention, reviews progress in dealing with climate change, and sets the agenda for future work.

The Meeting of the Parties (MOP) to the Kyoto Protocol is the supreme body of the Protocol. It is composed of representatives from all Parties to the Protocol and meets annually. The MOP makes decisions on the implementation of the Protocol, reviews progress in dealing with climate change, and sets the agenda for future work. The MOP is also responsible for taking decisions on the rules and procedures for the mechanisms established under the Protocol, such as the Clean Development Mechanism (CDM) and Joint Implementation (JI).

Some of the important decisions made by the COP and MOP include:

The adoption of the Paris Agreement in 2015, which set a global goal to limit global warming to well below 2 degrees Celsius above pre-industrial levels and pursue efforts to limit warming to 1.5 degrees Celsius.

The adoption of the Cancun Agreements in 2010, which established the Green Climate Fund to provide financial assistance to developing countries for climate change mitigation and adaptation.  

The adoption of the Doha Amendment to the Kyoto Protocol in 2012, which established the second commitment period of the Protocol and set new emissions reduction targets for developed countries.

The adoption of the Marrakech Accords in 2001, which established the detailed rules and procedures for the implementation of the Kyoto Protocol. 

Carbon markets- CERs : 

Carbon markets are systems for trading carbon credits, which represent the right to emit a certain amount of carbon dioxide or other greenhouse gases. These markets are designed to provide a financial incentive for companies and countries to reduce their greenhouse gas emissions. Carbon credits are generated through projects that reduce or remove greenhouse gas emissions, such as renewable energy projects or carbon capture and storage projects. These credits can then be bought and sold by companies and countries that need to offset their own emissions.

Certified Emission Reductions (CERs) are a type of carbon credit that can be generated through the Clean Development Mechanism (CDM) established under the Kyoto Protocol. CERs represent the reduction or removal of greenhouse gas emissions that have been certified by the CDM Executive Board (EB). CERs can be used by Annex I Parties to the Kyoto Protocol to meet their emissions reduction targets under the Protocol.

CERs are generated through CDM projects, which are implemented in developing countries and are verified to have reduced or removed greenhouse gas emissions. Once a project has been registered with the EB, it can start generating CERs. The CERs are issued by the EB, and they can be bought and sold on carbon markets. CERs are only valid for compliance under the Kyoto Protocol until the end of the first commitment period of the Protocol (2012). After that, they can still be traded in carbon markets but can't be used for compliance. 

Environmental Economics -

Issues include the costs and benefits of alternative environmental policies to deal with : 

Air pollution : 

Environmental economics is the study of how economic activity affects the environment, and how environmental conditions affect economic activity. It addresses the costs and benefits of alternative environmental policies to deal with air pollution, as well as the economic impacts of air pollution on society.

Air pollution is a significant issue that can have negative impacts on human health, the environment, and economic activity. The costs of air pollution include the costs of health care, lost productivity due to illness, and damage to crops and buildings. Environmental policies to deal with air pollution can include regulations that set standards for emissions from industrial facilities, taxes on emissions, and incentives for the use of cleaner technologies.

One of the main issues in environmental economics is how to internalize the costs of environmental damage in order to ensure that the costs of pollution are borne by those who are responsible for it. This can be done through the use of economic instruments such as taxes, subsidies and tradable permit systems.

For example, one policy to deal with air pollution is the use of a cap-and-trade system. Under a cap-and-trade system, a limit or "cap" is set on the total amount of emissions that can be released into the atmosphere. Companies are then given or allowed to buy emission allowances that correspond to a certain amount of emissions. If a company reduces its emissions below its allowances, it can sell the excess allowances to other companies.

This creates an economic incentive for companies to reduce their emissions, as they can either save money by reducing emissions or earn money by selling excess allowances.

Another example is the use of emissions taxes. An emissions tax is a fee imposed on the emission of a particular pollutant. The cost of the tax is passed on to consumers, who will then be incentivized to reduce their consumption of the goods or services that are responsible for the pollution. 

Water Quality is an important issue in environmental economics, as clean water is essential for human health and the functioning of ecosystems. Alternative policies to deal with water quality include setting and enforcing water quality standards, investing in water treatment infrastructure, and providing financial incentives for farmers and other landowners to reduce pollution.The costs of these policies include the costs of compliance for businesses and households, as well as the costs of implementing and enforcing regulations. The benefits include improved water quality and associated health benefits, as well as the economic benefits of protecting aquatic ecosystems.

Toxic substances are another important issue in environmental economics, as they can have serious health effects on human populations and ecosystems. Alternative policies to deal with toxic substances include setting and enforcing standards for chemical emissions, investing in pollution control technologies, and providing financial incentives for businesses to reduce their use of toxic chemicals. The costs of these policies include the costs of compliance for businesses and the costs of implementing and enforcing regulations.The benefits include improved human health and the protection of ecosystems.

Solid waste management is also an important issue in environmental economics. Alternative policies to deal with solid waste include setting and enforcing waste reduction and recycling targets, investing in waste treatment and disposal infrastructure, and providing financial incentives for businesses and households to reduce their waste. The costs of these policies include the costs of compliance for businesses and households, as well as the costs of implementing and enforcing regulations. The benefits include reduced waste and the associated environmental and health benefits, as well as the economic benefits of recycling and reducing the need for new landfills.

Global warming is a global issue that affects the entire planet, alternative policies to deal with global warming include setting and enforcing emissions reduction targets, investing in clean energy technologies, and providing financial incentives for businesses and households to reduce their greenhouse gas emissions. The costs of these policies include the costs of compliance for businesses and households, as well as the costs of implementing and enforcing regulations. The benefits include reduced emissions of greenhouse gases and the associated health and environmental benefits, as well as the economic benefits of investing in clean energy technologies.