ENERGY AND ENVIRONMENTAL POLICY SUSTAINABLE DEVELOPMENT ANDRÁS ISTVÁN FAZEKAS PhD Associate professor Budapest University of Technology and Economics (BUTE) Energy Engineering Department MVM Hungarian Power Companies Ltd. ANDRÁS ISTVÁN FAZEKAS PhD T08_04_KYOTO PROTOCOL

KYOTO PROTOCOL I. Following the Rio Conference international climate policy has been valorised significantly. On December 12 1997 in Kyoto the so-called Kyoto Protocol was adopted, which, in contrast to the Framework Convention itself, set legally binding emission targets aiming at a reduction of CO2 emissions from the industrial and transformation countries. K.P. will become legally binding under international law only when at least 55 signatory countries have ratified the protocol. ANDRÁS ISTVÁN FAZEKAS PhD T08_04_KYOTO PROTOCOL

KYOTO PROTOCOL II. The K.P. must be ratified by countries which are responsible for at least 55 % of the CO2 emission in 1990. The industrialized countries commit not to exceed – individually or jointly – their assigned emission limits. ANDRÁS ISTVÁN FAZEKAS PhD T08_04_KYOTO PROTOCOL

COMMITMENT PERIOD The commitment period (the years in which, on average the goals must be achieved), laid down in the Kyoto Protocol is five years 2008-2012. ANDRÁS ISTVÁN FAZEKAS PhD T08_04_KYOTO PROTOCOL

TARGETS The aim is to reduce the overall emissions of greenhouse gases (GHGs) by all the industrialized countries, by at least 5 % of the 1990 levels. GHGs include CO2, methane, nitrogen oxides, chlorofluorocarbons (CFCs) and some others. All GHGs are converted into CO2 equivalents according to their effect on the climate. ANDRÁS ISTVÁN FAZEKAS PhD T08_04_KYOTO PROTOCOL

ENERGY-RELATED EMISSIONS Nearly 95 % of the energy-related emissions is CO2, about 4 % methane; the remainder part are nitrogen oxides. ANDRÁS ISTVÁN FAZEKAS PhD T08_04_KYOTO PROTOCOL

EU COMMITMENT According to the Annex B, all member states of the European Union have committed themselves to a reduction of 8 % compared to the situation in 1991. The individual reduction commitment vary considerably among the EU member states, between -28% (for Luxembourg) and +27% (for Portugal). Germany: -21 % ANDRÁS ISTVÁN FAZEKAS PhD T08_04_KYOTO PROTOCOL

CLIMATE PROTECTION The Kyoto Protocol declares climate protection as a core element of sustainable development. ANDRÁS ISTVÁN FAZEKAS PhD T08_04_KYOTO PROTOCOL

INTERNATIONAL MECHANISMS The international mechanisms are meant primarily to support economically efficient ways of climate protection. Emission reducing projects (emission-reducing projects in developing countries); Joint project implementation (in eastern European countries); Emission trading. ANDRÁS ISTVÁN FAZEKAS PhD T08_04_KYOTO PROTOCOL

EMISSION-REDUCING PROJECTS IN DEVELOPING COUNTRIES The K.P. allows the Annex-I. countries to carry out emission-reducing projects in developing countries and to use the emission reductions. ANDRÁS ISTVÁN FAZEKAS PhD T08_04_KYOTO PROTOCOL

JOINT PROJECT IMPLEMENTATIONS Another way of fulfilling the legal commitments concerning reductions on foreign territory is opened by the option of joint implementation of emissison-reducing projects. A country in Western Europe might be credited with the emission reductions following from the emission-effective modernizing measures at outdated Eastern European power plants. ANDRÁS ISTVÁN FAZEKAS PhD T08_04_KYOTO PROTOCOL

EMISSION TRADING Emission trading among industrial countries also enables a shift of commitments. Emission rights can be purchased from the counties that keeps within the agreed emission limits and capitalizes on this situation by selling certificates instead of crediting itself beyond its obligations. ANDRÁS ISTVÁN FAZEKAS PhD T08_04_KYOTO PROTOCOL

Complete withdrawal from the Kyoto Protocol under president Bush. USA WITHDRAWAL Complete withdrawal from the Kyoto Protocol under president Bush. USA insisted on full flexibility. EU argued, that half of the reduction commitments must be fulfilled domestically. ANDRÁS ISTVÁN FAZEKAS PhD T08_04_KYOTO PROTOCOL

CONTINUATION AT THE HAGUE Other questions open still after Kyoto were supposed to be resolved at the 6th Conferences of the Parties (COP-6) on November 13-24, 2000 and ended in failure. ANDRÁS ISTVÁN FAZEKAS PhD T08_04_KYOTO PROTOCOL

THE MAIN OBSTACLES AT THE HAGUE The main obstacles to a common solution was disagreement about the question to what extent a reduction, or storage, of greenhouse gases through so called sinks created by land-use changes and forestry measures should be taken into account with regard to the reduction duties of the signatory parties. ANDRÁS ISTVÁN FAZEKAS PhD T08_04_KYOTO PROTOCOL

RESUMPTION IN BONN AND MARRAKESH The negotiations were resumed in Bonn in July 2001. At that point the US had completely rejected the Kyoto protocol. The EU still reached a compromise with Japan, Canada and Russia. Developing countries receive subsidies from the EU. ANDRÁS ISTVÁN FAZEKAS PhD T08_04_KYOTO PROTOCOL

QUESTIONS We are confronted with the question to what extent these tools are appropriate or sufficient to achieve the long-term objective, laid down in UNFCCC, of preventing dangerous, anthropogenic disorders of the climate system. ANDRÁS ISTVÁN FAZEKAS PhD T08_04_KYOTO PROTOCOL

PRESENT SITUATION The final commitments negotiated in the Protocol are the result of last minute political compromises . These include an 8% cut from the 1990 base year for the EU, 7% for the US, 6% for Canada and Japan, no cut for Russia, and an 8% increase for Australia. This sums to an overall cut of 5.2% below 1990 levels. Since Australia and the US did not ratify the treaty (although Australia has since done), the cut is reduced from 5.2% to about 2%. ANDRÁS ISTVÁN FAZEKAS PhD T08_04_KYOTO PROTOCOL

PARTICIPATION IN THE KYOTO PROTOCOL ANDRÁS ISTVÁN FAZEKAS PhD T08_04_KYOTO PROTOCOL

THE PRESENT SITUATION I. The final commitments negotiated in the Protocol are the result of last minute political compromises. ANDRÁS ISTVÁN FAZEKAS PhD T08_04_KYOTO PROTOCOL

THE PRESENT SITUATION II. These include an 8% cut from the 1990 base year for the EU, 7% for the US, 6% for Canada and Japan, no cut for Russia, and an 8% increase for Australia. ANDRÁS ISTVÁN FAZEKAS PhD T08_04_KYOTO PROTOCOL

THE PRESENT SITUATION III. This sums to an overall cut of 5.2% below 1990 levels. Since Australia and the US did not ratify the treaty (although Australia has since done), the cut is reduced from 5.2% to about 2%. ANDRÁS ISTVÁN FAZEKAS PhD T08_04_KYOTO PROTOCOL