UNCTAD FORUM AIMS TO HELP POLICYMAKERS IN REVIEWING WAYS TO MEET REQUIREMENTS OF KYOTO PROTOCOL
Press Release
TAD/1852
UNCTAD FORUM AIMS TO HELP POLICYMAKERS IN REVIEWING WAYS TO MEET REQUIREMENTS OF KYOTO PROTOCOL
19971212 Cost-Effective 'Emissions Trading' Seen as Key Step In Effort Towards Global Reduction of Greenhouse GasesGENEVA, 11 December (UNCTAD) -- After tough negotiations, the Kyoto Conference reached an agreement on a legally binding Protocol under which industrialized countries will reduce their collective emissions of greenhouse gases by 5.2%, and the United Nations Conference on Trade and Development (UNCTAD) has commented on its role in relation to the issue.
The agreement allows countries a certain degree of flexibility in how they make and measure their emissions reductions. Specifically, a "clean development mechanism" will enable industrialized countries to finance emission reduction projects in other industrialized countries and receive credit for doing so. In addition, an international "emissions trading" regime will be established, that will allow industrialized countries to buy and sell excess emissions credits amongst themselves.
It is in this context that the pioneer work of UNCTAD on emissions trading can be helpful. During the past five years, UNCTAD has produced a number of reports on such procedures, which show that emissions trading is the most cost-effective way to achieve agreed "caps" on emissions.
The UNCTAD has launched an initiative with the Earth Council for a pilot international greenhouse gas emissions trading programme. Such a pilot trading programme would help alleviate concerns expressed by countries such as China about how emissions trading would work.
In June this year, UNCTAD and the Earth Council established a forum to facilitate dialogue among a core group of interested government policy-makers, corporate executives and leaders of non-governmental organizations for the purpose of launching a pilot market for trading in greenhouse gas emission allowances and reduction credits by the year 2000. This would contribute to the early and effective implementation of the Kyoto Protocol.
The forum has already held two meetings, in June in Chicago and in November in Toronto, with 80 participants from governments, corporations and
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environmental NGOs. Government representatives have come from the United States, Canada, Norway, Netherlands, Costa Rica, Germany, New Zealand, Mexico, the United Kingdom, France, Poland, Russia and the Czech Republic. Company executives taking part are mainly from major power corporations, particularly in the United States, Canada, France, Norway, and the United Kingdom.
The Forum has established both a "policy framework" and a "market design and operations" working group, each with a number of task forces to work out specific details. Its approved workplan would enable a market launch to be made in the latter part of the year 2000.
The UNCTAD sees a strong relationship between climate protection policy founded on market-based instruments such as emissions trading, and development issues. The international community must find ways to ensure that developing countries can use the cleanest possible energy technologies. Account must be taken of the fact that per capita emissions in developing countries are relatively low and, that many developing countries are providing environmental services to the entire planet without being justly compensated for those services. A well-designed emissions trading system and the clean development mechanism will go a long way to meeting those objectives.
For more information, please contact Muriel Scibilia, Press Officer of UNCTAD, at: telephone 41 22 907/5825/5828, fax 41 22 9070043 or e-mail: press@unctad.org.
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