Brussels, 25/08/2015 (Agence Europe) - The flexible mechanisms introduced by the Kyoto Protocol, such as joint implementation, have so far led to an additional 600,000,000 t of CO2 greenhouse gas emissions worldwide, according to a new study published by the Stockholm Environment Institute (SEI) on Monday, 24 August.
The NGO, Carbon Market Watch, underlined that with just a few days to go until international climate negotiations start up again (31 August-4 September in Bonn, Germany), the publication of this study is likely to put pressure on the negotiators to avoid a similar pitfall occurring in the future climate agreement to be concluded in Paris (COP 21, 30 November -11 December).
More than 900 million carbon credits have been granted under Joint Implementation, this flexible mechanism that grants credits in exchange for clean investments made in third countries. Carbon Market Watch describes this compensation mechanism having questionable environmental integrity.
Therefore, countries must cancel one of their Assigned Amount Units (AAU) in order to avoid emissions reductions being counted twice. In order to remain within the limits of the carbon budget allocated to them, this is supposed to encourage countries increase their national mitigation efforts when these credits are sold. Nonetheless, this new study shows that more than 90% of AAUs were issued by Russia and Ukraine, two countries that have a significant surplus of quotas under the first period of Kyoto commitments.
It should be pointed out that during the second period of commitments under Kyoto (2008-2013), the use of surplus hot air credits will authorise, as part of the rules established by the December 2012 Doha Amendment.
“Joint Implementation has suffered from poor oversight and quality for a long time. This study has likely given the deathblow to the JI as we know it,” commented Eva Filzmoser, Carbon Market Watch's director.
The NGO does warn, however, against the study being misinterpreted. “Although Russia or Ukraine have profited from the JI, it was all Parties that decided to give emission allowances to some countries above their projected emissions when agreeing on the Kyoto Protocol, a risk that we might also see in Paris. A key issue in Paris must therefore be to ensure that only countries with stringent targets are able to participate in international carbon markets and that environmental integrity standards are rigorously implemented and enforced”.
The study also makes a significant finding on the need for international oversight: 97% of JI credits were issued under so-called “track 1” by the host countries themselves that largely establish their own rules for approving projects and issuing credits, without international oversight. The study found that the share of JI credits issued from project types under “track 2” - which provides for international oversight - had a larger plausible environmental integrity with 54% of credits having plausible environmental integrity, as opposed to 3% from track 1.
“Discussions on how to oversee the use of markets at the Paris climate treaty are vague at best. This study shows that importance of a rigorous, robust and transparent common accounting framework and strong environmental standards being enforced,” commented Filzmoser.
The Stockholm Environment Institute study is accessible online: http://www.sei-international.org/publications? pid=2803 (Aminata Niang)