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Kyoto Protocol-Key Features and Impact On India: Business Environment Presentation ON

The document provides an overview of the Kyoto Protocol, including its key features and impact on India. It discusses the causes and effects of global warming, greenhouse gases, and the history and mechanisms of the Kyoto Protocol. The Protocol sets emission reduction targets for industrialized countries and includes flexible mechanisms like emissions trading. While some countries have struggled to meet targets, the Protocol benefits India through technology transfers and investments in renewable energy. It also creates carbon credit opportunities for Indian companies.

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Ajay Meena
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37 views28 pages

Kyoto Protocol-Key Features and Impact On India: Business Environment Presentation ON

The document provides an overview of the Kyoto Protocol, including its key features and impact on India. It discusses the causes and effects of global warming, greenhouse gases, and the history and mechanisms of the Kyoto Protocol. The Protocol sets emission reduction targets for industrialized countries and includes flexible mechanisms like emissions trading. While some countries have struggled to meet targets, the Protocol benefits India through technology transfers and investments in renewable energy. It also creates carbon credit opportunities for Indian companies.

Uploaded by

Ajay Meena
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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BUSINESS ENVIRONMENT PRESENTATION

ON

KYOTO PROTOCOL-KEY FEATURES


AND IMPACT ON INDIA
Flow of presentation:
1. Global warming: Causes & effects.
2. Green House gases.
3. Kyoto Protocol
 a) History
 b) Emission Trading
 c) Current Scenario
4. Impact on India.
5. Position of Countries
6. Analysis
?
?
Global Warming
 Weather Disasters

 During the 20th century the average global


temperature increased by 0.6 degrees Celsius.

 Estimated that by the year 2100 the average global


temperature will increase by 1.4 degrees to 5.8 degrees
Celsius.

 The global mean sea level has already risen by


around 10 to 20 cms. during the past century.
Greenhouse Gases

 They act like a blanket around the earth.

 The main is (CO2), most of which comes from burning


fuel. The others are (CH4), much of which comes from
agriculture and waste dumps, and (N2O), mostly a
result of fertilizer use.

 Three industrial gases used in various applications,


such as refrigerants, heat conductors and insulators,
are also included - they are hydrofluorocarbons
(HFCs), perfluorocarbons (PFCs) and sulfur
hexafluoride (SF6).
Greenhouse Effect
 Infra-red radiations emitted upwards by
the earth's surface is absorbed by GHG’s
(Greenhouse Gases).

 Human activity is making the GHG


blanket "thicker“.

 Carbon dioxide is by far the most


important gas in the basket.
SOURCES OF GREEN HOUSE GASES (GhGs)
SOURCES OF GREEN HOUSE GASES (GhGs)

CH NO SHF HFC PFC


CO2 CH4 4 N2O2 SHF HFC PFC

coal bas s ed power


14% generation
29% s teel indus try
4%

10% cem ent indus try

lives tock
4%
9% paddy cultivation
5%

7% 5%
13% biom as s
cons um ption
s ynthetic fertilizer
us e
trans port s ector
Kyoto Protocol : History

 The 1987 Montreal Protocol

 1992 - United Nations Framework


Convention on Climate Change
Kyoto Protocol
 The Kyoto Protocol is a agreement under which
industrialized countries will reduce their collective
emissions of greenhouse gases by 5.2% compared to the
year 1990 (but note that, compared to the emissions levels
that would be expected by 2010 without the Protocol, this
target represents a 29% cut).

 The goal is to lower overall emissions from six greenhouse


gases - carbon dioxide, methane, nitrous oxide, sulfur
hexafluoride, HFCs, and PFCs - calculated as an average
over the five-year period of 2008-12.

 National targets range from 8% reductions for the


European Union and some others to 7% for the US, 6% for
Japan, 0% for Russia, and permitted increases of 8% for
Australia and 10% for Iceland
Kyoto Protocol Contd..
 Legally Binding

 National goal for emissions to each country

 The Protocol offers additional flexibility to


the countries with economies in transition

 Flexible Mechanisms
 Emissions Trading
 Clean Development Mechanism
 Claim Credits
Emission Trading
 Entities could sell their unused
allowances to other entities.

 “Clean Energy" programs and "carbon


dioxide sinks”.

 Carbon trading projects take place within


some countries
Kyoto Protocol : Current Scenario

 Some 155 countries, who account for more


than 55 percent of greenhouse gas emissions,
have ratified the treaty, which pledges to cut
these emissions by 5.2 percent by 2012.

 Japan is struggling to find ways to meet its


obligations.

 Current EU projections suggest that by 2008


the EU will be at 4.7% below 1990 levels.
POSITION OF COUNTRIES
European Union:

 The EU produces around 22% of global greenhouse gas


emissions, and has agreed to a cut, on average, by 8% from
1990 emission levels .

 Quotas were introduced in six key industries: energy, steel,


cement, glass, brick making, and paper/cardboard.

 Fines for member nations that fail to meet their obligations.

 Current EU projections suggest that by 2008 the EU will be


at 4.7% below 1990 levels.
U.S.A
 The United States, although a signatory to the protocol, has
neither ratified nor withdrawn from the protocol.

 The United States has signed the Asia Pacific Partnership on


Clean Development and Climate

 Grassroots support in the US

RUSSIA:
 Russia - accord was brought. The issue of Russian
ratification was particularly closely watched in the
international community, as it was brought into force 90
days after Russian ratification.

INDIA:
 Signed and ratified the Protocol in August, 2002.
 Exempted from the framework of treaty.
JAPAN:
 Japan is struggling to find ways to meet its obligations.

 A report this month by the Ministry of Economy, Trade


and Industry showed that 11 of 30 top Japanese
industries — steel and power among them — risked
failing to reach targets unless they take drastic steps.

AUSTRALIA:
 Refused to sign the agreement.

 The Australian labour party is in full support of protocol.


IMPACT OF KYOTO PROTOCOL ON INDIA.
 Benefit from transfer of technology.

 Additional investments will come into renewable


energy, energy generation and afforestation
projects.

 India’s emergence as a big market for carbon credit


projects has prompted EcoSecurities, a developer
and trader of carbon credits, to look at investment
opportunities in such projects through the special
purpose vehicle (SPV) route.
Cont..
 Indian companies stand to gain millions of dollars.

a) Tyre cord maker SRF Limited has generated the


maximum carbon credits of 3.8 million.

b) ONGC claim 4.8 million carbon credit points for


reducing carbon dioxide emissions in five of
its oil fields .

c) ITC’s,Sonar Bangala Kolkata had reduced its


energy consumption.The hotel has also brought
down its carbon dioxide emission levels.

 Clean development mechanism will help promote


waste management projects.
CRITICAL ANALYSIS

 India and China exempted from the framework.

Assigns a national target to each country-individual targets were not


based on any rigorous or objective formula.

The Protocol offers additional flexibility to the countries with


economies in transition.

Monitoring should be continuous .

.
Cont…  The protocol provides for "flexible
mechanisms" - ways for countries to
reach their targets without actually
reducing emissions at home .

 Kyoto forests or plantations to


reduce total carbon dioxide output –
scientific challenge.

 International financial institutions


such as the World Bank and the
Asian Development Bank must
promote and support technologies
and infrastructural investments in
rapidly industrializing nations like
China, India, Brazil and South
Africa .
Cont…

 There would be no net change in emissions worldwide


even if industrial nations agree to reduce their
greenhouse gas emissions .

 The prospect of the US staying outside the agreement


influenced a number of other countries including
Australia, Japan, and Canada putting themselves at a
competitive disadvantage with the USA.
Cont…

 Renewable offer great potential to create and safeguard


jobs .A WWF study on biomass identifies an employment
potential of 170,000-290,000 full-time jobs in the OECD
countries from this renewable energy source alone.

 Governments need to reduce the current level of global


subsidies for fossil fuels.
WHY INDIA AND CHINA ARE
EXEMPTED??

Back
Source:UNFCCC
References:
 www.wikipedia.com
 Climate press releases
 Beginner_ed(pdf) published by UNEP &UNFCCC
 www.enhesapublications_emission trading_2005//
 www.rediffnews.com
 www.greenpeaceinternational.com
 http://money.cnn.com/magazines/fortune/fortune_archive
 www.globalgreen.org
 Business line, Feb 8,2006.
 Business Standard,Feb 11,2006.
 http://www.telegraphindia.com/1050921/asp/business/story_5265135.asp
 International Emission Trading Association(IETA).
THANK YOU

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