Emissions trading according to the Kyoto protocol

We will begin by illustrating ourselves knowing what the 1997 KIOTO protocol is. It is the agreement of the governments of the United Nations - UN, on the Framework Convention on Climate Change. The agreement has come into force after 55 nations that account for 55% of greenhouse gas emissions have ratified it. Currently 129 countries have ratified it, reaching 61.6% of emissions.

The objective of the Kyoto Protocol was to reduce global greenhouse gas emissions by 5.2% over 1990 levels for the period 2008-2012. It is that we are facing the only international mechanism to begin to face climate change and minimize its impacts.

To this end, they agreed to establish mandatory objectives for industrialized countries to reduce emissions of the 6 anthropogenic greenhouse gases such as: carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O), in addition to three fluorinated industrial gases: hydrofluorocarbons (HFC), perfluorocarbons (PFC) and sulfur hexafluoride (SF6).

We also need to know what emissions trading is? As its name suggests, it is a sale and purchase of greenhouse gas emissions between countries that have established objectives within the Kyoto Protocol; that is, among the industrialized countries or those belonging to the group of countries that are in the process of transition to a market economy. In this way, those who reduce their emissions more than promised will be able to sell the excess emissions certificates to countries that have not fulfilled their commitment.

Among the emissions that can be negotiated, are all the emissions of greenhouse gases from:

1. The emission quotas assigned by Kyoto (only if they have met their objective)

2. Emissions from the Joint Application and the Clean Development Mechanism.

This emissions trade, according to the Kyoto Protocol, will become fully operational in 2008 internationally. To this end, an EU Directive entered into force in October 2003, marking the beginning of the European greenhouse gas emissions trading system (SECE).

The mechanism has generated numerous criticisms and fears, especially from environmental organizations that they see as a serious danger in the misuse and abuse of emissions trading. This mechanism can be perverse and requires a more precise additional measure, given that we are in a world of "living".

Countries like ours, must accept that Carbon is a safe business and understand that it is time to become involved in the Kyoto Protocol, because we are obliged to reduce greenhouse gas emissions and this international agreement would allow us to achieve economic benefits and investments for the economic and social development of our country.

The resource offered by the climate change treaty must be accepted as a Clean Development Mechanism (CDM), which allows nations parties to the Protocol to sell, in the form of coupons, the excess share of greenhouse gas emissions to those that exceed the allowed levels and that have not reduced them to the required limit.

This treaty also considers the possibility that rich countries (those obliged by the treaty to reduce emissions) develop projects in developing countries, financing forest recovery and activities that contribute to the global decrease in the emission of these gases, such as carbon dioxide, largely released by the combustion of oil, coal and gas.

As an example it is worth mentioning that a Salvadoran Sugar Company started in 2002 to produce electricity from sugar cane residues, and this has been incorporated into the general energy network.

This has happened this year 2006, during the five months that the harvest lasts and the old cane mills have already been replaced by more economical electric mills. Thanks to their results, they were registered on the CDM with an offer of 89,000 carbon credits. Each bond corresponds to a ton of gases not emitted, and each one is quoted between six and 10 dollars. According to the same source, Japan has already been interested in buying them.

If we think of a project in large cities like Lima, we assume that in just seven years a little more than 2.7 million tons of solid waste is deposited.

If it is transformed into methane gas to replace traditional fuels, 1.19 million tons of carbon dioxide would be eliminated, 60,000 barrels of oil would be replaced annually, new jobs would be generated, and the project would become an example for cases similar in South America. Such initiatives can be embraced by the Canadian International Development Agency. Unfortunately, I have not been able to access more precise sources of information, especially the volume of wastewater that is evacuated to the Pacific Ocean, which can be transformed into methane gas, humus and other products; in turn you recover water for irrigation and avoid contamination.

If we consider that energy is a development factor, then no community can achieve its development without the availability of energy. In rural areas it can be a relief for poverty, if we take advantage of renewable and continuous sources such as solar, wind, thermal, water and kinetic energy, for productive purposes.

Running water pumps using wind power can supply potable water in rural areas and fill dams for agricultural use. Electric coverage in rural areas may also be possible through solar energy (solar panels).

To keep these facilities in good repair and create a maintenance fund, each family would pay $ 3.50 per month and can connect two or three light bulbs, a black and white television, a radio and, if the day is sunny, some another low-energy device.

It is also possible to expand necessary facilities so that certain families can use energy for productive purposes, such as operating a refrigerator to preserve and sell food or a sewing and knitting machine. For urban areas and poor solar visibility, solar energy would not be profitable. Other important energy sources are undoubtedly natural gas, ethanol from sugar cane, biodiesel from oil palm and other oilseeds, methane gas, and others.

For us Peruvians it would be important for the government to subscribe its emission quotas and formalize its quantified commitment to limit or reduce emissions (% of the level of the year or base period), taking into account the following polluting sources considered in Annex A of the protocol:

Greenhouse gases

Carbon dioxide (CO2)

Methane (CH4)

Nitrous oxide (N2O)

Hydrofluorocarbons (HFCS)

Perfluorocarbons (PFCS)

Sulfur hexafluoride (SF6)

Source sectors / categories Energy

Fuel Burning

Energy industries

Manufacturing and construction industries

Transport and other sectors