Genesis and Goals
The Kyoto Protocol is an international treaty that extended the 1992 United Nations Framework Convention on Climate Change (UNFCCC). It operationalized the UNFCCC by committing industrialized countries and economies in transition to limit and reduce greenhouse gas (GHG) emissions in accordance with agreed individual targets.
Adoption and Entry into Force
- Adopted: December 11, 1997, in Kyoto, Japan, at the 3rd Conference of the Parties (COP3) to the UNFCCC.
- Entered into Force: February 16, 2005. This occurred after ratification by at least 55 Parties to the Convention, incorporating Annex I Parties who accounted in total for at least 55% of the total CO₂ emissions for 1990 of the Annex I countries.
- The USA signed but never ratified the Protocol. Canada withdrew in 2012.
Core Objective
To stabilize greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system, by committing industrialized countries (Annex I Parties) to legally binding emission reduction targets.
Key Features of the Protocol
Legally Binding Emission Reduction Targets
The Protocol set binding targets for 37 industrialized countries and the European community (listed in Annex B, largely overlapping with UNFCCC Annex I) for reducing their collective GHG emissions by an average of 5.2% below their 1990 levels during the first commitment period (2008-2012).
Individual targets varied, for example:
- European Union (EU): -8%
- Japan: -6%
- Russian Federation: 0% (stabilization at 1990 levels)
- Australia: +8% (allowed increase)
Covered Six Main Greenhouse Gases:
Principle: Common But Differentiated Responsibilities and Respective Capabilities (CBDR-RC)
A cornerstone of the Kyoto Protocol (and UNFCCC), this principle acknowledges that while all countries share a common responsibility to address climate change, they have different capabilities and historical contributions to the problem. Consequently, only Annex I Parties (industrialized countries) had binding emission reduction targets under Kyoto. Developing countries (Non-Annex I Parties) did not have binding targets but were encouraged to take mitigation actions voluntarily and were eligible for support for sustainable development and adaptation.
Illustrative Emission Targets (1st Period)
Flexibility Mechanisms
To help Annex I Parties meet their targets cost-effectively, the Protocol introduced three market-based mechanisms:
Allows Annex I Parties to invest in emission reduction projects in Non-Annex I (developing) countries and earn Certified Emission Reduction (CER) credits. These CERs can be used to meet their own Kyoto targets.
Dual Objectives:- Assist developing countries in achieving sustainable development and contribute to the UNFCCC's ultimate objective.
- Assist Annex I Parties in achieving compliance with their emission limitation and reduction commitments.
Project examples: Renewable energy (wind, solar), energy efficiency improvements, afforestation/reforestation.
Allows Annex I Parties to invest in emission reduction projects in other Annex I countries (often Economies in Transition - EITs) and earn Emission Reduction Units (ERUs). These ERUs can then be used by the investing country to help meet its Kyoto target.
Allows Annex I Parties that have emissions units to spare (emissions below their target, known as Assigned Amount Units - AAUs) to sell this excess capacity to other Annex I Parties that are over their targets. This effectively creates a "carbon market."
Other Important Aspects
LULUCF
Land Use, Land-Use Change and Forestry (LULUCF) acknowledged the role of forests and land use in GHG emissions and removals. Annex I Parties could meet part of their targets through net changes in GHG emissions from LULUCF activities like afforestation, reforestation, and avoided deforestation.
MRV System
A rigorous Monitoring, Reporting, and Verification (MRV) system was established. Annex I Parties had to report their GHG inventories and progress towards targets, with these reports reviewed by expert review teams.
Compliance
A Compliance Committee with a facilitative branch and an enforcement branch was set up to assess and deal with non-compliance. Penalties included making up shortfalls in a subsequent period plus 30% deduction, and suspension from emissions trading.
Journey of the Kyoto Protocol
Dec 11, 1997
Adopted in Kyoto
The Protocol is adopted at COP3 in Kyoto, Japan.
1998 (onwards)
USA Signs, Never Ratifies
The United States, a major emitter, signs the Protocol but subsequently does not ratify it.
Feb 16, 2005
Enters into Force
The Protocol becomes international law after Russia's ratification meets the threshold.
2008 - 2012
First Commitment Period
Annex I Parties work towards their initial emission reduction targets.
Dec 2012
Canada Withdraws
Canada formally withdraws from the Kyoto Protocol.
Dec 8, 2012
Doha Amendment Adopted
At COP18 in Doha, Qatar, the Doha Amendment establishes a second commitment period (2013-2020).
2013 - 2020
Second Commitment Period
A new set of targets for participating Annex I Parties, aiming for at least 18% reduction below 1990 levels. Participation is reduced.
Dec 31, 2020
Doha Amendment Enters into Force
The amendment for the second commitment period formally enters into force, just as the period concludes.
Successes and Limitations
Achievements
- First legally binding international agreement to reduce GHG emissions.
- Established innovative market-based mechanisms (CDM, JI, ET), creating a global carbon market.
- Stimulated investment in clean energy and emission reduction projects, especially via CDM.
- Built capacity in developing countries for GHG accounting and project development.
- Strengthened national climate policies in many Annex I countries.
- Many participating countries met/exceeded first commitment period targets (though some due to EITs' "hot air").
Failures & Limitations
- Limited Coverage: The US (major emitter) did not ratify. Developing countries (e.g., China, India) had no binding targets. Second period had even more limited participation.
- Modest Targets: Overall emission reduction targets were insufficient to effectively address climate change.
- "Hot Air": Some Economies in Transition (EITs) had targets above their actual emissions due to post-1990 economic decline, allowing AAU sales without new mitigation.
- Effectiveness of CDM: Concerns about additionality (would projects happen anyway?) and sustainable development benefits of some projects.
- Developed vs. Developing Bifurcation: Strict division became contentious as some developing economies grew rapidly.
The "Hot Air" Issue
"Hot air" refers to the surplus of emission allowances (Assigned Amount Units - AAUs) held by some Economies in Transition (EITs) during the first commitment period. Due to economic declines after 1990 (the baseline year), their actual emissions were often significantly lower than their Kyoto targets. This allowed them to sell these surplus AAUs to other Annex I countries without undertaking substantial new domestic emission reduction efforts, potentially weakening the overall environmental integrity of the Protocol.
Legacy and Transition to Paris
The Kyoto Protocol, despite its limitations, was a critical first step. It provided valuable lessons in international climate governance, emissions trading, and MRV systems. However, the evolving global context – particularly the rising emissions from rapidly developing countries and the increasing scientific urgency – highlighted the need for a new, more inclusive, and ambitious global climate agreement.
These factors and experiences paved the way for negotiations that culminated in the Paris Agreement, adopted in 2015. The Paris Agreement takes a different approach, with all countries (developed and developing) submitting their own Nationally Determined Contributions (NDCs) and a focus on global stocktakes to ratchet up ambition over time.