October 2004
Russian Move On Kyoto Welcomed
The Russian government has approved the Kyoto Protocol on climate change and the parliament has successfully ratified the treaty. This has kick-started the trading of carbon on the European market as the treaty will now stand a good chance of being written into international law.
Russia's lower house, the State Duma, voted 334-73 to approve the treaty, meaning enough nations have signed up to bring it officially into force. The protocol still has to pass through Russia's upper parliament and be signed into law by President Vladimir Putin. Both stages, however, should be a formality.
The Kyoto Protocol sets targets for greenhouse gas emissions, which many climate scientists believe are causing the Earth to warm at an accelerated rate. It calls for 38 industrialised countries to reduce greenhouse gas emissions by 5.2% on 1990 levels by 2012. This equates to a real cut of 29% on projected emissions for 2010.
Russian backing is essential for the treaty, as it must be ratified by countries responsible for a minimum of 55% of emissions on 1990 levels. Russia is responsible for 17% of the world’s emissions. The US, the biggest greenhouse gas producer, accounts for 25% and has not signed the treaty. The US pulled out in 2001 citing damage to the economy if implemented. The administration has described the treaty as "fatally flawed" as it does not impose specific reductions to non-industrialised nations. Even in the wake of Russian ratification there is no movement from Washington. "We do not believe that the Kyoto Protocol is something that is realistic for the United States and we have no intention of signing or ratifying it," State Department spokesman Adam Ereli said.
News of Russia’s move has fuelled European carbon trading. The amount traded since Russia announced its intent to ratify has tripled. Some 670,000 tonnes of carbon were traded in the first week of October; this contrasts with an average of 50,000 tonnes per month in the first quarter this year.
Carbon trading works on the basis of allowing countries to buy and sell agreed allowances of greenhouse gas emissions. Countries that emit less than their target are able to sell their unused allowance to countries that are unable to achieve the same. This creates financial incentives to limit emissions through the adoption of cleaner technologies, joint implementation projects with non-industrialised nations and promoting carbon storage techniques such as tree planting and soil conservation.
With the prospect of global carbon trading becoming a reality, Pro Enviro has developed Climate Change Advantage specifically to help companies monitor their position with respect to carbon emissions. The software has been designed with both the Climate Change Levy (CCL) and European Union Emission Trading Scheme (EU:ETS) frameworks in mind. In addition to monitoring, the software provides workforce training at both shop floor and board level, helping employees reduce energy consumption and costs, and Directors to understand their legal obligations.
For further information or a demonstration contact Nersi Salehi on 024 76 279 000.
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