Kyoto Markets – “Tonnes” of Problems

8 September 2018

ECO is pulling out the popcorn for the discussion on the transition away from Kyoto Protocol mechanisms today. The current Annex on the table is vague about where we are going and when, but it’s clearly on the minds of a large number of Parties, so we think it”ll spark some serious discussion.

We’re not saying the discussion will be easy, but we hope Parties will highlight where we”ve been and where we’re going – namely how we learn from the lessons of the past, while considering the urgencies of the present. Especially because things have gotten a lot more complicated with all countries having NDCs, the evolving framework of carbon accounting and corresponding adjustments, and the new offset market that will be created by aviation’s 2016 climate deal–the CORSIA.

One thing is clear: We don’t want a copy-and- paste of old tools. An automatic transition of CDM credits, or any KP credits for that matter, would destroy the credibility of the new system, undermine ambition and the environmental integrity of the Paris Agreement, and completely disregard the outstanding questions around the local impact of some these projects on communities and the environment.

We hope that parties will focus on the critical question at hand: What does a transition of Kyoto Protocol mechanisms mean? ECO knows it certainly doesn’t mean a carry over of hot air into the Paris Agreement. It could mean a completely fresh start. It could mean an opportunity to review the work done previously to ensure the mechanisms are held to higher standards and cleaned up. It definitely means an end to these mechanisms, as we currently know them. Whatever option Parties end up with, the text should be set up for decisions that respect environmental integrity and clear the hot air.