Contribution and Challenges
of Kyoto Mechanisms
Contribution and Challenges
of Kyoto Mechanisms
Shin OKAMOTO
Ministry of Economy, Trade and Industry
April 1, 2008
Kyoto Mechanisms－OverviewKyoto Mechanisms－Overview
Role of Kyoto Mechanisms:
helps countries to achieve commitments under the
Protocol
contributes to cost-effective global emission reduction
Clean Development Mechanisms (CDM):
structured in earlier stages
has been contributing through project formation,
validation, registration, and credit issuance ｓ
Japan’s Policy and ContributionsJapan’s Policy and Contributions
The Japanese government is going to acquire 100 million
tons of credit in 5 years (2008-2012).
Japanese Industries also can utilize the Kyoto Mechanisms:
the power and steel industries are planning to acquire 120
and 44 million tons of credit in 5 years, respectively.
279 out of 3,312 total government-approved CDM projects
are Japan’s, the 2nd largest ranking following the UK.
All sectors will have to make every effort to achieve the Kyoto Protocol
commitment on the basis of the domestic measures ･･･These efforts
notwithstanding, Japan will fall short of achieving its Kyoto Protocol
commitment by 1.6% of the total emission volume of the base year. It will
be necessary to make up this difference by utilizing the Kyoto Mechanisms
while respecting the general rule that the Kyoto Mechanisms are
supplementary to domestic measures.
The Kyoto Protocol Target Achievement Plan of Japan
Challenges of CDMChallenges of CDM
The current CDM needs fundamental review:
Only for Parties which have committed to reduction of an
absolute amount of emission and Parties which have not
Uneven geographical distribution of projects
Non-eligibility of nuclear and CCS projects
Low probability of achieving approval for energy efficiency
projects
Implementation of CDM projects by region and by technological field
Cement
2%
Other
2%
Biomass
9%
Ｎ２O
11%
Hydro Power
15%
Methane
Recovery
14%
Energy
Efficiency
12%
HFC,ＰＦＣ
20%
Renewable
1%
Reforestaion,
Afforestation
0%
Wind Power
7%
Fuel Switching
7%
China, 53.2％
India, 14.9％
Other Asia, 11.3％
Brazil, 6.8％
Other Latin America,
4.7％
Mexico, 2.7％
Central and South
Africa, 2.6％
North Africa and
Middle East, 2.0％
Chile, 1.6％
Europe and Central
Asia, 0.7％
Source: UNEP “CDM pipeline overview” (March 1, 2008)
Share is measured by the amount of credit acquired
Improvement in Current OperationImprovement in Current Operation
Review process for registration.
Effective management of the secretariat
Sound market for DOEs
Role of CDM as a policy instrument （promotion of CDM
in fields such as Energy Efficiency)
“New approaches to “additionality”
Small-Scale CDM
For the first commitment period, we should
undertake the following improvements immediately,
in order to build a sound CDM system.
Flexibility Mechanisms in the
Future Framework
Flexibility Mechanisms in the
Future Framework
Future flexible mechanisms should be discussed in line
with the discussion in AWGLCA.
The top priority of the discussion is to build a
framework where all the major economies participate
in a responsible way. The carbon trading system should
be regarded as a flexible measure that is complementary
to the overall system.
Introduction of emissions trading in countries and regions
depends on the political decisions of each country,
taking into account the differences in their social, economic
and institutional situations.
Thank you for your attention.Thank you for your attention.
