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Saturday 1 October 2011

Kyoto Protocol

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The Kyoto conference on greenhouse gas emission in 17 was held to restrict developed countries to a certain level of greenhouse gas emissions. Developed countries included in the Kyoto protocol agreed, collectively to a 5. percent reduction in greenhouse gas emissions by 008-01, from their emissions in10. (Kay P. 18) This, in most countries meant a reduction in greenhouse gas emission from those prior to 10. Australia however was entitled to increase gas emissions by 008-01, to eight percent above that emitted in 10. (Tracking to the Kyoto target, 00 pg.) The primary reason for this exception was due to Australia’s high economic and population growth as well as international demand for Australian resources, which are primarily based on greenhouse gas emitting industry. Such industry includes the production of aluminium, high quality steel and agricultural products. (Kay P. 18) Flexible mechanisms were also accepted into the Kyoto Protocol to help countries reach their emission targets. These options have caused many controversial issues, which have led to debate between government and Australian conservationists. (000 Sinking the Kyoto Protocol)


Australia is a relatively small producer of greenhouse gases, accounting for approximately 1.4 percent of global emissions. However our emission per capita is ranked third in the industrialized countries.This is due to the a number of reasons, including the nature of our export industry and energy production methods. (National Greenhouse Strategy 18). The main green house gases targeted at the Kyoto conference were carbon dioxide, methane, nitrousoxide, hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride. (Kay P. 18)


In the past Australia has played a key role in responding to the enhanced greenhouse effect. Australia ratified the Framework Convention on Climate Change (FCCC) in 1. The main purpose of this organization is to stabilize greenhouse gas emissions and keep them below a point where they will be environmentally harmful. In 1 the Australian government agreed to the National Greenhouse Response Strategy (NGRC) as a basis for working together on greenhouse issues and in particular meeting Australia’s international obligations under the (FCCC). (Kay P. 18) Australia has also been reducing the rate of land clearing and major reductions have occurred in Western AustraliaThe main state that could be affected by the curbing of land clearing as a consequence of the Kyoto Protocol is Queensland, which is clearing land at an estimated rate of 6,000 hectares per annum..(Richter B. 00) However, the Minister for Primary Industries stated after the Kyoto Conference that farmers would not be forced to slow the rate of land clearing to help Australia meet the Kyoto Protocol.(Kay P. 18)


Australia has many unique aspects, which need to be brought forward when considering the Kyoto Protocol. Australia has a wide variety of climatic conditions and long distances separating populated locations. Australia also has one of the highest economic growth rates of any developed country. A major contributing factor towards Australia’s emission is dominated by the use of energy generated by low cost fuels. Since Australia does not use any nuclear power, it increases Australia’s dependence on fossil fuels for energy production. Many other countries have the option of increasing nuclear power production to decrease their dependence on fossil fuels since nuclear power has little green house gas emissions related to it. (Wenner, L 17) Australia’s main green house emitting processes are stationary energy production, transport emissions and land use change emissions. (Tracking to the Kyoto target, 00)


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The Australian Government pushed for an increase in emissions at the Kyoto conference for a number of reasons. Australia’s commitment to reducing emissions by eight percent by 008 to 01, will result in a 0 per cent decrease in Australia’s estimated emissions in 008, if no action is taken against emissions (business as usual). Emissions from the energy sector alone are expected to grow by 40 per cent by 010 under a business as usual scenario. The Australian population is also expected to increase by 0 per cent from 10 to 00, which will lead to increased demands for electricity and ultimately the burning of more fossil fuels. This will incur a greater emission reduction per capita relative to other developed countries if the emission target is to be met. (Kay P. 18)


The Kyoto protocol is to have many economic costs for Australia. It is projected to result in reductions in economic activity and national income. Key industries affected include Australia’s coal sectors, and the production of electricity, iron, steel and aluminium . Australia’s livestock sector will also be affected by the implementation of the Kyoto Protocol. Implementation of the Kyoto protocol is projected to reduce Australian Gross Domestic Product by .5 percent by 010. Gross National Product is also expected to decline by .15 percent by 010. The Kyoto Protocol is estimated to cause a fall in the value of Australia’s net exports, which in turn will lead to a fall in the Australian dollar. The decline in economic activity in Australia associated with the introduction of the carbon penalty is projected to lower the level of investment and consumption hence, a reduction in wages. If the Kyoto protocol was not implemented Australia’s Gross National Product is expected to rise as a result of the expected growth in the metal processing and livestock industries. (The economic implications of Kyoto Protocol for Australia 00)


The implementation of a carbon equivalent penalty is projected to reduce the competitiveness of Australias emission intensive exports against those from non-participating countries. Where Australian exports compete closely with these countries, the result is lower Australian exports and reduced output. The loss of competitiveness on a sector will depend on how emission intensive the industry is. High emission intensive industry such as that of Alumina and Aluminium are expected to considerably increase production costs as the carbon equivalent penalty comes into action. (The economic implications of Kyoto Protocol for Australia 00)


Another significant impact of the emission abatement is the reduction in the amount fossil fuels Australia will be able to use, in order to meet required emission targets. Australia has large deposits of brown coal in Victoria which is a relatively inefficient fossil fuel compared to black coal. The inefficiency of this coal will cause a decrease in its use and a need for more expensive fuels will become present. The consequences of this are to increase the cost of Australian production , hence reducing Australia’s competitiveness in world trade. (The economic implications of Kyoto Protocol for Australia 00)


Agriculture will also see changes as the Kyoto protocol comes into force. Production of emission intensive goods such as rice and stock will reduce, where lower emission practices such as cropping will increase. Higher costs involved in high emission activities will lead to a loss in international competitiveness in these areas. Less emission intensive industries such as manufacturing and services are projected to see a growth due to lower costs in these areas in both labor and production. (The economic implications of Kyoto Protocol for Australia 00)


Despite these compelling reasons for requesting an encrease in emissions, Australia is committing almost one billion dollars to addressing the threat posed by greenhouse effect. This large amount of money together with the commitments made by states and local governments, make Australia one of the most active countries involved in the Kyoto cause. (Tracking to the Kyoto target, 00 pg.10)


On 0 November 17 the Prime Minister spent $180 million on a greenhouse package aimed at the ongoing commitment to the Greenhouse Challenge. Money went towards programs in the energy market, including support of renewable energy, the creation of sinks and the reduction of emission standards in industry. The Mandatory Renewable Energy Target created in Australia is a world first program, which is targeted to power four million domestic houses by the year 010. 460 million dollars is to be directed towards the commercialization of renewable energy and alternative fuels. The Greenhouse Challenge program now includes over 800 business and industry bodies. Australia has one of the largest cities for climate change protection programs in the world with nearly 150 local governments representing over 60 percent of Australia’s population. Australia has mandatory labeling and minimum energy performance standards to drive energy efficiency improvement in appliances and equipment. (Kay P. 18)


The fact that Australia is taking an active role in the reduction of Greenhouse Gas emissions is praised by conservationist but the contraversy arises when the topic of carbon sinks arises. There are several flexibilities brought forward by the Kyoto Protocol, which allow countries to gain more credits or sell credits. The conservationists do not support any of these options as they do not rely on domestic action to reduce emissions and rather create loopholes in the system for countries to continue high greenhouse emissions. The three main flexibilities are outlined below.


Emission trading The emission trading system will allow industrialized countries to buy and sell ‘carbon credits’. Carbon credits can be sold when they keep below their emission target.


Joint Implementation This allows industrialized countries to gain carbon credits for financing emission reduction programs in other industrialized countries. (000 Sinking the Kyoto Protocol)


Clean Development Mechanism This allows industrialized countries to gain carbon credits for financing emission reduction programs in other countries, which do not yet have emission targets. One of the controversial issues occurring from this and is still under debate is whether or not countries should gain credits for carbon sink projects, such as the production of plantations, in other countries. (Wenner L. 17)


The conservationists debate lies in the ambiguities present throughout the protocol that have led to governments exploiting the protocol in order to reduce obligations to emission reductions. One of the most controversial issues brought forth by the Kyoto Protocol is that of ‘carbon sinks’ based on the natural capacity of forests to absorb carbon dioxide. This carbon is then temporarily stored in trees, organic matter and soils. (Tracking to the Kyoto target, 00) Some believe that this may lead to more funding towards forest conservation however there are also many flaws and unknown consequences of the idea. The fact that many industrialized countries will create these carbon sinks in poorer countries creates many social problems due to the vast environmental changes that will occur locally as a result of the plantation. The program will also be hard to regulate due to the lack of development in poorer countries. (000 Sinking the Kyoto Protocol)


One of the outcomes due to the idea of carbon sinks is already present with the decreased interest in renewable power sources since countries can simply gain credits by creating carbon sinks and avoiding reduction in emissions. If plantations were created they would be large scale and consist of rapid growth trees such as eucalypts or pines. These rapid growth plantations would draw heavily on the environment through water use, fertilization and need for mechanical or chemical weeding. These single specie plantations would lead to loss of biodiversity. Furthermore carbon sink projects will have drastic effects on forest people where the plantations, in many locations will be located on the living sites of the forest people. Because forest peoples land rights have not been recognized this has been overlooked by the protocol. (000 Sinking the Kyoto Protocol)


Conservationists also argue that because carbon is only stored temporarily in the trees, it is vunrable to many processes where the carbon will return to the atmosphere. There is the threat of the plantation burning, biomass decay and logging of trees both legally or illegally. There is obviously many apparent flaws in this idea and may become present through social impacts and physical outcomes. (000 Sinking the Kyoto Protocol)


The Kyoto Protocol is viewed by conservationists as a step forward in the battle to decrease greenhouse emissions, however the many ambigueities presented within the protocol and the introduction of flexible mechanisms has brought up many social issues that need to be addressed by the governments involved in the Kyoto Protocol. The Australian government has shown comitment to adressing the greenhouse problem by ratifying the FCCC and directing large amounts of money towards the cause. Australia is still however a rapidly expanding country in both industry and population. The eight pecent increase in Australias emisisons target was as a result of our Governments concern towards economic and social outcomes of emission reductions. Australias economic activity is projected to decline leading to Gross Domestic Product and Gross National Product reductions resulting in loss of competitiveness in world trade markets. Key economic sectors such as the manufacturing of metals will see major production price increases as a result of their high emission outputs. Australia is a leading country in the fight against the Greenhouse effect, shown through activities of the government and the general public. The Goverment approach to this issue was based on our future economic well being while still being an active country in Greenhouse gas decreases.


Bibliography


Kay P. 18 Impacts of the Kyoto Protocol http//www.aph.gov.au/library/pubs/cib/17-8/8cib10.htm


Anon 00 Tracking to the Kyoto target http//www.greenhouse.gov.au/ago/15aug00/pubs/factsheet5.pdf


Harris G. 001 International Equity and Global Environmental Polotics,Andershot, Ashgate.


Wenner, L 17 ‘The Environmental Dilemma’ Lanham, University Press of America, 17.


Anon 18 ‘The National Greenhouse Strategy’


http//www.greenhouse.gov.au/pubs/ngs


Anon 00’The economic implications of Kyoto Protocol for Australia’ http//www.greenhouse.gov.au/ago/15aug00/pubs/factsheet5.pdf


Richter B. 00‘Global Warming What comes after Kyoto?’,OECD Observer , August 00, 5-7.


Anon 000 ‘Sinking the Kyoto Protocol’ www.fern.org/pubs/briefs/sinking.pdf


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