Handbook of Environmental and Sustainable Finance

Vikash Ramiah, Greg N. Gregoriou

• Publisher: Academic Press
• Year: 2015
• Print ISBN: 9780128036150
• eBook ISBN: 9780128036464
• Topic: Scienze biologiche
• Subtopic: Economia ambientale

The use of financial concepts and tools to shape development is hardly new, but their recent adoption by advocates of sustainable environmental management has created opportunities for innovation in business and regulatory groups. The Handbook of Environmental and Sustainable Finance summarizes the latest trends and attitudes in environmental finance, balancing empirical research with theory and applications. It captures the evolution of environmental finance from a niche scholarly field to a mainstream subdiscipline, and it provides glimpses of future directions for research. Covering implications from the Kyoto and Paris Protocols, it presents an intellectually cohesive examination of problems, opportunities, and metrics worldwide. - Introduces the latest developments in environmental economics, sustainable accounting work, and environmental/sustainable finance - Explores the effects of environmental regulation on the economy and businesses - Emphasizes research about the trade-environmental regulation nexus, relevant for economics and business students

Section 1

Environmental Regulations Post the Kyoto Protocol on Climate Change

Outline

Chapter 1. Climate Change and Kyoto Protocol: An Overview

Chapter 2. Environmental Policies Post the Kyoto Protocol on Climate Change: Evidence from the US and Japan

Chapter 3. Efficiency of U.S. State EPA Emission Rate Goals for 2030: A Data Envelopment Analysis Approach

Chapter 1

Climate Change and Kyoto Protocol

An Overview

Anil Gupta SJVN Limited, Shimla, India

Abstract

This chapter explains the concept of global warming or climate change and its adverse effects on the environment. The current international agreements like United Nations Framework Convention on Climate Change (UNFCCC) and Kyoto Protocol framed to combat the global warming have been discussed. The chapter gives an insight about the rationale behind adoption of Kyoto Protocol by the nations worldwide and describes the mechanisms provided in the Protocol for meeting emission reduction targets assigned to the industrialized countries. Clean Development Mechanism (CDM) of Kyoto Protocol, which is the only mechanism through which developing countries can participate and join in mitigation of the climate change, has been elaborated in detail including the eligibility criteria for a project to be considered for registration as a CDM project as well as the steps involved in approval as specified under the CDM modalities and procedures. The terms like carbon finance and climate finance and the difference between the two along with leading climate funds of the world are also explained. Furthermore, national emission trading systems adopted by various countries of world have been deliberated. In the end, the current scenario with respect to the greatest ever international agreement adopted in the field of environment and sustainable development, the Kyoto Protocol, is presented.

Keywords

Certified Emission Reductions (CERs); Clean Development Mechanism (CDM); Global warming potential; Greenhouse gases; Kyoto Protocol; United Nations Framework Convention on Climate Change (UNFCCC)

Contents

1.1 Introduction 3

1.2 Global Warming 5

1.2.1 Current Evidence of Climate Change 6

1.2.2 Future Effects 7

1.2.3 Measures Required 7

1.3 United Nations Framework Convention on Climate Change 7

1.3.1 Objectives of UNFCCC 8

1.3.2 UNFCCC—Secretariat 8

1.3.3 Bodies of UNFCCC 9

1.4 Kyoto Protocol 9

1.4.1 Mechanisms of Kyoto Protocol 10

1.5 CDM: Project Eligibility, Project Cycle, and Executive Board 13

1.5.1 CDM Project Eligibility 13

1.5.2 CDM Project Cycle 14

1.5.3 CDM Executive Board 15

1.6 Carbon Finance and Types of Emission Reduction Credits 15

1.7 Climate Finance 16

1.8 National Level Emission Trading Systems 17

1.8.1 European Union: EUETS 17

1.8.2 Switzerland: Swiss ETS 18

1.8.3 New Zealand: NZ ETS 19

1.8.4 Australia: Australian ETS 19

1.8.5 Kazakhstan: ETS 20

1.8.6 China: Pilot Carbon Trading System 20

1.8.7 South Korea: Korean ETS 20

1.8.8 India: PAT Scheme 20

1.9 Kyoto Protocol: Journey and Current Developments 21

1.10 Conclusion 22

References 23

1.1. Introduction

Scientists worldwide accept that climate change or global warming is a manmade phenomenon due to industrial growth because of increase in greenhouse gases concentration. They advocate strong necessity for reduction in greenhouse gases emission to save the world from this menace of global warming, the main characteristics of which are increase in average global temperature; changes in cloud cover and precipitation particularly over land; melting of ice caps, glaciers and reduced snow cover; and increase in ocean temperature.

Acknowledging the fact that global warming is a complicated problem involving the entire world tangled up with different issues such as poverty, economic development, and population growth and also knowing well that tackling the issue of global warming shall not be an easy task but at the same time ignoring the issue will be disastrous, 189 countries joined hands to frame an international treaty known as United Nations Framework Convention on Climate Change (UNFCCC).

UNFCCC is an international legal framework adopted in June 1992 at the “Rio Earth Summit” to address issue of climate change with an objective of stabilization of greenhouse gases concentration in the atmosphere at a level that would prevent dangerous interference with climate system.

Even after the adoption of the UNFCCC in 1992, the greenhouse gas emissions levels continued to rise around the world. It became increasingly evident that only a firm and binding commitment by developed countries to reduce emissions could send a signal strong enough to convince business communities and individuals to act on climate change. Accordingly, member countries of the UNFCCC began negotiations on a protocol or an international agreement linked to the existing treaty, which led to adoption of Kyoto Protocol in 1997.

Kyoto Protocol assigned the legally binding numerical targets for reduction of greenhouse gas emissions to industrialized countries of the world for achievement during the commitment period 2008–2012. Three mechanisms have been established by this protocol for meeting the emission reduction targets with optio...

Table of contents

• Cover image
• Title page
• Table of Contents
• Copyright
• Dedication
• List of Contributors
• Editors' Biography
• Contributors' Biography
• Acknowledgments
• Section 1. Environmental Regulations Post the Kyoto Protocol on Climate Change
• Section 2. Environmental Economics
• Section 3. Environmental/Sustainable Finance
• Section 4. Funding and Accounting Systems
• Index