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Kyoto Has Failed

Climate change talks have been based on a framework set by the Kyoto Protocol ( 11 December 1997). The Kyoto Protocol incepted a concept of trading C02 emissions within the framework of a ‘carbon market’ deemed ground-breaking at the time. It was believed that this measure could help bring the US on board as signatory, because it presented a market based solution that might be attractive to business and financial interests. While the he US urged implementation of a carbon market, it never ratified Kyoto.Many climate activists felt that only a market solution could engage the US -- then the world’s largest polluter -- into meaningful climate change action. Others worried that carbon trading -- a market solution to a market based problem -- would only encourage polluters in industrialized developed nations to maintain current real C02 emission trajectories. Carbon trading schemes theoretically offset the emissions of polluters in industrialized countries by trading emissions to carbon sinks in non-industrialized countries with lower pollution levels. A form of trading on paper, it does not actually reduce total emissions.

Under the Kyoto Protocol, industrialized nations are allowed to assign their own targets, and offset carbon output transferring it to underdeveloped countries. ‘Carbon sinks’ as offset schemes are established in underdeveloped countries for this purpose. These sinks often create negative environmental side affects and displacement of indigenous people. Critics feel carbon trading has led companies into ‘green washing’, lucrative business that does nothing to help the environment.

The Carbon sink projects have been developed by the World Bank. Under the program eucalyptus plantations were recognized as carbon sinks (but not forest preservation). These unmonitored and unregulated tree plantations were supposed to absorb carbon. This not only led to overemphasis of eucalyptus’ capacity to sequester carbon but also to the destruction of large rainforests. The first such project was in Brazil and resulted in the establishment of 23,000 hectares of eucalyptus plantations. Nearby farmers were devastatingly affected, displaced from their lands without compensation. Rivers and streams dried up, chemicals contaminated the air and water. Local biodiversity was largely lost.

The free market approach led to the crash of carbon values during the economic crisis of September 2008. Carbon values plummeted from $37 per tonne before the crisis to less than $22. In the event of such economic disasters, carbon is treated like any other commodity and thus faces the same vulnerabilities despite being a scheme that is meant to provide an incentive to industrial corporations to reduce carbon emissions. Kyoto cemented the carbon market concept, which should be deemed a failure.

The Kyoto Protocol is now largely referred to with symbolic importance, mainly due to proposed carbon reduction targets which industrialized nations have failed to meet. Symbolism however, will not help those less developed nations who are most vulnerable to effects of climate change. While many activists criticize ongoing climate change talks occurring within the framework of Kyoto as a charade, many environmentalists believe this may be the best they can hope for at the moment. It is not.

Kyoto has privatised the air itself, making it a commodity. Establishment of the carbon market led to de facto property rights of the atmosphere – something that cannot be owned and thus cannot be ‘traded’. So the market is an entirely artificial construct.

There needs to be fundamental rethink in how we can mitigate climate change. In doing so, we need to think outside the existing Kyoto framework. Climate change needs to be addressed at its root. Creating markets for trading artificial commodities -- clean vs. polluted air -- simply are artificial constructs, feel good solutions that disguise the real problem. The nations at the table in Cancun must address the real Issue -- total reduction of Co2 emissions by industrialized nations. We need a new climate change framework now!

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