Kyoto Protocol: mechanisms and impacts on climate change

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The Kyoto Protocol, adopted in 1997 in Kyoto during COP3, represented a crucial step in the fight against climate change. The treaty established binding targets for the first time for reducing greenhouse gas emissions for industrialized countries and economies in transition, with the goal of cutting emissions by at least 5% compared to 1990 levels during the period 2008-2012. With the protocol coming into force in 2005, thanks to Russia's ratification, the countries involved had to adopt concrete measures to reduce their ecological footprint, contributing to the achievement of global global warming containment goals. The agreement fits within the broader framework of the United Nations Framework Convention on Climate Change (UNFCCC), which had already endorsed commitments to limit emissions, but without imposing mandatory restrictions.

The Kyoto Protocol is notable for introducing mandatory and specific targets for the reduction of six main greenhouse gases: CO2 (carbon dioxide), CH4 (methane), N2O (nitrous oxide), HFCs (hydrofluorocarbons), PFCs (perfluorocarbons), and SF6 (sulfur hexafluoride). The main goal is an overall reduction in emissions of at least 5% compared to the 1990 levels, during the period from 2008 to 2012. Additionally, the protocol introduced three flexible mechanisms to facilitate the achievement of emission reduction targets: the Clean Development Mechanism (CDM), the Joint Implementation (JI), and Emissions Trading (ET). These tools were designed to encourage international cooperation, allowing states to cut their emissions where it is most cost-effective.

The Clean Development Mechanism (CDM) allows industrialized countries to undertake projects in developing countries in order to reduce their own greenhouse gas emissions. Through this system, industrialized countries can obtain Certified Emission Reduction (CERs) credits, offsetting their own emissions and contributing to the economic and sustainable development of poorer nations. CDM projects include activities such as renewable energy production, energy efficiency, sustainable natural resource management, and methane emission reduction. The mechanism has been successful in promoting investments in emerging countries, creating opportunities for a low-carbon future. However, each project undergoes rigorous certification to ensure that reductions are real and additional.

The Joint Implementation (JI) is another flexible mechanism provided by the Kyoto Protocol. Unlike the CDM, JI allows industrialized countries to carry out emission reduction projects in other industrialized countries or economies in transition. The countries involved generate credits called “Emission Reduction Units” (ERUs), which can be traded on the market. This system has encouraged improved energy efficiency, optimization of industrial processes, and resource management in a sustainable manner. It has been a useful tool for allowing transition economies to meet their reduction targets, promoting international cooperation and reducing disparities between developed and emerging economies.

The Emissions Trading (ET) represents the third and most well-known flexible mechanism of the Kyoto Protocol, based on the principle of the carbon emissions market. Every industrialized country that has adhered to the reduction of emissions commitments has received an allocation of "assigned amount units" (AAUs). If a country reduces its emissions beyond the set targets, it can sell the surplus AAUs to other countries that have failed to meet the objectives. This system has incentivized a more cost-effective reduction of emissions, allowing countries to choose the most convenient method. Well-known emissions markets, such as the European Emissions Trading System (EU ETS), have been created to facilitate these transactions, promoting faster and more efficient decarbonization globally.

The Kyoto Protocol required a strict monitoring system of emissions by participating countries, with the need to provide annual inventories and periodic progress reports. A compliance committee was responsible for ensuring adherence to commitments and for taking corrective measures in case of non-compliance. In the event that a country did not meet its commitments, corrective measures were taken, including the imposition of sanctions, with the aim of ensuring the effectiveness of the protocol. However, with the adoption of the Paris Agreement in 2015, the approach evolved, extending obligations to all countries, including developing ones, for a global commitment in the fight against climate change.

A fundamental aspect of the Kyoto Protocol is the support for the development and diffusion of technologies that enhance resilience to environmental impacts. For this purpose, the Adaptation Fund was established, initially financed by a percentage of the proceeds generated by the activities of the Clean Development Mechanism (CDM). In 2012, with the decisions made in Doha, the Fund saw its resources expanded to include a 2% share of the proceeds from international emissions trading and joint implementation. The Doha Amendment, adopted on December 8, 2012, marked the start of a second commitment period of the Kyoto Protocol, extending its validity from 2013 to 2020. With the necessary quorum reached, the amendment officially came into effect on December 31, 2020.

The results of the second period of the Kyoto Protocol show significant progress in reducing global emissions. Overall, developed countries have reduced emissions by 22% compared to 1990 levels, with the European Union and the United Kingdom among the leaders of this transition, achieving cuts of over 30%. However, not all countries have achieved positive results: in seven countries, average annual emissions have increased, demonstrating that the fight against climate change requires more uniform commitment. The debate on emissions regulation continued at COP29 in Baku in 2024, where new rules for the carbon market were defined, as provided for by the Paris Agreement. The summit formalized a more structured emissions trading system, outlining standards and controls for a sector destined to grow enormously in the coming decades.

This article was created as part of the project "Biodiversity services EU expansion" (CUP: E43D22000480009), in relation to the call for tenders by Regione Lombardia "PR FESR 2021-2027 – LINEA INTERNAZIONALIZZAZIONE 21-27", aimed at supporting the internationalization of Italian companies. 3Bee is the naturetech company that develops innovative technologies for monitoring, protecting, and regenerating biodiversity, supporting companies in defining customized climate strategies based on the analysis of their impacts and dependencies on nature. With a consolidated portfolio in Italy, Germany, and France and significant partnerships, 3Bee continues its expansion in international markets to create a tangible impact through technology.