To combat these changes globally, Kyoto Protocol was created and has been agreed upon by 170 countries so far, committing themselves to reduce Green House Gas Emissions and improve Energy Efficiency. • The Kyoto Protocol envisages reduction of Green House Gases by 5.2% in the period 2008-12. • New System of Carbon Credits is Introduced in the texts of Kyoto Protocol is being formalised to bring more awareness in Industries to reduce their annual carbon emission by awarding monetary value to reduced emission taking us towards eco-friendly future •Through this Presentation we are going to bring into focus these two main International steps on combating the new evil “Global Warming”.

1. By
AnkitAgarw
al

2. By
AnkitAgarw
al
¤ For 2.5 million years the earth’s climate have fulcted slightly but in the last century
the planets temperature have risen about 1.2 to 1.4 degree Fahrenheit.
¤ Human activities are driving the temperature Up and a process known as global
Warming have emerged due to release of huge amount of CO2 and other gases into
the atmosphere. Heating earth by the green house effect.
¤ Recent string of very warm years give evidence of global Warming .Scientists report
that 1998 was the warmest year in recorded history with 2005 coming in second.
¤ Readings taken from ice core show that CO2 and CH4 have hit their highest levels
in the past 4.02 billion years. Polar ice has decreased about 10% in the last 30 yrs
only.
¤ Researchers predict the temperature will increase by about 2 to 10 degree
Fahrenheit by the end of the century. Bringing sudden changes in weather and rising
the sea levels.

3. By
AnkitAgarw
al
Global Temperature From 1884 to 2006

4. By
AnkitAgarw
al
• To combat these changes globally, Kyoto Protocol was created and has been
agreed upon by 170 countries so far, committing themselves to reduce Green
House Gas Emissions and improve Energy Efficiency.
• The Kyoto Protocol envisages reduction of Green House Gases by 5.2% in the
period 2008-12.
• New System of Carbon Credits is Introduced in the texts of Kyoto Protocol is
being formalised to bring more awareness in Industries to reduce their annual
carbon emission by awarding monetary value to reduced emission taking us
towards eco-friendly future
•Through this Presentation we are going to bring into focus
these two main International steps on combating the new evil
“Global Warming”.

5. By
AnkitAgarw
al
 It’s an International protocol for United Nations Framework Convention on
Climate Change (UNFCCC) that was agreed at Kyoto, Japan, in December
1997.
 It commits the 186 signatory countries to binding limits on carbon dioxide
and other heat-trapping ‘greenhouse gases’, which contribute to global
warming.
 For industrialized nations, Kyoto requires cuts in greenhouse gas
emissions to an average of 5.2% below 1990 levels by 2012. Developing
countries are also committed to emissions targets.
 Though the text of the UNFCCC was adopted in 1992 but the convention
could only be entered into force in 1994, with 166 countries as signatories
later the protocol was adopted at the December 1997 Kyoto conference on
the UNFCCC with 55 countries that were responsible for at least 55% of
global carbon dioxide emissions in 1990.

6. By
AnkitAgarw
al
Path to The Protocol
a) A controversial feature of the protocol is that it allows countries to count “carbon
sinks” (forests and grasslands) which are added to soak up emissions of
greenhouse gases.
b) Thus 2001,us president George w bush announced that the usa, which emits 25%
of world greenhouse gases with a 15% increase in emission levels over the last ten
years, would not take Kyoto as mandatory pollution reductions protocol as it would
harm us economic interests.
c) European union, 2001 tried to persuade the usa to accept the protocol but it
yielded no movement from the usa so the European union declared they would
accept the protocol without us involvement.
d) Japan and Australia both denied getting in any agreement without usa. Thus, in an
environmental summit a more flexible version of protocol was agreed upon.
However, USA maintained its opposition.
e) In 2002, the EU agreed to be legally bound by the terms of the protocol at last.

7. By
AnkitAgarw
al
 Certified Emission Reductions(CER's) is commonly known as
carbon credits. They provide a way to reduce greenhouse gas
emissions on an industrial scale by assigning a monetary value to
any shortfall in emission level in terms of credits.
 These credits can be exchanged between businesses or can be
bought and sold in international markets at the prevailing market
price or can be used to finance other carbon reduction schemes
between trading partners around the world.
 There also many companies that only sells carbon credits to
commercial and individual customers who Are interested in
lowering their carbon emissions on a voluntary basis.

8. By
AnkitAgarw
al
Customers purchase the Credits from an investment fund or a
Carbon Development Company (CDC).The quality of the credits
is based in part on the validation process and sophistication of
the fund or development Company that acted as the sponsor .
Voluntary units have less value than the units sold through the
rigorously-validated clean development mechanism.
There are two distinct types of carbon credits:
I. Carbon Offset Credits (COC's) :~ It consist of clean forms of
energy production,(i.e. wind, solar, hydro and bio fuels).
II. Carbon Reduction Credits (CRC's) :~ It consists of the
collection and storage of carbon from atmosphere through
reforestation, forestation, ocean and soil collection and
storage efforts.

9. By
AnkitAgarw
al
Fixes an
maximum
amount of
emission
Country
agree to
Protocol
Through Laws
in Nation
County
Fixes The
Quota
These National
Registries are in
turn Validated
by UNFCCC
Companies
Register at
national
registries
Each operator has an allowance of credits, where each unit gives the owner the
right to emit one metric tonne of carbon dioxide or other equivalent greenhouse gas. If
Operators have not used up his quotas then he can sell unused allowances as carbon
credits, while businesses that are about to exceed their quotas can buy the extra
allowances as credits.
An operator can seek out the most cost-effective way of reducing its emissions,
either by investing in 'cleaner' machinery and practices or by purchasing emissions
from another operator who already has excess 'capacity'.

10. By
AnkitAgarw
al
How to Acquire Credits?
There are 3 mechanisms that enable countries or operators in developed countries to
acquire greenhouse gas reduction credits:
1. Under Joint Implementation (JI) :~ A developed country with relatively high
costs of domestic greenhouse reduction would set up a project in another
developed country.
2. Under The Clean Development Mechanism (CDM):~A developed
country can 'sponsor' a greenhouse gas reduction project in a developing country
where the cost of greenhouse gas reduction project activities is usually much
lower, but the atmospheric effect is globally equivalent. The developed country
would be given credits for meeting its emission reduction targets, while the
developing country would receive the capital investment and clean technology or
beneficial change in land use.
3. Under International Emissions Trading (IET):~ countries can trade in the
international carbon credit market to cover their shortfall in allowances. Countries
with surplus credits can sell them to countries with quantified emission limitation
and reduction commitments under the Kyoto Protocol.

11. By
AnkitAgarw
al
One Carbon Credit is considered equivalent to one metric tonne
of CO2 emissions.
Carbon prices are normally quoted in Euros per tonne of carbon
dioxide or its equivalent (CO2e).
Other greenhouse gasses can also be traded, but are quoted as
standard multiples of carbon dioxide with respect to their global
warming potential.
At Present each Carbon Credit Sums to Rs.1600 /- in INR(Indian
Rupees)

12. By
AnkitAgarw
al
Gov. enacts law
for quota say
80,000 tonnes
per year
Factor either
reduces
emission to
80,000 tonnes
or purchase
credits
Purchasing new
Machinery to
reduce
emission…Uneco
nomical. So,
Company Buys
credits

13. By
AnkitAgarw
al
“What does Market say !”
 Fastest growing financial market - rose 80% in 2007 to reach nearly
$ 60 billion - expected to be $ 1 trillion by 2009-10.
2007 carbon market shows China's share at 61% and India at 12%. In
terms of total CERs issued of 166 million, India has 43 million or 26%.
In 2008, China's share at 23% and India at 30% in terms of no of
projects and 36% and 25% in terms of no of CER's issued respectively.
(13.10.08)
 An Indian firm, J.S.W Steel won the largest single CER of 5.4
million in 2 projects.
 Multi-commodity exchange has traded CERs Rs.1000 crores so
far with participation by 85 members and 91 clients.

14. By
AnkitAgarw
al