EFCTC - The United Nations Framework Convention on Climate Change - Fluorochemicals and the Kyoto Protocol

A SECTOR GROUP OF

The United Nations Framework Convention on Climate Change – Fluorochemicals and the Kyoto Protocol

February 2000

The Rio Convention on Climate Change (UNFCCC) was agreed in 1992 in an attempt to control the impact of human activity on the global climate by reducing emissions of greenhouse gases;
Since 1992 the aims of the Convention have evolved considerably. The Developed Nations involved have agreed on legally binding controls on greenhouse gas emissions beyond 2000 at a meeting in Kyoto in December 1997 (The Kyoto Protocol);

Steps have been taken to reduce the emissions of a "basket" of six Global Warming gases: carbon dioxide, methane and nitrous oxide - which together contribute over 99% of man-made global warming - and HFCs, perfluorocarbons (PFCs) and sulphur hexafluoride (SF₆), which make up the remaining 1%;

Around the World, Governments and regulators continue to recognise the importance of HFCs as replacements for CFCs. The Protocol allows for the continued growth in HFCs as savings of CO2 emissions, resulting from reduced power consumption of efficient HFC systems, can be offset against the Global Warming effect of their direct emissions;

Unlike the Montreal Protocol, which focuses on ’production’, the Kyoto agreement aims to reduce ‘emissions’.

Background to the Kyoto Protocol.

The United Nations Framework Convention on Climate Change (UNFCCC), better known as the 'Rio' Convention, was agreed by participating nations in Rio de Janeiro, 1992, with the objective of stabilising greenhouse gases in the atmosphere at levels that would prevent potentially dangerous interference with the global climate.

In 1995, the UNFCCC signatories met in Berlin for the First Conference of the Parties (COP1). They decided that the commitments of the Convention were not adequate and agreed to the 'Berlin Mandate'. This mandate opened negotiations on the development of a Protocol, to take appropriate actions to control Greenhouse gas emissions for the period beyond 2000.

Since then, meetings under the Ad hoc Group for the Berlin Mandate and at further Conferences of the Parties in Geneva (COP2) and Kyoto, Japan in December (COP3) have resulted in what is now known as the Kyoto Protocol.

This Protocol is seen as a major achievement, addressing one of the most significant potential threats to our global environment. Decisions taken now and implemented over the coming decades will have a decisive impact for generations to come.

Key Provisions.

The Kyoto Protocol to the United Nations Framework Convention on Climate Change was agreed on the 11th December 1997 after difficult and lengthy negotiations. The agreement contains many provisions on the organisation and management of commitments to agreed targets and timetables. At the same time it lists specific mechanisms to be implemented in order to achieve a reduction of Greenhouse Gas emissions. The most important aspects of the agreement include:

Concentration on a "basket" of six Greenhouse Gases namely: Carbon Dioxide, Nitrous Oxides, Methane, Hydrofluorocarbons (HFCs), Perfluorocarbons (PFCs) and Hexafluoride (SF6);

CFCs and HCFCs were acknowledged as Greenhouse Gases, but were excluded on the grounds that they are to be phased out under the Montreal Protocol;

The baseline against which reductions are to be calculated is taken as 1990 for emissions of carbon dioxide, methane and nitrous oxide (in carbon dioxide-equivalents). A separate baseline, set at either 1990 or 1995 was agreed for emissions of HFCs, PFCs and SF6. The carbon dioxide removals by sinks (for example, land use changes) are also included with a 1995 baseline;

Targets and Timetables; The final agreement included differentiated targets for individual countries. The EU agreed to reduce its emissions by 8% below the baseline level, the USA 7% and Japan 6%. Some countries such as Australia negotiated an increase. The overall global reduction of 5.2% is averaged over a 'commitment period' of 2008-2012.

[The European Union is allowed to differentiate between the commitments of each of its Member States, as long as the overall commitment of -8% is met (known as the "Bubble Concept"). The Emission Reduction Commitments cover the total emissions of Greenhouse Gases and allow differentiation between gases in the basket.]

Kyoto Mechanisms; Flexibility to enable countries to meet their emissions reductions at lower economic costs is a fundamental part of the Kyoto Protocol. The Kyoto Mechanisms are Emissions Trading (ET), Joint Implementation (JI) and the Clean Development Mechanism (CDM). The latter two, JI and CDM, are project-based, which means that emissions reductions achieved in one country through a specific project are transferable back to the country that has sponsored the project. The CDM involves projects in developing countries and will start once the Kyoto Protocol enters into force. It also includes an adaptation fund. ET is a mechanism which will enable the trading of emissions reductions between developed countries. ET and JI will start in 2008 at the commencement of the first commitment period.

The Protocol will enter into force three months after ratification by at least 55 developed nations representing at least 55% of the total CO2 emissions in 1990 ("Dual Ratification" hurdle). The details of the Kyoto Mechanisms will be finalised at COP6 in The Hague in 2000. The consensus is that entry into force is unlikely before the year 2002 at the earliest.

Role of Industry

Global Warming is an extremely complex issue and actions required to reduce emissions under the protocol will have a bearing on the economic growth across every country. The issue of energy use will have direct implications on the activities of every industry and on virtually all of our everyday activities. Because of this extreme complexity, different countries and regions have different sets of priorities; each has a different agenda, which makes it difficult for governments to achieve consensus. Lessons learned during the negotiation and implementation of the Montreal Protocol have clearly demonstrated that political consensus will be reached more readily through involvement of industry and scientists. (The UNEP Technology and Environmental Assessment Panel and TOC-model provide a good example of this.)

Most Member States in the EU recognise the important role, which HFCs play in society and so place the emphasis on reducing emissions through promoting their responsible use. The UK Government has already worked with industry to agree voluntary codes on HFC use. The Dutch government sees HFCs as important economic replacements for CFCs. It places great value on voluntary agreements between the Government and HFC producers and users. Such agreements focus on responsible uses, reduction and leak-free use. During a Netherlands Presidency workshop on EU Policies and Measures on Climate Change (held in May 1997) there was a consensus among producers and users that a joint industry and government approach offered the best way forward.

This approach is also followed in the United Kingdom, where industry and government have entered into an agreement on the responsible use of HFCs in various applications, notably refrigeration.

The concept of Life-cycle Climate Performance (LCCP) is now gaining support. LCCP is generally considered by the scientific community and industry to be the most accurate means of comparing the overall global warming impact of systems over their lifetime. For any given system, it takes into account both the direct emissions of any global warming gases that system contains as well as the indirect emissions of carbon dioxide released during the production of energy required to run that system during its life.

However, despite the fact that many European governments accept LCCP or similar life-cycle analysis as valid tools, some of them still wish to take the GWP into account for decision making on global warming. In doing so, they fail to recognise that the GWP reflects the potential rather than the actual contribution to the greenhouse effect, and that the real focus should be on preventing emissions over the full life of a product and improving energy use in both energy-saving or energy-consuming applications.

This is clearly worrying for industry, as it means there is a danger that decisions on environmental issues might be made on the basis of convenience and simplicity rather than sound science. If this were to happen in the process of transforming the Kyoto decisions into national regulations of EU member states, we may find that measures taken will damage both the competitiveness of the European industry and the global environment, and threaten the safety of the European consumer and worker.

The Challenges Ahead

Whilst the Kyoto Protocol is a major step forward in addressing the most significant potential threats to our global environment it remains a 'Protocol in progress'.

Many of the details in this agreement have yet to be resolved, parties must still agree on emissions trading - whether countries can trade emissions with other countries and if so, how much; compliance measures are yet to be determined, so too is the role of developing countries. It will take a number of years to resolve all of these issues. . How these ‘details’ are resolved will determine the effectiveness of the Protocol in achieving its long-term goal of environmental protection and sustained economic growth.

HFCs continue to provide the only available, non-flammable, non-toxic replacement to CFCs in many applications. Industry continues to adopt these products as replacements because they are highly efficient and provide the best means of designing safe, low energy consumption systems. Such systems have the potential to actually reduce global warming. It is vital that Governments look further than GWP as a means of achieving their commitments under the Protocol.