An extract on #bakomutan
A Green Investment Scheme (GIS) refers to a plan for achieving environmental benefits from trading surplus allowances (AAUs) under the Kyoto Protocol. The Green Investment Scheme (GIS), a mechanism in the framework of International Emissions Trading (IET), is designed to achieve greater flexibility in reaching the targets of the Kyoto Protocol while preserving environmental integrity of IET. However, using the GIS is not required under the Kyoto Protocol, and there is no official definition of the term.
Under the GIS a Party to the Protocol expecting that the development of its economy will not exhaust its Kyoto quota, can sell the excess of its Kyoto quota units (AAUs) to another Party. The proceeds from the AAU sales should be "greened", i.e. channeled to the development and implementation of the projects either acquiring the greenhouse gases emission reductions (hard greening) or building up the necessary framework for this process (soft greening).
The Protocol also reaffirms the principle that developed countries have to pay billions of dollars, and supply technology to other countries for climate-related studies and projects. The principle was originally agreed in UNFCCC. One such project is The Adaptation Fund"", that has been established by the Parties to the Kyoto Protocol of the UN Framework Convention on Climate Change to finance concrete adaptation projects and programmes in developing countries that are Parties to the Kyoto Protocol.
Data given in the table above may not be fully reflective of a country's progress towards meeting its first-round Kyoto target. The summary below contains more up-to-date information on how close countries are to meeting their first-round targets.
Collectively the group of industrialized countries committed to a Kyoto target, i.e., the Annex I countries excluding the US, have a target of reducing their GHG emissions by 4.2% on average for the period 2008-2012 relative to the base year, which in most cases is 1990. According to Olivier et al. (2011), the Kyoto Parties will comfortably exceed their collective target, with a projected average reduction of 16% for 2008-2012. This projection excludes both LULUCF and credits generated by the Clean Development Mechanism (CDM).
As noted in the preceding section, between 19901999, there was a large reduction in the emissions of the EITs. The reduction in the EITs is largely responsible for the total (aggregate) reduction (excluding LULUCF) in emissions of the Annex I countries, excluding the US. Emissions of the Annex II countries (Annex I minus the EIT countries) have experienced a limited increase in emissions from 19902006, followed by stabilization and a more marked decrease from 2007 onwards. The emissions reductions in the early nineties by the 12 EIT countries who have since joined the EU, assist the present EU-27 in meeting its collective Kyoto target.
Almost all European countries are on track to achieve their first-round Kyoto targets. Spain plans to meet its target by purchasing a large quantity of Kyoto units through the flexibility mechanisms. Australia, Canada (Canada withdrew from the Kyoto treaty in 2012), and Italy are not on course to meet their first-round Kyoto targets. In order to meet their targets, these countries would need to purchase emissions credits from other Kyoto countries. As noted in the section on Intergovernmental Emissions Trading, purchasing surplus credits from the EIT countries would not actually result in total emissions being reduced. An alternative would be the purchase of CDM credits or the use of the voluntary Green Investment Scheme.
In December 2011, Canada's environment minister, Peter Kent, formally announced that Canada would withdraw from the Kyoto accord a day after the end of the 2011 United Nations Climate Change Conference (see the section on the withdrawal of Canada).