What are the “flexible mechanisms” introduced by the Kyoto Protocol?

Articles 6, 12, and 17 of the Kyoto Protocol introduced the so-called “Flexible Mechanisms,” which have since played a significant role in the fight against climate change:

Let’s start with Article 6 – Joint Implementation (JI):

Imagine that two developed countries, A and B, decide to cooperate. Country A helps finance an emission reduction project in Country B.

Mechanism:

• Country A invests in projects in Country B that reduce emissions.
• Country A obtains credits for the reductions achieved in Country B.
• These credits are called Emission Reduction Units (ERUs).

Examples of projects:

1. Modernizing a power plant in Country B to make it more efficient.
2. Reforesting degraded areas in Country B.
3. Implementing methane capture systems in landfills in Country B.

Next, we have Article 12 – Clean Development Mechanism (CDM):

This mechanism allows developed countries to invest in emission reduction projects in developing countries.

Mechanism:

• A developed country finances a project in a developing country.
• The project generates Certified Emission Reductions (CERs).
• The developed country can use these CERs to meet its reduction targets.

Examples of projects:

1. Installing solar panels in rural areas of a developing country.
2. Building a wind power plant.
3. Improving energy efficiency in factories.
4. Implementing low-emission public transportation systems.

Finally, we have Article 17 – Emissions Trading:

This article allows countries to buy and sell emission rights.

Mechanism:

• Each country has an allowed amount of emissions.
• If a country emits less, it can sell its surplus.
• If a country needs to emit more, it can buy rights from others.

Examples of transactions:

1. A country that has reduced its emissions more than required sells its surplus to another that is having difficulty meeting its targets.
2. A company buys emission rights in a carbon market established by its government.
3. A country invests in clean energy projects in another country in exchange for emission rights.

These mechanisms aimed to provide flexibility and economic efficiency in meeting the objectives of the Kyoto Protocol while promoting sustainable development and technology transfer globally.

Now, these mechanisms are gradually being replaced by others, such as the Sustainable Development Mechanism (SDM), which we will discuss in the next section. Stay tuned.

If you liked this article, you might also find the following reading interesting:

Article 6 of the Paris Agreement: A Legal Analysis for Businesses and Individuals

We leave you the collaboration also in video: