Carryover credits

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Carryover Credits (Kyoto carryover credits) are a carbon accounting measure by which nations count historical emission reductions that exceeded previous international goals towards its current targets. [1] In essence, carryover credits represent the volume of emissions a country could have released, but did not. [2] [3] When used in reference to the Paris Agreement, it refers to a scheme under which unspent "Clean Development Mechanism credits" (CDM credits) introduced by the Kyoto Protocol will be "carried over" to the new markets established by the agreement. [4] [5] [6] As part of the Paris Agreement, CDM credits will be replaced by an international emissions trading market, where by countries can sell their excess emissions credits to other countries. [7] [8] While most countries do not count their credits, several countries led by Australia, including Brazil, India, and Ukraine are attempting to allow their credits to be carried over. [1] [4] The proposal has been criticized, with scientists estimating that if countries were to make full use of their excess credits global temperatures could rise by an extra 0.1 °C. [9] In addition countries could use their excess credits to flood the market and greatly reduce the price of credits. [9]

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References

  1. 1 2 Foley, Mike (2019-12-09). "Using Kyoto credits to meet Paris agreement 'misses the point': Garnaut". The Sydney Morning Herald. Retrieved 2019-12-16.
  2. ↑ Pears, Alan; Baxter, Tim. "Carry-over credits and carbon offsets are hot topics this election – but what do they actually mean?". The Conversation. Retrieved 2019-12-16.
  3. ↑ "Explained: why Kyoto carryover credits are so important". Australian Financial Review. 2019-04-02. Retrieved 2019-12-20.
  4. 1 2 "Cop25: What was achieved and where to next?". Climate Home News. 2019-12-16. Retrieved 2019-12-16.
  5. ↑ Environment, National; science; Slezak, technology reporter Michael (2019-12-10). "Australia wants to use credits to claim most of its Paris commitment. World leaders are debating banning them". ABC News. Retrieved 2019-12-20.
  6. ↑ editor, Adam Morton Environment (2019-12-11). "Australia's use of accounting loophole to meet Paris deal found to have no legal basis". The Guardian. ISSN   0261-3077 . Retrieved 2019-12-20.{{cite news}}: |last= has generic name (help)
  7. ↑ "In-depth Q&A: How 'Article 6' carbon markets could 'make or break' the Paris Agreement". Carbon Brief. 2019-11-29. Retrieved 2019-12-16.
  8. ↑ United Nation (2019-11-01). Paris Agreement (PDF) (Report). pp. 8–9, Article 9. Retrieved 2019-12-20.{{cite report}}: CS1 maint: uses authors parameter (link)
  9. 1 2 "The countries with the biggest hoard of Kyoto credits". Australian Financial Review. 2019-12-16. Retrieved 2019-12-16.
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