The Kyoto Protocol (Japanese: 京都議定書, Hepburn: Kyōto Giteisho) was an international treaty which extended the 1992 United Nations Framework Convention on Climate Change (UNFCCC) that commits state parties to reduce greenhouse gas emissions, based on the scientific consensus that global warming is occurring and that human-made CO2 emissions are driving it. The Kyoto Protocol was adopted in Kyoto, Japan, on 11 December 1997 and entered into force on 16 February 2005. There were 192 parties (Canada withdrew from the protocol, effective December 2012) to the Protocol in 2020.
The Clean Development Mechanism (CDM) is a United Nations-run carbon offset scheme allowing countries to fund greenhouse gas emissions-reducing projects in other countries and claim the saved emissions as part of their own efforts to meet international emissions targets. It is one of the three Flexible Mechanisms defined in the Kyoto Protocol. The CDM, defined in Article 12 of the Protocol, was intended to assist non-Annex I countries achieve sustainable development and reduce their carbon footprints, and to assist Annex I countries achieve compliance with greenhouse gas emissions reduction commitments.
Carbon offsetting is a carbon trading mechanism that enables entities to compensate for offset greenhouse gas emissions by investing in projects that reduce, avoid, or remove emissions elsewhere. When an entity invests in a carbon offsetting program, it receives carbon credit or offset credit, which account for the net climate benefits that one entity brings to another. After certification by a government or independent certification body, credits can be traded between entities. One carbon credit represents a reduction, avoidance or removal of one metric tonne of carbon dioxide or its carbon dioxide-equivalent (CO2e).
The European Union Emissions Trading System is a carbon emission trading scheme that began in 2005 and is intended to lower greenhouse gas emissions in the EU. Cap and trade schemes limit emissions of specified pollutants over an area and allow companies to trade emissions rights within that area. The ETS covers around 45% of the EU's greenhouse gas emissions.
Flexible mechanisms, also sometimes known as Flexibility Mechanisms or Kyoto Mechanisms, refers to emissions trading, the Clean Development Mechanism and Joint Implementation. These are mechanisms defined under the Kyoto Protocol intended to lower the overall costs of achieving its emissions targets. These mechanisms enable Parties to achieve emission reductions or to remove carbon from the atmosphere cost-effectively in other countries. While the cost of limiting emissions varies considerably from region to region, the benefit for the atmosphere is in principle the same, wherever the action is taken.
Carbon accounting is a framework of methods to measure and track how much greenhouse gas (GHG) an organization emits. It can also be used to track projects or actions to reduce emissions in sectors such as forestry or renewable energy. Corporations, cities and other groups use these techniques to help limit climate change. Organizations will often set an emissions baseline, create targets for reducing emissions, and track progress towards them. The accounting methods enable them to do this in a more consistent and transparent manner.
Greenhouse gas inventories are emission inventories of greenhouse gas emissions that are developed for a variety of reasons. Scientists use inventories of natural and anthropogenic (human-caused) emissions as tools when developing atmospheric models. Policy makers use inventories to develop strategies and policies for emissions reductions and to track the progress of those policies.
The Gold Standard (GS), or Gold Standard for the Global Goals, is a standard and logo certification mark program, for non-governmental emission reductions projects in the Clean Development Mechanism (CDM), the Voluntary Carbon Market and other climate and development interventions. It is published and administered by the Gold Standard Foundation, a non-profit foundation headquartered in Geneva, Switzerland. It was designed with an intent to ensure that carbon credits are real, verifiable, and that projects make measurable contributions to sustainable development. The objective of the GS is to add branding, with a quality label, to carbon credits generated by projects which can then be bought and traded by countries that have a binding legal commitment according to the Kyoto Protocol, businesses, or other organizations for carbon offsetting purposes.
The 2000-watt society concept, introduced in 1998 by the Swiss Federal Institute of Technology in Zurich, aims to reduce the average primary energy use of First World citizens to no more than 2,000 watts by 2050, without compromising their standard of living.
Voluntary Emission Reductions or Verified Emission Reductions (VERs) are a type of carbon offset exchanged in the voluntary or over-the-counter market for carbon credits. Verified Emission Reductions are usually certified through a voluntary certification process.
ecosecurities is a company specialized in carbon markets and greenhouse gas (GHG) mitigation projects worldwide. ecosecurities specializes in sourcing, developing and financing projects on renewable energy, energy efficiency, forestry and waste management with a positive environmental impact.
Emissions reduction currency systems (ERCS) are schemes that provide a positive economic and or social reward for reductions in greenhouse gas emissions, either through distribution or redistribution of national currency or through the publishing of coupons, reward points, local currency, or complementary currency.
BlueNext was a European environmental trading exchange, considered the largest CO2 permit spot market, with headquarters in Paris, France. On October 26, 2012, BlueNext announced that it would close permanently its spot and derivatives trading operations as of December 5, 2012.
Christoph Sutter is a Swiss carbon expert and entrepreneur. Christoph attended the Swiss Federal Institute of Technology where he studied for an MSc in environmental science (1993–1999) and a master of didactics on environmental science. He also concluded his PhD on the topic, "Sustainability Assessment of CDM Projects under the Kyoto Protocol" at the same school. His thesis was awarded the ETH medal for the best PhD thesis in 2003. He completed his education with a McKinsey mini MBA in Toronto in Summer 2005.
Pedro Moura Costa is an entrepreneur involved in environmental finance with a focus on the international efforts for greenhouse gas (GHG) emission reductions. Of particular relevance, he was the founder and President of EcoSecurities Group Plc., one of the leading project developers for the international carbon markets, and has written widely about the policy and science of climate change mitigation, including contributions to the Intergovernmental Panel on Climate Change (IPCC) reports.
The Verified Carbon Standard (VCS), formerly the Voluntary Carbon Standard, is a standard for certifying carbon credits to offset emissions. VCS is administered by Verra, a 501(c)(3) organization. Verra is a certifier of voluntary carbon offsets. As of 2020 there were over 1,500 certified VCS projects covering energy, transport, waste, forestry, and other sectors. In 2021 Verra issued 300 MtCO2e worth of offset credits for 110 projects. There are also specific methodologies for REDD+ projects. Verra is a program of choice for most of the forest credits in the voluntary market, and almost all REDD+ projects.
Renat Heuberger is the co-founder and Senior Adviser of South Pole, a carbon finance consultancy. He was CEO until resigning on 10 November, 2023. He has been engaged as a social entrepreneur in the fields of sustainability, climate change and renewable energies since 1999.
South Pole is a Swiss carbon finance consultancy founded in 2006 in Zurich, Switzerland. South Pole's business covers project and technology finance, data and advisory on sustainability risks and opportunities, as well as the development of environmental commodities such as carbon and renewable energy credits. The company has 23 offices across Europe, Africa, Asia Pacific, North America and South America.
Atmosfair is an independent German non-profit organization which offers offsets for greenhouse gases emitted by aircraft, cruise ships, long-distance coaches, and events. The organization, founded in 2005, develops and finances small-scale energy efficiency and renewable energy projects in developing countries, which lead to reduced carbon emissions. Atmosfair has repeatedly won acclaim for operating with a high degree of transparency and accountability, as well as efficient use of funds.
CO2balance UK Ltd is a British profit-for-purpose carbon management consultancy and project developer founded in 2003. It is known for developing carbon finance projects in developing countries that reduce carbon emissions and support the Sustainable Development Goals. CO2balance also provides businesses and individuals with carbon footprint calculation and reduction services, bestowing the label of ‘CarbonZero’ on those organisations that completely offset the footprint of their operations.
