Climate Change - one of the world's major challenges
Climate change is one of the major challenges the world faces today. The earth is getting warmer and most experts agree that this is the result of human activity - essentially the large scale combustion of fossil fuels and the release of the six recognised Greenhouse Gases (GHGs) - CO2, CH4, N2O, HFCs, PFCs and SF6. The recent 4th Assessment Report of the International Panel on Climate Change (IPCC) concludes that it is at least 90% certain that GHG emissions caused by humans, rather than natural variations, are responsible
for the warming of the planet. The Report states that temperatures
will probably rise by between 1.8oC and 4.0oC,
though increases as small as 1.1oC (2F) or as large as
6.4oC (11.5F) are possible. The dangers of climate change
and the impact on the economy have been highlighted in the recent
report
by economist Sir Nicholas Stern who suggests that global warming
could shrink the global economy by 20%.
Climate Change – how the world is responding
To combat the harmful effects of climate change two major agreements have been adopted by the international community: the United Nations Framework Convention on Climate Change (UNFCCC), 1992 and the Kyoto Protocol, 1997, which entered into force on 16th February 2005. The second of these agreements sets quantified and binding commitments on greenhouse gas emissions for industrialised countries for the period 2008 to 2012 with the aim to reduce their Greenhouse Gas emissions by an overall 5% below 1990 levels. To meet their targets, countries can reduce their domestic emissions and use the so-called "Flexibility Mechanisms" outlined in the Kyoto Protocol - the Clean Development Mechanism, Joint Implementation (JI) and Emissions Trading. The use of these mechanisms has to be “supplemental to domestic action”, which must constitute “a significant element” of their efforts in meeting their commitments. These mechanisms provide the framework for trading carbon and the creation of the Carbon Market.