Carryover credits
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]
References
[edit]- ^ a b Foley, Mike (2019-12-09). "Using Kyoto credits to meet Paris agreement 'misses the point': Garnaut". The Sydney Morning Herald. Retrieved 2019-12-16.
- ^ 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.
- ^ "Explained: why Kyoto carryover credits are so important". Australian Financial Review. 2019-04-02. Retrieved 2019-12-20.
- ^ a b "Cop25: What was achieved and where to next?". Climate Home News. 2019-12-16. Retrieved 2019-12-16.
- ^ Slezak, 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.
- ^ Morton, Adam (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.
- ^ "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.
- ^ Paris Agreement (PDF) (Report). United Nation. 2019-11-01. pp. 8–9, Article 9. Retrieved 2019-12-20.
- ^ a b "The countries with the biggest hoard of Kyoto credits". Australian Financial Review. 2019-12-16. Retrieved 2019-12-16.
