Flexibility: Can we do without it?

Have we ever had the option of being inflexible?

Given the present reality of emission goals and the announcement by certain countries that they will have difficulty reaching their emission reduction goals if at all (Japan and Canada), I think it is safe to say that flexibility mechanisms will be an necessary part of any future treaties.

There are three types of “flexibility” mechanisms:

– Cap-and-trade

– Clean Development Mechanism (CDM)

– Joint Implementation (JI)

There are many pros and cons for each, with many strong support for as well as strong opposition against cap-and-trade.

While I will not delve deeply into why their implementation is controversial, I will give a brief outline of each. I will also explain why, regardless of how one feels about these, they will probably become a crucial component of countries’ efforts to comply with the COP treaties. Finally, I will give my two cents as to what positive effects the flexibility mechanisms may have on the international struggle against climate change.

Cap-and-trade is probably the most famous mechanism of the three. It basically applies principles of economics to emission caps and allows countries to trade emission credits in order to reach their goal. So for example, if Iceland met its goal for reduction in emissions and went beyond its goal (which it did), it could sell it’s extra credits to countries like, Canada, which are in a real bind and with little prospects of reaching their goal.

Clean Development Mechanism (henceforth CDM) is a mechanism through which an Annex I country can receive credit for implementing any sort of mechanism or technology that would help a developing (or non-Annex I) country to lower its greenhouse gas (GHG) emissions.

Joint Implementation is basically the same as CDM, except that it is between two Annex-I countries.

If applied correctly, these mechanisms can be beneficial to the international effort to reduce total GHG emissions. Other benefits include:

– Helping struggling countries meet their emission reduction goals

– Motivate countries to help other countries reduce their emissions

– Serve as incentive for countries to go beyond their goal in order to sell credits

– Increase international cooperation

– Reduce total emissions in the long run

A video of Ecogeek explaining how Cap and trade works: