Gladkaya V.A.
Scientific leader: Usikov V.A.
Donetsk National University of Economics and Trade named after Mykhalo Tugan-Baranovsky
According to preliminary estimates,
projects of Joint fulfillment in Kyoto protocol frames may provide Ukraine's
mining and metallurgic enterprises with investments worth USD 250 mn for environmental upgrade.
Although
Ukrainian parliament has ratified Kyoto protocol back on February 4, 2004, it was recently that the government of the country
undertook real steps to fulfill provisions of the
document. And there are reasons.
The protocol was adopted in 1997 as an addendum to the UNO frame convention
on climate change prevention dated 1992. Main value of these supplements is that they fix volume restrictions on
greenhouse gases (GHG) emission on a planetary
scale. From 2008 till 2012, the states, which signed the protocol, made commitments to reduce emission of six types of gases
that cause greenhouse effect (carbon
dioxide, methane, nitrous oxide, sulfur
hexafluoride, hydro-fluoro-carbons, and per-fluoro-carbons) by 5.2% as compared to 1990.
The protocol was signed by 121 countries, which did not make
it obligatory for realization
though. It was necessary that countries accounting for no less than 55% of world GHG emission ratified it. The problem
arose in 2001, when the USA with their portion of GHG emission at 25% of the world
volume left the agreement having considered its conditions of no benefit for
themselves.
In this situation, financial and economic mechanisms of Kyoto protocol could only turn valid if Russia, which has
up to 17% of global
emission of GHGs, joined the treaty. On November 5, 2004, the RF president signed Federal law on ratification of the protocol. And as soon as November 22, Kofi Annan, the UNO general secretary, announced the date when Kyoto
protocol would gain legal force - February 16, 2005.
However, legitimacy was given not only to higher environmental requirements to industrial enterprises as regards
environmental effect.
This day can be called the official opening of new "environmental" market of the world.
Kyoto supplement to the UNO frame convention on climate change prevention foresees so-called mechanisms of
flexibility. The latter
also secure the rules of trade in national quotas for GHG emission, following which an enterprise (state) polluting the atmosphere beyond the permitted
limit may buy quota from
enterprise (state), which produced less greenhouse gas emission than allowed in the period under
review.
The matter is about obligations of countries and regions on reduction of GHG emission. For instance, from 2008 till 2012 the European Union should cut
emission by 8%, while Japan and Canada - by 6%. In this light, Ukraine and Russia have
special status, as they only committed to just maintain GHG emission volumes at the level
of the year 1990. What it means
for Ukraine is seen from the
example with ferrous metallurgy - one of the main producers of greenhouse gases in Ukraine.
15 years ago, steel output level in back then Ukrainian Soviet Socialistic
Republic was around 50 mn tons. And by results of 2004, domestic
metallurgic enterprises produced some 38.7 mn tons of steel. According to forecasts, in 2005 steel production
by Ukraine should not exceed the level of 2004. Thus, thanks to steel casting stage alone Ukraine's ferrous
metallurgy gets production
reserve of 10-12 mn tons, free from Kyoto protocol limits. And annual volume of greenhouse emission, which could be produced from the mentioned volume
of steel making, may turn into the object of
purchase and sale as a quota for greenhouse
gas emission.
Commercial appeal here is that no monetary investment is required for
product promotion. They
only need status of entity, which has a right to visa permits for national quota use. Such opportunities could not avoid attention of particular persons. And in 2004 - early 2005 there were seen
some attempts to
legitimize sale of part of quota through emission of so-called guarantee let ters. This was of big interest to participants of carbon credit market in the
EU, who used forward deal
conditions to buy «available» quotas on the territory of the European Union and in other regions of the world.
Who knows how it would end, if not a mess in legislative process of Ukraine, which is already a proverb. Following
the Kyoto protocol, trade in permits for greenhouse gases emission is a much
bureaucratized process
limited with a number of obligatory conditions. Of them, Ukraine only fulfilled one - namely, having joined the Kyoto
protocol. But, besides it,
a whole system should be set up to estimate anthropogenic emissions from sources, while
simultaneously the corresponding
infrastructure must be launched in institutional and legal fields of the state. In the end of 2004 - beginning of 2005 this naturally has not been done
yet.
It turns out, thus, that Ukraine can not sell emission quota legally.
And local producers-issuers of
greenhouse gases are simply not interested in serious level of
"Kyoto" trade. At least, until the national quota decision is being made by the Ministry of nature
or the Ministry of industrial policy (or even more - directly by
the Cabinet of Ministers), not by management of particular industrial enterprise of the
country. These thoughts
have mainly caused consideration
of the issue not only inside the walls of executive bodies, but also by parliament members. Notable event was round-table discussion "Kyoto
protocol and prospects of
the Ukrainian economy modernization", which was organized by the Parliament Committee for
industrial policy and
entrepreneurship on May 17, 2005. Participants of the meeting recognized another
mainline approach to use of "Kyoto" flexibility mechanisms.
Ukrainian
metallurgists have accomplished implementation of Kyoto provisions in the direction they were interested. The emphasis in the process shifted from
"trade in air" towards necessity of environmental upgrade of Ukrainian industry, and so
far everything works in the route of "joint implementation". But what is Its benefit as
compared to trade?
Such mechanism
of flexibility can not omit attention of local metallurgists. In this case, they may account to receive at least some money for
"under-emission" of greenhouse gases of industrial Ukraine in geneal. Therefore, they are encouraged "to launch environmental steps while
implementing general
programs of technical upgrade of main production assets.