"Supplementarity", also referred to as "the supplementary principle", is one of the main principles of the
Kyoto Protocol
The Kyoto Protocol 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 (part ...
. The concept is that internal abatement of emissions should take precedence before external participation in flexible mechanisms. These mechanisms include emissions trading,
Clean Development Mechanism
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 internati ...
(CDM), and
Joint Implementation Joint Implementation (JI) is one of three flexibility mechanisms set out in the Kyoto Protocol to help countries with binding greenhouse gas emissions targets (the Annex I countries) meet their treaty obligations. Under Article 6, any Annex I count ...
(JI).
Emissions trading basically refers to the trading of emissions allowances (
carbon credits
A carbon credit is a generic term for any tradable certificate or permit representing the right to emit a set amount of carbon dioxide or the equivalent amount of a different greenhouse gas (tCO2e).
Carbon credits and carbon markets are a compo ...
) between one regulated entity and a less pollutive entity. This trading of permits results in a marginal economic disincentive to the buyer and a marginal economic incentive the abater.
CDM and JI are flexible mechanisms based on the concept of a
carbon project
Business action on climate change includes a range of activities relating to climate change, and to influencing political decisions on climate change-related regulation, such as the Kyoto Protocol. Major multinationals have played and to some ext ...
. These projects reduce GHG voluntarily (outside the capped sectors) and therefore can be imported into the capped sector to aid in compliance.
The supplementarity principle is found in three articles of the Kyoto Protocol: article 6 and 17 with regards to trading, and article 12 with regards to the clean development mechanism.
Article 6.1 states that "The acquisition of emission reduction units shall be supplemental to domestic actions for the purposes of meeting commitments under Article 3". Article 17 states that "
€¦ny such trading shall be supplemental to domestic actions for the purpose of meeting quantified emission limitation and reduction commitments under that article". Article 12.3.b states that "Parties included in Annex I may use the certified emission reductions accruing from such project activities to contribute to compliance with part of their quantified emission limitation and reduction commitments under Article 3
€¦.
The actual meaning of the principle has been heavily argued since the signing of Kyoto Protocol in 1997. The COP/MOP is the body that represents the signers/ratifiers of the protocol and they have not been able to agree on a specific definition of the limit on use of flexible mechanisms. The original text has been interpreted to mean that anywhere from 3-50% of emissions could be offset by trading mechanisms. However, the only determination that has been made is that the actual value of supplementarity should be decided at the country level.
In the United States RGGI (Regional Greenhouse Gas Initiative) has set a precedent in that it will initially allow only up to 3.3% compliance occur by means of offset projects (
carbon project
Business action on climate change includes a range of activities relating to climate change, and to influencing political decisions on climate change-related regulation, such as the Kyoto Protocol. Major multinationals have played and to some ext ...
s). This value can increase to 5% and ultimately 10% if certain price thresholds are exceeded in the region.
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See also
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Emissions trading
Emissions trading is a market-based approach to controlling pollution by providing economic incentives for reducing the emissions of pollutants. The concept is also known as cap and trade (CAT) or emissions trading scheme (ETS). Carbon emission t ...
*
Kyoto Protocol
The Kyoto Protocol 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 (part ...
*
Paris Agreement
The Paris Agreement (french: Accord de Paris), often referred to as the Paris Accords or the Paris Climate Accords, is an international treaty on climate change. Adopted in 2015, the agreement covers climate change mitigation, Climate change a ...
*
UNFCCC
The United Nations Framework Convention on Climate Change (UNFCCC) established an international environmental treaty to combat "dangerous human interference with the climate system", in part by stabilizing greenhouse gas concentrations in the ...
References
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Emissions reduction
United Nations Framework Convention on Climate Change