Project Parameters and Equitable Treatment

Abstract

This chapter deals with the nature of baselines, upon which reductions of greenhouse gas emissions, or leakages, i.e. additional escape of emissions, may be measured; environmental and financial additionality; and equitable treatment of project proceeds and benefits under the Kyoto Protocol. At the 12th Meeting of Subsidiary Bodies in June 2000, held in Bonn, an “Adaptation Fund”, and mandatory percentage contributions of the settled value of each and every carbon contract to the year 2012 towards this fund, were proposed. The author would like to express his appreciation to the United Nations Environmental Programme for adopting the generic concept of the LDC/IRISK (Least Developed Countries/Islands-at-Risk) Climate Change Fund in the June 2000 meeting. In the last part of the chapter, the criteria for selecting the project discount rate, and the effect of price support to projects, are examined.