Guide on Climate Change and Indigenous Peoples

• The emissions credits that the countriesearn can be used in meeting theircommitments and are supposed to bringabout the identification of “lowest-costopportunities” to reduce emissions.• Participation of the private sector can alsobe drawn in and assures a benefit fordeveloping nations by way of technologytransfers and “investment brought aboutthrough collaboration with industrializednations under the CDM.”• Flexibility in meeting the “binding targets”are built in within the Kyoto Protocol.An example for a flexibility mechanismis when emissions of a country arepartially compensated by increasing“sinks” – forests - which remove carbondioxide from the atmosphere. 10 That maybe accomplished either on their ownterritories or in other countries. Or theymay pay for foreign projects that result ingreenhouse-gas cuts. 11What isEmissions Trading?Emissions Tradingwhich includes carbonemissions trading is verysimilar to the tradingof commodities in amarket place. Emissionstrading allows countriesto exchange emissionallowances.Below is an illustration ofNew Zealand’s EmissionsTrading Scheme. The NewZealand governmenthas decided to use anemissions trading schemethat is expected toestablish a New Zealandmarket for greenhousegas emissions, supportingglobal efforts to reducethese emissions. 12From: http://www.climatechange.govt.nz/images/ets-diagram.jpgPART I: Climate Change and Processes: An Overview 7