Calls for clarity after Kyoto

Following a report that describes the Kyoto Protocol as a failure for not having achieved carbon emission reductions, F&C's climate change expert Vicki Bakhshi said Kyoto has succeeded as the driver behind the creation of important regulatory frameworks and mechanisms which are crucial in the fight against climate change.

"The Kyoto Protocol is far from being perfect. It was created in a highly pressurised environment and many countries signed on to it without really thinking about how they were going to implement it at home. This is one of the reasons why some nations pulled out, and why others are really struggling to meet their targets," she said. "However, in setting up a framework of international targets and institutions, Kyoto has been a key catalyst for the development of policies and initiatives for climate change. The EU Emissions Trading Scheme, for instance, was set up to help EU countries to implement the Kyoto requirements in terms of reducing emissions." Kyoto has also allowed for the creation of the Clean Development Mechanism which is funding clean energy and other projects all around the world. "These initiatives have lead to concrete actions across many regions, even though some countries have been slower to act than others."

The report, written by Gwyn Prins from the London School of Economics and Steve Rayner from Oxford University and published in the science journal Nature, says that the climate policy after 2012, when the current Kyoto Protocol expires, needs a radical rethink. In December, the UN Climate Change Conference will meet in Bali to decide their post-2012 strategy.

"It is crucial to get clarity about what is going to happen in the future as soon as possible. Business planning horizons extend beyond 5 years and we are now coming up to the point where lack of clarity about what will happen beyond 2012 is becoming a real impediment for business planning, "she said.