Mitigation of energy related greenhouse gases: Kyoto Protocol flexibility mechanisms and Turkey

With the industrialization process in 1850?s, according to the human activites such as excessive usage of fossil fuels, land use change, deforestation and industrial processes, increased concentrations of greenhouse gases in the atmosphere has caused an unprecedented rise in global temperatures and climate change problem. The United Nations Framework Convention on Climate Change and The Kyoto Protocol have entered into force respectively to solve these problems in the international arena. Owing to the fact that Turkey is located at the Mediterranean Basin, an area which will be affected most severely by climate change, she has signed both these agreements. While Protocol, which brings quantified greenhouse gas emission reduction obligations to developed countries was submitted for signature, Turkey was not a party to the UNFCCC. Therefore she was not included in Annex B to the Kyoto Protocol and didn?t get emission reduction target.The Kyoto Protocol as the most important step towards climate change, introduced three market-based mechanisms. These are emission trading, clean development mechanism and joint implementation. By means of these mechanisms, carbon dioxide has become a commodity that is bought and sold in the carbon market. In 2009, the value of the compliance market rose to 144 Billion US Dollars and around 8,7 Billion Tonnes of Carbon Dioxide Equivalent changed hands across the market. At present Turkey develops carbon projects for the voluntary carbon market which is much smaller than the compliance market. In addition to this, Turkey solidifies her position in the voluntary market which is only realistic option for Turkey until 2012.Although a comprehensive regime to address the dramatic threat of climate change and follow up the Kyoto Protocol hasn?t been established yet, during the COP 16, which is expected to be held in Cancún, Mexico, from 29 November to 10 December 2010, parties could possibly reach a new deal to replace the Kyoto Protocol, which expires in 2012. Until then studies taking into account the present situation and future scenarios and examine Turkey?s position under the developing carbon market getting more important.In the light of these assessments, the aim of the study is to point out the deficiencies and the risks of the present implementations and propose a new system in order to increase Turkey?s carbon market share. To achieve this goal, Kyoto Protocol flexibility mechanisms and voluntary emission trading was examined in the thesis.In this context in the thesis, the economics of the emission trading and the best practices from the countries have been examined. Afterwards analysis have been done regarding to the voluntary carbon market. Besides, obstacles in the way of voluntary market have been revealed and proposals have been introduced. At present Turkey is negotiating possibility of being non-Annex 1 country and hosting CDM, but it seems hard to achieve. So, in the future climate rejime Turkey may be classified under the Annex 1 and may commit to make deep emission cuts. Therefore in the thesis a pilot emission trading scheme is proposed for Turkey. Risks that system would bring have also been underlined.