Japan will prepare for domestic ratification of the Kyoto Protocol next year, provided that governments are able to adopt formal texts on implementation rules for the treaty at the climate negotiations next month (COP-7).  Reaching agreement on the lengthy texts at COP-7 is possible, but will not be easy.

As the second largest economy, and about 10 percent of the world's greenhouse gas emissions, Japan's decision to ratify the Protocol would make it considerably more likely that the treaty will enter into force.  Since "political" agreement was reached in July on implementation rules for the Kyoto Protocol, Japan has expressed its commitment to the treaty but has not set a specific timeline for ratification.  Much of it efforts have been spent on trying to persuade the U.S. to offer an alternative to Kyoto or come back to the negotiation table on the treaty.

Given Japan's economic woes, several of its Ministries as well as its domestic industry sectors have cautioned against ratification.  These recent announcements represent more buy in from domestic government agencies and an attempt to build momentum for the upcoming climate talks. 

Moving ahead with ratification next year would allow the treaty to enter into force shortly after the tenth anniversary meeting of the Rio Earth Summit, scheduled for Johannesburg, South Africa next fall.  The EU has set fall 2002 as a goal for ratification.   

Japan's Next Steps for Ratification

Japan will take formal action next year if governments adopt formal decisions on the implementation rules for the Kyoto Protocol at COP-7.  Legislative action required for ratification includes adoption of a national implementation plan as well as the instrument of ratification.  Given the state of Japan's economy, adoption of a domestic implementation plan will likely be challenging. 

Kyoto Ratification and Reduction Obligations

The Protocol will enter into force after it has been ratified by at least 55 parties to the United Nations Framework Convention on Climate Change, including industrialized countries representing at least 55 percent of the total 1990 carbon dioxide emissions from that group.  Ratification would be possible if the EU, Japan and several economies is transition (or Canada) sign on.  

If the Protocol enters into force, national governments in countries that become a party to the treaty will devolve emission reduction obligations to domestic sources.  National governments will also decide whether, and how, the private sector can use the market-based mechanisms under the treaty - emissions trading and project-based mechanisms (Joint Implementation and the Clean Development Mechanism).

Please see the attached article from The Japan Times as well a presentation that outlines the key provisions of the Kyoto Protocol.

Please contact me with any questions.

   
  




Lisa Jacobson
Enron
Manager, Environmental Strategies
1775 Eye Street, NW
Suite 800
Washington, DC 20006

Phone: +(202) 466-9176
Fax: +(202) 331-4717