Paris Agreement and Kyoto Protocol

The Paris Agreement was negotiated in December 2015 at COP-21 under the United Nations Framework Convention on Climate Change (UNFCCC). The Paris Agreement aims to continue the efforts to combat global warming initiated by the Kyoto Protocol. The latter, which came into force in 2005, aimed to reduce greenhouse gas emissions by 2012.

The Paris Climate Agreement was approved by all 195 delegations on 12 December 2015 and entered into force on 4 November 2016. It plans to contain warming "well below 2°C above pre-industrial levels" and if possible to aim at "continuing efforts to limit temperature increase to 1.5°C".

Nationally Appropriate Mitigation Measures (NAMA)

NAMAs are an instrument for countries that want to undertake voluntary measures to reduce GHG emissions as part of national sustainable development. This instrument was introduced in 2007 in the Bali Action Plan, and was then formalized and detailed. A NAMA registry was created in 2011.

NAMAs are defined in two contexts: 1. at the national level, it is an official submission by Parties declaring their intention to mitigate greenhouse gas emissions in a manner consistent with their capacity and in accordance with their national development objectives. 2. At the level of individual actions, NAMAs consist of detailed measures or groups of measures to help a country achieve its mitigation objectives in the context of national development objectives. These NAMAs are varied, ranging from project-based mitigation measures to sectoral programmes or policies.

Several funds exist to finance these mitigation measures, including the NAMA facility.

Clean Development Mechanism

The Clean Development Mechanism (CDM) was created under the Kyoto Protocol to enable Westerners to achieve their objectives by investing in projects in developing countries. It is the response to requests from developing countries (DCs) for a financial mechanism that supports economic development by adopting more "clean" production methods. Unlike Joint Implementation (JI), which gives priority to launching carbon storage or emission reduction projects, the CDM addresses development financing needs.

The mechanism generates emission credits on the basis of investment projects in a developing country. These projects, the nature of which remains to be specified and which are carried out by public or private investors, determine gas emission reductions compared to a reference situation. These rights can be stored or exchanged and must be shared between the foreign investor and the host country or partner. According to the text of the Kyoto Protocol, this mechanism will give rise to a tax, the base of which remains to be defined and which should contribute to financing the costs of adaptation of developing countries to global warming.

CDMs accounted for $5.4 billion in 2006 (508 million tons saved). In total, $8 billion has been generated in this way since 2002, generating $16 billion in global investment since 2002. China and India are the two main sellers, with Africa remaining largely absent with less than 3% of credits sold.

Carbon Diagnostics

The carbon diagnosis or carbon footprint of a human product or entity (individual, group, community...) is a tool for accounting for greenhouse gas emissions, which must take into account the primary energy and final energy of products and services.

It aims to inform carbon exchange trading systems, lay the foundations for effective solutions to reduce energy consumption, and can optimize ecological taxation (carbon tax, etc.) and certain compensation mechanisms. Such a diagnosis also makes it possible to study the vulnerability of an economic activity or a community and especially its dependence on fossil fuels, the price of which should increase in the coming years according to prospectivists.

In France, it is developed by the Association Bilan Carbone, and is used in France for the calculation of the Greenhouse gas emissions balance (BEGES), which article 26 of the text of the Grenelle II Law in France made mandatory for a number of structures (companies with more than 500 employees, local authorities with more than 50,000 inhabitants and public establishments with more than 250 employees) by 31 December 2012.

Carbon offsetting

The principle of carbon neutrality consists in offsetting ("carbon offsetting") the carbon dioxide emissions in the atmosphere of an activity using fossil fuels. Increasingly, this principle is part of the carbon credit market (cf. Kyoto Protocol) or the unregulated market, and is based on the concept of voluntary offsetting.

If it is part of a carbon market approach, offsetting is a financing mechanism that allows an entity (administration, company, association, individual) to substitute (in whole or in part) its own greenhouse gas (GHG) emissions with an equivalent amount of "carbon rights" by purchasing them from a third party. This implies being able to measure GHG emissions from productive activities, transport, heating, etc.