My name is Irina Stavchuk of the National Ecological Center of Ukraine. I am speaking on behalf of the Climate Action Network.
We are concerned about the carry-over of surplus Assigned Amount Units (AAUs) from the 1st commitment period. Estimates place this surplus at 7 to 11Gt CO2e, or roughly one third of current 2020 emissions reduction targets pledged by Annex I countries. Thus, surplus AAUs have the potential to undermine the environmental integrity and effectiveness of the second commitment period of the Kyoto Protocol.
This problem can be addressed by replacing Paragraph 13 of Article 3. We advocate setting a stringent discount factor, so that the annual average level of emissions carried over is severely restricted. These limited number of AAUs that have been carried over may only be used domestically in surplus holding countries for compliance in the next commitment period.
Let's be honest: the huge Kyoto surplus in Ukraine and Russia arose from a mistake in the estimate of projected business-as-usual scenario and not due to the implementation of effective climate change mitigation policies.
If the issue of surplus AAUs is not adequately addressed, developed countries can continue on a business-as-usual pathway. CAN questions the continuation of international emissions trading as a mechanism after 2012 if the Kyoto surplus issue is not fully addressed.
There are no excuses for not addressing the issue of surplus AAUs here in Cancun.