Climate change: Sustainable development, equity and market mechanisms

Climate change represents a global threat closely linked to the way human societies have developed in the last centuries. Its impacts are expected to be greater on developing countries due to their limited economic and technological resources, while their current responsibility for the problem is marginal. In an effort to conduct a cooperative international effort to fight climate change, the UN Framework Convention on Climate Change was signed in 1992 based mainly on the principle of the existing "common but differentiated responsibilities" among its Parties and with the objective of avoiding a dangerous human interference with the climate system. Even though the Convention has been ratified by more than 180 countries, its implementation has not been adequate nor sufficient. In 1997 the Kyoto Protocol was conceived with the aim of strengthening the commitments of the Convention. To that end, the Protocol establishes specific quantitative emissions commitments for developed countries and countries with economics in transition as well as three "flexibility mechanisms" (Joint Implementation, Emissions Trading and the Clean Development Mechanism) to fulfill such commitments in the most cost-effective manner. At this point, the international private sector and developing countries are two of the biggest supporters of the Protocol, though for different reasons. The mechanisms have called the attention of the private sector worldwide, which has led to the creation of the basis of an "informal" - the Protocol has not entered into force yet, given that the way it is going to be implemented is still being negotiated - emissions market. Developing countries expect that an early entry into force of the Protocol could reduce the possibility and intensity of future impacts and that the mechanisms could promote their sustainable development. Linking the use of market instruments to concerns such as equity and sustainable development could mean an effective way of fighting climate change.