Under the Kyoto Protocol, developed countries committed to reducing their greenhouse gas (GHG) emissions by at least 5% below 1990 levels over a period from 2008 to 2012. This commitment is accompanied by so-called « flexible » mechanisms by which these States are authorized either to exchange GHG emission rights between themselves, or to develop between themselves industrial or energy projects that reduce GHGs (Joint Implementation procedure – JI ), or, finally, to carry out GHG reduction projects in developing countries according to the Clean Development Mechanism (CDM).
Of all these mechanisms, the CDM is of particular importance both by its nature and by its economic and financial potential. Politically, it presents itself as the only mechanism through which developing countries voluntarily contribute to the reduction of GHG emissions while welcoming technologies contributing to their development. On the financial level, the « carbon credits » that the CDM should generate over the period from 2008 to 2012, would reach more than 3.7 billion metric tons of CO2 equivalent, or approximately 75 billion dollars.
A formidable ecological and financial challenge, the CDM is based on totally innovative procedures which find their origin in public international law but combine, in their application, sui generis legal and financial techniques that only a new perspective can embrace in their entirety. . Such is the purpose of this book, which describes all the legislation of the United Nations from its broad outlines to its most detailed texts, both in its general and procedural aspects, with great emphasis being given to the method and the conditions of presentation of the projects for the approval of the United Nations. Finally, transactions relating to carbon credits, in particular sales contracts and the related financial transactions, are covered in the form of a commented study of the different standard contract models.
Businesses and lawyers have been waiting for such a book since none exists. The former will find practical information enabling them to study and implement their projects. The latter will also discover elements serving as a basis for reflection on a new branch of law.
Jean-Charles BANCAL, carbon market specialist at the law firm Fasken Martineau in Paris, holds a doctorate from the University of Lille and an LL.M from Harvard University.
Julia KALFON, member of the Paris Bar since January 2006 and holder of a DESS in Litigation, Arbitration and Alternative Methods of Conflict Resolution from the University of Paris II and a DEA in Public Law of Economic Activities from the University of Paris XII, is a lawyer with the law firm Fasken Martineau.
Yang LIU, CDM and carbon market expert, graduated from HEC Paris and Beijing Foreign Studies University. He is currently Senior Consultant at Cap Gemini Paris.