SANTA BARBARA PROTOCOL TO BE INCLUDED AS AN AMENDMENT TO THE KYOTO PROTOCOL TO THE UNITED NATIONS FRAMEWORK CONVENTION ON CLIMATE CHANGE Santa Barbara August 18 2005 The Parties to this Protocol, Being Parties to the United Nations Framework Convention on Climate Change, hereinafter referred to as "the Convention," In pursuit of the ultimate objective of establishing an environmental protocol that promotes sustainable development, Acknowledging that change in the Earth's climate and its adverse effects are a common concern of humankind, Concerned that human activities have been substantially increasing the atmospheric concentrations of greenhouse gases, that these increases enhance the natural greenhouse effect, and that this will result on average in an additional warming of the Earth's surface and atmosphere and may affect natural ecosystems and humankind, Aware of the cooling effect of some aerosols and their ability to mask the enhanced warming, Aware of the limited resources of non-renewable energy, and the likelihood of international conflict arising from the dependence of energy between nations, Aware of the growing demand on energy and the necessity to increase efficiency in usage, Aware of the role and importance of terrestrial and marine ecosystems as sinks and reservoirs in absorbing excess greenhouse gases emitted, Propose this amendment to the Kyoto protocol as a global effort--under the lead of capable “Annex A” nations with substantive support from “Annex B” nations and able support of “Annex C” nations --to stabilize climate change with wide ranging programs that require active cooperation and sustained effort at global, regional, national, and local levels. Have agreed to amend the Kyoto protocol as follows Article 1 Definitions GDP per Capita: Total gross domestic product of a country divided by the total population AAU (Assigned Amount Units): Carbon credits which can be traded, sold, or bought at the discretion of the holder. The AAU’s are redeemable for the emission of one metric ton of carbon. AAU’s can be used or stored at any time. AAU’s are not to be bought, sold, or traded from a non ratifying country. Aerosols: Particles suspended in the atmosphere that have sizes ranging from 0.002 µm to more than 100 µm. Annex A countries: Signatory countries whose annual GDP per capita exceeds US$20,000. Annex B countries: Signatory countries whose annual GDP per capita is between US$19,999 and US$3,000. Annex C countries: Signatory countries whose annual GDP per capita is below US$2,999. Alternative Energy: any form of energy that is not primarily fossil fuel- based or does not use up natural resources or harm the environment. Biodiversity: the number and variety of organisms found within a specified region (includes plants, animals, fungi and microbes). Clean Development Mechanism (CDM): The Clean Development Mechanism (CDM) is a Flexibility Mechanism created under the Kyoto Protocol. It allows developed nations to achieve part of their reduction obligations through projects in developing countries that reduce greenhouse gas emissions or 'fix' or sequester CO2 from the atmosphere. Emission intensity: A measure of a nation’s emission intensity calculated by dividing the emissions in tons of carbon by the GDP. Energy intensity: A measure of a nation's energy efficiency calculated by dividing the energy consumed by GDP. Green House Gases (GHG): Gases such as Carbon Dioxide, Methane, Nitrous Oxide, Ozone, and aerosols which contribute to the greenhouse effect. Greenhouse effect: A natural process in which longwave radiation is absorbed by certain gases in the atmosphere and reemitted in all directions. This phenomenon is enhanced by anthropogenic (human induced) forcing. Global Warming: A term used to describe the increase over time of the average temperature of the Earth's atmosphere and oceans. Landfill: A method for final disposal of solid waste in which the refuse is spread and covered with a layer of soil. Recycling: The process by which discarded materials are collected, sorted, processed and converted into raw materials and used in the production of new products. Renewable Energy: Any energy resource that is naturally regenerated over a short time-scale and derived directly from the sun, indirectly from the sun or from other natural movements and mechanisms of the environment. Sustainable Development: The ability to provide for today without compromising the ability of future generations to provide for themselves. Tax incentive: A tax deduction that is granted in order to encourage a particular type of commercial activity. Waste: Unwanted material that is left over, anything that is deemed unusable. Article 2 Principles Biodiversity: The signing countries shall maintain current ecological reserves and make reasonable efforts to increase them. Parties shall also prevent degradation, desertification, or destruction of land and prevent the demise of the wildlife within. The aforementioned areas are important for carbon sinks and play an import role for earth’s albedo. Education: The signing countries understand that education programs may instill awareness of the adverse impacts of global climate change and the mitigation of those impacts. The Parties agree that locally launched programs shall educate citizens on the environment and renewable energy sources, energy efficiency and savings, energy conservation and recycling, as well as population control through family planning. Population limitation: The signing countries realize that the global population is of great importance in the future. A decline in population growth will lead to a more sustainable level of GHG emissions. Thus an immediate effort is necessary to curtail population growth. Precautionary Principle: Incomplete scientific evidence should not be used as reason for delaying action to initiate practices that will reduce anthropogenic greenhouse gas emissions. However, when taking action, it is important to use discretion and take into consideration the amount of scientific consensus and economic influence that restrictions and protocols will have on the global society and economy. Sovereignty: The right of each and every country to exercise independence, unwavering control and power over its territories. Every country has the right to allocate the usage, worth, and longevity of their natural resources. Individual countries have the right to decide how capital and resources affect their own policies, without adversely affecting another countries’ natural and capital assets. Sustainable Development: The ability to provide for today without compromising the ability of future generations to provide for themselves, shall be supported. However, it should be recognized that each country's development will be different and dependent on their unique situation. The creation and spread of alternative technologies and improved waste management implemented on a global scale should lead to a more stable and habitable climate, increase the overall quality of health, environment, and community around the world. Article 3 – Amendment The Parties recognize that: I. Global anthropogenic greenhouse gas and aerosol emissions currently have the largest human-induced impact on the climate system; II. The uncertainty surrounding the negative impacts of global anthropogenic greenhouse gas and aerosol emissions is not enough to justify inaction; III. Global reductions in greenhouse gas emissions required to fully abate their detrimental impacts may have a high cost, will require significant sacrifice, will depend on the fellowship of humankind in a manner never achieved before, and will only become effective over a longer time scale. As such, the Parties propose an amendment to the Kyoto Protocol that endorses an active reduction of the main emissions defined in Article 1 of the Kyoto Protocol leading to global warming (positive radiative forcing) by all Parties, while acknowledging the difference between and within the Parties that are categorized as Annex A, B, and C. The terms of commitment in this amendment are relative to each Party's individual needs, abilities and willingness to cooperate. Through this amendment, the Parties commit to a strategy whereby each participating Party focuses on limiting anthropogenic greenhouse gas and aerosol emissions by: I. Implementing a carbon trading program that caps global emissions to emissions for specific years, allows for credits to be bought and sold in an established market (Article 4), serves as mechanism to stimulate development in Annex B and C countries, II. Developing and implement a transportation emission limitation strategy that will lead to the stabilization and eventual reduction of greenhouse gas and aerosol emissions from motor vehicles globally (Article 5), III. Developing a strategy that promotes a gradual transition from conventional fossil fuel energy production to alternative energy production, reflecting the technological and financial abilities of the Parties (Article 6), IV. Promoting the co-benefits of reducing greenhouse gas and aerosol emissions by emphasizing energy savings and recycling programs or technologies (Article 7), V. Developing a mechanism to promote the stabilization of population through a carbon emission credit program (Article 8). ARTICLE 4 – Carbon Trading The following signing parties agree that carbon trading is a feasible means to help reduce greenhouse gas emission and reduce global warming. Carbon trading also serves as a valuable market which benefits the economies of the parties involved. The signing parties agree to further review and revise this agreement in 2015. I. Given the different categories of countries (annex A, B and C) defined in this agreement The signatory nations agree to the following rules, regulations and stipulations: A. Annex A countries are required to reduce emissions to the 1990 levels set out in the Kyoto Protocol for each Annex I country by 2012. B. Annex B countries are required to reduce emission intensity by 5% by 2015. II. AAU’s will be managed by the CDMB by the following: A. Annex A countries will receive AAU credits based on their emission level of 1990. B. Any Party redefined as an Annex A country in the future will receive AAU credits based upon emission levels of 2005 following the same formula put forth for the Annex A countries today. C. In 2015, the Annex B countries which have reduced emissions by the required 5% and those exceeding the required 5% will be rewarded in the following manner: a. Parties will receive AAU credits based upon the % reduction reached given by the emission intensity, given as 2005 emissions/ GDP. For example, a 1% increase in AAU credits will be given for every 1% of efficiency if the 5% target is met. C. Parties that emit more emissions than prescribed by the above are required to purchase AAU credits from those parties that are willing to sell. One AAU credit may be used to emit one metric ton of carbon. D. A country may sell their AAU credits if they choose, but once they sell that AAU they can no longer emit that metric ton of carbon represented by the specific AAU credit sold. III. Modified Clean Development Mechanism (CDM) A. Annex A countries can further acquire AAU credits by financing, implementing and servicing GHG reducing technologies, energy efficiency technologies, or advanced waste disposal technologies in Annex B or Annex C countries. a. AAU credits will be awarded to the Annex A country which provide technology in a manner which assists the receiving country by measurably limiting its emissions. b. AAU credits will be awarded to the Annex A country which provides technology in a manner which assists the receiving country to become measurably more energy efficient. c. AAU credits will be awarded to the Annex A country which provides technology in a manner which assists the receiving country in achieving measurably more advanced waste disposal. d. In all cases, the implementing party will have the responsibility to provide evidence that the implemented advanced technology is a valid means in reducing GHG. B. Appropriate GHG’s are as follows: a. Methane, Carbon Dioxide, HFC’s and PFC’s b. AAU’s will be given according to the specific GHG that is reduced. C. GHG reducing, energy efficiency and waste disposal technologies established by Annex A or B countries in Annex B or C countries will be monitored by the CDM executive board to ensure that proper construction and operation are achieved for a period of two years. ARTICLE 5 – Transportation Transportation is a vital component of any comprehensive environmental action plan. Reducing dangerous emissions and increasing fuel efficiency will provide a much cleaner world. The emissions derived from transportation are significant and great improvements can be made in this area. The countries’ signatories recognize that improving the efficiency of transportation technologies would greatly reduce global anthropogenic contributions of greenhouse gas and aerosol emissions. The Parties agree to set requirements for new vehicle production and shall progress to meet these goals by 2025. Effects to change in transportation fall into three general areas: I. Current airline aircraft fleet configurations A decrease in the prevalence of highly inefficient aircraft and the expansion of more efficient alternatives over the next 25 years. II. Increase fuel efficiency to higher equal levels for both Annex A and Annex B countries while also decreasing carbon dioxide emissions into the atmosphere. Annex A and B will be required to: A. Increase fuel economy of all new production sedans to 48 miles per gallon (MPG) by 2025, B. Increase fuel economy of light trucks (half-ton and smaller) and heavy trucks (full-ton to under 8,500 pounds) to 40 MPG and 35 MPG, respectively A. Annex A countries must increase fuel efficiency of new scooter’s emissions by 40% by 2025 while Annex B countries must increase them by 30%. C . The regulation of these changes shall be under the jurisdiction of the CDMB to ensure compliance on the five-year period basis in accordance to the proposal. III. Modern mass transit systems A. These reforms are to be implemented in five year periods for 20 years. a. Busing i. Annex A countries will be required to convert 40% of their bus fleets to natural gas, fuel cell, or hybrid by 2025. ii. Annex B countries will be required to convert 30% of their bus fleets to natural gas, fuel cell, or hybrid by 2025. iii. Both Annex A and B countries will be required to have increased buses efficiency by at least 20% 2020. iv. Participatory nations will also be required to increase usage of buses in all cities exceeding five million by at least 1.25% per period. b. Train i. Annex A countries will be required to make improvements in light rail and require an expansion of at least 5% in track length and 3.5% in usage per period. ii. Annex B countries will be required to make improvements in standard rail and requires an expansion of at least 2.5% in track length and 5% in usage per period. iii. The usage increase should derive from public service campaigns, improved stations, and improved route efficiency. ARTICLE 6 – Alternative and Renewable Energy GHG gases and aerosols have a detrimental effect on the atmosphere and public health. The Parties agree on the need to expand the use of renewable sources of energy to abate the increased emissions of green house gasses (GHG) and aerosols into the atmosphere. All Parties recognize that developing renewable energy technology is necessary to create electricity without producing GHG and other pollutants to minimize the impacts of global warming. Each party has agreed to meet the following goals to lessen their reliance on conventional fossil fuel power generation. I. Renewable Energy Goals for each Party defined as Annex A, B, or C: A. Annex A countries will adhere to the following targets for percentage of total electricity generated from renewable sources: • 2015 – 12% • 2025 – 24% B. Annex B countries will adhere to the following targets as a percentage of electricity generation from renewable sources: • 2015 – 10% • 2025 – 18% C. Annex C countries are encouraged to adhere to any level of renewable energy until they reach a level of an Annex B. II. Funding for Renewable Energy A. Tax incentives are encouraged to promote private investment in renewable energy: a. Tax incentives will be unique to each country or state’s economy. b. Tax incentives are encouraged for signatory participants. B. Rebates on purchases of renewable energy sources at the residential, commercial and industrial level are recommended to encourage private sector investment. a. Rebates will be designed around each country or states economy. b. Rebates will be available for grid and non-grid connections. C. Reporting and Monitoring. III. The Clean Development Mechanism Board (CDMB) as defined in Article 9 will serve as an impartial monitoring body. A. Each country will provide an annual report on current and future status of renewable energy within their country to the CDMB. B. Reports will be open to review and audit by the CDMB. C . If reports are found to be incomplete or misleading, the country or countries concerned will be required to correct the errors prior to the changing of the chair of the CDMB. If the default is not corrected prior to this time, a carbon credit fine will be placed on the defaulting nation. IV. Enforcement A. AAU credits will be deducted for failure to meet the targets set. B. AAU credits will be awarded to those that exceed the targets set. C. The size of the rewards and fines will be determined by the CDMB. ARTICLE 7 – Energy Saving and Recycling The parties to this agreement recognize that increasing the efficiency of energy consumption can reduce emissions of greenhouse gases as well as lead to lowered energy expenses. Furthermore, the parties recognize that waste management and reduction can also lead to significant emissions reduction as well as improving the people’s quality of life, and that some Annex A nations have inefficient recycling programs while Annex B and C nations typically have only rudimentary systems in place. All parties recognize that energy efficiency can be increased and waste management and reduction can be improved, and that such actions will lead to a higher level of sustainable development and a diminished greenhouse effect. The parties to this Protocol, in accordance with the capabilities of each party, agree to: I. Setting recycling targets for waste materials: A . Annex A countries will adhere to a 40% overall recycling level in the next 15 years, 2020. B . Annex B countries will adhere to a 20% overall recycling level in the next 15 years, 2020. C. Annex C countries will adhere to a 8% overall recycling level in the next 15 years, 2020. This level of recycling may be obtained from any combination of the target materials such as those listed below: • Packaging cardboard • Office paper • Newsprint • Glass Bottles and Jars • Plastic Containers • Residential Mixed Paper • Grocery sacks, produce bags, and other packaging • Glass, Steel, Aluminum Cans and Foil • Old refrigerators, Heat Pumps & Air Conditioners • Batteries • Motor Oil, Tires and Car Batteries • Computer Printers • Compost D. If the target level- 40%, 20%, 8% of total waste and refuge recycled, is met by the 15 year deadline, appropriate action will be taken at the discretion of the CDMB. E. The CDMB will monitor each countries progress, and each country will report on their waste levels and recycling efforts. F. CDMB representatives will visit countries and recycling facilities to ensure honesty in these reports. II. Landfill Cost Deterrents: Coordinated national landfill price increases will promote responsible waste management and recycling. A. Annex A countries will apply a 5% additional charge on all landfills effective at the end of 2006. B. Annex B countries will apply a 4% additional charge on all landfills effective at the end of 2006. C. Annex C countries will apply a 2% additional charge on all landfills effective at the end of 2006. a. The cash value of the percentages will be evaluated based on the area’s existing landfill prices by weight. b. Governments will collect proceeds from these additional charges and reinvest them in local efficiency efforts. Funding will also be used to expand recycling programs in said nations and add funding to the recycling effort. c. Landfill Cost Deterrent rates will be re assessed every five years and adjusted according to necessity. d. Individual countries will be responsible for landfill monitoring and the recording of dumping levels from different sources, and assessing the additional costs to dumpers at the time of waste disposal. e. The CDMB will over see the entire process. III. Landfill Gas Reduction (LFG) and CDM A. Technology Transfer and AAU credits will be awarded to Annex A nations willing to assist in the instillation of Landfill Gas Projects in Annex B and C countries. It is estimated that a LFG projects will capture roughly 60-90% of the methane emitted from each participating landfill, depending on system design and effectiveness. B. AAU credits will be assessed to the donating countries by the tons of carbon equivalent methane reduced by successful LFG projects. C. The credits will be awarded at current market value at the time of completion of LFG projects. D . The credits will be assessed as a one time award and will be received by donating nations one year after the completion of said projects to ensure methane reduction results prior to receiving credits IV. Increasing energy efficiency: A. Annex A parties must improve the energy efficiency of their government buildings as well as industrial and commercial businesses above 100 employees so that they are 10% more efficient than the 2005 level by 2015, and 20% more efficient than the 2005 level by 2025. Industrial and commercial businesses under 100 employees will be subject to improving their buildings’ efficiencies by 5% more than the 2005 level by 2015, and 10% more efficient than the 2005 level by 2025. B. Annex B parties must reduce their primary energy intensity by 10% by 2010, 20% by 2015, and 30% by 2020. C. Annex C parties must reduce their primary energy intensity by 1% per year through 2015. Annex A parties can use energy-efficient technology transfer to obtain AAU credits based on the estimated emissions reductions created by the use of the technology. These mandates will be monitored by the CDMB, and each ratifying party must report their national energy use statistics annually according to the CDMB’s guidelines, while businesses must submit documentation of their energy use annually. Financing for the ratifying Annex B and C parties’ compliance with the mandates will be provided by loans, available at discounted rates, obtained with the assistance of international banking organizations for approved energy efficiency projects. Failure to comply with the mandates will result in a loss of access to the discounted rate loans. ARTICLE 8 – Population Continuing population growth at the current rates induces increased greenhouse gas emissions at unsustainable levels. The signatory parties recognize that population expansion is an issue threatening the current state of greenhouse gas emissions. The parties agree that an immediate effort towards curbing global population growth is necessary and propose to focus on family planning and contraceptive services to ease the burden of an ever-growing population by significantly reducing birth rates. Voluntarily participation in the implementation of these programs in Annex-C countries in exchange for carbon emission credits should be pursued. Assuming family planning and contraceptive services will reduce population, and therefore reduce emissions per capita, the country providing financial support for family planning and contraceptive services will receive AAU credits in exchange. The amount of AAU credits to be given in exchange of financial support of population reduction programs is determined by the following: Given statistical information, one unplanned pregnancy is prevented at the cost of US$ 20 through family planning and contraceptives in developing countries. Assuming emissions per capita per country differ, and assuming the countries birth rate, the amount of carbon emissions that would be prevented was calculated as follows for Ethiopia and Honduras: I. Ethiopia: $48 spent toward family planning and contraceptive services equals one ton of carbon credits for the donating country. II. Honduras: $24 spent toward family planning and contraceptive services equals one ton of carbon credits for the donating country. ARTICLE 9 – Clean Development Mechanism Board The Clean Development Mechanism Board will be established to manage, regulate and finance these programs. This board will be chaired by three representatives, of nations from each Annex for a period of one year. After the one year period the chairs will alternate to other signatory representatives, so that each party represented will hold the position of board chair. I. This board is responsible for regulation between Annex A and Annex B or C countries using the following programs proposed by the parties of this protocol: A. Development and implementation of technology increasing energy efficiency. B. Development and implementation of mechanisms leading to the overall reduction of the demand of energy. II. This board is also responsible for the following interactions of countries and the global effort against the enhanced greenhouse effect A. Monitoring and determining a countries status as an Annex A, B or C country. B. Regulating emissions by each country and progress made to projected targets A. Managing tradable AAU credits for each country-to-country trade, purchase or development. III. Funding for the aforementioned board shall be acquired through a levy exercised on the AAU credits being exchanged.