Climate Change: The Political Economy of Kyoto Flexible Mechanisms

Abstract

The Kyoto Protocol entered into force on February 16, 2005. Emissions reductions targets established by the protocol will be met by domestic policies and by three international flexible mechanisms: clean development, joint implementation, and emissions trading. Following a value-theoretic and class-based approach, the purpose of this paper is to analyze these flexible mechanisms. In particular, the paper investigates the nature and adoption of flexible mechanisms, and their class and environmental links and implications. Carbon-intensive capitalist firms and developed economies are found to be exerting great influence on the shaping and implementation of flexible mechanisms. Environmental effectiveness and justice, and equal sustainable development raised and claimed by worker-citizens, social movements, local communities, and developing countries have not been secured. Thus flexible mechanisms do not present a real challenge to current institutions and practices for sustainable climate conditions for the workers-citizen of the world. JEL classification: B5, P1, Q4