Green investment scheme

Green investment scheme

A Green Investment Scheme (GIS) refers to a plan for achieving environmental benefits from trading ‘hot air’ under the Kyoto Protocol.

Under the Kyoto Protocol many economies in transition (e.g. Russia and Romania) were allocated emission commitments, so-called “assigned amounts”, well above their emissions at the time. Arguably, the commitment level surplus would allow these countries’ emissions to grow as their economies recover, but even with rapid growth of emissions the emissions will be well under their target (see Hot air. Article 17 of the Kyoto Protocol allows countries to sell their surplus as Assigned Amount Units (AAU), where one AAU is equivalent to one tonne of CO2 emitted) to countries in deficit. Environmentalists and many European countries oppose such trading by on the grounds that it would undermine the Kyoto ambitions by allowing buyers to emit more without the sellers needing to do any effort to reduce emissions – the ‘hot air’.

The Green investment schemes are supposed to provide environmental benefits of hot air trading by earmarking revenues from these transfers for environmentally related purposes in the seller countries. Various GIS proposals exist, some requiring strict quantification of actual emissions reduced.

The EU, and individual member states, are likely to invest through GIS only in quantifiable projects with relatively strict verification and additionality requirements. Japan is likely to be the largest buyer of Russian AAUs. The Japanese approach is that GIS should include all activities – quantifiable and non-quantifiable – with investors free to decide their degree of ‘greenness’.

ee also

* Carbon emissions trading
* Kyoto Protocol


* "A Russian Green Investment Scheme. Securing environmental benefits from international emissions trading" Published July 2002 by Climate Strategies. Authors: Kristian Tangen, Anna Korppoo, Vladimir Berdin, Taishi Sugiyama, Christian Egenhofer, John Drexhage, Oleg Pluzhnikov, Michael Grubb, Thomas Legge, Arild Moe, Jonathan Stern, Kenichiro Yamaguchi. [ link]
* "Green Investment Schemes: Options And Issues". OECD environment directorate and International Energy Agency. Authors William Blyth and Richard Baron (International Energy Agency). Published by Organisation for Economic Co-operation and Development (OECD) 2003, COM/ENV/EPOC/IEA/SLT(2003)9 [ link]

Developing a Green Investment Scheme in Romania (1.21-Mbyte MS DOC File, 68 pages, 2006)Authors: Lavinia Andrei, Adina Relicovschi, Veronica TozaCoordinator: Maria Khovanskaya [ link]

Wikimedia Foundation. 2010.

Look at other dictionaries:

  • Green Alliance — is an independent charity and green think tank working on environment policy in the United Kingdom (UK). It works with senior decision makers in government and business, and other major environment groups. It conducts research, holds seminars and …   Wikipedia

  • Green building — *LEED 2.0 Gold certified *Green Power *Native LandscapingGreen building is the practice of increasing the efficiency with which buildings use resources energy, water, and materials while reducing building impacts on human health and the… …   Wikipedia

  • Green electricity in the United Kingdom — There are a number of suppliers offering green electricity in the United Kingdom, either supplying electricity from existing environmentally friendly energy sources, promising to invest a proportion of profits into new renewable energy generating …   Wikipedia

  • Green building — Die Konzernzentrale von Adobe in San Jose wurde mit drei Platinumzertifikaten der LEED ausgezeichnet und ist damit eines der „grünsten“ Gebäude der Welt …   Deutsch Wikipedia

  • Green certificate — A Green Certificate also known as Renewable Energy Certificates (RECs) is a tradable commodity proving that certain electricity is generated using renewable energy sources. Typically one certificate represents generation of 1 Megawatthour of… …   Wikipedia

  • Max Green — Occupation Company director, Lawyer This article is about the lawyer. For the musician, see Max Green (musician). Max Green (1952 25 March 1998) was an Australian lawyer who embezzled millions of dollars and was later murdered in Cambodia.… …   Wikipedia

  • Pyramid scheme — The unsustainable exponential progression of a classic pyramid scheme A pyramid scheme is a non sustainable business model that involves promising participants payment or services, primarily for enrolling other people into the scheme, rather than …   Wikipedia

  • Get-rich-quick scheme — Easy money redirects here. For other uses, see Easy Money (disambiguation). A get rich quick scheme is a plan to acquire high rates of return for a small investment. The term get rich quick has been used to describe shady investments since at… …   Wikipedia

  • New Zealand Emissions Trading Scheme — See also: Climate change in New Zealand The New Zealand Emissions Trading Scheme (NZ ETS) is a national all sectors all greenhouse gases all free allocation uncapped emissions trading scheme. The NZ ETS was first legislated in September 2008 by… …   Wikipedia

  • Offshore investment — is the keeping of money in a jurisdiction other than one s country of residence. Offshore jurisdictions are a commonly accepted solution to reducing tax burdens levied in most countries to both large and small scale investors alike. Poorly… …   Wikipedia