Kyoto Protocol implementation in Serbia as precognition of sustainable energetic and economic development

Abstract

The paper gives reasons for low energy efficiency typical of the Serbian economy, which is based on outdated and dirty technologies. The comparison of selected economic indicators and indicators of energy efficiency in both Serbia and the European Union points out the benefits of the Kyoto Protocol implementation due to the growth of competitiveness in the global market. Serbia has no obligation to reduce GHG emissions, the authors point to the proposals whose implementation along with the mechanisms of the Protocol can enable Serbia the access to markets that trade GHG emissions and the access to dedicated funds, self-financing or attracting foreign investments to raise energy efficiency, which will be accompanied by adequate economic benefits. A similar principle can be applied in all countries that are not obliged to reduce GHG emissions. The application of different mechanisms aiming to increase energy efficiency in Serbia, could contribute to the increase of GDP annual growth rate from 5% to 7%, which cannot be achieved by any other economic instrument. Energy efficiency, which is actually a question of competitiveness of each economy, can finance itself through the mechanisms of the Kyoto Protocol by selling excess emissions resulting from improved energy efficiency.