Producer Responsibility Principle

Definition

Producer Responsibility Principle denotes

Context

The producer responsibility principle is underpinned by the polluter-pays-principle, which has been endorsed by the OECD countries since mid-1970s. In practice, direct emissions are easier to estimate, monitor and report. Also accounting for emissions within the boundary of national jurisdiction respects the sovereignty of states.

In order to determine the emissions each country is responsible for and to monitor the progress towards established targets, Kyoto requires that countries report, through national GHG inventories, "emissions and removals taking place within national (including administered) territories and offshore areas over which the country has jurisdiction". Through these national GHG inventories only direct emissions are accounted for, international transportation and indirect effects associated with international trade are excluded. This is the producer responsibility principle.

Issues and Challenges

The producer responsibility principle makes impossible the allocation of international transportation or other indirect effects, allows for Carbon Leakage phenomena through international trade and creates issues of fairness and competitiveness difficult to overcome, Kyoto Protocol places all responsibility on producers.

A country whose economy is mainly supported by exports will have, comparatively, more direct emissions than a non-exporting country. This framework is unlikely to be accepted by rapidly developing countries.