ETS goes global
The European Union Emissions Trading System (EU ETS) is being connected to the EU Community Independent Transaction Log (CITL) and the UNFCCC International Transaction Log (ITL), according to a report in environmental-expert.com. The Kyoto Trading system from now on will allow governments and legal entities from around the world to exchange emissions rights and take advantage of Clean Development Mechanism (CDM) credits on a global scale.
“Earlier, five national registries had already joined the ITL along with the CDM registry.
‘This event finalizes the infrastructure required for successful operation of all flexibility mechanisms under the Kyoto Protocol,’ the UN’s top climate change official said.’ In terms of carbon market, ETS go live with the ITL expands the market size of carbon allowances in industrialized countries from about 24 billion tonnes CO2 equivalent to almost 50 billion, in addition, the CDM is expected to add soon another 100 million credits to the market.’
The UNFCCC secretariat plans to link the registries of Iceland, Liechtenstein, Norway, and the Ukraine later in October–November this year.
At that time almost all industrialized countries with emission reduction targets under the Kyoto Protocol will have full access to the implementation of market-based mechanisms.‘The complete architecture of the Kyoto Protocol becomes fully operational this year. We have explicit emission reduction targets in place for most industrialized countries; we have established a credible, comprehensive system for reporting and verifying GHG emissions; and now we are completing the infrastructure for using the carbon market as a cost-effective means for meeting the targets,’ emphasized Mr. de Boer.
The ITL will re-start processing transactions at 8:00 AM (CEST), on Thursday, 16 October 2008.”