Methods for ensuring compliance in an international greenhouse gas trading system
- Center for Clean Air Policy, Washington, DC (United States)
At the third Conference of the Parties to the UN Framework Convention on Climate Change held in December, 1997, the international community established binding greenhouse gas (GHG) emissions obligations for industrialized countries. The Parties to the new Kyoto Protocol also agreed on the use of a number of market-based mechanisms, including international GHG emissions trading. These market mechanisms were of critical to the importance because they have the potential to significantly reduce the costs of treaty compliance. In principle, an international cap-and-trade system appears to be one of the most cost-effective means of reducing GHG emissions. Maintaining the integrity of the trading system is of primary importance in ensuring that trading helps countries to meet their GHG commitments. This paper explores methods for ensuring compliance in an international greenhouse gas trading system, starting with a discussion of preconditions for participation in trading and then moving to features of an international compliance system. Achieving maximum compliance with international requirements may best be accomplished by limiting participation in trading to Annex I countries that maintain strong domestic compliance systems. Prior to the climate negotiations in Kyoto in December 1997, the US Administration proposed a number of preconditions for participation in trading, including the adoption of international measurement standards and the establishment of domestic compliance and enforcement programs. This paper explores these and other preconditions, including the establishment of tough domestic financial penalties on companies that exceed allowed emissions and seller responsibility for the delivery of real reductions. The paper also discusses several necessary features of the international compliance system.
- OSTI ID:
- 679362
- Report Number(s):
- CONF-980632-; TRN: IM9940%%181
- Resource Relation:
- Conference: 91. annual meeting and exhibition of the Air and Waste Management Association, San Diego, CA (United States), 14-18 Jun 1998; Other Information: PBD: 1998; Related Information: Is Part Of Proceedings of the 91. annual meeting and exhibition. Bridging international boundaries: Clean production for environmental stewardship; PB: [5000] p.
- Country of Publication:
- United States
- Language:
- English
Similar Records
UNFINISHED BUSINESS: The Economics of The Kyoto Protocol
Impacts of the Kyoto protocol on U.S. energy markets and economic activity