ABSTRACT
The tradeable units within the ETS will be emissions reduction ‘allowances’. Allowances will be created by government, unless imported from recognised international sources. These allowances, as provided for under the Kyoto Protocol, will be denominated in tonnes of CO2 or its equivalent and each will have a unique serial number. For the non-CO2 GHGs an index allows a comparison against the equivalent in global warming impact of a tonne of CO2, hence the reference to CO2 or its equivalent.
