I.5 Emissions trading 29
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I.5 Emissions trading 29 book
Oversight of the mechanisms’ eligibility conditions is to be provided by the Enforcement Branch of the Compliance Committee in accordance with Decision 24/CP.7. Enforcement Branch procedures and timetables for how mechanism eligibility will be assessed are explained briefly in section I.8 below.
Article 17 requires the COP (not the COP/MOP) ‘to define the relevant principles, modalities, rules and guidelines, in particular for verification, reporting and accountability for emissions trading’ among Annex B Parties with the proviso that such trading shall be supplemental to domestic action for the purposes of meeting the quantified commitments under Article 3. Because more substantive provisions on trading threatened adoption of the Protocol, the three short sentences of Article 17 represent all that could be agreed in Kyoto. Four years of negotiations later, the IET modalities agreed at Marrakesh barely run to two pages – evidence enough that if foundational principles can be agreed, the conceptual simplicity of emissions trading is an alluring feature, but one which requires binding targets, robust reporting and a strong national and international infrastructure to monitor, track, verify and compel compliance to make good its promise. The following sections provide an overview of IET under the Protocol and sets out the salient features of the trading modalities agreed at Marrakesh.