general background: Kyoto, European Union Emission Trading Scheme (EU ETS)
etc and links
Whilst the background to the Stern review inevitably includes much science, at the global political level, it is Kyoto which represents the turning point with its key objective in article 2. This sets particular emission limits and future reduction targets to individual countries and charges them with improving energy efficiency, reforming policies, more sustainable land usage, altering taxes and financial incentives and implementing a host of other changes including the application of market instruments.
These “market instruments” are described concisely in the link (right) and essentially include: the Clean Development Mechanism (CDM) (e.g. developing solar cell-based power in a developing nation), Joint Implementation (e.g. where one developed country assists another e.g with a reforestation programme), and International Emissions Trading (e.g. Carbon trading). The latter links with CDM through the possibility of gaining Emission reduction units ERUs – see section on Carbon trading.
The largest International Emissions Trading scheme to date is the European Union Emission Trading Scheme (EU ETS). Each EU Member State is required to produce a National Allocation Plan (NAP) setting out the total quantity of allowances that it intends to allocate for the period in question. The NAP also lists each installation covered by the EU ETS and how Member States propose to allocate allowances to those installations (Article 9 of Kyoto). More information about the UK’s NAP can be found on the DEFRA link.
protocol to the United Nations Framework Convention on Climate Change
European Union Emission Trading Scheme (EU ETS)
DEFRA UK National Allocation Plan