Emission trading

These market instruments become increasingly important in countries' strategies to deal the climate change. Green Certificate Trading may also have positive impacts for the local environment.

• Only few experiences: These instruments are quite new and final modi operandi are not yet clear. Several countries have started to explore potentials and have defined first projects. Green Certificate Trading is under operation in some countries meanwhile, where national emission targets have been approved by law. The principle is always the same, that one party invests into measures of another party, who is able to reduce by these measures the emissions of both parties as a lump sum.

• Research and development: For developing countries and with the purpose to attract also foreign investments the CDM mechanism is the proper framework to follow. To identify eligible projects for emission trading the responsibility of municipalities is asked too. Projects are eligible, if they are (a) additional to existing measures, (b) voluntary, what means not mandatory and (c) of high relevance to reduce greenhouse gas emissions, which has to be proofed.

• Effects: Attract investments and reduce emissions.

• Obstacles to be aware: Not enough information and knowledge how to proceed. Lack of experiences. The answer is to start with first pilot projects on feasibility study level.