On the Compatibility of Flexible Instruments

The Third Conference of the Parties to the Climate Convention was held in Kyoto, Japan, in December 1997, the result being the Kyoto Protocol. Among the matters accepted by the parties to the Protocol were three Flexible Instruments: Joint Implementation, the Clean Development Mechanism, and International Emissions Trading. However, it soon became clear that the translation of the Protocol provisions into concrete action would raise many questions on the precise interpretation and meaning of the Protocol text. The present volume is one of the first to address the issue of how the three Flexible Instruments might work out in practice, and how they might interfere with each other. Among the issues addressed are: How might the net abatement of particular CDM/JI projects be determined? Who is liable for non-compliance in international emissions trading? Is there a need for credit sharing? Can incentives be provided for early action? All contributions are written with an eye on supporting the policy making process.