UNITED NATIONS
NATIONS UNIES
FRAMEWORK CONVENTION ON CLIMATE CHANGE - Secretariat
CONVENTION - CADRE SUR LES CHANGEMENTS CLIMATIQUES - Secrétariat
For use of the media only.
PRESS RELEASE
Kyoto Protocol emissions trading system goes global
(Bonn, 14 October 2008) – The UN Climate Change secretariat announced on Tuesday that it is
on schedule to complete the live connection of the UNFCCC International Transaction Log (ITL)
with the European Union (EU) Community Independent Transaction Log (CITL) and 26 European
Union greenhouse gas emissions trading system (EU ETS) registries.
With the additions of the CITL and 26 EU ETS registries, the Kyoto trading system has
now the critical mass that allows governments and legal entities to exchange and use emissions
rights on a global scale, also taking advantage of credits stemming from the Clean Development
Mechanism (CDM) and Joint Implementation flexibility mechanisms of the Kyoto Protocol.
“ETS go-live has been a high priority project for the UNFCCC secretariat. We have
worked closely with the European Commission and the EU member states in coordinating the
extensive preparatory work that was necessary to achieve the full connectivity of the ETS
registries to the ITL; we are now very pleased by its clear success,” said UNFCCC Executive
Secretary Yvo de Boer.
The ITL is now ready for starting real-time operation with the CITL and the national
registries of Austria, Belgium, Bulgaria, Czech Republic, Denmark, Estonia, European Community,
Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg,
Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United
Kingdom. Earlier, five national registries had already joined the ITL along with the CDM registry.
“This event finalizes the infrastructure required for successful operation of all flexibility
mechanisms under the Kyoto Protocol,” the UN’s top climate change official said.” In terms of
carbon market, ETS go-live with the ITL expands the market size of carbon allowances in
industrialized countries from about 24 billion tonnes CO2 equivalent to almost 50 billion, in
addition, the CDM is expected to add soon another 100 million credits to the market.”
The UNFCCC secretariat plans to link the registries of Iceland, Liechtenstein, Norway, and
the Ukraine later in October–November this year. At that time almost all industrialized countries
with emission reduction targets under the Kyoto Protocol will have full access to the
implementation of market-based mechanisms.
“The complete architecture of the Kyoto Protocol becomes fully operational this year. We
have explicit emission reduction targets in place for most industrialized countries; we have
established a credible, comprehensive system for reporting and verifying GHG emissions; and
now we are completing the infrastructure for using the carbon market as a cost-effective means
for meeting the targets,” emphasized Mr. de Boer.
Mailing Address: CLIMATE CHANGE SECRETARIAT (UNFCCC), P.O. Box 260 124, D-53153 Bonn, Germany
Office Location: Haus Carstanjen, Martin-Luther-King-Strasse 8, D-53175 Bonn, Germany
Media Information Office: (49-228) 815-1005 Fax: (49-228) 815-1999
Email: [email protected] Web: http://unfccc.int
UNFCCC/CCNUCC Page 2
The ITL will re-start processing transactions at 8:00 AM (CEST), on Thursday,
16 October 2008.
About the UNFCCC and the Kyoto Protocol registry system
With 192 Parties, the United Nations Framework Convention on Climate Change
(UNFCCC) has near universal membership and is the parent treaty of the 1997 Kyoto Protocol.
The Kyoto Protocol has to date 182 member Parties. Under the Protocol, 36 States, consisting of
highly industrialized countries and countries undergoing the process of transition to a market
economy, have legally binding emission limitation and reduction commitments. The ultimate
objective of both treaties is to stabilize greenhouse gas concentrations in the atmosphere at a
level that will prevent dangerous human interference with the climate system.
About the Kyoto Protocol registry system
National registries contain the accounts within which greenhouse gas (GHG) emissions
trading units are held in the name of the government or legal entities authorized by the
government to hold and trade. In addition to recording the holdings of Kyoto units, national
registries “settle” emissions trades by delivering units from the accounts of sellers to those of
buyers, thus forming the backbone infrastructure for the carbon market. Each registry operates
through a link established with the ITL, put in place and administered by the UNFCCC secretariat.
The ITL verifies registry transactions in real time to ensure they are consistent with the rules
agreed under the Kyoto Protocol.
About the CDM
Under the CDM, projects that reduce greenhouse gas emissions and contribute to
sustainable development can earn saleable certified emission reduction credits (CERs). Countries
with a commitment under the Kyoto Protocol can use the CERs to meet a part of their obligations
under the Protocol. There are currently more than 1180 registered CDM projects in 49 countries,
and about another 3000 projects in the project validation/registration pipeline. The CDM is
expected to generate more than 2.7 billion certified emission reductions (tradable CERs) by the
time the first commitment period of the Kyoto Protocol ends in 2012, each equivalent to one
tonne of carbon dioxide.
Note to journalists
For further information, please contact
Mr Jean-François Halleux
Programme Officer
Reporting, Data and Analysis
United Nations Framework Convention on Climate Change - secretariat
Tel.: +49-228-815 1809
Email: [email protected]
