What emissions trading schemes are in operation?
There are already greenhouse gas emissions trading schemes operating in Denmark and the UK. The EU expects to introduce mandatory greenhouse gas emissions trading on 1 January 2005. If Russia ratifies the Kyoto Protocol, the world s industrialised nations will start trading emissions on 1 January 2008 (although currently the USA and Australia are currently expected to abstain). Emissions trading systems can also include emissions offsets generated by projects — investments that have the effect of reducing the emissions of greenhouse gases in the economy. The UK emissions trading scheme is expected to introduce projects in 2003, and the Kyoto Protocol includes two project mechanisms, one for industrialised (capped) countries, and one for non-industrialised (uncapped) countries. Including project mechanisms adds further opportunity for finding low cost reductions within and across economies, and the mechanisms for inclusion of projects are designed to ensure that the environment benefit
