OECD and IEA have published a paper titled "Tracking and Trading: Expanding on Options for International Greenhouse Gas Unit Accounting After 2012." The paper examines what systems and processes would be required to achieve effective use of tradeable GHG units under a scenario combining a continuation of the Kyoto Protocol with emissions commitments for some Parties, and a “pledge and review” approach based on country pledges.
24 November 2011: The Organisation for Economic Co-operation and Development (OECD) and the International Energy Agency (IEA) have published a paper titled “Tracking and Trading: Expanding on Options for International Greenhouse Gas Unit Accounting After 2012.” The paper examines what systems and processes would be required to achieve effective use of tradeable GHG units under a scenario combining a continuation of the Kyoto Protocol with emissions commitments for some Parties, and a “pledge and review” approach based on country pledges.
The paper first considers what international framework is required to provide a reliable, functional platform for use of tradeable GHG units, and explores accounting issues related to international trade of domestic ETS units. More detailed options are then analyzed for two core aspects of GHG unit accounting: governance of international crediting mechanisms, and systems for tracking international unit transactions.
Specifically, the paper considers issues such as: tradable units and the nature of pledges and targets; existing guidance relevant to accounting for units within pledges; accounting for domestic emissions trading system units; governance of international crediting mechanisms, including an analysis of options, rules and procedures, auditing and verification, issuance of units, disclosure and pros and cons; and tracking of unit transactions. [OECD Climate Change Expert Group] [Publication: Tracking and Trading: Expanding on Options for International Greenhouse Gas Unit Accounting After 2012]