European Union (EU) member states will be able to connect their carbon credit registry with that of the United Nations by December 2008, said the European Commission on Wednesday.
The commission, EU member states and the UN Framework Convention on Climate Change Secretariat have successfully completed all the testing required for the connection, said the commission, the executive body of the EU.
Currently, each EU member state registry is connected to EU's Community Independent Transaction Log (CITL). After the CITL is connected to UN's International Transaction Log (ITL), each EU member state registry will be connected to the ITL only and each transaction involving an EU member state will be passed on to the CITL for recording and additional checks.
The CITL and the UN's ITL are electronic accounting systems which keep track of emission allowances or carbon credits of companies participating in the carbon market.
The linking of the two systems will enable companies to transfer certified emission reductions issued under the Clean Development Mechanism (CDM) into their accounts in member state registries, resulting in more carbon credits at the companies' disposal.
The CDM is an arrangement under the Kyoto Protocol allowing industrialized countries with a greenhouse gas reduction commitment to invest in projects that reduce emissions in developing countries as an alternative to more expensive emission reductions in their own countries.
These projects earn saleable certified emission reduction credits, each equivalent to one tonne of carbon dioxide, which can be counted toward meeting Kyoto targets.
Source:Xinhua
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