An overview of greenhouse gas emissions trading pilot schemes and activities

Under the Kyoto Protocol it was agreed to allow 'flexibility mechanisms' to help countries meet their greenhouse gas (GHG) reduction targets at lower cost. One of these flexibility mechanisms is emissions trading (ET). Howeve r, experience is lacking on how such a complex trading system will be put i n place domestically and internationally. National governments and the priv ate sector are beginning to explore ET opportunities. This paper provides a n overview of progress in domestic GHG emissions trading as well as some of the major private sector initiatives, both in Australia and internationall y. It concludes with some general observations on where we might go from he re to establish a workable and effective ET pilot in Australia. (C) 1999 El sevier Science B.V. All rights reserved.