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4. Where will ERC trading occur?
Under the Kyoto Protocol,
ERC trading may occur within a
country (domestically) according to domestic rules, and it may occur
internationally between countries or corporations according to United
Nations Framework Convention on Climate Change (10).
Canada is in the process of detailing the rules for a
domestic emissions trading system as described in section 2.
Other countries have also established domestic trading
systems including the United Kingdom, the Netherlands, Denmark, Norway,
several states in the
USA, USA (Chicago Board of Trade), and the European Union as a whole.
In addition, emission reduction trading will be allowed
between countries which are signatories to the Kyoto Protocol. Such
trading can occur between two developed countries (resulting from “Joint
Implementation” or JI projects), or between a developing country and a
developed country (resulting from “Clean Development Mechanism” or CDM
projects). (10, 11) |
