6. When will it be implemented?

The impetus and demand for emission reduction credit trading is focused on the first Kyoto commitment period from 2008-2012. It is during this period that emission reduction credits will be counted both from domestic and international sources (11).

As previously noted domestic and international trading is occurring today in a variety of ways, and under a variety of rules. A few projects are now commencing under the fledgling UNFCC rules for CDM and JI projects and
requests for projects under these conditions are growing.

This growth is supported by the UNFCC as the Kyoto Protocol signatories have recognized the need for an early start to international projects (10).

Emission reduction trading has been occurring in Canada also on an experimental basis, often by bilateral contracts between buyer and seller (1). Each buyer has
different motivations and purposes for conducting early purchases prior to 2008.

Some of these include,

• Learning the legal, technical, financial and political risks and implications of conducting trades,

• Sending policy signals to regulators that the market place can be an effective means to achieve environmental goals,

• Obtaining options on low cost 2008-2012 credits,

• Signaling a willingness to act voluntarily,

• Determining options and costs for reducing emissions,

• Determining the range of sources of ERCs which might be included in a portfolio,

• Encouraging other sectors and governments to learn about and participate in selling ERCs.

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