Carbon offsetting in Europe post2012: Kyoto Protocol, EU ETS, and effort sharing

The difficulties faced by international negotiations in finalizing an agreed framework for post-2012 international greenhouse gas (GHG) emission regulation have left the rules relating to carbon offsetting, in general, and Joint Implementation (JI), in particular, in limbo. In a study commissioned by KfW on behalf of the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety under the ongoing CDM/JI Initiative, Climate Focus provides an analysis of the regulatory situation post-2012 for JI and offsetting in and for the European Union.

It aims at identifying where uncertainties lie but also where certainties exist, where further policy measures are required and where the existing framework remains adequate. The ultimate aim is to enable policy-makers and investors to gain detailed insight into the prospective situation for offsetting in Europe upon approaching the end of the first commitment period under the Kyoto Protocol and the start of the Third Trading Period under the EU ETS. It presents policy options that will facilitate decision-making in a climate of uncertainty.