[Emissions trading potential : the issue of allocations for developed countries]

The issue of emissions trading was described as one of the most contentious and long-negotiated issues in the entire process of negotiations to reduce greenhouse gas emissions. An outline of how the issue of emissions trading will affect different countries, (both developed and developing) based on national circumstances was presented. Some of the factors that countries have put forward as a criteria for differentiation were also reviewed. The advantages and disadvantages of a differentiated system of emissions trading, the strategies with respect to the other flexibility mechanisms -- CSM, JI and sinks -- the issue of liability, the position of some of the G-77 countries concerning some form of inherent entitlement to emissions based on a per capita of population, the question of auditing and verification of reduction credit, the idea of a collective reduction target for Annex 1 countries, and the whole question of linkages to other mechanisms, such as e. g. technology and financial transfers, were described. Some predictions regarding prospects at the Buenos Aires meeting were offered. The best change appears to be for some progress on reporting, monitoring and verification