Kerb deals?
Article 17 of the Kyoto Protocol says that the conference of parties (COP) shall define the relevant guidelines for emission trading. But without waiting for the COP to define principles, emissions trading is starting to take place.
• British Petroleum (BP) is going to use its sprawling oil company as a testing ground for emission trading. Various units of BP will buy and sell permits to emit carbon dioxide.
• The oil giant Shell is considering a plan to launch an international market in carbon dioxide permits. In early May, Shell announced it was leaving the Global Climate Coalition which lobbies against limits on carbon emissions.
• On May 6, London-based International Petroleum Exchange (IPE) announced its proposals to trade in carbon dioxide permits. IPE is prepared to launch a carbon dioxide emissions futures contract valid for a month.
• The United Nations Conference on Trade and Development (UNCTAD) is working towards a deadline of setting up emissions market by 2000.
• On May 21-22, 1998, an emission trading conference was held in Canberra, Australia. The Australian government is considering launching a tradable emissions programme. The conference organiser was a member of the Australian negotiating team in Kyoto.