An essential tool in efforts 2 reduce global warming gas emissions is on track for completion with testing in the coming months of a mechanism allowing countries that cut emission below their targets to sell surplus allowances to others that have deficits, the United Nations body overseeing the project announced on 2 April.

The international Transaction log (ITL) allows industrialized countries that have signed up to the Kyoto Protocol, which seeks to curb global warming, to link their national registries to the central hub of a settlement system that will deliver traded allowances from sellers to buyers.

The protocol requires 35 industrialized countries to reduce greenhouse gas emission below levels specified for each of them, amounting overall to reduction of at least 5per cent below 1990 levels between 2008 and 2012.

In addition to the implementation of climate - friendly policies at home, the 1997 Protocol allows industrialized countries to meet their emission targets through the trading emission allowances on newly created carbon market. Companies investing in climate friendly projects can obtain additional carbon credits for every tonne of emission saved through Kyoto Protocol's project - based mechanism (Clean Development Mechanism and Joint Implementation). These can be then be freely traded on the carbon market.

The registries of Japan and New Zealand have already linked their test environments to the ITL and have successfully conducted trial transactions.

Registry administrators, gathered in Bonn, Germany, on 29 and 30 March at the invitation of the secretariat of the UN Framework Convention on the Climate Change (UNFCCC), were given a live demonstration of registries using their high security links to the ITL to conduct transactions.

“The secretariat is now undertaking final testing with a number of registries to verify that ITL meets both the policy objectives and rules of the Kyoto Protocol and the expected demands of the carbon market trading , “UNFCCC Executive Secretary Yvo de Boer said. “European registry developers are next in line and have begun linking in their test systems.”

ITL will become fully fractional once national registries have successfully established operational links. All registries must pass an official set of tests to ensure they meet necessary standards before they commence operation. “National registries are at various stages of readiness, with some of them scheduled to begin official testing of their systems against the ITL in late April and May this year,” Mr. de Boer added