Introduction

The Kyoto Protocol Clean Development Mechanism ('CDM') concept is a project funding mechanism that requires integration into the oil and gas legislation in those hydrocarbon producing countries who are signatories of the UN Framework Convention on Climate Change and who have already ratified the Kyoto Protocol, or who may do so in the future. The issue that has to be addressed is how Certified Emissions Reductions ('CERs') arising from Kyoto CDM projects should be handled under pre-existing PSC arrangements. CERS are tradable emissions allowances that are awarded by the ...