The EU Legal Frameworks - The Sustainability of Renewable Energy in Europe - page 29

as a mechanism very similar in its basic structure to the JI, since it too is based on
projects that reduce GHG, with the only difference that the plans for the reduction
of emissions are made in a non-Annex I countries, that is, without explicit commit-
ments of communication and thus of emission reductions.
The importance of the CDM is the promotion of sustainable development given
its dual purpose, that is, from one hand to allow Annex I countries to promote and
implement projects of GHG emission reductions in the non-Annex I in order to use
the resulting emission reductions to help meeting their obligations under the Kyoto
Protocol, and from the other hand to allow countries to non-Annex I host projects
that reduce emissions of GHG and benefit from environmental and social issues
related to the transfer of clean technologies and to improve their energy efficiency.
The ETS allows to trade quotas for GHG emissions among countries of Annex B
that are OECD member countries already included in Annex I. Through this mecha-
nism, countries that emit less than their assigned amounts have the possibility to sell
surplus emission units to other parties whose emissions, on the contrary, exceed the
targets. The problem within the ETS is that almost all Annex B countries exceed
their emission limits, and so basically, there is no excess allowances.
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