Flexibility mechanisms enable countries to reduce greenhouse gas (GHG) emissions in other countries at a lower cost than would be possible at home. From a global perspective it is essentially irrelevant where reductions in emissions take place. However, industrialized countries are required to take significant action domestically to meet their reduction commitments, with flexibility mechanisms only being used additionally (supplementarity rule). 

Emissions trading

The UNFCCC Secretariat will issue emission allowances (so-called assigned amount units or AAUs) to member countries, on the basis of their emission reduction commitments under the Kyoto Protocol. Allowances not needed to offset a country's own emissions can be traded.

In Switzerland, these allowances are directly allocated to private-sector companies that are exempted from the CO2 tax because they have taken a commitment to reduce their emissions. Emission allowances can be traded on the national and international markets. Certificates from CDM/JI projects are also tradeable.  

National Emissions Trading Registry  

Each State wishing to take part in the project-based mechanisms and the international emissions trading is required to operate a web-based National Registry, in which each participant in the market must maintain an account. The Swiss emission allowances and the Registry are managed by the Climate Division of the FOEN. 

Projects with an effect on the climate

"Clean Development Mechanism" (CDM) und "Joint Implementation" (JI) are project-based mechanisms. They allow for the reduction or avoidance of GHG emissions abroad through specific projects.