The implementation of the Kyoto protocol in the EU requires emission certificates to operate certain defined plants. Examples are large scale incineration plants (power plants), steel plants, cement plants or nitric acid plants. Emissions of these plants are always direct emissions and the balances are straightforward.
However, flexible mechanisms in the Kyoto protocol, like clean development mechanism (CDM) or joint implementation (JI) can also be used to retrieve emission certificates. The framework of this is explained in Chapter 2 of this book. For the flexible mechanisms, more complex carbon balances sometimes need to be performed. The procedure is similar to that discussed here and has to adhere to the guidelines of the UNFCCC (www.unfccc.org).
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