International transaction log
The international transaction log (ITL) was established by the UNFCCC Secretariat to verify the validity of transactions of Kyoto units:
The secretariat shall establish and maintain an international transaction log to verify the validity of transactions, including issuance, transfer and acquisition between registries, cancellation and retirement of ERUs, CERs, AAUs and RMUs and the carry-over of ERUs, CERs and AAUs (13/CMP.1, Annex, paragraph 38).
The ITL is required to conduct the following automated checks:
- In all transactions: units previously retired or cancelled; units existing in more than one registry; units for which a previously identified discrepancy has not been resolved; units improperly carried over; units improperly issued, including those which infringe upon the limits contained in decision 16/CMP.1; and the authorization of legal entities
involved to participate in the transaction;- In the case of transfers between registries: the eligibility of Parties involved in the transaction to participate in the mechanisms; and infringement upon the commitment period reserve of the transferring Party;
- In the case of acquisitions of CERs from land use, land-use change and forestry projects under Article 12: infringement of the limits contained in decision 16/CMP.1;
- In the case of a retirement of CERs: the eligibility of the Party involved to use CERs to contribute to its compliance under Article 3, paragraph 1 (5/CMP.1, Annex, paragraph 42).
In conducting these automated checks, the ITL must ensure that the provisions relating to temporary certified emission reductions (tCERs) and long-term certified emission reductions (lCERs) are complied with:
The transaction log shall verify that there is no discrepancy with regard to the requirements of paragraphs 41 to 53 above as part of its automated checks set out in 13/CMP.1 (5/CMP.1, Annex, paragraph 54).
The ITL must notify Parties of an upcoming obligation to replace tCERs or lCERs:
The transaction log shall, one month prior to the expiry of each tCER or lCER in a retirement or in a replacement account, notify the Party included in Annex I concerned that a replacement of the tCER or lCER has to occur in accordance with paragraphs 44 or 48 above (5/CMP.1, Annex, paragraph 55).
Where tCERs and lCERs are not replaced in accordance with the rules, the ITL will forward this information to the secretariat as part of the review of compliance for that Party under Articl 8 of the Kyoto Protocol:
Where a Party included in Annex I does not replace tCERs or lCERs in accordance with paragraphs 44, 48, 49 and 50 above, the transaction log shall forward a record of non-replacement to the secretariat, for consideration as part of the review process for the relevant Party, under Article 8, to the Executive Board and to the Party concerned. The Executive Board shall make this information publicly available and include it in its reports to the COP/MOP (5/CMP.1, Annex, paragraph 56).
ITL delays
There have been some delays in the ITL becoming operational and connecting to the EU ETS transaction log (the Community Independent Transaction Log, or CITL). The go-live of European registries with the ITL, which must occur through the CITL according to EU Commission policy and which was original planned for November 2007, has been postponed.
Recently, some registries have successfully linked to the ITL, and several others have been confirmed as technically ready to link. The list of registries that have successfully linked or have been confirmed as technically ready to link is available here.
The EU has announced that the CITL/ITL link will be established by April 2009. This is recognised as a very conservative date, however, and it is possible that linking may take place sooner.