Convergence criteria for participation in the flexible mechanisms of the Kyoto Protocol

The authors suggest a multi-layered system of three convergence criteria – similar to those used in the run-up to the European monetary union – that define the notion of „demonstrable progress“ towards reaching the emission commitments under the Kyoto Protocol. These are the existence of an independently evaluated national emissions inventory, the level of domestic policies and measures, and the quantitative convergence of emissions towards the Kyoto target. While the first of these criteria constitutes a necessary condition for participation in the use of flexible instruments, the other two determine the degree of participation allowed for any given Annex I country.