Efforts to limit access to KMs based on ensuring presumptions of future compliance may threaten the value of flexible long-term commitment periods established in the Protocol. Compliance Compliance regimes should be clear, effective, predictable, fair and transparent to ensure the integrity of national commitments and should complement the market-based KMs. If appropriate contractual and legal frameworks are in place and are enforced, markets and contractual arrangements will be able to incorporate risks associated with liability in exchanges between private buyers and sellers. However, resolution of the debate concerning liability between the original government issuer and final government user of credits and allowances will affect market transaction costs and effectiveness. All technology options may be required to enable Parties to meet their Kyoto Protocol commitments and should be kept open.
Innovation can substantially improve the future performance of current and proposed technologies.
We do not support the establishment of positive or negative technology lists. These would only serve to hinder effective long-term utilization of the most appropriate technology for the countries where they are to be used. Decisions about appropriate technology should be part of the host-country approval process. V. Technology Transfer, Capacity Building, Trade and Foreign Direct Investment Business believes that working within liberalizing trade, commerce and investment frameworks will facilitate compliance and lessen transaction costs for the implementation and enforcement of KMs. Trade and investment are important means for business to promote capacity building and technology transfer, especially through foreign direct investment.