The Kyoto Protocol's clean development mechanism (CDM) may end from 2013 unless the world can agree and put into force a new round of carbon emissions targets before then, a UN paper has said.
The CDM enabled a $20.6 billion trade in carbon emissions rights between rich and poor countries in 2009, to help developed countries meet their carbon emissions caps under Kyoto from 2008-2012.
The world has so far failed to agree a new round of commitments, in faltering UN talks.
Countries which are party to the Kyoto Protocol asked the UN climate change secretariat in June to report back on legal options to avoid a political vacuum, or gap, at the end of 2012.
"A gap would frustrate the purpose of the CDM and argue against its continuation," if fulfilment of the purpose of the CDM was considered mandatory to help countries meet their carbon caps, the paper said.
"Under this interpretation, no new CDM project activities could be validated or registered, emission reductions or removals that occurred after the first commitment period could not be verified, and corresponding CERs could not be issued."
