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Micro-scale development projects are currently underrepresented in global carbon markets. This paper outlines the process of becoming eligible to generate carbon credits and examines some of the barriers that may inhibit access to carbon markets. In particular, it focuses on barriers relating to the capacity and resources of the organisation developing the project. This approach represents a deviation from the standard discourse which has traditionally focused on barriers relating to the availability of up-front finance and the capacity of local public and private sector institutions required to participate in the carbon standard certification process. The paper contains an analysis of the carbon offset project cycle from which follows a discussion of potential capacity- related barriers focusing on time, skills and resources. Recommendations are made as to how these may be overcome with a particular focus on the role of technical organisations in assisting project developers. Completed during 2012 this research comes at an interesting time for global carbon markets as the Kyoto Protocol’s first commitment period ended in 2012 and negotiations have failed to produce and agreement that would commit major emitters to reductions targets from 2013 onward. Despite this, reducing greenhouse gas emissions has gained momentum on the national level and many governments are in the process of formulating and introducing emissions trading schemes.

The Kyoto Protocol is the first international environmental agreement that sets legally binding greenhouse gas emissions (GHG) targets and timetables for Annex I countries. It incorporates emissions trading (ET), joint implementation (JI) and the clean development mechanism (CDM). From this perspective, this paper follows three aspects: (1) the global carbon trading market based on the principles of the Clean Development Mechanism (CDM) and the Kyoto Protocol, with special reference to Romania; (2) in the same time, the paper estimates the potential for Romania of the green investment scheme (GIS) under this Protocol. (3) Finally, the paper presents the National Framework Policy on CDM and GIS in Romania.

The ability of the federal government to ratify the Kyoto Protocol — the international treaty to reduce greenhouse gas emissions — is uncontested by provincial governments. However, the recent provincial opposition to this treaty could result in a constitutional challenge to Parliament's domestic implementation of the binding emission targets. This potential challenge is a result of the uncertainty in Parliament's authority to implement the necessary legislation. This article examines the federal authority to implement emissions trading — an economic instrument into which the federal government has invested a considerable amount of research in recent years. As possible reliance for Parliament's jurisdiction over trading, three federal powers are investigated: the peace, order and good government power, the criminal law power and the trade and commerce power. While there are difficulties with reliance on each of these powers, the peace, order and good government power is likely to provide the strongest argument for federal jurisdiction. Given the federal government's lack of clear legislative authority for trading, this article finishes by examining the alternative economic instrument of emissions taxation, concluding that Parliament's power to implement taxes is much more certain.