States "to take big role in climate trading"

Governments will likely account for over half of all purchases of greenhouse gas emission allowances in the years 2008-2012 - the Kyoto protocol's first compliance period - emissions broker Natsource has estimated. In a paper released on 25 September, the firm suggests that, whereas companies' main motivation to participate in markets will be to reduce costs, governments will have other objectives. Chiefly, this will mean purchasing allowances to achieve compliance with Kyoto targets. Other aims could be to enhance bilateral relationships and benefit their own private sectors. See Natsource.

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