In this briefing paper, we set out our views on the following questions:

• What is a compliance / enforcement mechanism? What is its purpose and why is it important?
• Where would be the most appropriate place in the LCA text for such a mechanism (which deals with finance and mitigation by developed country parties only) to be inserted?
• Please design (with suggested drafting) a mechanism (broadly based on the Kyoto Protocol mechanism) which includes facilitative compliance steps along with a more penalty based system. The enforcement side of it should include sanctions such as financial penalties commensurate with the level of breach by a developed country party of its finance delivery obligations and/or its mitigation targets. It should also give the option to the ‘Compliance Committee’ to deem any excess emissions in a particular designated period as having been emitted in a subsequent period (similar to the EUETS rules for Phase III).