He recognized the importance of the issue of carry-over of surplus AAUs, but noted that there will be minimal demand for such AAUs between 2013 and 2020.

He also noted monetization of AAUs to capitalize the Adaptation Fund.

PROVISIONS FOR REGISTRIES OF MEMBER STATES NOT ABLE TO ISSUE AAUs

AAUs, ERUs converted from AAUs and CERs must not have a LULUCF activity code

An AAU or other Kyoto unit that has not been converted into an allowance shall not have a supplementary unit type.

On conversion of an allowance into an AAU in accordance with the provisions of this Regulation there shall be no supplementary unit type.

On conversion of an AAU into an allowance in accordance with the provisions of this Regulation the supplementary unit type shall be set to 1.

Allowance issued for the 2008-2012 period and subsequent five-year periods and is converted from an AAU

Allowance issued for the 2008-2012 period and subsequent 5-year periods and is converted from an AAU

He also noted monetization of AAUs to capitalize the Adaptation Fund.

Allowance issued for the 2005-2007 period and not converted from an AAU or other Kyoto unit

transfer AAUs, ERUs or CERs (but not lCERs or tCERs) to the retirement account; or

On the carryover of AAUs, SOUTH AFRICA highlighted several options: allowing carryover of x% of AAUs; adopting stricter emission reduction targets to absorb the surplus; and putting AAUs in a strategic reserve.

Australia noted that multiple base years present challenges in the calculation of AAUs.

A limit on purchases of surplus emission budgets ('AAUs') from the first commitment period will apply.