Carryover Credits (Kyoto carryover credits) are a carbon accounting measure by which nations count historical emission reductions that exceeded previous international goals towards its current targets.[1] In essence, carryover credits represent the volume of emissions a country could have released, but did not.[2][3] When used in reference to the Paris Agreement, it refers to a scheme under which unspent "Clean Development Mechanism credits" (CDM credits) introduced by the Kyoto Protocol will be "carried over" to the new markets established by the agreement.[4][5][6] As part of the Paris Agreement, CDM credits will be replaced by an international emissions trading market, whereby countries can sell their excess emissions credits to other countries.[7][8] While most countries do not count their credits, several countries led by Australia, including Brazil, India, and Ukraine are attempting to allow their credits to be carried over.[1][4] The proposal has been criticized, with scientists estimating that if countries were to make full use of their excess credits global temperatures could rise by an extra 0.1°C.[9] In addition countries could use their excess credits to flood the market and greatly reduce the price of credits.[9]
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