The ITL verifies transactions proposed by registries to ensure they are consistent with rules agreed under the Kyoto Protocol. Each registry sends transaction proposals to the ITL, which checks each proposal and returns to the registry its approval or rejection. Once approved, registries complete the transaction. In the event that a transaction is rejected, the ITL sends a code indicating which ITL check has been failed and the registry terminates the transaction.

Data Exchange Standards coordinate the functions of systems when processing transactions. They define technical requirements for the communication between the ITL and registries. They also define the checks performed by the ITL, embodying the policy rules agreed by Parties for the accounting of their assigned amounts and their use of the Kyoto mechanisms.

Each registry is to be connected to the ITL through secure communication channels established across the Internet.

The ITL is required to conduct the following automated checks: (

  1. In all transactions: units previously retired or cancelled; units existing in more than one registry; units for which a previously identified discrepancy has not been resolved; units improperly carried over; units improperly issued, including those which infringe upon the limits contained in decision 16/CMP.1; and the authorization of legal entities
    involved to participate in the transaction;
  2. In the case of transfers between registries: the eligibility of Parties involved in the transaction to participate in the mechanisms; and infringement upon the commitment period reserve of the transferring Party;
  3. In the case of acquisitions of CERs from land use, land-use change and forestry projects under Article 12: infringement of the limits contained in decision 16/CMP.1;
  4. In the case of a retirement of CERs: the eligibility of the Party involved to use CERs to contribute to its compliance under Article 3, paragraph 1 (5/CMP.1, Annex, paragraph 42).


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