Background For Italy, the Kyoto protocol target for greenhouse gas (GHG) emissions reduction is established at 6.5% below 1990 levels. From 2008 to 2012, the amount of Italian GHG emissions is not to exceed 485.7 million tonnes CO2eq, which equates to a reduction of 95 million tonnes CO2eq/yr. National estimates indicate that roughly 30 million tonnes will be reduced by the industrial sector, leaving a deficit of 60 million tonnes. Strategic schemes and mechanisms are required to facilitate voluntary action by local authorities and other stakeholders from non-emissions trading scheme sectors to contribute to this national target. Objectives The objective of the LAIKA project was to demonstrate how local authorities can adopt effective harmonised accounting, planning and reporting methods for projects and plans in the field of GHG emission reductions. Specifically, the project aimed to: determine a GHG baseline inventory and define a GHG emission target at municipal level in the project area; define actions and measures for target achievements at local level; help European and Italian institutions to activate a scheme supporting local contributions to GHG emission goals; elaborate and test a scheme for the verification and attribution of credits for voluntary GHG emission reductions and greenhouse gas storage at local and national level; and establish a voluntary market for GHG emission credits. The latter will be important in order to provide an economic stimulus for emissions reduction measures. Results The LAIKA project established baseline GHG emissions and targets, within defined Climate Commitment Action Plans, which were elaborated and adopted by each local authority member of the project partnership, namely, coordinating beneficiary the Municipality of Milan, the Municipality of Torino, the Municipality of Bologna, and the Municipality of Lucca. The other project partner was the Italian inter-university Centre for the Development of Product Sustainability (CESiSP), an interdisciplinary research group involving academic institutions from Genoa, Turin and Pisa, with a range of expertise in climate science. Through its Action Plans, the project set a GHG emission reduction target for 2020, and an outline for all the actions required by the public bodies to reach this goal. The project developed a voluntary market for emission credits. Specifically, the project successfully developed an internet platform for the exchange of GHG emission credits, the compilation of a Project Design Document (PDD) for each environmental action included in the Action Plan, and a set of indicators and monitoring tools for the assessment of the emission reduction actions undertaken by public bodies. This platform was tested in two sessions simulating a carbon credit market. Rewarding criteria were defined in relation to certified emission reductions, which public bodies and institutions can adopt them in calls for funding and/or for the granting of financial incentives. Linking financing policies to offsetting requirements was found to be an effective way to develop and encourage GHG reduction initiatives. The project concluded that there was a need for accounting systems for actions and plans in the field of GHG emission reductions, and that considerable time and resources are needed for the elaboration of these activities. Furthermore, the harmonisation of accounting methods is essential to produce effective tools to stimulate initiatives at the local level, and especially for establishing selection criteria in public calls for funding. However, the implementation of the LAIKA project showed that sometimes the homogenisation of accounting methodologies is difficult due to lack of data, and differences in the hypothesis and parameters at the base of analytical methods. The project produced substantial environmental benefits for the municipalities involved. Implementing the Climate Plans could produce globally a CO2 emission reduction of about 3 million tonnes by 2020. In addition, in terms of the building sector, all the actions entailing reductions in fuel consumption (e.g. power retrofitting, boiler replacement, use of renewable energy, cogeneration and district heating) reduce local atmospheric pollution emissions, with positive effects on air quality. Furthermore, in case of retrofitting to reduce cooling demand, electricity consumption is reduced and lower heat emissions are evident outside the buildings in summer (so reducing the heat island effect). Within the transport sector, actions reducing fuel consumption also reduce local air pollution, while promoting public transport, cycle mobility and other sustainable mobility modes (e.g. public transport improvement, cycle lanes, bike sharing). Reduced air pollution improves the quality of life for citizens living in larger towns, with the potential to reduce respiratory diseases and decrease healthcare costs. Replication of the project’s approach was made possible through the publication of a series of reports, including the ‘Scheme Manual for the attribution of economic value to GHG reduction actions’ and the ‘Final Monitoring Report’. The project contributed to the implementation of the EU-Emission Trading Scheme in the energy sector and to the achievement of targets set in the framework of the European Climate Change Programme (ECCP) and the Kyoto Protocol. Its methodologies can be duplicated, but their practical application is quite demanding for local authorities. The project concluded that the role of national and European authorities is necessary to prompt the implementation of initiatives like those envisioned by the LAIKA project at local level, and that the adoption of accounting methods in the field of GHG emission reductions and the setting up of a carbon credit market cannot be successfully developed only on a voluntary basis. The promotion of innovative technologies will help develop the green economy and create jobs, especially in the renewable energy and energy saving sectors. Further information on the project can be found in the project's layman report and After-LIFE Communication Plan (see "Read more" section).