The report concentrates on the potentials to reduce the emissions of carbon dioxide, this being the principal anthropogenic greenhouse gas. The analysis focuses, on the one hand, on the economic and technological potentials to reduce energy and industry related emissions and, on the other hand, on the relevance of biological sinks of carbon dioxide and the options to preserve them. Finally, based on this analysis, the report contains specific recommendations on ways to shape political and economic instruments in the second commitment period of the Kyoto Protocol.