Climate Trading Development of Greenhouse Gas Markets

by Stowell, Debbie

• ISBN13: 9781403916167
• ISBN10: 1403916160
• Format: Hardcover
• Copyright: 2005-03-02
• Publisher: Palgrave Macmillan

Summary

Climate Trading covers issues related to greenhouse gas emissions trading markets, including the events that lead up to the adoption of the Kyoto protocol, the development of the market-based mechanisms under the Protocol, and the emerging domestic and international emissions trading and carbon credits markets. The book provides a comprehensive and detailed overview of the complex and evolving issues surrounding these markets. As governments begin the process of implementation of domestic regulation in order to meet international requirements, it will be crucial for capital markets practitioners to understand the implications and options associated with emissions trading.

Author Biography

Debbie Stowell is a climate change policy specialist at ECON in Norway.

Table of Contents

List of Figures	vii
List of Tables	ix
List of Boxes	xi
Acknowledgements	xiii
Acronyms and Abbreviations	xiv
1 Introduction	1	(17)
1.1 What is Climate Change and Why is it a Problem?	3	(3)
1.2 Science: The Basis for Action	6	(6)
1.3 Addressing the Problem	12	(3)
1.4 From Market-based Incentive to the Kyoto Mechanisms	15	(3)
2 Climate Change and the UN Process	18	(19)
2.1 The UN Framework Convention on Climate Change	18	(6)
2.2 Negotiations on the Kyoto Protocol	24	(2)
2.3 The Kyoto Protocol	26	(11)
3 The Kyoto Mechanisms - A Framework for International Emissions Trading	37	(45)
3.1 Overview	37	(5)
3.2 Information Systems under the Protocol	42	(9)
3.3 International Emissions Trading	51	(4)
3.4 Joint Implementation	55	(9)
3.5 The Clean Development Mechanism	64	(18)
4 Building Markets	82	(44)
4.1 Political Decisions Define the Rules of the Game	84	(5)
4.2 US Experience with Trading Programmes	89	(4)
4.3 Emissions Trading in the Policy Mix	93	(3)
4.4 Domestic Emissions Trading Schemes	96	(13)
4.5 The EU Trading Scheme	109	(10)
4.6 Other Emissions Trading Schemes	119	(3)
4.7 Sub-national Trading Schemes	122	(4)
5 Managing Carbon	126	(33)
5.1 Carbon as an Asset	126	(3)
5.2 The Energy Challenge	129	(2)
5.3 Anticipated Impacts on the Power Sector	131	(7)
5.4 Challenges for Industry	138	(9)
5.5 Managing Risk	147	(12)
6 Programmes Targeting Project-based Mechanisms	159	(35)
6.1 CDM Developments	160	(11)
6.2 Costs and Risks Associated with Project-based Credits	171	(6)
6.3 The World Bank Carbon Finance	177	(5)
6.4 The Dutch Programmes	182	(7)
6.5 The Finnish Programme	189	(4)
6.6 Conclusion	193	(1)
7 The Carbon Market	194	(17)
7.1 Tradable Instruments	195	(5)
7.2 Market Formation	200	(4)
7.3 Market Segments	204	(6)
7.4 The Price of Carbon	210	(1)
8 Carbon Costs in an Uncertain World	211	(9)
8.1 The Allocation Process	212	(4)
8.2 Future Outlook for the Protocol	216	(2)
8.3 Prospects Beyond 2012	218	(2)
Glossary of Terms	220	(9)
Notes	229	(8)
Bibliography	237	(7)
Index	244