The next couple of years will be crucial for the future of trading greenhouse gases (GHGs). Europe is reviewing the way its trading system operates to address the lessons it has learned to date and increasingly others are designing and implementing trading programs. New Zealand has recently published its proposals, Australia is looking at how it would implement a trading system, and a growing ...
EU emissions trading scheme to bring small carbon savings Campaign group call for tighter caps on carbon emissions covered by the ETS in Europe each year. A new report by carbon emissions trading campaign group Sandbag predicts that the five year period of the EU’s emissions trading scheme (ETS) ending in 2012 is set to deliver carbon savings of less than a third of 1% of total carbon ...
The Garnaut Climate Change Review’s approach to mitigation was initially set out in the Interim Report in February 2008. This paper focuses on the key role for an emissions trading scheme (ETS) in those mitigation efforts. It recommends an approach for Governments to consider in developing and delivering an effective ETS. Further consideration, informed by detailed economic modelling, will be ...
As Phase III of the European Union's Emissions Trading Scheme (EU ETS) will begin in January 2012 when airlines operating flights to or from Europe will have to buy carbon permits to help offset their emissions under EU legislation, carbon finance and trading in Europe is set to proceed to a new horizon. Launched in January 2005, EU ETS is one of the established multilateral measures in the ...
This report covers an overview of the origins of the carbon trading market and the mechanics involved in trading carbon emission units. The report seeks to analyse the carbon trading market in Europe and Australia. The carbon trading market is reviewed with an overall concern for the role government regulation plays in the market, as well as the impact of introducing an emission trading scheme on ...
In June 2009, when farmers were at last considered in the USA climate bill, attention was belatedly directed at agriculture's potential for a major contribution to carbon emission reductions. The official line (Department of Climate Change, 2009) ignores the environmental effect of traditional farming methods in terms of desertification, soil degradation, water management and warming. Alternative ...
There is a lot of controversy on Parliament Hill in Canada regarding the greenhouse gas policy to be enacted. It is very difficult to assess the latest proposed framework without suggesting a political view or without analysing the economic context of Canadian actors involved in the emissions trading market. The purpose of this article is to briefly articulate the main controversial issue of said ...
This paper looks at the viability of starting a carbon trading firm in Australia, based on the understanding and nature of carbon trading and its acceptance and implementation in the economy. The main function of the firm is to work as a broker on behalf of organisations or individuals for buying and selling carbon credits. A broad overview of the evolution of the carbon trading market and the ...
China launched its first pilot emission trading program this past June. This development is potentially a major marker in the country’s efforts to reduce greenhouse gas (GHG) emissions. The Shenzhen Emissions Trading Scheme (ETS) program will cover some 635 industrial companies from 26 industries. This is the first of seven ...
The global carbon market is real and growing rapidly. The World Bank reported that the market grew in 2006 to reach US$30 billion and that the value of carbon credits being bought and sold nearly tripled in 2006 from 2005 levels. For 2007, indications are that this rapid pace of growth has continued, driven by regulations at the national level under the Kyoto Protocol, at the corporate level ...
This paper discusses the merits and limits of the recent European energy policy aimed at reducing carbon emissions, devoting particular attention to the European trading system of carbon permits and to the measures that the European Union has adopted to promote renewable energy sources. From the comparison of past goals and present results, it is argued that more credible targets for carbon ...
This paper explores investment characteristics of the European Union Emissions Trading Scheme (EU ETS) during the Global Financial Crisis (GFC). We show that the EU ETS demonstrates significant price volatility, risk-adjusted return under-performance and positive correlations with international equity markets during the GFC, while an OLS regression reveals that carbon market returns are only ...
In this paper, we applied single period and multiple period variance ratio (VR) tests to European Union allowance (EUA) spot and futures data since their availability in June 2005 and April 2005 respectively up to the end of January 2010. Comparing Phase 1 (2005-2007) and Phase 2 (2008-2012), we find that the products traded in Phase 2 show weaker rejection against the random walk hypothesis than ...
With more than half the world's population living in urban areas, cities have become a major source of local and global atmospheric pollution. Originally developed in the 1990s to decrease local pollution, Local Emission Trading Schemes (ETSs) are now emerging as a promising cost–efficient instrument to achieve local GHG emissions reductions. This paper compares four existing city–based ETS ...
As the number of environmental policy instruments grows, so the potential for interaction between different instruments increases. This interaction can be detrimental or beneficial. To avoid conflict, it is essential that the potential for interaction be assessed during the formulation of new policy instruments. This paper illustrates this through an analysis of how the European Directive on ...
Consistent with achieving an international agreement to reduce greenhouse gas emissions at Copenhagen in December 2009, Australia, like the United States, is currently in the throes of having its emissions trading scheme legislation processed through Parliament. The Rudd Government is on track to have its heavily-debated Carbon Pollution Reduction Scheme (CPRS) passed during Parliament’s Winter ...
Climate change is the subject of debate these days derived from the Copenhagen Summit, where the major commitments and agreements have been discussed. In any case, the commitment within the EU is strong and clear for the immediate future. The commitments to reduce emissions of greenhouse gases within the EU framework have as their main flagship the Emission Trading System (ETS) regime established ...
Waxman/Markey’s climate change bill is about 1,400 pages. Its length and complexity, alone, provides fuel for its opponents. Would it stand a better chance of enactment if it encompassed less?For example, would it have been wiser if Congress pursued cap and trade one year and a renewable energy standard another? I’ve asked this question a lot during interviews the past few weeks, and received a ...
Emissions Trading, the economy and the environmentJohn Kinsman - October 2002 Preserving the SO2 marketNorman Fichthorn and Allison Wood - September 2002 ...