The Azimuth Project
Carbon trading (Rev #5, changes)

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Contents

Idea

Idea

Carbon trading is a form of emissions trading that specifically targets carbon dioxide. This form of permit trading is used by some countries utilize in order to meet their obligations specified by the Kyoto Protocol?, namely, the reduction of carbon emissions. There are also sub-national entities engaged in carbon trading.

Status

Critique

Trading size

It According has to been Wikpedia: introduced in several EU-countries and here is a review by Gilbertson and Reyes of how it has worked sofar:

Carbon emissions trading lies is at emissions the trading centre specifically for carbon dioxide (calculated in tonnes of global carbon climate dioxide policy equivalent or tCO2e) and currently makes up the bulk of emissions trading. It is projected to become one of the world’s ways largest countries commodities can markets, meet yet their it obligations has under a disastrous track record since its adoption as part of the Kyoto Protocol. Protocol Carbon Trading: how it works and why it fails outlines the limitations of an approach to tackling reduce climate change which redefines the problem to fit the assumptions of neoliberal economics. It demonstrates that the EU Emissions Trading Scheme, the world’s largest carbon market, emissions has consistently failed to ´cap´ emissions, while the UN’s Clean Development Mechanism (CDM) routinely favours environmentally ineffective and socially thereby unjust mitigate projects. global This warming. is illustrated with case studies of CDM projects in Brazil, Indonesia, India and Thailand.

UN Carbon climate emissions talks trading has been steadily increasing in Copenhagen recent are years. discussing According ways to expand the trading World experiment, Bank’s but Carbon the Finance evidence Unit, suggests 374 it million should metric be tonnes abandoned. of From carbon subsidy dioxide shifting equivalent (tCO2e) were exchanged through projects in 2005, a 240% increase relative to regulation, 2004 there (110 is mtCO2e)[93] which was itself a plethora 41% increase relative to 2003 (78 mtCO2e).[94] In terms of ways dollars, forward Felipe without de Jesus Garduño Vazquez uses the World Bank has estimated that the size of the carbon trading market was but 11 there billion are USD no short cuts around situated local knowledge and political organising if climate change is to be addressed in a 2005, just 30 billion USD in 2006,[93] and fair 64 manner. billion in 2007.

Countries

Companies

America

23 multinational corporations came together in the G8 Climate Change Roundtable, a business group formed at the January 2005 World Economic Forum. The group included Ford, Toyota, British Airways, BP and Unilever. On June 9, 2005 the Group published a statement stating that there was a need to act on climate change and stressing the importance of market-based solutions. It called on governments to establish “clear, transparent, and consistent price signals” through “creation of a long-term policy framework” that would include all major producers of greenhouse gases. By December 2007 this had grown to encompass 150 global businesses.

California

Countries

America

California

On Thursday December 16th, 2010, California’s Air Resources Board began a cap and trade system for carbon. This system will implement the state’s law mandating that carbon emissions be reduced back to 1990 levels by 2020. This will amount to a 15% decrease from current emissions.

The system will let greenhouse gas emitters buy and sell emission allowances. It covers everyone who emits more than 5,000 tons of carbon dioxide per year. That’s about 360 businesses, who taken together emit about 85% of the CO2.

At first these business will receive free allowances that cover most of their emissions, but as time passes, they’ll have to buy those allowances through quarterly auctions. According to the plan, there will be two phases. By 2012, all major industrial sources and utilities will be covered. By 2015, distributors of fuels and natural gas will also be included.

The chair of the Air Resources Board, Mary Nichols, gave a speech. Among other things, she said:

This program is the capstone of our climate policy, and will accelerate California's progress toward a clean energy economy. It rewards efficiency and provides companies with the greatest flexibility to find innovative solutions that drive green jobs, clean our environment, increase our energy security and ensure that California stands ready to compete in the booming global market for clean and renewable energy.

Western Climate Initiative

Western Climate Initiative

California is not alone in its plan to institute carbon trading. By the time the program gets rolling in 2012, California plans to have built a framework for carbon trading with New Mexico, British Columbia, Ontario and Quebec — some of its partners in the Western Climate Initiative:

The green states and provinces are the ‘partners’; the blue ones are the ‘observers’.

Regional Greenhouse Gas Initiative

Regional Greenhouse Gas Initiative

Furthermore, ten states of the U.S. — New York, New Jersey, Delaware, Maryland and the New England states — have started up another system, the Regional Greenhouse Gas Initiative, which covers only electric utilities. They are already doing auctions.

References

category: carbon, organizations