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(s): Debbie Stowell
Series: Finance and Capital Markets Series
Edition: First Edition
Publisher: Palgrave Macmillan
Year: 2005
Language: English
Pages: 263
Cover......Page 1
Contents......Page 6
List of Figures......Page 8
List of Tables......Page 10
List of Boxes......Page 12
Acknowledgements......Page 14
Acronyms and Abbreviations......Page 15
1 Introduction......Page 18
1.1 What is Climate Change and Why is it a Problem?......Page 20
1.2 Science: The Basis for Action......Page 23
1.3 Addressing the Problem......Page 29
1.4 From Market-based Incentive to the Kyoto Mechanisms......Page 32
2.1 The UN Framework Convention on Climate Change......Page 35
2.2 Negotiations on the Kyoto Protocol......Page 41
2.3 The Kyoto Protocol......Page 43
3.1 Overview......Page 54
3.2 Information Systems under the Protocol......Page 59
3.3 International Emissions Trading......Page 68
3.4 Joint Implementation......Page 72
3.5 The Clean Development Mechanism......Page 81
4 Building Markets......Page 99
4.1 Political Decisions Define the Rules of the Game......Page 101
4.2 US Experience with Trading Programmes......Page 106
4.3 Emissions Trading in the Policy Mix......Page 110
4.4 Domestic Emissions Trading Schemes......Page 113
4.5 The EU Trading Scheme......Page 126
4.6 Other Emissions Trading Schemes......Page 136
4.7 Sub-national Trading Schemes......Page 139
5.1 Carbon as an Asset......Page 143
5.2 The Energy Challenge......Page 146
5.3 Anticipated Impacts on the Power Sector......Page 148
5.4 Challenges for Industry......Page 155
5.5 Managing Risk......Page 164
6 Programmes Targeting Project-based Mechanisms......Page 176
6.1 CDM Developments......Page 177
6.2 Costs and Risks Associated with Project-based Credits......Page 188
6.3 The World Bank Carbon Finance......Page 194
6.4 The Dutch Programmes......Page 199
6.5 The Finnish Programme......Page 206
6.6 Conclusion......Page 210
7 The Carbon Market......Page 211
7.1 Tradable Instruments......Page 212
7.2 Market Formation......Page 217
7.3 Market Segments......Page 221
7.4 The Price of Carbon......Page 227
8 Carbon Costs in an Uncertain World......Page 228
8.1 The Allocation Process......Page 229
8.2 Future Outlook for the Protocol......Page 233
8.3 Prospects Beyond 2012......Page 235
A......Page 237
B......Page 238
C......Page 239
E......Page 241
K......Page 242
N......Page 243
R......Page 244
V......Page 245
Notes......Page 246
Bibliography......Page 254
D......Page 261
R......Page 262
W......Page 263
