State and Trends of the Carbon Market 2012

The total value of the carbon market grew by 11 percent in 2011, to $176 billion, and transaction volumes reached a new high of 10.3 billion tons of carbon dioxide equivalent (CO2e). This growth took place in the face of economic turbulence, growing long-term oversupply in the EU Emissions Trading Scheme (EU ETS) and plummeting carbon prices. By far, the largest segment of the carbon market was that of EU Allowances (EUAs), valued at $148 billion. With the end of the first commitment period of the Kyoto Protocol in 2012, the value of the pre-2013 primary certified emission reduction (CER), emission reduction unit (ERU) and assigned amount unit (AAU) markets declined in 2011. At the same time, the post-2012 primary Clean Development Mechanism (CDM) market increased by a robust 63 percent, to US$2 billion, despite depressed prices and limited long-term-visibility. Against this backdrop, several new domestic and regional carbon market initiatives gained traction in both developed and developing economies in 2011. Five new jurisdictions (i.e., Australia, California, Québec, Republic of Korea, and Mexico) passed legislations laying the foundation for cap-and-trade schemes. Together, these initiatives will drive substantial resources towards low-carbon investments and they have the potential to unleash a truly transformational carbon market, in support of a global solution to the climate challenge.

Bibliographic Details

Main Authors:	Kossoy, Alexandre, Guigon, Pierre
Format:	Working Paper biblioteca
Language:	en_US
Published:	World Bank, Washington, DC 2012-05
Subjects:	abatement, account holder, account holders, Accounting, acid, acid production, Air, Allocation, ammonia, annual emissions, annual greenhouse gas, anthropogenic greenhouse, anthropogenic greenhouse gas, arbitrage, asset classes, auction, auctions, Average Price, average prices, Bank Markets, calculation, capital markets, capital stock, caps, CARB, carbon, Carbon Allowance, carbon allowances, Carbon Capture, carbon credits, Carbon Dioxide, carbon economy, carbon exchanges, carbon finance, carbon leakage, Carbon Market, Carbon markets, carbon offset, Carbon Price, carbon prices, carbon sinks, carbon taxes, carbon technologies, carbon trading, Carbon Units, central bank, Certified Emission Reductions, CH4, Chemical Oxygen Demand, Clean Energy, Climate, Climate Change, climate change mitigation, Climate damages, climate economics, climate policy, climate science, co, CO2, Coal, Coal Mine, colors, combustion, commodity markets, conservation of forests, cost of fuel, credibility, credit rating, debt, debt crisis, depressed prices, developing countries, Development Bank, DNA, economic risk, Ecosystem, electricity, electricity generation, Emission, emission allowances, emission levels, Emission Reduction, Emission Reduction Project, emission reduction target, Emission Reduction Units, emission reductions, Emissions, emissions allowances, emissions data, Emissions from Deforestation, emissions reductions, energy consumption, Energy Efficiency, energy efficiency measures, Energy Market, energy mix, energy subsidies, equipment, Expenditures, financial crisis, financial instrument, Financial Instruments, financial markets, financial support, floor price, Forest, Forest Degradation, Forestry, forward market, fossil fuel, fossil fuels, Framework Convention on Climate Change, fraud, free allocation, free allowances, freeze, fuels, fungible, Futures, Futures Exchange, Futures market, gases, generation mix, GHG, GHGs, global carbon market, global emissions, Global Markets, Global Warming, government policy, Greenhouse, Greenhouse Gas, greenhouse gas emissions, Greenhouse Gas Reduction, Gross Domestic Product, HFCs, holding, host country, Hydrochlorofluorocarbon, hydrofluorocarbons, impacts of climate change, Internal Rate of Return, international credits, International Emissions, International Finance, International Financial Institution, international offsets, Investment Bank, investment decision, Investment funds, iron, issuance, Land Use, Land Use Change, Land-Use Change, Landfill, Landfill Gas, legal agreement, legal instrument, legal obligation, levy, liability, liquidity, low-carbon, lower demand, lower energy consumption, macroeconomic uncertainty, market analyst, market analysts, market conditions, market design, market infrastructure, Market instruments, Market Mechanism, market mechanisms, Market oversight, market participants, market player, market players, market price, market reforms, Market value, Marketplace, Methane, Monetary Fund, N2O, National accounts, Nitrous Oxide, nuclear power, oil equivalent, Oxygen, Perfluorocarbon, perfluorocarbons, petrochemicals, policy scenario, portfolio, potential demand, power plants, power sector, power stations, Present Value, Price Floor, price fluctuations, Price Mechanism, price risk, price signal, price support, primary market, private capital, Regional Greenhouse Gas Initiative, Renewable Energy, Reserve, retail, risk management, risky assets, sale, sales, scenarios, secondary market, secondary market price, set aside, SF6, spot market, spread, Sulfur, Sulfur Hexafluoride, surplus, surplus of allowances, sustainable forest, sustainable forest management, Tax, temperature, total sale, trading system, tranche, Transaction, Treasury, uncertainties, UNEP, Volatility, wind, withdrawal,
Online Access:	http://hdl.handle.net/10986/13336
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