State and Trends of the Carbon Market 2008

The carbon market is the most visible result of early regulatory efforts to mitigate climate change. Regulation constraining carbon emissions has spawned an emerging carbon market that was valued at US$64 billion (Euro 47 billion) in 2007. Its biggest success so far has been to send market signals for the price of mitigating carbon emissions. This, in turn, has stimulated innovation and carbon abatement worldwide, as motivated individuals, communities, companies and governments have cooperated to reduce emissions. The European Union Emission Trading Scheme (EU ETS) market has been successful in its mission of reducing emissions through internal abatement at home, and of stimulating emission reductions abroad. The European Commission, learning from the experience of Phase I, has strengthened several important design elements for EU ETS Phase II. Clean Development Mechanism (CDM) accounted for the vast majority of project-based transactions (at 87 percent of volumes and 91percent of values) and JI saw transacted volumes doubling and values tripling in 2007 over the previous year. The CDM alone saw primary transactions worth US$7.4 billion (Euro 5.4 billion), with demand coming mainly from private sector entities in the EU, but also from EU governments and Japan.

Bibliographic Details

Main Authors:	Capoor, Karan, Ambrosi, Philippe
Format:	Working Paper biblioteca
Language:	en_US
Published:	World Bank, Washington, DC 2008-05
Subjects:	ABATEMENT, accounting, aggregate level, Allowance markets, ammonia, annual emissions, asset classes, auction, auctions, average price, balance, balance sheet, balance sheets, bankruptcy, barriers to entry, Brokers, call options, capacity constraint, capital adequacy, capital inflow, capitalization, Carbon, carbon abatement, carbon asset, carbon assets, carbon capture, carbon credits, carbon dioxide, carbon dioxide equivalent, carbon emissions, Carbon Finance, carbon funds, Carbon Investment, Carbon Market, Carbon Markets, carbon mitigation, carbon payments, carbon purchase, carbon purchase transactions, carbon sequestration, carbon tax, Certified Emission Reductions, Clean Development, Clean Development Mechanism, Clean Energy, Climate Action, Climate Change, climate change agreement, climate change negotiations, climate change strategy, Climate Change Team, CLIMATE EXCHANGE, climate policy, climate protection, commercial contracts, competitiveness, cost abatement opportunities, credibility, credit enhancement, credit policies, credit quality, credit risk, credit risks, debt, deforestation, derivative, derivative contracts, derivatives, developed countries, developing countries, developing country, diesel, dividends, domestic emissions, economic growth, Economics, electricity, eligible credits, Emission, emission reduction, emission reduction programs, emission reductions, Emission Reductions Transactions, Emission Trading, Emissions, Emissions Data, emissions growth, Emissions Reductions, energy efficiency, energy prices, environmental, environmental integrity, environmental performance, equity investment, financial institutions, financial instrument, financial instruments, financial market, financial markets, financial resources, foreign exchange, forestry, fuel, fuel prices, fuel switching, fund manager, fungible, Future contracts, futures, Futures contracts, gas project, gas projects, gases, generation, global carbon market, global climate change, global emissions, global greenhouse gas, global greenhouse gas emissions, global market, grace period, GREENHOUSE GAS, GREENHOUSE GAS ABATEMENT, greenhouse gas emissions, greenhouse gas reduction, initial yield, institutional investors, international climate negotiations, International Transaction, investment banks, investment decision, Investment Funds, issuance, issuances, Joint Implementation, land-use activities, Legislation, letters of credit, liquidity, LLC, loan, Mark to market, market analysts, Market Demand, market development, market governance, Market infrastructure, market participant, Market participants, MARKET PLAYERS, market price, market share, MARKET STRUCTURE, market transaction, market trends, market value, marketplaces, Methane, national emissions, nitrous oxide, offset project, oil, oil prices, partial guarantees, performance risk, perverse incentives, petroleum, petroleum industry, pipeline, policy makers, portfolio, portfolio risk, portfolios, potential demand, power, power producers, power sector, price control, price formation, price transparency, price trends, primary energy, Primary Market, Private Capital, producers, production of electricity, purchasing, rate of return, reducing emissions, Regional Emissions, regulatory infrastructure, regulatory system, regulatory systems, renewable energy, renewable energy projects, reserve, returns, risk management, Risk Profiles, sale, sales, secondary carbon markets, SECONDARY MARKET, Secondary markets, securities, settlement, spread, supply of credits, Sustainable Development, swaps, tax, thermal input, total emissions, Trading, tranche, tranches, Transaction, transaction cost, Transaction Costs, utilities, validation stage, vehicles, waste management, weather patterns, wind, windfall profits,
Online Access:	http://hdl.handle.net/10986/13405
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