State and Trends of the Carbon Market 2006

The overall value of the global aggregated carbon markets was over US$10 billion in 2005. In the first quarter of 2006, overall transactions worth US$7.5 billion had le d some to predict that this new financial market would be valued at between US$25-30 billion in 2006. We dedicate a significant portion of our effort in this study to exploring the project-based market in particular. This segment is also of the most interest to the World Bank's Borrowing Country clients. Our interest in the EU ETS and other emerging Kyoto- and non-Kyoto allowance markets is strong to the extent that events in those markets help explain the development of the project-based markets. The objective of this study is to get a representative sense of the activity of the carbon markets, their evolution over time up to April 2006, and sketch what we see as the likely trends in the future. The study is organized as follows. Section 2 describes the structure and main segments of the carbon market. Section 3 explains the methodology that was followed to conduct the analysis. Section 4 focuses on allowance markets, and particularly on the EU ETS. Section 5 focuses on project-based transactions, and particularly on the CDM and JI projects. Section 6 presents the major trends that we see emerging.

Bibliographic Details

Main Authors:	Capoor, Karan, Ambrosi, Philippe
Format:	Working Paper biblioteca
Language:	en_US
Published:	World Bank, Washington, DC 2006-05
Subjects:	ABATEMENT, aggregate analysis, ALLOWANCE MARKETS, atmosphere, auction, auctions, average price, Binding emission reduction commitments, capital markets, CARBON, carbon abatement, carbon assets, carbon dioxide, carbon dioxide equivalent, carbon emission, Carbon Finance, Carbon Fund, Carbon Funds, CARBON MARKET, carbon markets, carbon price, carbon prices, CARBON TRANSACTIONS, Carbon Units, Certified Emissions Reductions, Clean Development, Clean Development Mechanism, clean energy, cleaner energy, climate change, climate change mitigation, Climate Exchange, coal, credit trading, debt, demand for electricity, diesel, domestic emissions, Economics, electricity, emission, emission reduction, Emission Reduction Purchase Agreements, Emission Reduction Units, emission reductions, Emissions, emissions data, energy markets, energy systems, environmental, environmental goals, environmental performance, environmental problems, financial market, Framework Convention on Climate Change, fuel, gas prices, global atmosphere, Global Environment, Global Environment Facility, Greenhouse, Greenhouse Gas, GREENHOUSE GAS ABATEMENT, greenhouse gas mitigation, imports, Indexation, industrial gases, information, International Emissions, Joint Implementation, marginal costs, market, Market Developments, market share, MARKET STRUCTURE, market value, marketplace, Member States, natural gas, nitrous oxide, oil, policy makers, price expectations, price index, price risk, price volatility, property rights, purchasing, real emission reductions, Reducing climate change, retail, securities, sustainable development, transaction costs, utilities, validation stage, voluntary commitments, voluntary targets,
Online Access:	http://hdl.handle.net/10986/13409
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