International examples

International examples

There are a number of emissions trading schemes currently operating around the world. To date most of these schemes trade permits covering only CARBON DIOXIDE (CO2) emissions or other greenhouse gases. The following table illustrates the growth in both the volume and value of the trade in emissions permits/credits, by scheme operating between 2005 and 2009.

The United States has the largest number of current and proposed systems. The European Emissions Trading Scheme is currently the largest scheme. However, the Clean Development Mechanism (CDM) and the Joint Implementation (JI) Projects under the Kyoto Protocol are also large and are a growing source of emission credits that may be traded.

Scheme

2005

2006

2007

2008

2009

CCX Volume MtCO2e

1

10

23

69

41

CCX Value $USm

3

38

72

309

50

EU ETS Volume MtCO2e

321

1,104

2,060

3,093

6,326

EU ETS Value $USm

7,908

24,436

49,065

100,526

118,474

NSW GGAS Volume MtCO2e

6

20

25

31

34

NSW GGAS Value $USm

59

225

224

183

117

RGGI Volume MtCO2e

 

 

 

62

805

RGGI Value $USm

 

 

 

198

2,179

AAU Volume MtCO2e

 

 

 

23

155

AAU Value $USm

 

 

 

276

2,003

Primary CDM Volume MtCO2e

341

537

552

404

211

Primary CDM Value MtCO2e

2,417

5,804

7,433

6,511

2,678

JI Volume MtCO2e

11

16

41

25

26

JI Value $USm

68

141

499

367

354

Voluntary Market Volume MtCO2e

20

33

43

57

46

Voluntary Market Value $USm

187

146

263

419

338

Total Volume MtCO2e

700

1,720

2,744

3,764

7,644

Total Value $USm

10,642

30,790

57,556

108,789

126,193

Source: World Bank Institute, State and trends of the carbon market, 2007 -2009

In the above table ‘CCX’ stands for the Chicago Climate Exchange. This scheme will cease trading at the end of 2010. The European Union Emissions Trading Scheme (EU ETS) is the largest scheme. However, the Clean Development Mechanism (CDM) and the Joint Implementation (JI) Projects continue to be significant sources of emissions credits. The Regional Greenhouse Gas Initiative (RGGI) in 10 north-eastern and mid-Atlantic US states is a successful and growing cap-and-trade scheme.

Not included in the above table are the New Zealand Emissions Trading Scheme, the Swiss Emissions Trading Scheme and the smaller regionally based schemes in Japan and China.

Proposed schemes

There are an increasing number of emissions trading schemes that have been announced, or in advanced planning . As of November 2010, these are:

  • Canada has outlined an emissions trading scheme, but is waiting for its neighbour, the United States to finalise its plans in this area.
  • In the United States, emissions trading schemes for the regional-based Western Climate Initiative and the Midwestern Climate Accord are at the advanced planning stages.
  • Japan has a national emissions trading scheme currently before its parliament.
  • Both China and India are cautiously exploring the concept of emissions trading via implementing regionally-based, or sector-specific schemes.
  • South Korea has a proposed scheme also at an advanced planning stage.
  • Trading schemes have also been proposed for Taiwan, some South American countries and a group of eastern European countries.

Further reading:

L Nielson, Greenhouse gas emissions: still trading after all these years, Background Note, Parliamentary Library, Canberra, 12 November 2010.

 


 

19 November, 2010

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