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.