Countries trading greenhouse gas emissions

Parliament house flag post

Countries trading greenhouse gas emissions

Posted 6/06/2013 by Anita Talberg

Over the last three years, the global carbon market has more than doubled in volume but almost halved in value. In that time a further eight countries, states or cities have adopted a carbon market as their primary means for reducing greenhouse gas emissions. Yet the price for one tonne of carbon dioxide equivalent has dropped by as much as 100 per cent in some markets.

A new paper from the Parliamentary Library provides a basic overview of the size and value of the global carbon market and details exactly which countries and regions are covered by a mandatory emissions trading scheme (ETS). Here is a snapshot of that paper.

The table below provides details of all mandatory legislated ETSs. The top five, in terms of expected size and volume of trade, are the schemes in the European Union (EU), South Korea, California, Australia and Quebec. In 2015, these five schemes will require the surrender of permits representing an estimated 3200 megatonnes of carbon dioxide equivalent.

Mandatory legislated ETSs

NameDates and targetPer cent of emissions coveredIndustries coveredAssistance to exposed industriesPermit price
Kyoto Protocol (second commitment period)1 January 2013 to 31 December 2020

13% -18% below 1990 levels by 2020
Not knownEnergy, industrial processes, solvents and other product use, agriculture, waste and land-use, land-use change and forestryNoneCERs are trading at less than €0.08
($A0.10, April 2013)
EU ETS-Phase 1 (2005-2007):
Trial phase with modest abatement aims

-Phase 2 (2008-2012): 8% below 1990 levels

-Phase 3 (2013-2020): 21% on 2005 levels
-Phase 1: 40%

-Phase 2: 40%

-Phase 3: 43%
-Phase 1: power generators and energy-intensive industry (only CO2)

-Phase 2: power stations & other combustion plants, oil refineries, coke ovens, iron & steel plants & factories making cement, glass, lime, bricks, ceramics, pulp, paper & board (mainly CO2 but some N2O optional)

- 2012: add aviation 
-Phase 3: add petrochemicals, ammonia & aluminium + N2O emissions from production of nitric, adipic & glyocalic acid production & PFCs from aluminium sector + emissions from CCS
-Phase 1: 95% of permits for free

-Phase 2: 90% of permits for free

-Phase 3: less than 50% for free; none for the power sector; industry get free permits up to 80% of benchmark; heavy emitters get free permits up to 100% of benchmark
Curently about €3.9

April 2013)
Australia's Carbon Pricing MechanismStarted in 2012 and targets 5% below 2000 levels by 2020About 60%Electricity generation, mining, industrial processes, fugitive emissions, non-legacy waste and construction66% of permits for free to moderately emissions intensive activities and 94.5% for highly emissions intensive activities.Starting at a fixed $A23 for 2012–13
NZ ETSStarted in 2008 and targets 10% to 20% below 2000 levels by 2020.About 50%- 2008: forestry

- 2010: liquid fossil fuels, stationary energy & industrial processes
All permits free to emissions-intensive, trade exposed, some free to forestryAbout $NZ2

April 2013)
Swiss ETSStarted in 2008 an targets 20% below 1990 levels by 2020Not knownSame as EU ETSNone to the power sector; Free permits to EITE based on benchmarks of industry-wide emissions intensity and an adjustment factor based on relocation risk of different industriesNot known
South Korean ETSWill start in 2015 and target 45% below 2005 levels by 2020About 60%All industry, buildings & power generation100% of permits for free, decreasing gradually from 2018N/A
Kazakhstan ETSStarted in 2013 and targets 15% below 1990 levels by 2020About 80%Manufacturing, mining, metallurgy, chemicals, agriculture & transportNot knownNot known
Regional Greenhouse Gas Initiative (RGGI) Started in 2009 and targets 10% on 2009 levels by 2018About 25%Power generationNoneAbout $US2.55

April 2013)
Californian cap-and-tradeStarted in 2013 and targets 1990 levels by 2020About 35% 2013–15

About 85% from 2015
Electricity generation and industrial sourcesFree permits for 90% of average emissions, based on a benchmark. Amount of free permits decreases annually Around $US14.50 ($A14.10
April 2013) There is an auction floor price of $US10.71
Quebec cap-and-tradestarted in 2013 and targets 20% on 1990 levels by 202025 to 30% 2013–15

75-80% from 2015
Power generation, mining and manufacturingFree allocation of 80% or 100% depending on the type of emissionsN/A
There is an auction floor price of $C10.50 (+inflation) increasing by 5% annually.
There is also an allowance reserve to cap price at $C40 to $C50
Alberta-Based Greenhouse Gas Reduction Program Started in 2007 and targets a 12% reduction in emissions intensity of covered entitiesAbout 50%Power and heat generation, industryN/ABetween $C8 and $C12 in 2010
Tokyo cap-and-tradeStarted in 2010 abd targets 6% below base-levels by 2014 and 17% by 2019About 20% of total Tokyo emissionsBuildings and industrial facilities from industrial, commercial, residential and transport sectorsAll permits are allocated freeAround $US100 ($A95.50
Dec 2012)
Saitama cap-and-tradeStarted in 2011 and targets 7% below base-year levels by 2014Not knownSame as TokyoAll permits are allocated freeNot known

Thank you for your comment. If it does not require moderation, it will appear shortly.
Facebook LinkedIn Twitter Add | Email Print


Flagpost is a blog on current issues of interest to members of the Australian Parliament

Parliamentary Library Logo showing Information Analysis & Advice




refugees asylum immigration Australian foreign policy Parliament climate change elections women social security Indigenous Australians Australian Bureau of Statistics Employment Sport illicit drugs people trafficking taxation Medicare welfare reform Australian Defence Force higher education welfare policy United Nations Asia income management Middle East criminal law disability Australian Sports Anti-Doping Agency World Anti-Doping Agency United States federal budget health financing gambling school education forced labour aid statistics Australian Electoral Commission WADA emissions trading Australia in the Asian Century steroids detention Private health insurance OECD ASADA labour force transport Law Enforcement Australian Federal Police Industrial Relations people smuggling dental health National Disability Insurance Scheme Australian Crime Commission slavery Senate election results Papua New Guinea Australian Public Service International Women's Day corruption Afghanistan Fair Work Act child protection debt federal election 2013 parliamentary procedure poker machines ALP New Zealand Newstart Parenting Payment 43rd Parliament political parties Census constitution High Court skilled migration voting Federal Court terrorist groups Higher Education Loan Program HECS youth paid parental leave Aviation environment foreign debt gross debt net debt defence capability customs doping health crime health risks multiculturalism aged care Gonski Review of Funding for Schooling sex slavery sea farers Special Rapporteur leadership United Kingdom UK Parliament Electoral reform politics banking firearms public policy violence against women domestic violence mental health China ADRV terrorism social media pensions welfare ASIO intelligence community Australian Security Intelligence Organisation governance public service reform Carbon Pricing Mechanism carbon tax mining military history employer employee fishing by-election European Union same sex relationships international relations coal seam gas family assistance planning United Nations Security Council Australian economy food vocational education and training Drugs Indonesia children codes of conduct terrorist financing money laundering Productivity asylum seekers early childhood education Canada Population Financial sector national security fuel disability employment Tasmania integrity science research and development Australian Secret Intelligence Service sexual abuse federal state relations World Trade Organization Australia accountability housing affordability bulk billing water renewable energy children's health health policy Governor-General US economy export liquefied natural gas foreign bribery question time speaker superannuation expertise Senators and Members climate Intergovernmental Panel on Climate Change Department of Agriculture Fisheries and Forestry food labelling Pacific Islands reserved seats new psychoactive substances synthetic drugs UNODC carbon markets health reform Indigenous constitutional recognition of local government local government consumer laws PISA royal commission US politics language education baby bonus Leaders of the Opposition Parliamentary remuneration health system Australia Greens servitude Trafficking Protocol energy forced marriage rural and regional Northern Territory Emergency Response ministries social citizenship human rights citizenship Defence High Court; Indigenous; Indigenous Australians; Native Title ACT Indigenous education Norfolk Island External Territories emissions reduction fund; climate change child care funding refugees immigration asylum procurement Indigenous health e-voting internet voting nsw state elections 44th Parliament 2015 ABS Age Pension Death penalty capital punishment execution Bali nine Bali bombings Trade EU China soft power education Fiji India Disability Support Pension Antarctica Diplomacy by-elections state and territories workers Bills anti-corruption fraud bribery transparency corporate ownership whistleblower G20 economic reform innovation standards NATO Members of Parliament Scottish referendum Middle East; national security; terrorism social services Criminal Code Amendment (Misrepresentation of Age to a Minor) Bill 2013 online grooming sexual assault of minors ACT Assembly public health smoking plain packaging tobacco cigarettes Asia; Japan; international relations Work Health and Safety Migration; asylum seekers; regional processing China; United States; international relations fiscal policy Racial Discrimination Act; social policy; human rights; indigenous Australians Foreign policy Southeast Asia Israel Palestine regional unemployment asylum refugees immigration political finance donations foreign aid Economics efficiency human rights; Racial Discrimination Act employment law bullying Animal law; food copyright Australian Law Reform Commission industry peace keeping contracts workplace policies trade unions same-sex marriage disorderly conduct retirement Parliament House standing orders public housing prime ministers election timetable sitting days First speech defence budget submarines Somalia GDP forestry world heritage political engagement leave loading Trade; tariffs; safeguards; Anti-dumping public interest disclosure whistleblowing Productivity Commission regulation limitation period universities Ireland cancer gene patents genetic testing suspension of standing and sessional orders animal health live exports welfare systems infant mortality middle class welfare honorary citizen railways disciplinary tribunals standard of proof World Health Organisation arts international students skilled graduate visas temporary employment visas apologies roads Italy national heritage NHMRC nutrition anti-dumping Constitutional reform referendum Rent Assistance competition policy pharmaceutical benefits scheme obesity evidence law sacrament of confession US presidential election international days DFAT UN General Assembly deregulation Regulation Impact Statements administrative law small business Breaker Morant homelessness regional engagement social determinants of health abortion Youth Allowance Members suspension citizen engagement policymaking federal election 2010 workplace health and safety Trafficking in Persons Report marine reserves hearing TAFE Victoria astronomy resources sector YMCA youth parliament alcohol Korea rebate Australian Greens presidential nomination Racial Discrimination Act entitlements political parties preselection solar hot water Financial Action Taskforce Horn of Africa peacekeeping piracy Great Barrier Reef Stronger futures political financing Hung Parliament political education social inclusion Social Inclusion Board maritime early childhood National Quality Framework for Early Childhood Education and Care Murray-Darling Basin Iran sanctions Norway hospitals

Show all
Show less
Back to top