Developers of greenhouse gas markets already launched in Europe and planned in other regions of the world hope one day to form links between the markets to help reduce emissions of heat-trapping gases.
Developers of greenhouse gas markets already launched in Europe and planned in other regions of the world hope one day to form links between the markets to helpreduce emissions of heat-trapping gases.
At the U.N.'s climate talks in Montreal that run through Dec. 9, industry leaders are saying differences between any regional markets would have to be ironed out before substantial trade could take place.
Such differences could occur particularly between countries that have ratified the Kyoto Protocol, such as Canada, Japan and those in the European Union, and countries that have pulled out of the pact: the United States and Australia.
Other differences include "safety valves," or limits, on the price of a tonne of a carbon dioxide equivalent that some plans include, as well as whether emissions targets are outright cuts or "intensity based" limits.
Below is a list of emissions markets already functioning or being planned to trade the gases most scientists believe arewarming the earth.
EUROPEAN UNION
The European Union launched the Emissions Trading Scheme (ETS) in January in which outright emissions from about 12,000 industrial plants are capped. Under the mandatory plan, the EU aims to reduce emissions by 8 percent below 1990 levels by the end of 2012. Carbon dioxide equivalent is on the ETS trading at about 20 euros per tonne.
NORWAY, SWITZERLAND
Setting up trading plans soon that could link to the ETS.
CANADA
Plans to launch a greenhouse market in 2006 that would have "intensity based" emissions targets.
The plan has a "safety valve" that would cap the price of tonne of carbon dioxide equivalent at C$15 until 2012.
JAPAN
Under the first phase of the Kyoto Protocol, Japan is the only Asian country required to cut emissions by 2012. The government currently allows industries to set voluntary targets on emissions cuts.
UNITED STATES
The George W. Bush administration, which pulled out of the Kyoto Protocol, favors voluntary cuts over mandatory cuts. However several emissions trading plans are developing.
1) Regional Greenhouse Gas Initiative. Nine states in the Northeast U.S. planning to launch market by 2009. Would cut power plant emissions of global warming gases by 10 percent by 2020 .
2) U.S. Senator Jeff Bingaman, a New Mexico Democrat, is sponsoring bill that would cut emissions modestly. The bill's "safety valve" would cap the price for a tonne of carbon dioxide equivalent at $7.
3) U.S. Senators John McCain, an Arizona Republican, and Joe Lieberman, a Connecticut Democrat, are sponsoring a bill for a national cap and trade program, would cut emissionsmodestly.
4) Chicago Climate Exchange. Voluntary trade launched in 2003.
AUSTRALIA
Did not ratify Kyoto. The federal government has ruled out any Australian-based emissions trading in the near future. However, states are planning to initiate a plan that would trade greenhouse gases on a nationwide basis. More details on the states' plans are expected in early 2006.
Source: Reuters
Contact Info:
