State and Trends of the Carbon Market—2004
This study describes the status of the emerging carbon market, as of May 2004. The carbon market encompasses trades of greenhouse gas (GHG) emission allowances (under the European Union (EU) Emissions Trading Scheme), and project-based transactions...
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| Format: | Publication |
| Language: | English en_US |
| Published: |
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2005/04/6430316/state-trends-carbon-market-2004 http://hdl.handle.net/10986/7457 |
| Summary: | This study describes the status of the
emerging carbon market, as of May 2004. The carbon market
encompasses trades of greenhouse gas (GHG) emission
allowances (under the European Union (EU) Emissions Trading
Scheme), and project-based transactions, whereby a buyer
participates in the financing of a project that reduces GHG
emissions, compared with what would have happened otherwise,
and gets emission reduction credits in exchange (for
example, Clean Development Mechanism, or Joint
Implementation projects under the Kyoto Protocol). The study
finds that the carbon market is growing steadily. A total of
64 million metric tons of carbon dioxide equivalent (tCO2e)
has been exchanged through projects from January to May
2004, nearly as much as during the whole year 2003 (78
million). Furthermore, the demand for emission reductions
remains heavily concentrated, with a few EU governments, and
Japanese firms the largest buyers. Finally, Asia is now the
largest supplier of emission reductions, followed by Latin
America, developed economies, and Eastern Europe. Prices of
project-based emission reductions in early 2004 have
remained essentially stable compared with 2003. In the
absence of a standard contract, these prices strongly depend
on the structure of the transaction, notably risk-sharing
between buyers and sellers. |
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