The Global Carbon Trading Market: Concepts, Regulations and Industry Trends to 2020

The Global Carbon Trading Market: Concepts, Regulations and Industry Trends to 2020

Summary

GBI Research’s report, “The Global Carbon Trading Market - Concepts, Regulations and Industry Trends to 2020” provides an in-depth analysis on the global carbon trading market. The report provides the latest information on the value, volume and price of the emissions traded in primary project-based mechanisms such as Clean Development Mechanism (CDM), Joint Implementation (JI) and secondary CDM, and allowance markets such as the EU Emission Trading System (ETS), New South Wales Exchange, Chicago Climate Exchange, the Regional Greenhouse Gas Initiative (RGGI) and Assigned Amount Units (AAUs). The report provides a scenario-based forecast of the carbon market up to 2020. The report provides an overview on various carbon registries, carbon exchanges and the major companies participating in the carbon trade. The research work provides indispensable assessment of risk and opportunities for the corporate in the carbon constraint environment. Regulatory efforts to mitigate climate change have spawned an emerging carbon market that grew at compound annual growth rate (CAGR) of 89% to reach $138.3 billion in 2009. The EU’s initiatives to build a broad, globally linked carbon market, the prospective US Federal cap-and-trade program and the strong emergence of other regional market trading mechanisms will drive the carbon market significantly beyond 2012.

Scope

• Key market data on the volume and market value of carbon allowances, covering both project-based transactions and allowance-based transactions from 2004–2009.
• Analysis on all global carbon market exchanges — the EU Emission Trading System (ETS), New South Wales Exchange, Chicago Climate Exchange, the Regional Greenhouse Gas Initiative (RGGI), Australian Climate Exchange, World Green Exchange etc.
• Historic pricing trends for carbon in various exchanges and project-based transactions from 2005–2009.
• Forecasts of the global carbon trading market up to 2020 based on likely scenarios that might emerge in the future.
• Impact assessment of key carbon regulations and policies and their impact on the growth of global carbon trading market.
• Analyzes market-based instruments such as certifications and standards used in carbon trading in 2009.
• Overview on investment firms, infrastructure and energy service providers, advisory companies, financial firms, brokerage firms, carbon solution providers and other auditing firms participating in carbon trade.
• Key emission trading companies covered include 3 Degrees Incorporated, APX Incorporated, Baker & McKenzie, Blue Source, CantorCO2e, Climate Focus and Credit Suisse
• Assessment of risk and opportunities for the corporate in the carbon constraint environment

Reasons to buy

• Navigate the carbon emission market landscape through detailed analysis of the current carbon market dynamics and potential changes
• Identify the most promising geography to invest in energy efficiency and renewable energy projects, in order to minimize carbon taxes.
• Identify the most promising geography to invest in the unconventional and renewable energy sectors to minimize carbon taxes.
• Develop custom strategies for different geographies based on the stringency of the carbon policy in the respective geography.
• Develop business strategies with the help of specific insights into policy decisions being taken on the carbon credits trade by EU 27, the US, Australia and other developed and emerging countries worldwide.
• Identify risks associated with tightening carbon emission cap and transform them into opportunities for future growth.

Contents

1.1 List of Tables
1.2 List of Figures

2 INTRODUCTION

2.1 Greenhouse Gas (GHG) Emissions and Their Impact on Global Carbon Trading Markets
  2.1.1 Impact of Greenhouse Gases on Ecology
  2.1.2 Naturally Occurring Carbon Cycle
  2.1.3 Global Initiatives to Reduce Carbon Footprint

3 ORIGINS OF CARBON TRADING MARKET AND EXCHANGES

3.1 Evolution of Carbon Trading Market
3.2 Global and Regional Carbon Exchanges

4 KYOTO PROTOCOL, A PRECURSOR OF EMISSIONS TRADING SYSTEMS

4.1 Clean Development Mechanisms (CDM)
  4.1.1 CDM Project Activity Cycle
  4.1.2 Joint Implementation (JI) and Assigned Amount Unit (AAU)
  4.1.3 Emission Trading

5 GLOBAL CARBON TRADING MARKET: DYNAMICS AND STATISTICS

5.1 Global Carbon Trading Market Overview
5.2 Global Allowance Markets
  5.2.1 The EU Emission Trading Scheme: Still the Most Prominent Carbon Market
  5.2.2 The US Market
  5.2.3 The Australian Market
5.3 Global Project-based Market
  5.3.1 Primary Project-based Market
  5.3.2 Secondary Project-based Market
5.4 Post 2012 Market Uncertainty: Scenario Based Forecast to 2020
  5.4.1 Linear Growth: Moderate Market with Current Programs and Policies
  5.4.2 Scaling Up: Implementation of US Cap-and-Trade Program and EU Integrated Systems
  5.4.3 Global Reach: Collaboration of EU, the US and Developing Nations

6 GLOBAL CARBON CREDITS MARKET POLICY FRAMEWORK FACILITATING EMISSIONS TRADING

6.1 Overview of Regulatory Framework for Emission Trading Systems
  6.1.1 American Clean Energy and Security Act and its Implications
  6.1.2 European Union’s Climate Change Policy
  6.1.3 Climate Change Initiatives in Canada and Prospects for Emissions Trading
  6.1.4 Australia’s Climate Change Initiatives will Aid the Emission Trading Mechanism
6.2 Increasing Role of International Emissions Trading and International Emissions Trading Association (IETA) in Boosting the Market
  6.2.1 Objectives of IETA
  6.2.2 Programs by IETA
6.3 Various Regulatory Frameworks and Regional Initiatives in the US
  6.3.1 American Clean Energy and Security Act of 2009
  6.3.2 Regional Greenhouse Gas Initiative (RGGI) in the US
  6.3.3 California Global Warming Solutions Act of 2006 AB 32
  6.3.4 Western Climate Initiative (WCI)
  6.3.5 Midwestern Regional GHG Reduction Accord (MGGRA)
  6.3.6 EPA Climate Leaders
  6.3.7 Hawaii Global Warming Solutions Act of 2007
6.4 European Union Emissions Trading System Promotes Emissions Trading Market
  6.4.1 EU ETS
  6.4.2 Revised EU ETS
6.5 Japan’s Keidanren Voluntary Action Plan and Other Voluntary Markets
6.6 Emission Reduction Schemes of Australia
  6.6.1 New South Wales Greenhouse Gas Abatement Scheme
  6.6.2 Greenhouse Challenge Plus
  6.6.3 Carbon Pollution Reduction Scheme
6.7 Canadian Government’s Measures and Initiatives Drive Carbon Trading
6.8 Global Carbon Credits Standards
  6.8.1 American Carbon Registry Standard
  6.8.2 The Climate Action Reserve Protocols
  6.8.3 The CarbonFix Standard
  6.8.4 Chicago Climate Exchange Offsets Program
  6.8.5 Climate, Community, and Biodiversity Standards
  6.8.6 EPA Climate Leaders Offset Guidance
  6.8.7 Greenhouse Gas Services Standard
  6.8.8 The Gold Standard
  6.8.9 Greenhouse Friendly
  6.8.10 ISO 14064 Standards
  6.8.11 Plan Vivo
  6.8.12 Social Carbon Standard
  6.8.13 TUV NORD Climate Change Standard and VER+ Standard
  6.8.14 Voluntary Carbon Standard

7 COMPETITIVE LANDSCAPE OF EMISSION TRADING COMPANIES

7.1 3 Degrees Incorporated
7.2 APX Incorporated
7.3 Baker & McKenzie
7.4 Blue Source
7.5 CantorCO2e
7.6 Climate Focus
7.7 Credit Suisse
7.8 EcoSecurities Group
7.9 Equator LLC
7.10 MGM International
7.11 Natsource
7.12 RNK Capital LLC
7.13 Sterling Planet, Incorporated
7.14 Tradition Financial Services/TFS Energy/TFS Green
7.15 TUV SUD America

8 CORPORATE SUSTAINABILITY IN A CHANGING LANDSCAPE

8.1 Carbon Exposure Risks
8.2 Carbon Exposure Opportunities
8.3 Carbon Emission Intensity by Sector
8.4 Companies are Expanding the Horizons of Sustainability Practices — New Initiatives in Carbon Sustainability
  8.4.1 Chevron Corporation — Multifaceted Response to Climate Change
  8.4.2 Walmart Stores, Inc. — Sustainability Mandate throughout the Supply Chain
  8.4.3 General Electric Co. — Ecomagination Initiative, Revenue Opportunities from Climate Change Solutions

9 APPENDIX

9.1 About GBI Research
9.2 Abbreviations
9.3 Methodology
  9.3.1 Coverage
  9.3.2 Secondary Research
  9.3.3 Primary Research
  9.3.4 Expert Panel Validation
9.4 Contact Us
9.5 Disclaimer

1.1 LIST OF TABLES

Table 1: Global Exchanges in the Carbon Market, 2010
Table 2: Global Project Design Documents, 2010
Table 3: Global Accepted Determinations, 2010
TABLE 4: Global, List of Monitoring Reports, 2010
Table 5: Global, Verified Emission Reductions/Enhancements of Removals, 2009
Table 6: Global Verified Emission Reductions/Enhancements of Removals, 2010
Table 7: Global Carbon Trading Market, Value ($ bn), 2005–2009
Table 8: Global Carbon Trading Market, Volume Transactions, (MtCO2e), 2005–2009
Table 9: Global Allowances Market, Transactions Value, ($ m), 2005–2009
Table 10: The EU Transaction Value ($ bn), 2005–2009
Table 11: The EU Volume Transaction (MtCO2e) and Carbon Price ($/tCO2e) Shift, 2005–2009
Table 12: CCX Offsets Registered in MtCO2e, 2009
Table 13: New South Wales, Australia, Volume Transaction (MtCO2e) and Carbon Price ($/tCO2e) Shift, 2005–2009
Table 14: Global Project-based Market, Transactions Value, ($m), 2005–2009
Table 15: Global CDM Statistics, 2009
Table 16: Global Analysis by Project Type, 2010
Table 17: Global, Expected CERs Allocations by Top Host Countries, 2010
Table 18: Global, CERs Issued by Top Five Host Parties, 2010
Table 19: Global CDM Registered Project Analysis by Top Host Countries, 2010
Table 20: Global, Expected Registered Project Activities by AI and NAI Investor Countries, 2010
Table 21: Global, Registered Project Activities by Scale, 2010
Table 22: Registered Project Activities by Scale, 2010
Table 23: Global Distribution of Registered Project Activities by Scope, 2010
Table 24: Global Registered Projects by Region, 2010
Table 25: Asia Pacific Expected Emissions Reduction from CDM Projects by Country, 2010
Table 26: Rest of the World Expected Emissions Reduction from CDM Projects by Country, 2010
Table 27: Middle East and Africa Expected Emissions Reduction from CDM Projects by Country, 2010
Table 28: Latin America Expected Emissions Reduction from CDM Projects by Country, 2010
Table 29: Global Designated National Authorities for Annexure I and Non-Annexure I Countries, 2010
Table 30: Global Designated National Authorities for Non-Annexure I Countries, 2010
Table 31: Global Number of Parties and Designated National Authorities by Region, 2010
Table 32: Global Joint Implementation Market Volume Transaction (MtCO2e) and Carbon Price ($/tCO2e) Shift. 2005–2009
Table 33: Global Voluntary Market Volume Transaction (MtCO2e) and Carbon Price ($/tCO2e) Shift. 2005–2009
Table 34: Global Secondary Project-based Market Volume Transaction (MtCO2e) and Carbon Price ($/tCO2e) Shift. 2005–2009
Table 35: Global Carbon Trading Market Potential under Linear Growth Scenario, Value ($bn), 2010–2020
Table 36: Global Carbon Trading Market Potential under the Scaling Up Scenario, Value ($bn), 2010–2020
Table 37: Global Carbon Trading Market Potential under Global Reach Scenario, Value ($bn), 2010–2020
Table 38: Global Carbon Emissions by Country, 2007
Table 39: The US Implementation Timeline for AB32, 2006-2012
Table 40: Japan, Example of Voluntary Targets, 2009
Table 41: Japan CDM/JI Projects Japanese Government Approved, 2009
Table 42: Global, Various Carbon Standards Statistics, 2009
Table 43: Abbrevations

1.2 LIST OF FIGURES

Figure 1: Naturally Occurring Carbon Cycle, 2010
Figure 2: Global Carbon Trading Market Structure, 2009
Figure 3: Global Number of Joint Implementation Projects by Country, 2010
Figure 4: Global Carbon Trading Market, Value ($ bn), 2005–2009
Figure 5: Global Carbon Trading Market, Annual Volume Transactions, (MtCO2e), 2005–2009
Figure 6: Global Allowances Market, Transactions Value, ($ bn), 2005–2009
Figure 7: The EU Financial Value Transacted in Carbon Market ($ bn), 2005–2009
Figure 8: The EU Volume Transaction (MtCO2e) and Carbon Price ($/tCO2e) Shift., 2005– 2009
Figure 9: New South Wales, Australia, Volume Transaction (MtCO2e) and Carbon Price ($/tCO2e) Shift, 2005–2009
Figure 10: Global Project-based Market, Transactions Value, ($ m), 2005–2009
Figure 11: Global Primary CDM Market, Annual Volume Transactions (MtCO2e), 2005–2009
Figure 12: Global Primary CDM and JI Buyers, 2008
Figure 13: Global CERs Allocations by Top Host Countries, 2010
Figure 14: Global CERs Issued by Top Five Host Parties, 2010
Figure 15: Global CDM Registered Project Analysis by Top Host Countries, 2010
Figure 16: Global Expected Registered Project Activities by AI and NAI Countries, 2010
Figure 17: Global Registered Project Activities by Scale, 2010
Figure 18: Global Distribution of Registered Project Activities by Scope, 2010
Figure 19: Global Registered Projects by Region, 2010
Figure 20: Global Designated National Authorities for Annexure I and Non-Annexure I Countries, 2010
Figure 21: Global Number of Parties and Designated National Authorities by Region, 2010
Figure 22: Global Joint Implementation Market Volume Transaction (MtCO2e) and Carbon Price ($/tCO2e) Shift. 2005–2009
Figure 23: Global Voluntary Market Volume Transaction (MtCO2e) and Carbon Price ($/tCO2e) Shift. 2005–2009
Figure 24: Global Secondary Project-based Market Volume Transaction (MtCO2e) and Carbon Price ($/tCO2e) Shift. 2005–2009
Figure 25: Global Carbon Trading Market Potential Scenario Based Assessment of the Market, Value ($bn), 2010–2020
Figure 26: Global Carbon Trading Market Potential under Linear Growth Scenario, Value ($bn), 2010–2020
Figure 27: Global Carbon Trading Market Potential under Scaling Up Scenario, Value ($bn), 2010–2020
Figure 28: Global Carbon Trading Market Potential under Global Reach Scenario, Value ($bn), 2010–2020
Figure 29: EU 27 Greenhouse Gas Emissions by Sector (%), 2006
Figure 30: EU 27 Carbon Dioxide Emission Allowances in Metric Tons per Year, 2008
Figure 31: Other EU 27 Carbon Dioxide Emission Allowances (Metric Tons per Year), 2008
Figure 32: The US Regional Annual CO2 Emissions Budget of RGGI (Short Tons), 2009-2018
Figure 33: Global Standard Utilization in Trading, 2008
Figure 34: Corporate Carbon Exposure, Risks and Opportunities
Figure 35: Global, Carbon Intensity by Sector, (g CO2 / $ turnover), 2009
Figure 36: GE’s Ecomagination Revenues, Global, ($ bn), 2004—2008
Figure 37: GBI Research Methodology

COMPANIES MENTIONED

3 Degrees Incorporated
APX Incorporated
Baker & McKenzie
Blue Source
CantorCO2e
Climate Focus
Credit Suisse
EcoSecurities Group
Equator LLC
MGM International
Natsource
RNK Capital LLC
Sterling Planet, Incorporated
Tradition Financial Services/TFS Energy/TFS Green
TUV SUD America Skip to top