Chapter 1 Executive Summary
Carbon Trading
Compliance Markets
Assigned Amount Units (AAUs).
European Union Allowances (EUAs)
Certified Emission Reductions (CERs)
Emission Reduction Units (ERUs)
Other Compliance Markets
Australia
The US Compliance Market
Regional Greenhouse Gas Initiative (RGGI)
Other North American Initiatives
United Nations Climate Change Conference in Copenhagen
American Clean Energy and Security Act of 2009 (ACES)
Voluntary Markets
Chicago Climate Exchange
Over the Counter (OTC) Market
Carbon Market Participants
Regulation
United Nations Framework Convention on Climate Change (UNFCCC)
Standards Sponsors
Suppliers
Intermediaries
Buyers
Other Services
Summary
Chapter 2 Carbon Market History and Definitions
Carbon Footprint Defined
Reducing Carbon Footprint
The Greenhouse Effect
Greenhouse Gas Emissions
2007 Nobel Peace Prize
The Kyoto Protocol
Emission Targets
Kyoto Mechanisms
Commitment Period (2008 – 2012)
The Bali Roadmap – Kyoto post 2012
Poznan 2008
Carbon Credits vs. Carbon Taxes
Cap-and-Trade Criticisms
Compliance Markets
International Emissions Trading (IET)
European Union Emissions Trading Scheme (EU ETS)
Joint Implementation
Clean Development Mechanism
The New South Wales Greenhouse Gas Abatement Scheme
Regional Greenhouse Gas Initiative (RGGI)
California Global Warming Solutions Act of 2006 AB 32
Western Climate Initiative
Midwestern Regional GHG Reduction Accord (MGGRA)
Other State and Provincial Programs
Voluntary Markets
Chicago Climate Exchange
Over the Counter Market
Voluntary Emission Reductions (VERs)
Government Voluntary Purchasing Programs
Japan’s Keidanren Voluntary Action Plan on the Environment
Japan’s Voluntary Market
Australia’s Greenhouse Challenge Plus
EPA Climate Leaders
Canadian GHG Clean Start Registry
Chapter 3 Market Size and Segmentation
Kyoto Mechanisms
Clean Development Mechanism (CDM)
Joint Implementation
International Emissions Trading (IET)
CDM Pipeline
JI Pipeline
CDM Project Types
Energy Efficiency (EE) + Fuel Switching
Agro-forestry
Reforestation / Afforestation
Landfill Gas (LFG)
Waste Management
Coal Mine Methane (CMM)
Hydrofluorocarbons (HFCs)
Nitrous Oxide
Fugitive Emissions
Hydropower
Wind
Biomass
JI Project Types
Voluntary Carbon Market Projects
Renewable Energy
Methane
Forestry / Land Use
Geological Sequestration
Other
CDM Project Process
JI Project Process
CDM and JI Buyers
CDM Sellers
JI Sellers
Russia and JI Projects
The Voluntary Markets
The Voluntary Market in the United States
State-level carbon emissions trading schemes
California: Global Warming Solutions Act
Hawaii: Global Warming Solutions Act of 2007
Minnesota: Next Generation Energy Act of 2007
New Jersey: Global Warming Response Act
Oregon: Global Warming Actions
Washington: Mitigating the Impacts of Climate Change
Regional Initiatives
Chapter 4 Market Outlook and Issues
Copenhagen 2009
Waxman – Markey Bill
European Union Emission Trading Scheme (EU ETS)
Assigned Amount Units (AAUs)
The Chicago Climate Exchange (CCX)
Regional Greenhouse Gas Initiative
The Australian Carbon Market
Japan
Canada
Project-Based Transactions
The Voluntary Over-the-Counter (OTC) Market
Chapter 5 Carbon Market Participants
Regulation in the Compliance Markets
United Nations Framework Convention on Climate Change (UNFCCC)
EU Commission
Regulation in the Voluntary Markets
Clean Development Mechanism
Chicago Climate Exchange Offsets Program
The Gold Standard
Voluntary Carbon Standard
VER+ Standard
Climate, Community and Biodiversity Standards
Plan Vivo
Voluntary Offset Standard
Other Standards
EPA Climate Leaders Offset Guidance
Greenhouse Gas Services Standard
Greenhouse Friendly
Protocols
Offset Provider Certification Programs
Green-e Climate
Quality Assurance Scheme for Carbon Offsetting
2008 Changes
Regulatory Bodies
UNFCC Secretariat
Clean Development Mechanism Executive Board (CDM EB)
JISC
Compliance Committee
Designated National Authorities
Designated Operational Entity
Non-Governmental Organizations (NGOs)
Suppliers
Project Developers
Mandated Installations
Financiers
Consultants
Technology Development Transfer
Policy Environment
Intermediaries
Brokers
Traders
Exchanges
Emerging Market Exchanges
Private Sector Financial Companies
Buyers
Compliance Buyers
Voluntary Buyers
Other Services
Quality Control
Legal Advisory Services
Information and Analysis
Capacity Building
Registries
Chapter 6 Company Profiles
Corporate Background
Product and Brand Portfolio
Performance
Company News
Acquisitions and Divestitures
Innovation
Outlook
Personnel Changes
3Degrees
APX Inc
Baker & McKenzie
Blue Source
CantorCO2e
Climate Focus
Credit Suisse
EcoSecurities
Equator LLC
Evolution Markets
Fortis
MGM International
RNK Capital
Sterling Planet
TFS Energy
TUV SUD
Glossary of Acronyms
List of Figures
Figure 1-1 The Kyoto Compliance Market
Figure 1-2 CDM Project Categories, as a share of volumes supplied (2008)
Figure 1-3 Transaction Values on the Voluntary Carbon Market
Figure 1-4 Carbon Market Participants
Figure 2-1 Global Carbon Emission Estimates
Figure 2-2 The Greenhouse Effect
Figure 2-3 Global Greenhouse Gas Emissions – Sources and Activities
Figure 2-4 Kyoto Protocol Participation Map
Figure 2-5 Regional Shift in Emissions Share
Figure 2-6 Joint Implementation Illustration
Figure 2-7 Joint Implementation Track 2 Procedure
Figure 2-8 CDM Project Cycle
Figure 2-9 RGGI Participants and Observers
Figure 2-10 Western Climate Initiative Partners and Observers – July 2009
Figure 2-11 Reduction Schedule for CCX Members Baseline Through 2010
Figure 3-1 Flexible Mechanisms under the Kyoto Protocol
Figure 3-2 European Union Linking Directive
Figure 3-3 CDM Project Categories, as a share of volumes supplied 2008
Figure 3-4 CDM Project Categories, as a share of volumes supplied 2002 - 2008
Figure 3-5 Anaerobic Digester Facility
Figure 3-6 CDM and JI Project Comparison 2007
Figure 3-7 Offset Credit Sources in the Voluntary Market
Figure 3-8 Carbon Sequestration Illustration
Figure 3-9 Average Time from Registration Request until Registration
Figure 3-10 Joint Implementation Project Process
Figure 3-11 Primary CDM and JI Buyers by Country As shares of volumes purchased, 2006 through 2008
Figure 3-12 Location of CDM Projects (As a share of volumes supplied) 2008
Figure 3-13 Locations of CDM Projects 2002 – 2008
Figure 3-14 Number of JI Projects by Host Country
Figure 3-15 Host country for JI projects, number of projects and kERUs
Figure 3-16 Location of JI Projects (as a share of volumes supplied) 2003 – 2007
Figure 3-17 Transaction Values on the Voluntary Carbon Market
Figure 3-18 Transaction Volume by Type of Buyer, Voluntary OTC Market 2008
Figure 3-19 Transaction Volume by Buyer Location, OTC Market 2008
Figure 3-20 Transaction Volume by Project Location, OTC 2008
Figure 3-21 Volume and Number of Offset Projects by State 2007
Figure 3-22 Average Market Prices in US$ 2006 – 2008
Figure 3-23 CCX Price and Volume History 2003 - 2008
Figure 3-24 Project Prices by Project Type, Voluntary OTC Market
Figure 3-25 Average Credit Prices by Project Type, OTC 2007 vs. 2008
Figure 4-1 Map of Australia and New Zealand
Figure 5-1 Growth in Carbon Market 2005 - 2008
Figure 5-2 Players and Institutions in the Carbon Market
Figure 5-3 The Regulated Market
Figure 5-4 Total CER Project Procedure
Figure 5-5 Frequency of Technology Transfer for the Main Host Country As a Percentage of the Projects
Figure 5-6 Technology Suppliers Percentage of Projects Involving a Technology Transfer
Figure 5-7 Transaction Volume by Type of Buyer – OTC
Figure 5-8 Transaction Volume by Type of Buyer – OTC Market 2008
List of Tables
Table 1 - 1 Kyoto Mechanism - AAUs2008 – 2013
Table 1 - 2 EU ETS Market Volume and Values 2004 – 2013
Table 1 - 3 Clean Development Mechanism (CDM), CERs 2004 – 2013
Table 1 - 4 Clean Development Mechanism (CDM), Secondary Market CERs (gCERs) 2004 – 2013
Table 1 - 5 Joint Implementation (JI) - ERUs 2004 – 2013
Table 1 - 6 Regional Greenhouse Gas Initiative (RGGI) 2008 – 2013
Table 1 - 7 The Chicago Climate Exchange (CCX) 2004 – 2013
Table 1 - 8 The Voluntary Over-the-Counter Market (OTC) 2004 – 2013
Table 1 - 9 Carbon Market Exchanges and Related Products and Services
Table 2 - 1 Top Carbon Emitting Countries and Emissions 2007
Table 2 - 2 Changes in CO2 Emissions, Selected Countries 1992-2007
Table 2 – 3 Relative CO2 Emission from Various Fuels
Table 2 - 4 Countries Included in Annex B to the Kyoto Protocol and Their Emissions Targets 1990
through 2008/2012
Table 2 - 5 Allowance Based EU – ETS Trading Volumes and Values 2006 – 2008
Table 2 - 6 Kyoto - AAUs Trading Volumes and Values 2008
Table 2 - 7 Compliance Market Values in $M – Project Based 2005 – 2008
Table 2 - 8 Regulatory Carbon Market Component Summary
Table 2 - 9 RGGI Market Values in $M 2008-2009
Table 3 - 1 CDM Pipeline Detail by Project Type July 1, 2009
Table 3 - 2 Status of CDM projects
Table 3 - 3 JI Pipeline Detail by Project Type July 1, 2009
Table 3 - 4 JI Project Status July 1, 2009
Table 3 - 5 CDM Methodologies and Related Scope
Table 3 - 6 Hydropower CDM Projects July 1, 2009
Table 3 - 7 Wind CDM Projects January 1, 2009
Table 3 - 8 Renewable Energy Project Volumes Sold in OTC; 2007 and 2008
Table 3 - 9 Methane Project Volumes Sold in OTC; 2007 and 2008
Table 3 - 10 Land Based Credits Sold in OTC; 2007 and 2008
Table 3 - 11 Volumes by Other Project Type (ktCO2e) 2007 and 2008
Table 3 - 12 Top Country CER Purchasers
Table 3 - 13 Top 20 Authorized Buyers
Table 3 - 14 Growth in Carbon Market, values in US$M 2004 – 2008
Table 3 - 15 Annual volumes in MtCO2e 2004 – 2008
Table 4 - 1 Carbon Market Value in Millions USD 2004 – 2008
Table 4 - 2 Carbon Market Value in Millions USD 2009 – 2013
Table 4 - 3 Carbon Market Volumes 2004 – 2013
Table 4 - 4 EU ETS Market Volume and Values 2004 – 2013
Table 4 - 5 Kyoto Mechanism - AAUs 2008 – 2013
Table 4 - 6 The Chicago Climate Exchange (CCX) 2004 – 2013
Table 4 - 7 Regional Greenhouse Gas Initiative (RGGI) 2008 – 2011
Table 4 - 8 The Australian Carbon Market 2004 – 2013
Table 4 - 9 Clean Development Mechanism (CDM), CERs 2004 – 2013
Table 4 - 10 Clean Development Mechanism (CDM), Secondary Market CERs 2004 – 2013
Table 4 - 11 Joint Implementation (JI) - ERUs 2004 – 2013
Table 4 - 12 The Voluntary Over-the-Counter Market (OTC) 2004 – 2013
Table 5 - 1 Voluntary Market Standards
Table 5 - 2 Offset Provider Members of the Chicago Climate Exchange
Table 5 - 3 Offset Aggregator Members of the Chicago Climate Exchange
Table 5 - 4 Offset Aggregator Members of the Chicago Climate Exchange (Cont.)
Table 5 - 5 Carbon Market & Investors Association Brokerage Members
Table 5 - 6 CCX Liquidity Providers
Table 5 - 7 Carbon Market Exchanges and Related Products and Services
Table 5 - 8 Private Sector Financial Companies
Table 5 - 9 Carbon Finance Products
Table 5 - 10 Applicants to Participate in RGGI Auction June 17, 2009
Table 5 - 11 CCX Business Members
Table 5 - 12 CCX Business Members (cont.)
Table 5 - 13 CCX Members – Public Entities
Table 5 - 14 Carbon Market Law Firms
Table 5 - 15 Carbon Market Consultancies
Table 5 - 16 Independent Registries and Registry Infrastructure Providers
Table 5 - 17 Standard and Exchange Specific Registries
Table 6 ‑ 1 Companies Profiled
Table 6 ‑ 2 3 Degrees Incorporated Profile
Table 6 ‑ 3 APX Incorporated Profile
Table 6 ‑ 4 Baker & McKenzie Profile
Table 6 ‑ 5 Blue Source Profile
Table 6 ‑ 6 CantorCO2e Profile
Table 6 ‑ 7 Climate Focus Profile
Table 6 ‑ 8 Credit Suisse Profile
Table 6 ‑ 9 EcoSecurities Group Profile
Table 6 ‑ 10 Equator LLC Profile
Table 6 ‑ 11 Evolution Markets Profile
Table 6 ‑ 12 Fortis Profile
Table 6 ‑ 13 MGM International Profile
Table 6 ‑ 14 Natsource Profile
Table 6 ‑ 15 RNK Capital LLC Profile
Table 6 ‑ 16 Sterling Planet, Incorporated Profile
Table 6 ‑ 17 Tradition Financial Services/TFS Energy/TFS Green Profile
Table 6 ‑ 18 TUV SUD America Profile