Carbon Emissions Trading Markets Worldwide

• Publication date: May 2009

Carbon emissions have been traded, albeit at minor levels, in the over-the-counter (OTC) market since the 1990s. In recent years, significant global governmental involvement in the stabilization of the concentration of atmospheric greenhouse gases has facilitated tremendous growth in the market for carbon emissions trading. The value of the carbon market has grown from $727 million in 2004 to $118 billion in 2008. In addition to the ...

Carbon emissions have been traded, albeit at minor levels, in the over-the-counter (OTC) market since the 1990s. In recent years, significant global governmental involvement in the stabilization of the concentration of atmospheric greenhouse gases has facilitated tremendous growth in the market for carbon emissions trading. The value of the carbon market has grown from $727 million in 2004 to $118 billion in 2008.


In addition to the foundational regulatory organizations that have established the framework of the market, and the pre-requisite buyers and sellers, the magnitude and evolving complexity of the global carbon markets has attracted numerous intermediaries, such as brokers, exchanges, aggregators, and financiers, as well as other peripheral participants such as validation and verification, information and analysis, legal, and consulting service providers. Opportunities for market participants are expected to continue to increase as the value of global carbon markets are forecast to grow by 68% per year to $669 billion in 2013.


Carbon Emissions Trading includes a broad review of the carbon market. The report provides a discussion of the mechanisms employed in the carbon market and an overview of the market structure and participants. Market demand for carbon emissions allowances and offsets is quantified and projections for growth in demand are provided, along with the key factors influencing this growth. The report also provides profiles of companies active in the carbon market.


Report Methodology


The information in Carbon Emissions Trading is based on primary and secondary research. Primary research entailed in-depth interviews with firms involved in the development of carbon emissions trading regulation, financial companies, and consultants to the industry to obtain information on the developing market and factors shaping the industry. Secondary research entailed data gathering from relevant sources, including government and industry publications, company literature and corporate annual reports.


What You’ll Get in This Report


Carbon Emissions Trading contains important insights and projections regarding the future of this market around the world. No other market research report provides both the comprehensive analysis and data that Carbon Emissions Trading offers. Subscribers will benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.


How You’ll Benefit From This Report


If your company is already doing business in the carbon market, or is considering entering the marketplace, you will find this report invaluable, as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current global market for carbon emissions allowances and offsets, as well as projected markets and trends through 2013.


This report will help:

• Marketing managers understand the market forces shaping the carbon market and identify market opportunities.
  
  


• Research and development professionals stay on top of competitor initiatives and explore demand for carbon emissions allowances and offsets.
  
  


• Business development executives understand the dynamics of the market and identify possible partnerships.
  
  


• Information and research center librarians provide market researchers, product managers, and other colleagues with the vital information they need to do their jobs more effectively.

Environmental Services Industry in the United States

Chapter 1: Executive Summary

Carbon Market Framework

Figure 1-1: Carbon Market Segmentation, 2008

Compliance Market Regulatory Framework

The Kyoto Protocol

Figure 1-2: Kyoto Protocol Trading Mechanisms

European Union Emissions Trading System

Figure 1-3: European Union Linking Directive

New South Wales Greenhouse Gas Abatement Scheme

Regional Greenhouse Gas Initiative

Voluntary Market Framework

Chicago Climate Exchange

Over the Counter Market

Industry Structure and Participants

Figure 1-4: Carbon Market Industry Structure, 2008

Carbon Exchanges

Table 1-1: Carbon Exchanges and Trading Platforms, 2008

Table 1-2: Currencies Traded on Global Carbon Exchanges and Trading Platforms, 2008

Market Size and Segmentation

Figure 1-5: Carbon Market Volume and Value, 2004-2008 (Volume in MtCO2e; Value in $ M)

Figure 1-6: Carbon Market Value by Sub-Segment, 2008 ($ M)

Carbon Market Projections

Figure 1-7: Carbon Market Volume and Value, 2009-2013 (Volume in MtCO2e; Value in $ M)

Report Scope

Report Format

Report Methodology

Abbreviations

Table 1-3: Abbreviations Utilized in Report

Chapter 2: Carbon Market Framework

Overview

Carbon Market Framework

Figure 2-1: Carbon Market Segmentation, 2008

Compliance Market

Table 2-1: Emissions Trading Systems in Compliance Market, 2008

Regulatory Framework

United Nations Framework Convention on Climate Change

Table 2-2: UNFCCC Annex I Nations

Figure 2-2: UNFCCC Annex 1 Greenhouse Gas Emissions, 1990 - 2000 (% change from 1990 level)

The Kyoto Protocol

Figure 2-3: Kyoto Protocol Ratifying Nations

Table 2-3: Kyoto Protocol Greenhouse Gas Emissions Targets (% change from 1990 level)

Clean Development Mechanism

Figure 2-4: Clean Development Mechanism, 2008

Joint Implementation Mechanism

Figure 2-5: Joint Development Mechanism, 2008

International Emissions Trading

Figure 2-6: International Emissions Trading, 2008

European Union Emissions Trading System

Figure 2-7: European Union Allowance Trading, 2008

Figure 2-8: EU-ETS Allowance and Offset Trading, 2008

Keidanren Voluntary Action Plan

New South Wales Greenhouse Gas Abatement Scheme

Regional Greenhouse Gas Initiative

Compliance Market Currencies

Table 2-4: Emissions Equivalencies of Currencies Traded in Compliance Market, 2008

Table 2-5: Currencies Traded in Compliance Market, 2008

Certification Standards in Compliance Market

Registries in the Compliance Market

Figure 2-9: Kyoto Protocol Carbon Registries, 2008

Table 2-6: Registries Utilized in Compliance Market, 2008

Voluntary Market

Figure 2-10: Voluntary Carbon Market Segmentation, 2008

Chicago Climate Exchange

Over the Counter Market

Voluntary Market Currencies

Table 2-7: Currencies Traded in Voluntary Market, 2008

Certification Standards in Voluntary Market

Figure 2-11: Voluntary Carbon Market Certification Standards, 2008

Table 2-8: Voluntary Emissions Standards, 2008

Chicago Climate Exchange Standard

Voluntary Carbon Standard

VER+ Standard

Climate, Community and Biodiversity Standard

Plan Vivo

The Gold Standard

Greenhouse Friendly Standard

Registries in Voluntary Market

Table 2-9: Carbon Accounting Registries in the Voluntary Carbon Market, 2008

Chapter 3: Industry Structure

Overview

Industry Structure and Participants

Figure 3-1: Carbon Market Industry Structure, 2008

Carbon Market Framework

Regulatory Bodies

United Nations Climate Change Secretariat

United Nations Clean Development Mechanism Executive Board

Joint Implementation Supervisory Committee

Compliance Committee

Designated National Authorities

Designated Operational Entity

Non-Governmental Organizations

Local Authorities

Suppliers

Project Developers

Table 3-1: Representative Project Developers, 2008

Intermediaries

Exchanges

Table 3-2: Carbon Exchanges and Trading Platforms, 2008

Table 3-3: Currencies Traded on Global Carbon Exchanges and Trading Platforms, 2008

Table 3-4: Sample Voluntary Emissions Reductions Certification Standards, 2008

Europe

Table 3-5: European Carbon Exchanges and Trading Platforms, 2008

European Climate Exchange

Nordic Power Exchange

European Energy Exchange

Energy Exchange Austria

BlueNext

Climex

North America

Table 3-6: North American Carbon Exchanges and Trading Platforms, 2008

Chicago Climate Exchange

The Green Exchange

Montreal Climate Exchange

South America

Table 3-7: South American Carbon Exchanges and Trading Platforms, 2008

Brazil Mercantile Futures Exchange

Asia and Australia

Table 3-8: Asian and Australian Carbon Exchanges and Trading Platforms, 2008

Asia Carbon Exchange

Multi-Commodity Exchange of India

National Commodity & Derivatives Exchange

The Australian Climate Exchange

Brokers

Table 3-9: Representative Carbon Market Brokers, 2008

Aggregators

Table 3-10: Representative Offset Aggregators, 2008

Financial Institutions

Table 3-11: Representative Private Sector Financial Companies Active in Carbon Market, 2008

Multilateral Development Banks

Carbon Funds

Carbon Finance Product Offerings

Buyers

Compliance Market Buyers

Voluntary Market Buyers

Industry Services

Validation and Verification Services

Information, Analysis, and Legal Advisory Services

Table 3-12: Representative Consulting Firms Active in Carbon Market, 2008

Table 3-13: Representative Legal Advisory Service Companies Active in Carbon Market, 2008

Chapter 4: Market Sizing and Segmentation

Overview

Market Size and Segmentation

Figure 4-1: Carbon Market Volume and Value, 2004-2008 (Volume in MtCO2e; Value in $ M)

Figure 4-2: Carbon Market Value by Segment, 2008 ($ M)

Compliance Market Segments

Figure 4-3: Kyoto Protocol Trading Mechanisms

International Emissions Trading

European Union Emissions Trading System Market

Figure 4-4: EU ETS Carbon Market Volume, 2004 to 2008 (MtCO2e)

Figure 4-5: European Union Linking Directive

Clean Development Mechanism Market

Figure 4-6: Clean Development Mechanism, 2008

Figure 4-7: Certified Emissions Reductions Issued by Project Type (% of total)

Figure 4-8: Certified Emissions Reduction Volume, 2004 to 2008 (MtCO2e)

Joint Implementation Market

Figure 4-9: Joint Development Mechanism, 2008

Figure 4-10: Emissions Reduction Units Registered by Project Type (% of total)

Figure 4-11: Emissions Reduction Unit Volume, 2004 to 2008 (MtCO2e)

New South Wales Greenhouse Gas Abatement Scheme Market

Figure 4-12: New South Wales Greenhouse Gas Abatement Scheme Volume, 2004 to 2008 (MtCO2e)

Regional Greenhouse Gas Initiative Market

Figure 4-13: Regional Greenhouse Gas Initiative Market Volume, 2004 to 2008 (MtCO2e)

Voluntary Market Segments

Chicago Climate Exchange

Figure 4-14: Chicago Climate Exchange Volume, 2004 to 2008 (MtCO2e)

Over the Counter Market

Figure 4-15: Over the Counter Market Volume, 2004 to 2008 (MtCO2e)

Market Price Trends

Figure 4-16: Carbon Market Price Trends, 2007-2008 ($/tCO2e)

Carbon Market Projections

Figure 4-17: Carbon Market Volume and Value, 2009-2013 (Volume in MtCO2e; Value in $ M)

Figure 4-18: Carbon Market Value by Segment, 2013 ($ M)

Kyoto Protocol Post 2012

UNFCCC Conference in Poznan

European Union Emissions Trading System

Figure 4-19: European Union Trading System Market Volume, 2009 to 2013 (MtCO2e)

Key Drivers of EUA Demand and Price

Clean Development Mechanism Market

Figure 4-20: Certified Emissions Reduction Volume, 2009 to 2013 (MtCO2e)

Joint Implementation Market

Figure 4-21: Joint Implementation Volume, 2009 to 2013 (MtCO2e)

North American Markets

California Global Warming Solutions Act of 2006

Hawaii Global Warming Solutions Act of 2007

Minnesota Next Generation Energy Act of 2007

Regional Greenhouse Gas Initiative

Figure 4-22: Regional Greenhouse Gas Initiative Market Volume, 2009 to 2013 (MtCO2e)

Western Regional Climate Action Initiative

Midwestern Greenhouse Gas Accord

Potential United States Federal Cap and Trade System

Figure 4-23: United States Federal Cap and Trade System Market Volume, 2009 to 2013 (MtCO2e)

Australian Carbon Market

Figure 4-24: Australian Carbon Market Volume, 2009 to 2013 (MtCO2e)

Japan

Figure 4-25: Japanese Carbon Market Volume, 2009 to 2013 (MtCO2e)

The Chicago Climate Exchange

Figure 4-26: Chicago Climate Exchange Market Volume, 2009 to 2013 (MtCO2e)

Over-the-Counter Market

Figure 4-27: Over the Counter Market Volume, 2009 to 2013 (MtCO2e)

Chapter 5: Company Profiles

Overview

Table 5-1: Companies Profiled

3 Degrees Incorporated

Table 5-2: 3 Degrees Incorporated Profile

Corporate Background

Product and Brand Portfolio

Performance

Company News

Acquisitions and Divestitures

Innovation

Outlook

Personnel Changes

APX Incorporated

Table 5-3: APX Incorporated Profile

Corporate Background

Product and Brand Portfolio

Performance

Company News

Acquisitions and Divestitures

Innovation

Outlook

Personnel Changes

Baker & McKenzie

Table 5-4: Baker & McKenzie Profile

Corporate Background

Product and Brand Portfolio

Performance

Acquisitions and Divestitures

Innovation

Outlook

Personnel Changes

Blue Source

Table 5-5: Blue Source Profile

Corporate Background

Product and Brand Portfolio

Performance

Company News

Acquisitions and Divestitures

Innovation

Outlook

Personnel Changes

CantorCO2e LLC

Table 5-6: CantorCO2e Profile

Corporate Background

Product and Brand Portfolio

Performance

Company News

Acquisitions and Divestitures

Innovation

Outlook

Personnel Changes

Climate Focus

Table 5-7: Climate Focus Profile

Corporate Background

Product and Brand Portfolio

Performance

Acquisitions and Divestitures

Innovation

Outlook

Personnel Changes

Credit Suisse

Table 5-8: Credit Suisse Profile

Corporate Background

Product and Brand Portfolio

Performance

Company News

Acquisitions and Divestitures

Innovation

Outlook

Personnel Changes

EcoSecurities Group plc

Table 5-9: EcoSecurities Group Profile

Corporate Background

Product and Brand Portfolio

Performance

Acquisitions and Divestitures

Innovation

Outlook

Personnel Changes

Equator LLC

Table 5-10: Equator LLC Profile

Corporate Background

Product and Brand Portfolio

Performance

Acquisitions and Divestitures

Innovation

Outlook

Personnel Changes

Evolution Markets

Table 5-11: Evolution Markets Profile

Corporate Background

Product and Brand Portfolio

Performance

Acquisitions and Divestitures

Innovation

Outlook

Personnel Changes

Fortis

Table 5-12: Fortis Profile

Corporate Background

Product and Brand Portfolio

Performance

Company News

Acquisitions and Divestitures

Innovation

Outlook

Personnel Changes

MGM International

Table 5-13: MGM International Profile

Corporate Background

Product and Brand Portfolio

Performance

Company News

Acquisitions and Divestitures

Innovation

Outlook

Personnel Changes

Natsource

Table 5-14: Natsource Profile

Corporate Background

Product and Brand Portfolio

Performance

Acquisitions and Divestitures

Innovation

Outlook

Personnel Changes

RNK Capital LLC

Table 5-15: RNK Capital LLC Profile

Corporate Background

Product and Brand Portfolio

Performance

Acquisitions and Divestitures

Innovation

Outlook

Personnel Changes

Sterling Planet, Incorporated

Table 5-16: Sterling Planet, Incorporated Profile

Corporate Background

Product and Brand Portfolio

Performance

Acquisitions and Divestitures

Innovation

Outlook

Personnel Changes

Tradition Financial Services / TFS Energy / TFS Green

Table 5-17: Tradition Financial Services/TFS Energy/TFS Green Profile

Corporate Background

Product and Brand Portfolio

Performance

Acquisitions and Divestitures

Innovation

Outlook

Personnel Changes

TUV SUD America

Table 5-18: TUV SUD America Profile

Corporate Background

Product and Brand Portfolio

Performance

Acquisitions and Divestitures

Innovation

Outlook

Personnel Changes