Carbon Trading Set to Triple by 2012

Following the recent approval by the US House of Representatives of a climate change bill, the world now appears set on an irreversible path toward a dramatic expansion of carbon trading. Oxford Analytica takes a look at carbon emissions legislation around the world in a new report.

OxAn expects carbon markets to triple in size by around 2012: “The establishment of new national emissions trading schemes in countries including the United States, Australia and New Zealand combined with continuation of the European Emissions Trading Scheme (EU ETS) will be the main drivers of this growth. Japan and Canada, though more cautious, are also in a position to move quickly towards a regulated ETS.

The appeal of emissions trading lies in the way it simultaneously supports innovation and entrepreneurship with the desire of regulators to set tight standards.

Unlike taxation, it has clear goals, which can be easily communicated by politicians to the public and provides useful signals in international cooperation. While the economic crisis has added weight to industry concerns of the impact of increased climate regulation, existing carbon markets continue to expand in scope and new national markets will be implemented in the United States, Australia and New Zealand in the next few years.

Irrespective of the nature of the agreement reached at Copenhagen in December, carbon markets will continue to expand due to new national schemes. Implementation of such schemes in Australia, Canada and New Zealand will follow developments in the United States. The degree to which legislators look prepared to use trade sanctions against countries will shape carbon market development in Japan and other major emitters without plans for regulated markets.

Comments

[derryl:]

Oxford Analytica says, "The appeal of emissions trading lies in the way it simultaneously supports innovation and entrepreneurship with the desire of regulators to set tight standards."

Yes, it supports innovative and entrepreneurial rent seekers who, in collusion with the standard setting regulators, will reap billions of dollars of personal income for doing absolutely nothing but insinuating themselves between people and our use of energy. It took these innovative entrepreneurs a couple of decades of preaching and lying to get the scientifically ignorant public to believe in global warming, and now they reap their just reward.

Jul 07 12:35 AM

[Anni:]

"Unlike taxation, it has clear goals, which can be easily communicated by politicians to the public and provides useful signals in international cooperation." Since when did politicians communicate without bias about which will make them more revenue. Make no mistake this is taxation in it's most greedy and hidden form which will be communicated as if doing good but in reality just fleecing the public by increasing tax and energy costs. Perhaps traders should stay away from such participation.. but alas I doubt they will, seeing opportunity rather than truth.

Jul 07 05:55 AM

[keithfeather:]

Maybe the Chinese will finally find an outlet for their unwanted USD, buying emission credits, and not using them!! An ingenious way to shutter US manufacturing.

Truly one of the most self destructive concepts of our generation.

Jul 07 09:22 AM

[Ferdinand E...:]

I can hardly believe it: 100% (or A+) for all commentors - thus far.
Believe me ladies and gentlemen, carbon trading is a scam and those of us who know this have got to work harder to make this clear to the TV audience.

I don't want to interfere with your research, but never forget that it has NOT (N-O-T) worked in Europe, despite what you probably have heard.

Wonderful comments, colleagues.

Jul 07 10:01 AM

[Brad Smith:]

Through the process of aggregating information at greenmarketintelligenc... leads I have concluded that carbon trading projections are beginning to describe the emergence of a mega trend.

I believe that new information pieces must do a better job of articulating how carbon markets intersect with scientific measurements and metrics and informing a wider segment of readers about how these intersections become predictive markets.

Carbon market information pieces need to help readers understand the economic value propositions that are being asserted by carbon market participants.

Information pieces need to educate readers about the potential for carbon trading to be predictive markets that help allocate the right amount of capital to high potential projects.

The challenge of better articulating how climate change scientific measurements and metrics are rendered into predictive market capital allocation choices by carbon market participants must be faced. Overcoming this challenge will help readers understand how predictive markets organize and develop to allocate capital. This encompasses explaining how carbon market participants factor scientific analytics, metrics and measurements into predictive market transactions and how these transactions influence or affect capital allocation decisions. Reporting about the evolution of carbon markets will help wider audiences understand that carbon markets are being organized and developed to address issues that have been introduced by scientific study.

Carbon market participants are leveraging the power of predictive markets to render scientific measurements into capital allocation decisions. Innovative new business models to address climate change or carbon mitigation issues are being introduced daily. Some will succeed and others will fail however it is a good thing that so many people are engaging in unprecedented levels of innovation because each new model has the potential to elevate or scale up societies ability to solve problems and create viable solutions.

Increasing measurement rates for the organization and development of carbon markets captures a picture of the ebbs and flows of this mega trend and the innovation that is sustaining it.

Carbon market information producers need to focus on creating information pieces that explain the emergence of carbon markets to a wider audience.

Jul 07 10:27 AM

[Brad Smith:]

Through the process of aggregating information at greenmarketintelligenc... I have concluded that carbon trading projections are beginning to describe the emergence of a mega trend.

I believe that new information pieces must do a better job of articulating how carbon markets intersect with scientific measurements and metrics and informing a wider segment of readers about how these intersections become predictive markets.

Carbon market information pieces need to help readers understand the economic value propositions that are being asserted by carbon market participants.

Information pieces need to educate readers about the potential for carbon trading to be predictive markets that help allocate the right amount of capital to high potential projects.

The challenge of better articulating how climate change scientific measurements and metrics are rendered into predictive market capital allocation choices by carbon market participants must be faced. Overcoming this challenge will help readers understand how predictive markets organize and develop to allocate capital. This encompasses explaining how carbon market participants factor scientific analytics, metrics and measurements into predictive market transactions and how these transactions influence or affect capital allocation decisions. Reporting about the evolution of carbon markets will help wider audiences understand that carbon markets are being organized and developed to address issues that have been introduced by scientific study.

Carbon market participants are leveraging the power of predictive markets to render scientific measurements into capital allocation decisions. Innovative new business models to address climate change or carbon mitigation issues are being introduced daily. Some will succeed and others will fail however it is a good thing that so many people are engaging in unprecedented levels of innovation because each new model has the potential to elevate or scale up societies ability to solve problems and create viable solutions.

Increasing measurement rates for the organization and development of carbon markets captures a picture of the ebbs and flows of this mega trend and the innovation that is sustaining it.

Carbon market information producers need to focus on creating information pieces that explain the emergence of carbon markets to a wider audience.

Jul 07 10:29 AM

[MCKILL:]

IT'S THE SUN, STUPID

Jul 07 11:20 AM

[Shotei:]

Does anyone else in here live in Indiana? Estimates show that my electric bill will go from $100 a month to $500 or more if this cap and tax scam goes through. Indiana gets about 96% of our electricity from coal fired plants, the highest in the nation.

Jul 07 12:03 PM