In the aftermath of the Durban conference analysts have been turning their attention to the continued role of Kyoto Protocol emissions credits in the EU ETS. To date this trading mechanism has provided the biggest market for Kyoto credits, but the position is set to change drastically from 2013 onwards due to significant restrictions on [...]

The outcome of the UN conference in Durban has been more positive than initially indicated by the complexity of the negotiations. It is particularly laudable that a second commitment period of the Kyoto Protocol has been secured. This result translates into a continued existence of the international emissions trading mechanism. [...]

A week into the Durban conference, progress on the continued workability of the Kyoto Protocol emissions trading mechanism is slow. A number of parties to the negotiations have acknowledged that action needs to be taken to tackle the surplus of Assigned Amount Units (AAUs) in the international emissions market. [...]

With the United Nations Climate Change Conference due to start on 28 November, emissions trading is a key topic due for discussion in Durban. As one of the three Kyotomarket-based mechanisms seeking to reduce greenhouse gas emissions, emissions trading has emerged as a crucial weapon in the arsenal of climate change mitigation at the international level [...]

Clean Development Mechanism (CDM) credits have been receiving plenty of bad press, with the latest being reports of human rights abuses committed in Honduras over the ownership of credit-producing land. This is particularly serious as the CDM has been set up to feed into the EU ETS, which means that CDM credits find their way [...]

It has taken a long time in China, but official policies finally aim to achieve a sustainable balance between environmental protection and economic growth in significant ways. Developments over the last several weeks and months include a draft proposal for new rules on fines for pollution, discussions of an environmental tax and increased environmental spending, [...]

Last month, the second edition of State of the Forest Carbon Markets,was released. All in all, the report painted a positive picture for the forest carbon markets: the volumes, transaction value and average prices in 2010 were all up on the previous year at, respectively, 30.1MtCO2e, $178 million and $5.50/tCO2e. Notably, REDD based transactions dominated the total [...]

In anticipation of the centralised European registry for the EU ETS the Commission has turned its attention to the legal issues surrounding the traceability of stolen emissions allowances. The approach taken is deferential to the national laws of individual Member States rather than providing a harmonised EU-wide rule. However, the Commission’s proposals have done little [...]

The EU ETS remains high on the UK Parliament agenda following a recent submission by Barclays Capital calling for an independent and separate regulator for the regime. The submission provides a much needed focus on some of the key peculiarities of the EU ETS which have been known to cause tension in the emissions market. [...]

As part of the latest budget the UK government announced its intention to introduce a price floor for the emissions market. It is hoped that this move will encourage low carbon investment by disincentivising regulated entities from emitting at current levels. How this proposed unilateral measure will interact with the EU ETS remains to be [...]