List of main emissions trading policy schemes and initiatives, per region
Posted by gmarkets on 10 October, 2007
The following overview of and commentary on some main policy schemes and initiatives, per region, was published in the European Management Journal, (3/8/2007, p. 1-2).
Europe EU Emissions Trading Scheme (EU ETS): Main instrument of the EU to reduce greenhouse gas (GHG) emissions. Started trading in 2005, with two phases until 2012. EU plans beyond 2012 were to reduce GHG emissions by 20 per cent by 2020 and 60-80 per cent by 2050.
UK Emissions Trading Scheme: First domestic economy-wide trading scheme, based on voluntary participation of companies with absolute reduction commitments, launched in 2002.
North America, Chicago Climate Exchange (CCX): Voluntary, but legally binding commitment of member organisations to meet greenhouse gas emission reduction targets of 6 per cent by 2010, compared to average 1998-2001 emissions. Started trading in 2003.
Regional Greenhouse Gas Initiative (RGGI): Cooperative effort by 10 Northeast and Mid-Atlantic states in the US to discuss the design of a regional cap-and-trade program. Initially planned to cover CO2 emissions from power plants, but may be extended to other GHG sources.
California Global Warming Solutions Act: Mandates state-wide greenhouse gas emissions cap for 2020, based on 1990 emissions. Equals a 25pc emission reduction compared to business as usual. Triggered formation of California Climate Exchange (CaCX) in 2007.
Mayors’ Climate Protection Agreement: Agreement signed by 600 mayors in all 50 US states and Puerto Rico in July 2007, which includes commitment to reduce CO2 emissions by 7pc below 1990 levels by 2012. Initiative was first launched in 2005.
Western Regional Climate Action Initiative: Agreement that directs 7 US states and 2 Canadian provinces to develop regional target for reducing greenhouse gases by August 2007. Will devise market-based program, such as a load-based cap and trade program to reach the target.
Canadian Regulatory Framework for Air Emissions: Successor to an earlier plan (2005) launched by the previous government. The current set-up aims at 20 per cent reduction of greenhouse gas emission by 2020 compared to 2006. Mixed approach with emissions trading and contributions to a technology fund.
Asia-Pacific, Asia-Pacific Partnership on Clean Development and Climate: Announced early 2006 by the US, Australia, China, India, Japan, and South Korea. Focuses on creating a voluntary, non-legally binding framework for international cooperation to facilitate development and deployment of clean technologies.
Japan: Adopted Kyoto Protocol Target Achievement Plan in 2005, which implies awareness raising, dissemination of technology, emissions reporting and voluntary use of the Kyoto mechanisms. In May 2007, Japan’s prime minister announced an initiative to halve global emissions by 2050, using new technologies and nuclear and renewable energy.
Australia/New Zealand: Australia has announced its intention to move towards a domestic, nation-wide emissions trading system, beginning no later than 2012. In June 2007. Australia and New Zealand announced they would join forces in the development of carbon-trading systems that would be compatible.
Australia Climate Exchange (ACX): Launched Australia’s first emission trading platform in July 2007, providing a mechanism to trade emission allowances and the Australian Greenhouse Office accredited Greenhouse Friendly approved abatement.
New South Wales Greenhouse Plan: Australian state initiative to bring GHG emissions back to the level of 2000 by 2025, envisions 60 per cent reductions by 2050. Applies various initiatives in different sectors.
European Management Journal, 3/8/2007, p. 1-2