What Is Carbon Emissions Trading?

<h1>What Is Carbon Emissions Trading?</h1>Author: <a title="Green" href="http://www.articlesbase.com/authors/green/129689.htm">Green</a> Global carbon market was worth $118 Billion in 2008, and is still growing at a very fast pace, despite a global recession. In fact analysts predict that the market could grow up to $150 billion by the end of this year. So what exactly is this <a href="http://www.tradecarboncredits.org/" title="carbon emissions trading">carbon emissions trading</a>? Is the question asked by many people. In this article I will try to summarize the background of carbon emissions trading and the current situation of the <a href="http://www.tradecarboncredits.org/" title="carbon market">carbon market</a>. In 1997 a protocol to the UNFCC (United Nations Framework Convention on Climate Change) was initially adopted for use, in Kyoto Japan, and is commonly known as Kyoto protocol. This protocol legally binds the parties (industrialized countries) to the protocol to reduce their Green House Gas (GHG) emissions. This protocol defines mechanisms like Emissions Trading and Clean Development Mechanisms that allow industrialized nations to meet their GHG obligations by buying GHG reduction credits from other countries. Thus allowing third world countries to carry out projects under Clean Development Mechanism and make a profit by trading the carbon credits with developed countries. In essence it means that if a country cannot meet its Green House Gas reduction target, it can buy credits from other countries that have credits in excess. As a result Carbon has become a commodity, which like other commodities, is traded in open market, called carbon market. According to pointcarbon.com report "The total traded volume in the global carbon market grew from 1.6 Gt (1.6 billion tonnes) in 2006, to 2.7 Gt in 2007 — an increase of 64 percent (see Figure 2.1). The value of the carbon traded grew even more, by 80 percent in the same period, from €22bn ($33bn) to €40bn ($60bn). <a href="http://www.tradecarboncredits.org/" title="http://www.tradecarboncredits.org"><a target="_blank" href="http://www.tradecarboncredits.org">http://www.tradecarboncredits.org</a></a>    About the Author: Article Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/business-articles/what-is-carbon-emissions-trading-812060.html" title="What Is Carbon Emissions Trading?">What Is Carbon Emissions Trading?</a>

Global carbon market was worth $118 Billion in 2008, and is still growing at a very fast pace, despite a global recession. In fact analysts predict that the market could grow up to $150 billion by the end of this year. So what exactly is this carbon emissions trading? Is the question asked by many people. In this article I will try to summarize the background of carbon emissions trading and the current situation of the carbon market.

In 1997 a protocol to the UNFCC (United Nations Framework Convention on Climate Change) was initially adopted for use, in Kyoto Japan, and is commonly known as Kyoto protocol. This protocol legally binds the parties (industrialized countries) to the protocol to reduce their Green House Gas (GHG) emissions.

This protocol defines mechanisms like Emissions Trading and Clean Development Mechanisms that allow industrialized nations to meet their GHG obligations by buying GHG reduction credits from other countries. Thus allowing third world countries to carry out projects under Clean Development Mechanism and make a profit by trading the carbon credits with developed countries. In essence it means that if a country cannot meet its Green House Gas reduction target, it can buy credits from other countries that have credits in excess.

As a result Carbon has become a commodity, which like other commodities, is traded in open market, called carbon market. According to pointcarbon.com report "The total traded volume in the global carbon market grew from 1.6 Gt (1.6 billion tonnes) in 2006, to 2.7 Gt in 2007 — an increase of 64 percent (see Figure 2.1). The value of the carbon traded grew even more, by 80 percent in the same period, from €22bn ($33bn) to €40bn ($60bn).

http://www.tradecarboncredits.org

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Article Tags: Kyoto Protocol, Carbon Credits, Carbon Trading, Emission Trading

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