Table of Contents
1 Table of Contents 6
1.1 List of Tables 8
1.2 List of Figures 9
2 Introduction 10
2.1 Greenhouse Gas (GHG) Emissions and Their Impact on Global Carbon Trading Markets 10
2.1.1 Impact of Greenhouse Gases on Ecology 10
2.1.2 Naturally Occurring Carbon Cycle 11
2.1.3 Global Initiatives to Reduce Carbon Footprint 12
3 Origins of Carbon Trading Market and Exchanges 14
3.1 Evolution of Carbon Trading Market 14
3.2 Global and Regional Carbon Exchanges 15
4 Kyoto Protocol, a Precursor of Emissions Trading Systems 17
4.1 Clean Development Mechanisms (CDM) 19
4.1.1 CDM Project Activity Cycle 20
4.1.2 Joint Implementation (JI) and Assigned Amount Unit (AAU) 20
4.1.3 Emission Trading 28
5 Global Carbon Trading Market: Dynamics and Statistics 29
5.1 Global Carbon Trading Market Overview 29
5.2 Global Allowance Markets 31
5.2.1 The EU Emission Trading Scheme: Still the Most Prominent Carbon Market 32
5.2.2 The US Market 33
5.2.3 The Australian Market 35
5.3 Global Project-based Market 36
5.3.1 Primary Project-based Market 37
5.3.2 Secondary Project-based Market 56
5.4 Post 2012 Market Uncertainty: Scenario Based Forecast to 2020 57
5.4.1 Linear Growth: Moderate Market with Current Programs and Policies 57
5.4.2 Scaling Up: Implementation of US Cap-and-Trade Program and EU Integrated Systems 59
5.4.3 Global Reach: Collaboration of EU, the US and Developing Nations 61
6 Global Carbon Credits Market Policy Framework Facilitating Emissions Trading 63
6.1 Overview of Regulatory Framework for Emission Trading Systems 63
6.1.1 American Clean Energy and Security Act and its Implications 63
6.1.2 European Union’s Climate Change Policy 64
6.1.3 Climate Change Initiatives in Canada and Prospects for Emissions Trading 67
6.1.4 Australia’s Climate Change Initiatives will Aid the Emission Trading Mechanism 67
6.2 Increasing Role of International Emissions Trading and International Emissions Trading Association (IETA) in Boosting the Market 68
6.2.1 Objectives of IETA 68
6.2.2 Programs by IETA 68
6.3 Various Regulatory Frameworks and Regional Initiatives in the US 69
6.3.1 American Clean Energy and Security Act of 2009 70
6.3.2 Regional Greenhouse Gas Initiative (RGGI) in the US 71
6.3.3 California Global Warming Solutions Act of 2006 AB 32 73
6.3.4 Western Climate Initiative (WCI) 73
6.3.5 Midwestern Regional GHG Reduction Accord (MGGRA) 74
6.3.6 EPA Climate Leaders 74
6.3.7 Hawaii Global Warming Solutions Act of 2007 74
6.4 European Union Emissions Trading System Promotes Emissions Trading Market 75
6.4.1 EU ETS 75
6.4.2 Revised EU ETS 75
6.5 Japan’s Keidanren Voluntary Action Plan and Other Voluntary Markets 77
6.6 Emission Reduction Schemes of Australia 78
6.6.1 New South Wales Greenhouse Gas Abatement Scheme 78
6.6.2 Greenhouse Challenge Plus 78
6.6.3 Carbon Pollution Reduction Scheme 78
6.7 Canadian Government’s Measures and Initiatives Drive Carbon Trading 79
6.8 Global Carbon Credits Standards 79
6.8.1 American Carbon Registry Standard 80
6.8.2 The Climate Action Reserve Protocols 81
6.8.3 The CarbonFix Standard 81
6.8.4 Chicago Climate Exchange Offsets Program 81
6.8.5 Climate, Community, and Biodiversity Standards 81
6.8.6 EPA Climate Leaders Offset Guidance 81
6.8.7 Greenhouse Gas Services Standard 81
6.8.8 The Gold Standard 82
6.8.9 Greenhouse Friendly 82
6.8.10 ISO 14064 Standards 82
6.8.11 Plan Vivo 82
6.8.12 Social Carbon Standard 82
6.8.13 TUV NORD Climate Change Standard and VER+ Standard 82
6.8.14 Voluntary Carbon Standard 83
7 Competitive Landscape of Emission Trading Companies 84
7.1 3 Degrees Incorporated 84
7.2 APX Incorporated 84
7.3 Baker & McKenzie 84
7.4 Blue Source 84
7.5 CantorCO2e 84
7.6 Climate Focus 85
7.7 Credit Suisse 85
7.8 EcoSecurities Group 85
7.9 Equator LLC 85
7.10 MGM International 85
7.11 Natsource 85
7.12 RNK Capital LLC 86
7.13 Sterling Planet, Incorporated 86
7.14 Tradition Financial Services/TFS Energy/TFS Green 86
7.15 TUV SUD America 86
8 Corporate Sustainability in a Changing Landscape 87
8.1 Carbon Exposure Risks 87
8.2 Carbon Exposure Opportunities 88
8.3 Carbon Emission Intensity by Sector 88
8.4 Companies are Expanding the Horizons of Sustainability Practices — New Initiatives in Carbon Sustainability 89
8.4.1 Chevron Corporation — Multifaceted Response to Climate Change 89
8.4.2 Walmart Stores, Inc. — Sustainability Mandate throughout the Supply Chain 91
8.4.3 General Electric Co. — Ecomagination Initiative, Revenue Opportunities from Climate Change Solutions 92
9 Appendix 94
9.1 About GBI Research 94
9.2 Abbreviations 94
9.3 Methodology 96
9.3.1 Coverage 97
9.3.2 Secondary Research 97
9.3.3 Primary Research 97
9.3.4 Expert Panel Validation 98
9.4 Contact Us 98
9.5 Disclaimer 98