Kossoy, AlexandreGuigon, Pierre2013-05-082013-05-082012-05https://hdl.handle.net/10986/13336The total value of the carbon market grew by 11 percent in 2011, to $176 billion, and transaction volumes reached a new high of 10.3 billion tons of carbon dioxide equivalent (CO2e). This growth took place in the face of economic turbulence, growing long-term oversupply in the EU Emissions Trading Scheme (EU ETS) and plummeting carbon prices. By far, the largest segment of the carbon market was that of EU Allowances (EUAs), valued at $148 billion. With the end of the first commitment period of the Kyoto Protocol in 2012, the value of the pre-2013 primary certified emission reduction (CER), emission reduction unit (ERU) and assigned amount unit (AAU) markets declined in 2011. At the same time, the post-2012 primary Clean Development Mechanism (CDM) market increased by a robust 63 percent, to US$2 billion, despite depressed prices and limited long-term-visibility. Against this backdrop, several new domestic and regional carbon market initiatives gained traction in both developed and developing economies in 2011. Five new jurisdictions (i.e., Australia, California, Québec, Republic of Korea, and Mexico) passed legislations laying the foundation for cap-and-trade schemes. Together, these initiatives will drive substantial resources towards low-carbon investments and they have the potential to unleash a truly transformational carbon market, in support of a global solution to the climate challenge.en-USCC BY 3.0 IGOabatementaccount holderaccount holdersAccountingacidacid productionAirAllocationammoniaannual emissionsannual greenhouse gasanthropogenic greenhouseanthropogenic greenhouse gasarbitrageasset classesauctionauctionsAverage Priceaverage pricesBank Marketscalculationcapital marketscapital stockcapsCARBcarbonCarbon Allowancecarbon allowancesCarbon Capturecarbon creditsCarbon Dioxidecarbon economycarbon exchangescarbon financecarbon leakageCarbon MarketCarbon marketscarbon offsetCarbon Pricecarbon pricescarbon sinkscarbon taxescarbon technologiescarbon tradingCarbon Unitscentral bankCertified Emission ReductionsCH4Chemical Oxygen DemandClean EnergyClimateClimate Changeclimate change mitigationClimate damagesclimate economicsclimate policyclimate sciencecoCO2CoalCoal Minecolorscombustioncommodity marketsconservation of forestscost of fuelcredibilitycredit ratingdebtdebt crisisdepressed pricesdeveloping countriesDevelopment BankDNAeconomic riskEcosystemelectricityelectricity generationEmissionemission allowancesemission levelsEmission ReductionEmission Reduction Projectemission reduction targetEmission Reduction Unitsemission reductionsEmissionsemissions allowancesemissions dataEmissions from Deforestationemissions reductionsenergy consumptionEnergy Efficiencyenergy efficiency measuresEnergy Marketenergy mixenergy subsidiesequipmentExpendituresfinancial crisisfinancial instrumentFinancial Instrumentsfinancial marketsfinancial supportfloor priceForestForest DegradationForestryforward marketfossil fuelfossil fuelsFramework Convention on Climate Changefraudfree allocationfree allowancesfreezefuelsfungibleFuturesFutures ExchangeFutures marketgasesgeneration mixGHGGHGsglobal carbon marketglobal emissionsGlobal MarketsGlobal Warminggovernment policyGreenhouseGreenhouse Gasgreenhouse gas emissionsGreenhouse Gas ReductionGross Domestic ProductHFCsholdinghost countryHydrochlorofluorocarbonhydrofluorocarbonsimpacts of climate changeInternal Rate of Returninternational creditsInternational EmissionsInternational FinanceInternational Financial Institutioninternational offsetsInvestment Bankinvestment decisionInvestment fundsironissuanceLand UseLand Use ChangeLand-Use ChangeLandfillLandfill Gaslegal agreementlegal instrumentlegal obligationlevyliabilityliquiditylow-carbonlower demandlower energy consumptionmacroeconomic uncertaintymarket analystmarket analystsmarket conditionsmarket designmarket infrastructureMarket instrumentsMarket Mechanismmarket mechanismsMarket oversightmarket participantsmarket playermarket playersmarket pricemarket reformsMarket valueMarketplaceMethaneMonetary FundN2ONational accountsNitrous Oxidenuclear poweroil equivalentOxygenPerfluorocarbonperfluorocarbonspetrochemicalspolicy scenarioportfoliopotential demandpower plantspower sectorpower stationsPresent ValuePrice Floorprice fluctuationsPrice Mechanismprice riskprice signalprice supportprimary marketprivate capitalRegional Greenhouse Gas InitiativeRenewable EnergyReserveretailrisk managementrisky assetssalesalesscenariossecondary marketsecondary market priceset asideSF6spot marketspreadSulfurSulfur Hexafluoridesurplussurplus of allowancessustainable forestsustainable forest managementTaxtemperaturetotal saletrading systemtrancheTransactionTreasuryuncertaintiesUNEPVolatilitywindwithdrawalWorld Bank10.1596/13335