Capoor, KaranAmbrosi, Philippe2013-05-142013-05-142008-05https://hdl.handle.net/10986/13405The carbon market is the most visible result of early regulatory efforts to mitigate climate change. Regulation constraining carbon emissions has spawned an emerging carbon market that was valued at US$64 billion (Euro 47 billion) in 2007. Its biggest success so far has been to send market signals for the price of mitigating carbon emissions. This, in turn, has stimulated innovation and carbon abatement worldwide, as motivated individuals, communities, companies and governments have cooperated to reduce emissions. The European Union Emission Trading Scheme (EU ETS) market has been successful in its mission of reducing emissions through internal abatement at home, and of stimulating emission reductions abroad. The European Commission, learning from the experience of Phase I, has strengthened several important design elements for EU ETS Phase II. Clean Development Mechanism (CDM) accounted for the vast majority of project-based transactions (at 87 percent of volumes and 91percent of values) and JI saw transacted volumes doubling and values tripling in 2007 over the previous year. The CDM alone saw primary transactions worth US$7.4 billion (Euro 5.4 billion), with demand coming mainly from private sector entities in the EU, but also from EU governments and Japan.en-USCC BY 3.0 IGOABATEMENTaccountingaggregate levelAllowance marketsammoniaannual emissionsasset classesauctionauctionsaverage pricebalancebalance sheetbalance sheetsbankruptcybarriers to entryBrokerscall optionscapacity constraintcapital adequacycapital inflowcapitalizationCarboncarbon abatementcarbon assetcarbon assetscarbon capturecarbon creditscarbon dioxidecarbon dioxide equivalentcarbon emissionsCarbon Financecarbon fundsCarbon InvestmentCarbon MarketCarbon Marketscarbon mitigationcarbon paymentscarbon purchasecarbon purchase transactionscarbon sequestrationcarbon taxCertified Emission ReductionsClean DevelopmentClean Development MechanismClean EnergyClimate ActionClimate Changeclimate change agreementclimate change negotiationsclimate change strategyClimate Change TeamCLIMATE EXCHANGEclimate policyclimate protectioncommercial contractscompetitivenesscost abatement opportunitiescredibilitycredit enhancementcredit policiescredit qualitycredit riskcredit risksdebtdeforestationderivativederivative contractsderivativesdeveloped countriesdeveloping countriesdeveloping countrydieseldividendsdomestic emissionseconomic growthEconomicselectricityeligible creditsEmissionemission reductionemission reduction programsemission reductionsEmission Reductions TransactionsEmission TradingEmissionsEmissions Dataemissions growthEmissions Reductionsenergy efficiencyenergy pricesenvironmentalenvironmental integrityenvironmental performanceequity investmentfinancial institutionsfinancial instrumentfinancial instrumentsfinancial marketfinancial marketsfinancial resourcesforeign exchangeforestryfuelfuel pricesfuel switchingfund managerfungibleFuture contractsfuturesFutures contractsgas projectgas projectsgasesgenerationglobal carbon marketglobal climate changeglobal emissionsglobal greenhouse gasglobal greenhouse gas emissionsglobal marketgrace periodGREENHOUSE GASGREENHOUSE GAS ABATEMENTgreenhouse gas emissionsgreenhouse gas reductioninitial yieldinstitutional investorsinternational climate negotiationsInternational Transactioninvestment banksinvestment decisionInvestment FundsissuanceissuancesJoint Implementationland-use activitiesLegislationletters of creditliquidityLLCloanMark to marketmarket analystsMarket Demandmarket developmentmarket governanceMarket infrastructuremarket participantMarket participantsMARKET PLAYERSmarket pricemarket shareMARKET STRUCTUREmarket transactionmarket trendsmarket valuemarketplacesMethanenational emissionsnitrous oxideoffset projectoiloil pricespartial guaranteesperformance riskperverse incentivespetroleumpetroleum industrypipelinepolicy makersportfolioportfolio riskportfoliospotential demandpowerpower producerspower sectorprice controlprice formationprice transparencyprice trendsprimary energyPrimary MarketPrivate Capitalproducersproduction of electricitypurchasingrate of returnreducing emissionsRegional Emissionsregulatory infrastructureregulatory systemregulatory systemsrenewable energyrenewable energy projectsreservereturnsrisk managementRisk Profilessalesalessecondary carbon marketsSECONDARY MARKETSecondary marketssecuritiessettlementspreadsupply of creditsSustainable Developmentswapstaxthermal inputtotal emissionsTradingtranchetranchesTransactiontransaction costTransaction Costsutilitiesvalidation stagevehicleswaste managementweather patternswindwindfall profitsWorld Bank10.1596/13404