Abstract
The current Climate Change policy is largely represented by the legislative framework provided by the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol, whereby UNFCCC Annex I countries are called for greenhouse gases (GHG) emission reduction commitments on the basis of the targets specified in Annex B of the Kyoto Protocol.
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Notes
- 1.
See Section 3.5.
- 2.
It cannot be excluded that even the voluntary market buyers may purchase ERUs for a sort of pre-compliance purpose, foreseeing an imminent accession to the Kyoto Protocol legal framework and QERLC.
- 3.
Source: World Bank, State and Trends of the Carbon Market 2009.
- 4.
For a description of primary market see further below in this paragraph.
- 5.
This case corresponds to the case sub (1) described in the previous paragraph.
- 6.
This second case corresponds to the case sub (2) described in the previous paragraph.
- 7.
The term “carbon finance” indicates the whole investment activities in the projects generating tradable credits, plus the related financial and contractual tools.
- 8.
More details on the nature, composition and missions of these Funds are available on www.carbonfinance.org.
- 9.
Directive 2003/87/EC of 13 October 2003, in OJ L275 of 25 October 2003, p. 32.
- 10.
For more details see Directive 2004/101/EC of 27 October, in OJ L338 of 13 November 2004, p. 18.
- 11.
See Directive 2009/29/EC of 23 April 2009 amending Directive 2003/87/EC, in OJ L140 of 5 June 2009, p. 63.
- 12.
Source: World Bank, State and Trends of the Carbon Market 2009.
- 13.
Source: World Bank, State and Trends of Carbon Market 2008, data referring to year 2007.
- 14.
Paragraphs 17–18, UNFCCC/CP/2001/13/Add.2.
- 15.
Each NR includes, at least, one holding account for the government, one holding account for each authorised legal entity, on retirement account for each period, three cancellation accounts: net sinks emissions, non compliance, other cancellations.
- 16.
Each registry is to be connected to the ITL through secure communication channels established across the Internet. These connections will allow a registry to receive an immediate response from the ITL, typically within a matter seconds after sending the transaction information. Source: UNFCCC website.
- 17.
The ITL verifies transactions proposed by registries to ensure they are consistent with rules agreed under the Kyoto Protocol. Each registry sends transaction proposals to the ITL, which checks each proposal and returns to the registry its approval or rejection. Once approved, registries complete the transaction. In the event that a transaction is rejected, the ITL sends a code indicating which ITL check has been failed and the registry terminates the transaction. Source: UNFCCC website.
- 18.
The source of all the data and the figures reported is the World Bank State and Trends of the Carbon Market 2008 and the World Bank, State and Trends of the Carbon Market 2009.
- 19.
For more details see: World Bank State and Trends of the Carbon Market 2008 and World Bank State and Trends of the Carbon Market 2009.
- 20.
China consolidated its position as the pre-eminent carbon supplier, by quadrupling its number of projects in the pipeline from January 2007 to March 2008. Then, until March 2009, the CDM pipeline in China continued to grow, reaching about 1730 projects, with 800 of them entering the pipeline since January 2008. China is well ahead of other countries in the CDM pipeline with 53% of potential CER supply until 2012 and, with 1104 projects, also pulled ahead of India in the number of projects in the CDM pipeline. China also nearly doubled its expected CER deliveries by 2012 over that period of time (Source: World Bank State and Trends of the Carbon Market 2008 and World Bank State and Trends of the Carbon Market 2009).
- 21.
The main market benchmarks for price were the prices characterizing transactions with CERs produced in China.
- 22.
Source: World Bank, State and Trends of the Carbon Market 2008.
- 23.
Source: World Bank, State and Trends of the Carbon Market 2009.
- 24.
This may easily be understood by considering the simplest case of a seller represented by a Non Annex I Country and a buyer represented by an Annex I Country. In this case the seller may exploit the buyer need of CERs to comply with its QELRC and, on the other hand, the buyer may exploit its financial advantage to make pressures on the seller in need of investments, technological and financial resources to reach sustainable development.
- 25.
Please note that many aspects of the contractual subject are regulated, inter alia, by the private international law rules provided by the 1980 Rome Convention applicable to the Contractual Obligations.
- 26.
More details on the WB and the IETA carbon contracts are available on www.carbonfinance.org and on www.ieta.org.
- 27.
See among others the UN Millennium Development Goals available on www.un.org/millenniumgoals.
- 28.
See artt. 4.1, 4.3, 4.5 and 10.2 (c) UNFCCC and artt. 11.2 and 12 of the Kyoto Protocol.
- 29.
Source: World Bank, State and Trends of the Carbon Market 2009.
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Barreca, A. (2010). Carbon Market and Carbon Contracts for CERs Transactions. In: Montini, M. (eds) Developing CDM Projects in the Western Balkans. Springer, Dordrecht. https://doi.org/10.1007/978-90-481-3392-5_3
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