Carbon Markets: Linking the International Emission Trading Under the United Nations Framework Convention on Climate Change (UNFCCC) and the European Union Emission Trading Scheme (EU ETS)

  • Itziar Martínez de Alegría
  • Gonzalo Molina
  • Belén del Río
Living reference work entry

Abstract

The trading of carbon emission permits is an instrument created recently to tackle the climate change problem. From 2005 onward, in particular, the volume and significance of different carbon emission trading schemes have increased spectacularly; despite the fact that new emission trading schemes are appearing, the value of the market had fallen by the end of the Kyoto Protocol’s first commitment period in 2012. One fundamental reason for this was the uncertainty as to whether a new global agreement or protocol would be reached in 2015. The main goal of this chapter is to offer an overview of International Emission Trading under the Kyoto Protocol together with the European Union Emission Trading Scheme (EU ETS), as the schemes at the core of today’s carbon markets, exploring their basic structure, their main links, and their differences, including a carbon price analysis underlining their fundamental weaknesses and strengths.

Keywords

Climate change policy Greenhouse gas (GHG) emissions Kyoto Protocol Clean Development Mechanisms Joint Implementation Mechanism International Emission Trading European Union Emission Trading Scheme (EU ETS) Carbon markets Carbon trading Emission permits Emission rights Allowances Emission credits Diffuse sector Energy–climate policy CO2 emissions reduction Climate change international commitments 

Notes

Acknowledgment

This work has been possible thanks to the collaboration of the Energy Working Group, which belongs to the Chair of International Relations (Social Sciences Faculty) of the University of the Basque Country (UPV–EHU).

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Copyright information

© Springer Science+Business Media New York 2015

Authors and Affiliations

  • Itziar Martínez de Alegría
    • 1
  • Gonzalo Molina
    • 2
  • Belén del Río
    • 3
  1. 1.Engineering School of BilbaoUniversity of the Basque Country (UPV/EHU)BilbaoSpain
  2. 2.University of the Basque Country (UPV/EHU)BilbaoSpain
  3. 3.Chair in International StudiesUniversity of the Basque Country (UPV/EHU)BilbaoSpain

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