INSEAD Library

Includes bibliographical references and glossary

Digitized

Act Locally, Trade Globally Emissions Trading for Climate Policy Table of contents Executive Summary............................................................................................................ 11 1 Introduction: Emissions Trading and Climate Policy......................... 19 Allocation Modes........................................................................................... 25 Outline........................................................................................................... 27 2 The Kyoto Protocol Mechanisms......................................................... 29 Overview of the Three Mechanisms.............................................................. Supply and Demand Outlook....................................................................... Emissions Trading: a Market Instrument for Industrialised Countries........... Project-Based Mechanisms: Raising High Expectations............................... Kyoto Mechanisms: an Early Focus on Projects........................................... 29 32 35 44 64 3 Emissions Trading: Targeting Sources............................................... 67 The EU Emissions Trading Scheme.............................................................. 67 GHG Emissions Trading Systems beyond the EU........................................ 98 Linking Systems: Issues and Opportunities .................................................. 123 Conclusion................................................................................................... 138 4 Beyond Industrial Activities.................................................................. 141 Extending Coverage through Upstream Allocations...................................... Emissions Trading in Road Transport........................................................... Including International Aviation and Marine Bunker Fuels............................ Conclusion................................................................................................... 142 144 161 166 5 Broadening and Deepening................................................................... 169 The Advantages of a Global Emissions Trading Regime.............................. Barriers to a Global Regime.......................................................................... Dynamic Targets........................................................................................... Non-Binding Targets..................................................................................... Other Target Types....................................................................................... Developing Economies' Circumstances........................................................ 171 173 176 183 187 190 From Countries to Sectors...................................................................................................... 197 Options for Industrialised Countries........................................................................................ 204 Addressing Uncertainties........................................................................................................ 207 Conclusion............................................................................................................................. 210 6 Act Locally, Trade Globally........................................................... 211 References............................................................................................................. 217 Glossary................................................................................................................. 231