Since 2005 the carbon market has grown to a value of nearly $100 billion per annum. This new book examines all the main legal and policy issues which are raised by emissions trading and carbon finance. It covers not only the Kyoto Flexibility Mechanisms but also the regional emission trading scheme in the EU and emerging schemes in the US, Australia, and New Zealand. The Parties to the 1992 UN Framework Convention are in the process of negotiating a successor regime to the 1997 Kyoto Protocol whose first commitment period ends in 2012. As scientists predict that the threat of dangerous climate change requires much more radical mitigation actions, the negotiations aim for a more comprehensive and wide ranging agreement which includes new players - such as the US - as well as taking account of new sources (such as aircraft emissions) and new mechanisms such as the creation of incentives for reducing emissions from deforestation and forest degradation. This volume builds on the success of the editors' previous volume published by OUP in 2005: Legal Aspects of Implementing the Kyoto Protocol Mechanisms: Making Kyoto Work, which remains the standard work of reference for legal practitioners and researchers on carbon finance and trading under the Kyoto Protocol.
I. INTRODUCTION; 1. UNFCCC/Kyoto regimes/growth of carbon trading/sequestration/Bali road map and post-Kyoto negotiation; II. GENERAL ISSUES; 2. Legal ownership and nature of allowances and carbon rights; 3. Accounting for Emission Reductions: From Costless Activity to Market Operations; 4. Trade and Investment Implications of Carbon Trading for Sustainable Development; 5. Institutional requirements to implement ET: registries; 6. Linking of Emissions Trading Schemes; 7. Private Actors in International and Domestic Emissions Trading Schemes; III. THE KYOTO PROTOCOL MECHANISMS; 8. International Emissions Trading and Green Investment Schemes; 9. Trying to catch up with the Executive Board - the challenge of CDM rule interpretation by project developers; 10. Interpreting additionality of CDM projects: Changes in additionality definitions and regulatory practices over time; 11. Joint Implementation: The mechanism of the future; 12. Carbon contracting; 13. The Practicalities of Contracting JI Transactions; 14. The Secondary Market for Emissions Trading: Balancing market design and market based transaction norms; 15. Responsibility for the Environmental Integrity of the CDM: Judicial Review of Executive Board Decisions; 16. Dispute Resolution and Compliance Mechanisms; IV. CARBON TRADING OUTSIDE KYOTO: REGIONAL SCHEMES; 17. European Union Emissions Trading Scheme; 18. Legal implications of the allocation mechanism (competition, state aid, accounting); 19. Litigation against EU ETS; V. CARBON TRADING OUTSIDE KYOTO: NATIONAL AND SUB-NATIONAL SCHEMES; 20. Carbon Trading Outside Kyoto: National and Sub-National Schemes Emissions Trading in the US: Legal Issues; 21. Off-set provisions in emerging US climate legislation; 22. Carbon Markets and Policy in Australia: Recent Developments; 23. Canada's Experience in Emissions Trading and Related Legal Issues; 24. Carbon law and practice in China; VI. VOLUNTARY MARKETS; 25. The Voluntary Carbon Market: Its Growth and Outstanding Legal and Policy Issues; VII. POST KYOTO: MOVING TOWARDS COPENHAGEN; 26. Bali Road Map and Copenhagen agenda; 27. How carbon finance can stimulate innovation; 28. The Future of the CDM in a Post-2012 Climate Agreement; 29. Making REDD and Rainforest Protection Work; 30. Aviation and Climate Change Regulation; VIII. SUMMARY AND OUTLOOK; 31. Summary and Outlook