Global Carbon Mechanisms: Emerging lessons and implications - Executive summary (CTC747)

This publication explains and reviews the history of the Global Carbon Mechanisms created under the Kyoto Protocol. The mechanisms are:

1. Joint Implementation (JI), which is divided into 'track I' and 'track II'
2. Clean Development Mechanism (CDM)
3. Direct sale of Assigned Amount Units (AAUs) with and without accompanying Green Investment Schemes (GIS)

The publication discusses the strengths and weaknesses of each mechanism and predicts the supply and demand for each of the schemes to 2012 and to 2020. Finally, it looks to the future: considering how the mechanisms need to be improved, where there are gaps needing new mechanisms and where more directed policies and interventions are required in addition to the mechanisms in order to ensure global emissions are cut.

We will be producing a series of publications in this area, including supporting material behind this work. If you would like to be informed when these publications are released then please register your interest here.

Note that the publication does not directly discuss the EU Emissions Trading Scheme. That scheme has been discussed in other recent Carbon Trust publications:

• CTC734 - Cutting Carbon in Europe: The 2020 plans and the future of the EU ETS
• CTC728 - EU ETS impacts on profitability and trade: a sector by sector analysis
• CTC715 - EU ETS Phase II allocation: implications and lessons
• CTC609 - Allocation and competitiveness in the EU Emissions Trading Scheme: Options for Phase II and beyond
• CT-2004-04 - The European Emissions Trading Scheme: Implications for Industrial Competitiveness