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The US Federal Emissions System to Drive the Global Carbon Market

by GlobalData on Apr 27, 2010

In 2009, the global carbon market was approximately $136 billion. It is estimated that a global carbon market of $2 trillion can be established by 2020 if a legal binding global climate treaty is signed as well as a federal emission trading system is established in the US.
In order to establish a strong carbon market in the US, “cap and trade” scheme was introduced under which a carbon emission limit (cap) is set for companies, which when unable to achieve, can buy allowances from other companies. But, this system is facing opposition from Republicans in the U.S. Senate and doubts persist whether the bill related to this system will pass this year. However, other regulatory measures and “cap and refund” system are seen as alternatives to minimize greenhouse gas emissions.

The US carbon market was worth $2.7 billion in 2009; less than 3% of the total carbon permits traded under EU’s program, which equaled $93.9 billion in the same year. Majority of the...Read More >>



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