One of the elements of the Kyoto treaty is the use of carbon markets. This lets those countries either producing under the treaty limits of CO2 or not currently bound by the treaty (for now, mostly developing nations) sell carbon emission rights to treaty-bound over-producers. While this may seem like a way for over-producing countries to just keep spewing excess CO2, it's actually a very good idea: few countries are close to making the Kyoto limits without buying credits, so there's considerable demand; even as more countries get their emissions in order, the emissions allowed will gradually decline over time, making the remaining credits inevitably more expensive; countries will therefore have an economic incentive to be net carbon credit producers instead of consumers. It's definitely an incentive for developing countries to adopt cleaner technologies sooner, so as to continue being sellers and not buyers as they continue to grow. We're now starting to see how these markets will play out.
Reuters reports a partnership between a Norwegian firm and a Brazilian landfill to trap and burn methane emitted by the landfill; this will reduce the net addition of methane (21x more powerful a greenhouse gas than CO2) to the atmosphere. Norway would get the credit -- equivalent to 670,000 tons of CO2 -- and Brazil the cash, currently €8.25 ($10.98) per ton. While this is one of the first deals signed, it's far from the only one around.
Elsewhere around the globe, Telnes [technical director of the Norwegian company, DNV] said about 200-300 clean energy projects were nearing certification in developing nations with perhaps another 1,200-1,300 on the drawing board."In the long term I wouldn't be surprised if we saw between 500 and 1,000 projects coming on every year," Telnes told Reuters. DNV, perhaps best known for checking ship designs, is a world leader in certifying environmental schemes.
With the markets now underway, there's a real need for information about their function and efficiency. The World Business Council for Sustainable Development often gets stories from the for-pay Point Carbon, a website which collects information on carbon markets and the UN's "Clean Development Mechanism" which coordinates these developing world carbon-for-cash schemes. Point Carbon has abundant information about carbon markets, from news feeds to market analysis to explanations of just how it all works. Some of the explanatory pieces are free, but much of the material requires a subscription fee.
I'm still looking for a free source of carbon trading info. Any suggestions? This is a process which is definitely worth watching.
