Abstract
This paper outlines some of the highlights and issues surrounding carbon markets in North America. Carbon markets are a new branch of environmental finance. The issues covered include US Federal and State carbon policy, climate change legislation and trading systems. A particular focus will be on the Regional Greenhouse-Gas Initiative, the first mandatory cap-andtrade scheme to be set up in the US, as well as other similar initiatives in the US. The paper will also discuss carbon trading and investments and the growing role of carbon as an impetus for investments in low-carbon technologies. A general overview of carbon finance and Clean Development Mechanism (CDM) projects will be provided, as well as a general review of expert opinion on how the cost of carbon impact will affect other energy resources. Finally, the paper will conclude with a short assessment of the potential role of agriculture and forestry in reducing carbon emissions.
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