Emissions Trading Goes Global: Spurred on by critics, the Administration is set to propose a world market in emissions of greenhouse gases

Carbon pricing is about the explicit pricing of greenhouse gas (GHG) emissions, of which carbon dioxide is the most important. GHG emissions, which are normally measured in tonnes of carbon dioxide equivalent units, are responsible for global warming and hence the greatest environmental externality of our age. Carbon pricing is a mechanism for making society account for the external damage caused by carbon emissions in economic decision making. There are two main ways of pricing carbon dioxide emissions, either via a carbon tax or via the introduction of an emissions trading scheme whereby those emitting carbon into the atmosphere are required to surrender permits which reflect the quantity of emissions they are responsible for. These emission permits are tradeable and hence command a price and, in some respects, operate in a similar way to a carbon tax. Thus, we will discuss both carbon pricing and emissions trading, as the literature on both is closely related. Emissions trading exists for certain other pollutants (such as sulphur dioxide) and we will discuss some of the literature related to this. However, most of the literature on emissions trading relates to carbon dioxide emissions, as these are by far the most valuable traded emissions globally. The literature on carbon pricing and emissions trading is wide ranging and constantly being updated with new analyses. Much of the literature is written by economists who are seeking to apply market-based approaches to the solution of environmental problems. The article starts by looking at the general context in which carbon pricing and emissions trading sits before discussing introductory texts which relate to the subject and going on to introduce the relevant classic literature in environmental economics. It then proceeds to more applied literature, beginning with discussions of early examples of emissions trading and carbon taxation, before continuing to studies of the impact of carbon pricing and emissions trading and those which explain the nature of the schemes we observe. The article continues with literature which looks at the Europe Union Emissions Trading Scheme (EU ETS) for GHGs and other important carbon pricing schemes. It then moves on to the literature on the prospects for a global carbon price, on interactions with other climate policies, on distributional concerns about the imposition of a price on carbon. Finally, it concludes with an introduction to relevant official publications and sources of data on carbon emissions and carbon prices.

Major US electric utility climate pledges have the potential to collectively reduce power sector emissions by one-third

International concern is now focused on reducing green house gas (GHG) emissions which drive climate change. The use of fossil fuels, either flaring natural gas and burning fossil fuels, are predicted contributing GHG emissions. As a consequence, International cooperation through United Nation Framework Convention on Climate Change (UNFCCC) has pointed to increase policy interest in developing CO2 and GHG emission trading system. The system would allow the countries who have opportunities to reduce CO2 and GHG emission (generally developing countries) and sell or trade GHG emission reduction to the countries (generally developed countries). The second part of this paper will be emphasized on oil and gas reserves, production, refineries,and utilization. Indonesia oil resource as of January 1st, 2006 amounts to about 56.60 BBO, while gas resources as of January 1st, 2006 is about 334.5 TSCF. Indonesia has nine refineries owned by PT Pertamina (Persero) and six refineries owned by private. Indonesia has also voluntary participated in reducing GHG emissions by formulating energy policy, doing research on carbon capture and storage (CCS), and developing innovative projects. This paper will highlight the energy policy, research program and innovative projects for reducing GHG emission from oil and gas activities in Indonesia

This study explores why the levels of decoupling between greenhouse gas (GHG) emissions and economic growth vary across time and countries by examining to which extent carbon pricing instruments are driving this decoupling. We expect that the implementation of carbon pricing instruments facilitates decoupling, as they are designed to achieve cost‐efficient GHG reduction. We analyze a panel data of 29 European countries between 1996 and 2014 to examine the relationships between two carbon pricing instruments (emission trading (ETS) and carbon tax) and emission intensity (GHG emissions per unit of GDP) which we use to measure decoupling trends. Results from two‐way fixed effects models show that emission trading contributes to decoupling, whereas our evidence does not support the role of carbon tax. Furthermore, emission trading is negatively associated with both emission intensity and GHG emissions, implying that it contributes to strong decoupling. Using coarsened exact matching (CEM), our results suggest that even a single emission trading policy (e.g., EU‐ETS) across different jurisdictions may render a heterogeneous effect on decoupling depending on their socioeconomic conditions.

Governments, organisations and individuals have recognised the need to reduce their greenhouse gas (GHG) emissions. To identify where savings can be made, and to monitor progress in reducing emissions, we need methodologies to quantify GHG emissions and sequestration. Through the Australian Government’s Carbon Farming Initiative (CFI) landholders may generate credits for reducing emissions and/or sequestering carbon (C). National GHG inventories for the United Nations Framework Convention on Climate Change, and accounting under the Kyoto Protocol use a sectoral approach. For example, fuel use in agriculture is reported in the transport component of the energy sector; energy use in producing herbicide and fertiliser is included in the manufacturing section of the energy sector; sequestration in farm forestry is reported in the land use, land-use change and forestry sector, while emissions reported in the agriculture sector include methane (CH4) from ruminant livestock, nitrous oxide (N2O) from soils, and non-carbon dioxide (CO2) GHG from stubble and savannah burning. In contrast, project-level accounting for CFI includes land-use change, forestry and agricultural sector emissions, and significant direct inputs such as diesel and electricity. A C footprint calculation uses a life cycle approach, including all the emissions associated with an organisation, activity or product. The C footprint of a food product includes the upstream emissions from manufacturing fertiliser and other inputs, fuel use in farming operations, transport, processing and packaging, distribution to consumers, electricity use in refrigeration and food preparation, and waste disposal. Methods used to estimate emissions range from simple empirical emissions factors, to complex process-based models. Methods developed for inventory and emissions trading must balance the need for sufficient accuracy to give confidence to the market, with practical aspects such as ease and expense of data collection. Requirements for frequent on-ground monitoring and third party verification of soil C or livestock CH4 estimates, for example, may incur costs that would negate the financial benefit of credits earned, and could also generate additional GHG emissions. Research is required to develop practical on-farm measures of CH4 and N2O, and methods to quantify C in environmental plantings, agricultural soils and rangeland ecosystems, to improve models for estimation and prediction of GHG emissions, and enable baseline assessment. There is a need for whole-farm level estimation tools that accommodate regional and management differences in emissions and sequestration to support landholders in managing net emissions from their farming enterprises. These on-farm ‘bottom-up’ accounting tools must align with the ‘top-down’ national account. To facilitate assessment of C footprints for food and fibre products, Australia also needs a comprehensive life cycle inventory database. This paper reviews current methods and approaches used for quantifying GHG emissions for the land-based sectors in the context of emissions reporting, emissions trading and C footprinting, and proposes possible improvements. We emphasise that cost-effective yet credible GHG estimation methods are needed to encourage participation in voluntary offset schemes such as the CFI, and thereby achieve maximum mitigation in the land-based sector.

Well-to-wheel greenhouse gas emissions of electric versus combustion vehicles from 2018 to 2030 in the US

There are two main policies to meet the national goal of reducing Greenhouse Gases (GHGs) emissions in Korea towards Paris Agreement. From 2012 to 2014, Target Management System (TMS) was operated and the Emissions Trading Scheme (ETS) has been established since 2015. To compare the impact of TMS and ETS on reducing GHGs, we collected annual GHGs emission reports submitted by individual business entities, and normalized them using a z-variant normalized function. In order to evaluate the impact of those policies, we calculated the amount of GHGs emissions of 73 business entities from 15 business sectors. Those entities emitted 508 million CO2eq, which is 74% of total national GHGs emissions in 2014. The main results of analysis indicate that accumulated GHGs emissions during the period 2012 to 2014 affected by TMS was higher than the national goal of GHGs emission reduction, and only the GHGs emissions in 2014 were in the range of allowed GHGs emissions, set by the Government. In 2015, when ETS initiated, total GHGs emission trading was 4.84 million tCO2eq, which is only 0.9% of total allowance in 2015. However, more than 50% of business entities, who got the allowance of GHGs emission given by the Government, met the goal of GHGs emissions. Particularly, 27 of 73 business entities reduced GHGs more under the ETS rather than the TMS. Even though we analyzed only 4 years' data to demonstrate the impact of TMS and ETS, it is expected to commit the national goal of GHGs reduction target by TMS and ETS.

Since its birth, nuclear power has been a hot topic of academic research while being subject to much controversy. As a new green energy source with zero greenhouse gas (GHG) emissions, nuclear power plays a vital role in combatting global climate change. Based on global databases and various empirical analysis methods, this study aimed to explore the changes in the global nuclear power product trade (GNT) network and its impact on GHG emissions from 2001 to 2018. The main findings are summarized as follows. (1) Global trade in nuclear power products and GHG emissions showed a non-linear and fluctuating growth during the research period. The geographical pattern of GNT not only has prominent spatial heterogeneity, but it also has some spatial reverse coupled with the spatial distribution of global GHG emissions. (2) The overall regression analysis finds that nuclear power product trade had a significant suppressive effect on global GHG emissions and had the greatest influence among all the selected variables. (3) As for the impact of the GNT network on GHG emissions, nuclear power product trade was better able to curb GHG emissions in countries with the dominate positions compared to those with affiliated positions, which reflects the heterogeneous effect of nuclear power product trade on GHG emissions. These results provide further evidence for the dialectical debate on whether nuclear power products contribute to GHG emissions reductions. This paper also provides corresponding recommendations for policymakers.

At the UN climate change conference in Paris in November 2015, Norway committed itself to a 40% reduction in greenhouse gas (GHG) emissions by 2030 compared to 1990 levels. Agriculture accounts for 8% of Norway’s total GHG emissions. If GHGs from drained and cultivated wetland (categorized under land use, land use change and forestry) are included, the share is 13%; this for a sector that accounts for roughly 0.3% of GDP. As is the case in most countries, agriculture is currently exempt from emission reduction measures, including the European Union’s Emissions Trading System (ETS), in which Norway participates. But the country has recently signaled its intention to include agriculture in future emission reduction efforts. Consideration is being given to how best to achieve GHG reductions in the sector. A recent report by the Norwegian Green Tax Commission, established by the government to evaluate policy options for achieving emission reductions, (Government of Norway, 2015) emphasizes the importance of including agriculture. The Commission suggests that agricultural emissions should be taxed at the same rate as for other sectors. It also recommends that reductions in the production and consumption of red meat should be specifically targeted, through cuts in production grants to farmers and the imposition of consumption taxes. Unsurprisingly, this proposed policy shift is extremely controversial and faces resistance, particularly from the farmers’ unions. Farmers argue that the maintenance of domestic agricultural production is crucial for achieving national food security objectives, in addition to pursuing other aims such as the maintenance of economic activity in rural areas and landscape preservation. Food security, which has been a key policy objective since the end of the Second World War, has been interpreted in Norway as requiring high levels of selfsufficiency in basic agricultural commodities. To achieve this, substantial subsidies are provided to farmers and domestic prices of many commodities are kept at high levels by restricting imports. The Organization for Economic Cooperation and Development (OECD) estimates that the total financial support provided to Norwegian agriculture in 2015 was equivalent to 62% of the value of gross farm receipts, which made Norway (along with Switzerland) a leader in the amount of support provided to agriculture by the 50 OECD member and non-member countries monitored by the Organization (OECD, 2016). In this paper we analyze policy options for achieving a 40% reduction in agricultural GHG emissions, consistent with the economy-wide target, while imposing the restriction that national food production measured in calories should be maintained (the food security target). This is consistent with the way that the Norwegian government identifies the country’s food security objective. In section 2 we outline the current situation with respect to GHG emissions in Norwegian agriculture. In section 3 we illustrate the policy issues involved by considering two product aggregates that are intensive in the use of land for crop production (grainland) and grassland, respectively. The aggregates are based on data for the main commodities in Norwegian agriculture relating to GHG emissions, land use, caloric content, subsidies, and costs per unit of production. We show that even though the opportunity set (i.e., the production combinations that are possible within technical constraints) is narrow, a 40% cut in emissions is achievable by substituting from ruminant products that are intensive in the use of grassland to products based on grainland. We also show that the emissions reduction both reduces government budgetary costs and land use, i.e., ruminant products are characterized by relatively high subsidies and land use. Two-dimensional analysis ignores the fact that per unit emissions from dairy production are low compared to other ruminant products (i.e., beef and sheep production). Both in terms of production value and agricultural employment, dairy farming is the most important component of Norwegian agriculture. Consequently, milk production deserves to be separated from ruminant meat production. Finally in section 4, we present a detailed analysis 3 of policy options derived from a disaggregated model that includes all the major products in Norwegian agriculture. In the model-based analysis, we examine first the imposition of a carbon tax, while maintaining existing agricultural support policies and import protection, and achieving the food security (production of calories) target. Since the imposition of a carbon tax in agriculture presents both technical and political challenges, we then examine an alternative approach of changing the existing structure of agricultural support to approximate the same result. We show that it is possible to change current subsidy rates to mimic the carbon tax and calorie target solution. The explanation for this is that ruminant products not only generate high emissions per produced calorie, but they are also the most highly subsidized products. Meat from ruminants is relatively unimportant in achieving Norway’s food security objective of calorie availability.

Under the United Nations Framework Convention of Climate Change (UNFCCC) reductionof Green House Gas (GHG) emissions become a global good with shared and differentiatedresponsibility vested with member countries. The Kyoto Protocol was adopted in 191)7 asthe legally hinding instrument to achieve the objectives of UNFCCC. This protocolintroduced three controversial mechanisms namely Joint Implementation (11. Article 6).Clean Development Mechanism (CDM, Article 12) and the emission trading (Article J 7) furthe establishment of markets for GHG emission reduction. Under the Annex I of UNFCCC countries are obliged to reduce their GHG by 5.2'7< fromthe total 1990 level. Global commitments under the common but di Ilcrentiatcdresponsihility principle of UNFCCC for reducing the emissions vary and depends on thecountry's level of emission. Accordingly Annex I countries were given emission reductiontargets c.g. Japan 6Lk. EU 8L.k. and US 7CJL. This issue has drawn attention or the developedcountries since it could alter their lifestyles drastically. The flexible mechanism permitsdeveloped countries to purchase GHG emission potential from developing countries Selling GHG emission potential (although an income source) has been viewed as sellingdevelopment potential of developing countries. This puts the developing countries in adilemma in making decisions on emission trading. Therefore an in-depth knowledge onmarket potential of GHG is important. The objective of this paper is to review the flexible mechanisms under the Kyoto Protocoli.e. 11, CDM and emission trading along with principles. modalities and procedures inrelation to Sri Lankan environmental conditions and to estimate the total GHG marketpotential for Sri Lanka if the country decides to participate in the global GHG market. Thispaper presents an economic analysis of GHG market in Sri Lanka with an attempt toinvestigate the relationship between rate of emission and economic growth. This ventureessentially creates an equity problem which is discussed using different discount rates. Data from secondary sources. in particular GHG inventories for Sri Lanka for J 1)94 & 11)1)5years arc used to estimate Sri Lankan emission trading potential. These figures will heuseful for predicting Sri Lankan contribution to the emission trading market. Sinks andSources and the sectors of emission are discussed separately in order to identify the mostimportant sectors in terms of emission trading. The paper also discusses the disadvantagesof emission trading, particularly whether this would limit our development potential andsovereignty. the major criticisms against the emission trading. Finally, this paper presentsthe relationship between GHG emission. emission trading potential and economicdevelopment under various scenarios.

Purpose – This paper aims to investigate how unique features of built facilities would affect the application of greenhouse gas (GHG) emissions trading, and to explore what adaptive measures may be taken for emissions trading to be applied to the built environment. Emissions trading is a financial tool to encourage GHG emissions reduction in various industries. As the building sector is responsible for a large amount of GHG emissions, it is valuable to explore the application of emissions trading in built facilities. Design/methodology/approach – The analysis is based on a comparative study reviewing the current emissions trading schemes (ETSs) in Australia, Japan and the UK covering the building industry, and to evaluate the approaches adopted by the schemes to tackle the problems related to buildings and facilities management. Findings – The research findings reveal that the small energy savings of individual building units, the large variety of energy-saving technologies and the split incentives and diverse interests of building owners and tenants would be the barriers hindering the development of emissions trading. To overcome these barriers, an ETS should allow its participants to group individual energy savings, lower the complexity of monitoring and reporting approaches and allow owners and tenants to benefit from emissions trading. Originality/value – This article provides a comprehensive overview of the current emissions trading practices in the built environment. Besides, it raises the attention and consciousness of policymakers to the need that building characteristics and facilities management should be taken into consideration when designing an ETS for the building sector.

Rivers play an important role in greenhouse gas emissions. Over the past decade, because of global urbanization trends, rapid land use changes have led to changes in river ecosystems that have had a stimulating effect on the greenhouse gas production and emissions. Presently, there is an urgent need for assessments of the greenhouse gas concentrations and emissions in watersheds. Therefore, this study was designed to evaluate river-based greenhouse gas emissions and their spatial-temporal features as well as possible impact factors in a rapidly urbanizing area. The specific objectives were to investigate how river greenhouse gas concentrations and emission fluxes are responding to urbanization in the Liangtan River, which is not only the largest sub-basin but also the most polluted one in Chongqing City. The thin layer diffusion model method was used to monitor year-round concentrations of pCO2, CH4, and N2O in September and December 2014, and March and June 2015. The pCO2 range was (23.38±34.89)-(1395.33±55.45) Pa, and the concentration ranges of CH4 and N2O were (65.09±28.09)-(6021.36±94.36) nmol·L-1 and (29.47±5.16)-(510.28±18.34) nmol·L-1, respectively. The emission fluxes of CO2, CH4, and N2O, which were calculated based on the method of wind speed model estimations, were -6.1-786.9, 0.31-27.62, and 0.06-1.08 mmol·(m2·d)-1, respectively. Moreover, the CO2 and CH4 emissions displayed significant spatial differences, and these were roughly consistent with the pollution load gradient. The greenhouse gas concentrations and fluxes of trunk streams increased and then decreased from upstream to downstream, and the highest value was detected at the middle reaches where the urbanization rate is higher than in other areas and the river is seriously polluted. As for branches, the greenhouse gas concentrations and fluxes increased significantly from the upstream agricultural areas to the downstream urban areas. The CO2 fluxes followed a seasonal pattern, with the highest CO2 emission values observed in autumn, then successively winter, summer, and spring. The CH4 fluxes were the highest in spring and the lowest in summer, while N2O flux seasonal patterns were not significant. Because of the high carbon and nitrogen loads in the basin, the CO2 products and emissions were not restricted by biogenic elements, but levels were found to be related to important biological metabolic factors such as the water temperature, pH, DO, and chlorophyll a. The carbon, nitrogen, and phosphorus content of the water combined with sewage input influenced the CH4 products and emissions. Meanwhile, N2O production and emissions were mainly found to be driven by urban sewage discharge with high N2O concentrations. Rapid urbanization accelerated greenhouse gas emissions from the urban rivers, so that in the urban reaches, CO2/CH4 fluxes were twice those of the non-urban reaches, and all over the basin N2O fluxes were at a high level. These findings illustrate how river basin urbanization can change aquatic environments and aggravate allochthonous pollution inputs such as carbon, nitrogen, and phosphorus, which in turn can dramatically stimulate river-based greenhouse gas production and emissions; meanwhile, spatial and temporal differences in greenhouse gas emissions in rivers can lead to the formation of emission hotspots.

Transportation has emerged as a major contributor to greenhouse gas (GHG) emissions worldwide. With increasing population growth and food demand, the spatial decoupling of production and consumption has intensified, driving a surge in transnational agricultural products transportation. However, existing research lacks a systematic assessment and future projection of GHG emissions from agricultural product transportation across multiple transport modes worldwide. To address this gap, we developed a global trade-linked transport GHG emission database by integrating multisource data and modeling frameworks. Compared with the research method in this paper, the previous great circle distance as the GHG emission of agricultural product transportation mileage was underestimated by 34%. This study systematically evaluates the spatiotemporal evolution of agricultural transport GHG emissions from 2000 to 2021 and explores their mitigation potential under future scenarios. Our findings reveal that global GHG emissions from agricultural transport increased by 1.6-fold over the 21-year period, with rising GHG emission intensity and trade density collectively shaping a high-carbon flow pattern dominated by exports from the Americas to Asia. Future scenario analyses indicate that the localization strategies proposed in this study are not particularly effective in reducing transport-related GHG emissions as inefficiencies inherent in localized agricultural production can increase production-stage emissions and, in turn, result in a net rise in total GHG outputs. These results suggest that future strategies should prioritize optimizing trade structures while simultaneously enhancing domestic agricultural productivity and promoting low-carbon farming technologies to achieve net emission reductions at the source.

Energy-related activities are a major contributor of greenhouse gas (GHG) emissions. A growing body of knowledge clearly depicts the links between human activities and climate change. Over the last century the burning of fossil fuels such as coal and oil and other human activities has released carbon dioxide (CO2) emissions and other heat-trapping GHG emissions into the atmosphere and thus increased the concentration of atmospheric CO2 emissions. The main human activities that emit CO2 emissions are (1) the combustion of fossil fuels to generate electricity, accounting for about 37% of total U.S. CO2 emissions and 31% of total U.S. GHG emissions in 2013, (2) the combustion of fossil fuels such as gasoline and diesel to transport people and goods, accounting for about 31% of total U.S. CO2 emissions and 26% of total U.S. GHG emissions in 2013, and (3) industrial processes such as the production and consumption of minerals and chemicals, accounting for about 15% of total U.S. CO2 emissions and 12% of total ...

The decrease in the level of greenhouse gas (GHG) emissions from industry and agriculture is one of the biggest challenges that European Union (EU) countries have to face. Their economic development should occur under the conditions of limiting the pressure on the environment. The agricultural and industrial sectors play a key role in ensuring food security, technological progress, job security, social well-being, economic competitiveness, and sustainable development. The main purpose of this article was to identify and compare the level, trends, and variability in greenhouse gas emissions from industry and agriculture in EU countries in 2010–2019, to create classes of countries with similar gas emissions, and to analyze the average values of their economic conditions. The original contribution to the article was to investigate whether there is a relationship between the level of greenhouse gas emissions and the economic development of countries and other economic indicators characterizing the sectors of industry and agriculture. Empirical data were obtained from the Eurostat and Ilostat databases. Basic descriptive statistics, classification methods, multiple regression, and correlation methods were used in the study. The industrial and agricultural sectors in EU countries emit similar amounts of greenhouse gases into the environment. In the years 2010–2019, the percentage share of emissions from these sectors in total gas emissions was growing dynamically, but no evidence was found indicating that those countries that emitted the most greenhouse gases significantly reduced their emissions in the decade under review. Moreover, EU countries are still significantly and invariably differentiated in this respect. Greenhouse gas emissions from industry and agriculture are influenced by the economic characteristics of these sectors, such as the level of GDP per capita, the scale of investment by enterprises, the expenditure on research and development, as well as employment in these sectors. The findings of this study show that total greenhouse gas emissions from all sources increase with countries’ economic growth, while a higher level of support of EU countries for research and development, and a greater share of employment in both industry and agriculture, translate into higher greenhouse gas emissions from these sectors. These conclusions may be useful for decision makers in developed and developing countries, as well as those in the industrial and agricultural sectors, in controlling and verifying the possible causes of greenhouse gas emissions in terms of the need to reduce their negative role on the environment and human health.