Carbon Trading with Blockchain

Blockchain has the potential to accelerate the deployment of emissions trading systems (ETS) worldwide and improve upon the efficiency of existing systems. In this paper, we present a model for a permissioned blockchain implementation based on the successful European Union (EU) ETS and discuss its potential advantages over existing technology. We propose an ETS model that is both backwards compatible and future-proof, characterised by interconnectedness, transparency, tamper-resistance and high liquidity. Further, we identify key challenges to implementation of a blockchain ETS, as well as areas of future work required to enable a fully-decentralised blockchain ETS

The Social Acceptability of Personal Carbon Trading in China

Whether personal carbon trading (PCT) can be successfully implemented, as a public policy, critically depends on its social acceptability. For China, the biggest carbon emission country, public attitude towards personal carbon trading has a significant impact on its energy strategy or even the world’s. The purpose of this research is to investigate the social acceptability of personal carbon trading in China with the method of focus group and questionnaire. In order to understand Chinese citizens’ evaluations on personal carbon trading and how these attitudes are generated, researchers interviewed 32 individuals in four groups in-depth. Before and after the interview, questionnaires of almost the same content were sent to investigate whether more information on personal carbon trading will change interviewees’ attitudes towards it. A comparison was then made between public attitudes towards personal carbon trading and those towards carbon tax. Two significant conclusions are drawn from this study. First, personal carbon trading has gained more popularity compared with carbon tax. Second, the introduction of personal carbon trading to China still faces great challenges from the social atmosphere. Keywords: Personal carbon trading; PCT; Carbon tax; social acceptability

Four problems with global carbon markets: a critical review

This article offers a critique of global carbon markets and trading, with a special focus on the Clean Development Mechanism of the Kyoto Protocol. It explores problems with the use of tradable permits to address climate change revolving around four areas: homogeneity, justice, gaming, and information. Homogeneity problems arise from the non-linear nature of climate change and sensitivity of emissions, which complicate attempts to calculate carbon offsets. Justice problems involve issues of dependency and the concentration of wealth among the rich, meaning carbon trading often counteracts attempts to reduce poverty. Gaming problems include pressures to promote high-volume, least-cost projects and the consequences of emissions leakage. Information problems encompass transaction costs related to carbon trading and market participation and the comparatively weak institutional capacity of project evaluators

Compliance and Imperfect Intertemporal Carbon Trading

This paper examines three compliance mechanisms of the Kyoto Protocol: (i) the restoration rate, (ii) the commitment period reserve rule, and (iii) the suspension mechanism, all potentially constraining greenhouse gas emissions trading across time and space. The joint effect of these mechanisms on prices and costs is studied in a twoperiod model under various assumptions about the competitiveness of the permit market and US participation. The analytical results indicate that the restoration rate can make discounted permit prices decrease over time. With the commitment period reserve, marginal costs may not only be lower, but also higher than the permit prices. The suspension rule will under quite general circumstances not affect prices and costs; only shift non-compliance from future sellers to future buyers. The numerical results suggest that with imperfect permit markets and non-participation of the US in the Kyoto Protocol in 2010, none of the three rules becomes binding.compliance; market power; emissions trading; Kyoto Protocol

The legal framework for Australia's Carbon Pricing Mechanism: a critique

As part of the Australian Government’s Clean Energy Plan, the Government has attempted to harness the legal innovation of the tradeable emissions unit, within a capped carbon trading system, to reduce greenhouse gas emissions. Such an approach promises to send a price signal to the market which will influence emitting behaviours and reduce our emissions in a cost-effective manner. However, if the carbon trading scheme is to successfully achieve cost-effective emissions reductions then the carbon market must be supported by an appropriate legal framework. This paper will consider the key features of the Australian Carbon Pricing Mechanism, including the Carbon Farming Initiative, and critique whether it has all the hallmarks of an effective legal framework to reduce Australia’s net greenhouse gas emissions. The likely future of the trading scheme, following the 2013 elections, will also be addressed

The Research Progress of the Social Acceptability of Personal Carbon Trading in UK

Nowadays, the global warming has become a crucial issue result from a large number of greenhouse gases emissions, and individual carbon emissions account for a large proportion of total carbon dioxide emissions. In the current climate background, Personal Carbon Trading (PCT) which aimed at reducing carbon emissions from household energy and personal transportation has aroused widespread concern in the community. Social acceptability, as a significant evaluation index of whether the policy can be implemented, has become a hot topic in the research of Personal Carbon Trading. UK has studied this area for decades, this paper reviews the relative research progress in UK, analyzes a variety of influencing factors in the social acceptability of Personal Carbon Trading, compares Personal Carbon Trading with other carbon reduction alternatives in the social acceptance, sums up the research methods used in those studies. It is obvious that these studies are meaningful for improvement of the personal Carbon Trading scheme and promotion of new idea as new effective policy implementation to control the carbon emission. Keywords: Personal Carbon Trading; Social Acceptability; Carbon Tax；Up-streaming system; Research Metho

Biological Carbon Sequestration and Carbon Trading Re-Visited

Biological activities that sequester carbon create CO2 offset credits that could obviate the need for reductions in fossil fuel use. Credits are earned by storing carbon in terrestrial ecosystems and wood products, although CO2 emissions are also mitigated by delaying deforestation, which accounts for one-quarter of anthropogenic CO2 emissions. However, non-permanent carbon offsets from biological activities are difficult to compare with each other and with emissions reduction because they differ in how long they prevent CO2 from entering the atmosphere. This is the duration problem. It results in uncertainty and makes it hard to determine the legitimacy of biological activities in mitigating climate change. Measuring, verifying and monitoring the carbon sequestered in sinks greatly increases transaction costs and leads to rent seeking by sellers of dubious sink credits. While biological sink activities undoubtedly help mitigate climate change and should not be neglected, it is shown that there are limits to the substitutability between temporary offset credits from these activities and emissions reduction, and that this has implications for carbon trading. A possible solution to inherent incommensurability between temporary and permanent credits is also suggested

The Brave New World of Carbon Trading

Human induced climate change has become a prominent political issue, at both national and international levels, leading to the search for regulatory ‘solutions’. Emission trading has risen in popularity to become the most broadly favoured government strategy. Carbon permits have then quickly been developed as a serious financial instrument in markets turning over billions of dollars a year. In this paper, I show how the reality of permit market operation is far removed from the assumptions of economic theory and the promise of saving resources by efficiently allocating emission reductions. The pervasiveness of Greenhouse Gas emissions, strong uncertainty and complexity combine to prevent economists from substantiating their theoretical claims of cost effectiveness. Corporate power is shown to be a major force affecting emissions market operation and design. The potential for manipulation to achieve financial gain, while showing little regard for environmental or social consequences, is evident as markets have extended internationally and via trading offsets. At the individual level, there is the potential for emissions trading to have undesirable ethical and psychological impacts and to crowd out voluntary actions. I conclude that the focus on such markets is creating a distraction from the need for changing human behaviour, institutions and infrastructure.Emissions trading; Climate change

Carbon Emission Reduction Potential through Sustainable Forest Management in Forest Concession of PT Salaki Summa Sejahtera, Province of West Sumatera

A management unit (MU) of a forest concession holder implementing the sustainable forest management (SFM) principles, could be involved in reducing Emmission from Reforestation and Forest Degradation (REDD+) and carbon trading project. The fact the strategic in implementing the REDD+ and carbon trading in MU level is still lack of pilot project and methodology. Therefore, some scenarios must be developed and tested to find out the best potential of carbon credit in MU level. The objectives of the research were: to calculate carbon credit in some SFM scenarios, to analyze of carbon trading project feasibility, and to determine carbon stock recovery period of logged over area (LOA). The result revealed that carbon stock and carbon credit of LOA was affected by timber cutting intensity.  The 6th scenario with lowest annual allowable cutting (AAC) obtained greater carbon credit and profit coming from timber harvesting income and carbon trading. In other hand, this scenario has shortest duration of carbon stock recovery period (27 years) and shorter than its cutting cycle.  In this case, the MU has to recalculate and to decrease its AAC to have highest benefits from carbon trading in the same cutting cycle period.  It will provide double benefits from carbon trading, those are contribution in achieving the SFM purposes (production, ecology, social) and climate change mitigation