This a presentation made for an economics class, hope you find it informative.

3. EU ETS

4. CCX

5. India

6. China

8. Global Warming

10. UNFCC

11. UNFCCcont.. Annex I Countries >>Industrialized Nations >>agree to reduce their emissions below the 1990 levels >>Examples: Australia, USA, United Kingdom, Germany, Canada, France In all 40 countries Developing Countries >> not expected to de-carbonize their economy unless developed countries supply enough funds and technology >> May volunteer to become Annex I countries when they are sufficiently developed Some opponents of the Convention argue that the split between Annex I and developing countries is unfair, and that both developing countries and developed countries need to reduce their emissions unilaterally.

13. What is Emissions Trading ? Standard Definition: Emissions trading (or emission trading) is an administrative approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants. It is sometimes called cap and trade. Overall Goal “To Reduce Emissions” The cap is usually lowered over time - aiming towards a national emissions reduction target.

14. What is Emission Trading? How Does Emission Trading Work? Both have 10% Reduction Commitments & Same GHG Emission Levels More Affordable Reduces 15% Less Affordable Reduces 5% Pays for the Reduced Emissions

15. Cap & Trade Mechanism

16. Economics Of Emissions Trading

18. What is Carbon Trading? Carbon emissions trading is emissions trading specifically for carbon dioxide (calculated in tones of carbon dioxide equivalent or tCO2e) and currently makes up the bulk of emissions trading. The financial instrument used for this trade is called Carbon Offset/ Carbon Credit which is equivalent to one metric tone of CO2-equivalent

19. Allowance Based Markets Allowance Based Transactions The buyer purchases emission allowances created and allocated (or auctioned) by regulators under cap-and-trade regimes

20. Projects Based Markets Projects Based Transactions The buyer purchases emission credits from a project that can verifiably demonstrate GHG emission reductions compared with what would have happened otherwise.

23. Country wise Distribution

24. Who is Buying? Who is Selling?

25. Who is Selling? Asian Dominance

27. EU ETS

28. CCX

29. NSW

30. Kyoto Protocol

32. Originated in Developed Nations

33. Developing countries still relatively low

34. Will grow to meet their social and developmental needseven without the commitment to reduce according to the Kyoto target, developing countries do share the common responsibility that all countries have in reducing emissions

35. Kyoto’s ‘Flexible Mechanisms’ Emissions Trading Joint Implementation Clean Development Mechanism

36. Joint Implementation While the cost of limiting emissions varies considerably from region to region, the benefit for the atmosphere is in principle the same, wherever the action is taken.

41. Efforts to increase participation of banks and Financial Intermediaries

43. The Bias The Bias – Vicious Cycle

46. 40 per cent specie’s habitats will be altogether destroyed

47. Arable land-serious decrease-causing food shortages, hunger and malnutrition

49. Observations Observations