Carbon Trading in Other Parts of the World

Australia isn’t the only country actively working towards reducing greenhouse gas emissions through carbon trading schemes. As a matter of fact, 128 parties ratified the Kyoto Protocol which went into effect in 2005, with members committing to reduce emissions.

The European Union

The first phase of the European Union’s carbon trading plan took place from 2005 – 2007. Although it had problems (due to caps being set too high), the program is now in its second phase and operating more as expected with a functioning supply and demand market for carbon credits. Many members of the EU have actually set their own emissions reduction goals to much stricter levels than those committed to in the Kyoto Protocol.

Japan

While the Japanese government hasn’t yet adopted a comprehensive carbon trading plan, they did establish a voluntary plan involving 31 businesses in 2005, and they’re considering a broader emissions trading scheme for the country.

Canada

Canada has an emissions trading scheme in the works to cover a wide variety of industries, with plans for it to launch in 2010 alongside that of Australia.

New Zealand

New Zealand has a limited carbon trading plan that was initiated in 2008, although legislation still has to be passed. Plans include more comprehensive industry involvement in the plan by 2013.

United States

The US doesn’t have a national emissions trading scheme, but several states have taken it upon themselves to reduce carbon dioxide and other greenhouse gas emissions. A group of Northeastern and Mid-Atlantic states are working together starting in 2009 to reduce emissions from power plants, while some Western states (along with a few Canadian provinces) are committing to decreasing emissions to 15 percent less than 2005 levels by 2020. Another plan involving six Midwestern states and one Canadian province is expected to be finalised by late 2009.

Emissions of greenhouse gases are a global problem. While not all nations are at the same place in developing carbon trading plans, an increasing number are coming together to address an environmental concern through similar political and economic efforts.

Last updated 22 September 2008