The goal and purpose of this paper is to describe the necessity and functionality of emission trading. Furthermore, it illustrates the basic procedure of emission trading and explains its general parts, in order to be able to evaluate the efficiency of emission trading and emphasize its critical aspects.
Firstly, this paper explains the basic principles of emission trading, initially special terms and definitions. Then chapter two continues to clarify why emission trading exists and why its importance constantly rises. After that, chapter three deals with important boundary conditions. Chapter four contains the functionality of emission trading and its corresponding procedures. The term paper ends up with a brief conclusion, including a little forecast for the near future.
Table of Contents
1 Introduction
1.1 Purpose of the Paper
1.2 Composition and Structure of the Paper
2 Basics of Emission Trading
2.1 Disambiguation
2.2 History of Emission Trading
2.3 Purpose of Emission Trading
2.3.1 Greenhouse Effect
2.3.2 Kyoto-Protocol
2.4 Emission Trading in Germany
3 Boundary Conditions of Emission Trading
3.1 Different Markets
3.2 Protagonists in Emission Trading
4 Functionality of Emission Trading
4.1 General Information
4.2 Emission Trading Registers
5 Result and Conclusion
5.1 Criticism on Emission Trading
5.2 Forecast
Objectives and Topics
The primary objective of this paper is to examine the necessity and functional mechanisms of emission trading systems. It provides an overview of the legal and structural frameworks governing emission certificates and evaluates the efficiency of these systems in mitigating climate change.
- Principles and historical development of emission trading
- Mechanisms of the Kyoto Protocol and the Greenhouse Effect
- Legal frameworks and implementation in Germany
- Market participants, trading platforms, and register systems
- Critical evaluation of economic efficiency and future climate policy projections
Excerpt from the Book
2.1 Disambiguation
Emission itself defines any type of material or substances, which have negative consequences for the environment1. This means pollution in every case. Trading consists of a free market with supply and demand. The German ministry of the environment defines it as a market-based approach to achieve and fulfill Kyoto-aims. This approach enables states, to minimize their emissions of greenhouse gas more than it is required and to use achieved surpluses of reduction by trading them.2 Author Michael Lucht (2005) describes it as a decentralized process, performed through private enterprises3.
Chapter Summary
1 Introduction: This chapter outlines the purpose, research goal, and the structural composition of the paper.
2 Basics of Emission Trading: Provides definitions, historical context, and the rationale behind emission trading, including the Greenhouse Effect and the Kyoto Protocol.
3 Boundary Conditions of Emission Trading: Examines different market types and identifies the main protagonists involved in the trading process.
4 Functionality of Emission Trading: Details the practical operation of trading, including the role of registers and account management for certificates.
5 Result and Conclusion: Summarizes the effectiveness of emission trading, discusses current criticisms, and offers a forecast for future developments.
Keywords
Emission Trading, Kyoto-Protocol, Greenhouse Gas, EU ETS, Certificates, Sustainability, Climate Protection, Compliance Market, Voluntary Market, Carbon Dioxide, Emission Registers, Trading Platforms, Allocation, Sustainability, Global Warming
Frequently Asked Questions
What is the core subject of this paper?
The paper focuses on the concept of emission trading, analyzing how market-based approaches are utilized to reduce environmental pollution and achieve climate protection goals.
What are the central thematic fields?
The core themes include the historical context of emission trading, its legal foundations (Kyoto Protocol), the classification of markets, and the administrative mechanisms like trading registers.
What is the primary objective of this study?
The goal is to describe the necessity and functionality of emission trading and to evaluate its efficiency while highlighting its critical aspects.
Which scientific methods are applied?
The study primarily utilizes a descriptive and analytical approach, synthesizing existing literature, legal frameworks, and statistical data to provide a comprehensive overview of emission trading systems.
What does the main part of the paper cover?
It covers the basic principles, the distinction between compliance and voluntary markets, the role of protagonists, and the operational logistics of trading platforms and registers.
Which keywords characterize this paper?
Key terms include Emission Trading, Kyoto-Protocol, Greenhouse Gas, EU ETS, certificates, allocation, and sustainability.
How does the "spread strategy" work for investors?
Investors buy emission credit vouchers from a project initiator before official registration at the UNFCCC at a fixed price. After registration and certificate issuance, they sell the certificates at market price to make a profit.
Why are national emission trading registers necessary?
These registers provide the accounting basis for a transparent trading process. They identify certificates with serial numbers to prevent double-counting and ensure that only one owner holds a specific certificate at any time.
- Quote paper
- Anonym (Author), 2012, Emission Trading. Purpose, functionality and boundaries, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/470493
