Carbon Emissions

As scientific evidence for man-made climate change becomes more robust, the world's governmental regulatory framework for controlling so-called greenhouse gas (GHG) emissions and carbon dioxide (CO2) in particular is becoming more stringent in both industrialized and emerging economies. The rapidly growing global market for greenhouse gas emissions credits was valued at $118 billion in 2008 and is roughly doubling every year. Emissions allowances and offsets are traded regularly by utilities companies and the financial and broker communities as forward-delivery over-the-counter contracts and also exchange-based futures contracts. Platts assesses the key forward markets for European Union (EU) Allowances under the EU Emissions Trading Scheme for delivery in calendar 2009-2012 and the Kyoto Protocol's Certified Emission Reduction offset credits, which form the common currency that is expected to link the world's national and regional emissions trading schemes.

Platts also delivers weekly commentaries and price tracking for the United States' Regional Greenhouse Gas Initiative; policy news on America's other emerging regional schemes such as the Western Climate Initiative and Midwestern Greenhouse Gas Accord; and the emerging policy bias favoring a US federal government emissions cap-and-trade program. Emissions constraints impact almost all companies operating in the energy sector, and CO2 is rapidly becoming the commodity that links all industrial sectors, from steel and cement makers to petrochemical facilities, construction companies, brick-makers and pulp and paper plants.