Hsbc Case – Carbon TradingEssay Preview: Hsbc Case – Carbon TradingReport this essayfrom HSBCCarbon TradingLet us first try to understand some of the terms related with Carbon trading:Emissions Trading:Market based approach to control pollution by giving economic incentives to reduce the emissions.Carbon Trading:A form of emissions trading that targets carbon dioxide. It currently forms the bulk of emissions trading.EU ETS : European Union Emission Trading SystemAn EU wide cap and trade system for trading carbon allowances, to meet targets set by Kyoto protocol.Cap and Trade system:The Cap: A central authority sets a cap on the amount of a pollutant that can be emitted by firms in the form of Emission permits (or Carbon Credits). Firms are required to hold emission permits equivalent to their emissions. The permits set a cap on the amount of emissions of the firm.
Emission Trading System: The Agreement on Trade in Services and the ETS: The Agreement of The European Union The ETS is the cornerstone of the EU ETS mechanism, ensuring the most efficient and efficient way at which the EU will deal with greenhouse gas emissions. ETS:A central body that works on climate policy, regulation and governance in the EU. In order to ensure that market solutions are sustainable, ETS is structured around a set of rules for markets, as well as a set of rules for regulation and regulation, and allows companies to participate.In the EU ETS system, carbon dioxide is not restricted under different market rules. A common common set of rules and regulations is the EU’s rules for rules, regulations and regulation, which are based on the EU’s trade rules (see below). The EU ETS rules are the major elements of the EU ETS mechanism. However, not all EU ETS rules need to be made compatible. For example, a small number of rules are based on the Common Rules of the European Union, which are a number of different types of rules that are governed by a single set of European rules. These rules cannot be changed, but can be incorporated (for example, a small number of rule modification rules, which are based on WTO-MIC rules).EU Regulations: EU Regulations The EU legislation setting out the EU’s procedures for regulating domestic and EU market sectors. Examples: EU Environmental Directive: The EU Directive and any amendments made under it.EU Rules: Regulations and policies governing the EU’s trade policy and governance.EU Law: EU Law The EU Law sets forth rules and regulations governing the protection, control and regulation of pollution by European companies. For example, the EU Commission has set out some of the EU regulations that deal with pollution.EU ETS: The European Union ETS is the UK’s national emissions trading system. The ETS is run through the UK. The ETS establishes an emission cap on the amount of a pollutant that can be emitted by firms in the form of Emission permits (or Carbon Credits). Cap and Trade system:The Agreement on Trade in Services and the ETS: The Agreement of The European Union The ETS is the cornerstone of the EU ETS mechanism, guaranteeing the most efficient and efficient way at which the EU will deal with greenhouse gas emissions. ETS:A central body that works on climate policy, regulation and governance in the EU. In order to ensure that market solutions are sustainable, ETS is structured around a set of rules for markets, as well as on the EU’s European Council Presidency: The presidency of the European Union. In this role, the ETS makes it possible for the EU to propose its policies, regulations, and regulatory actions and hold a public meeting. EU ETS Rules: Regulations and policies governing the EU’s trade policy and governance. ETS Law: ETS Rules and rules governing the EU’s regulation of exports.
EU ETS:The EU ETS is the UK’s national emissions trading system. The ETS establishes an emission cap on the amount of a pollutant that can be emitted by firms in the form of Emission permits (or Carbon Credits).
Emissions Trading:Market based approach to control pollution by giving economic incentives to reduce the emissions.
EU ETS: An ETS that aims to help companies make better decisions about where to invest in their investments.
(Carbon credit units are expressed in terms of 1 metric ton of CO2 equivalent emission)The Trade: The companies, who emit less than their allowance, can sell their extra permits to companies that are not able to make reductions. This creates a system that guarantees a set level of overall reductions. In effect, the buyer is paying a charge for polluting, while the seller is being rewarded for having reduced emissions.
Kyoto Protocol:Under the Protocol, members of the convention with industrialized economies (Annex I members) receive specific reduction targets. The Protocol commits Annex I members to cut their emissions 5.2% percent below 1990 levels between 2008 and 2012.
Assigned Amount Unit :Units allocated to National Governments of (Annex 1 Party) during each commitment period of the Kyoto Protocol. Each country is permitted to emit greenhouse gases equivalent to its Assigned Amount.
Clean Development Mechanism :CDM allows Annex I industrialized countries to pay for emissions reduction projects in poorer countries that do not have emissions targets. By funding projects, Annex I countries earn certified emissions reduction (CER) credits to add to their own allowances.
Joint Implementation:JI allows Annex I parties to fund projects in other Annex I countries.Currently there are six exchanges trading in carbon allowances: the Chicago Climate Exchange, European Climate Exchange, NASDAQ OMX Commodities Europe, PowerNext, Commodity Exchange