Industry Analysis Case Study

Kyoto Protocol and its Impact on Carbon Trading

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Abstract:

Carbon Market, the new concept of trading Carbon dioxide (CO2) and other Greenhouse gas was much similar to the other trading markets of the world. This concept came into force with the implementation of the international treaty called Kyoto Protocol, which envisioned reduction of Greenhouse Gas emission in the world. The treaty was mainly applicable to the industrialized and developed countries of the world.

The first implementation period was 2007-2012 which enforced many countries and industries around the world to maintain their level of emissions. This also gave boost to carbon market around the world. This mechanism initiated major carbon exchange and market around the world.

The case highlights the major carbon trading markets around the world and the countries which would implement this treaty. The treaty was rejected by leading industrialized countries like US, Canada and Australia. It also faces some challenges, debate and criticism by environmental activist. Amidst the challenges and regulatory hindrances, the treaty promised to provide an initiative to prevent further global warming. The case ends on the debate whether Kyoto Protocol will achieve its vision by 2012.

Pedagogical Objectives:

• To understand the concept of carbon trading and carbon markets
• To understand the international treaty , Kyoto protocol and its mission and vision
• To debate the ethical participation by developed and developing countries on humanitarians ground in carbon trading.

Keywords : Carbon dioxide; Greenhouse Gases; Industry Analysis Case Study; Kyoto Protocol; Carbon trading; Emission Trading; Global Warming; Climate Change; Annexure I countries; Annexure II countries; Assigned Amount Units; Emission Reduction Units; Chicago Climate Exchange(CCX); EU ETS; UK ETS; New south Wales market (NSW); Joint Implementation; Clean Development mechanism (CDM).