Generally speaking, carbon trading can be divided into two categories: one is quota-based trading. Under the "cap-and-trade" system, the buyer purchases emission reduction quotas formulated, allocated (or auctioned) by the managers, such as AAU under the Kyoto Protocol or EUAs under the EU Emissions Trading System (EU ETS). The second is project-based transactions. Buyers buy emission reductions from projects that can prove to reduce greenhouse gas emissions. The most typical such transactions are CERs and ERUs generated under the clean development mechanism and joint implementation respectively.
According to the Analysis of the Development Situation and Trend of Carbon Market in 2006 released by the World Bank and IETA on June 5438+ 10 last year, as of September 2006, ETS in the European Union was the largest carbon market in the world, with a turnover of 654.38+089 billion US dollars, accounting for 87% of the total global carbon market, while the turnover of CDM in the same period was only.
In fact, as early as the same year that the Kyoto Protocol came into effect, the European Climate Exchange (ECX) included carbon dioxide emission rights futures in the EU ETS. In addition to ECX, Chicago Climate Exchange (CCX) and Chicago Climate Futures Exchange (CCFX) also trade similar spot and futures contracts. In addition, France's Powernext Carbon is the main spot trading market of EU's carbon dioxide emission quota.
In addition to the buyers of emission rights are mostly concentrated in Europe, the appropriate on-site trading mechanism has also created good conditions for greenhouse gas emission rights trading under the framework of ETS in the European Union. In fact, for most commodities in history, standardized floor trading is an important driving force to increase the volume of this variety. On-site trading not only provides sufficient liquidity and pricing reference for the emission rights market, but also brings good economic benefits to the exchange itself. All localities want to list the varieties related to emission rights, which is also based on the consideration of more effective control of greenhouse gas emissions and related economic benefits.