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Matthias Knab reports live from the Wallstreet Green Trading Summit in New York: Ian Carter, Policy Coordinator, North America, International Emissions Trading Association, highlighted the main events in the EU Emmision Trading Scheme (ETC) in 2005:

• The EU ETS started on 1st January 2005
• The Kyoto Protocol entered into force
• First CERs were issued
• Exchanges for GHG trading started operating
• COP/MOP 1 in Montreal consolidates the flexible market mechanisms
• The JI Supervisory Committee created
• International agreement to continue negotiations for post 2012

The EU ETS:

• Is the world’s largest emission trading scheme: nucleus from which an international market can emerge
• Will contribute towards fulfilment of the Kyoto Protocol
• Least cost solution which creates incentives for energy efficiency and clean technology innovation
• EU as a common currency throughout Europe
• Commission scrutiny has turned out to be crucial to ensure scarcity
• Learning by doing – market functioning issues still to be resolved
• Governments take time to comply - e.g. several National Allocation Plans (NAPs) still not finalized

Volumes and Prices in 2005

• Volumes increase as trading grows quickly:
  • Traded volumes in EU allowances via brokered-OTC transactions were 8.44 Mt CO2 in 2004, versus 306.68. Mt CO2 traded volumes in 2005 (including exchanges).

• Prices Fundamentals:
  • A......................

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