Professionals connected with the carbon market are hoping that the United States Congress would soon give approval to a federal “cap-and-trade” scheme that is bound to boost emissions trading.
It was the existing Kyoto Protocol that laid the foundations for emissions trading by imposing caps on emissions in Europe and other developed countries. And, this is the driving force behind the $92-billion European emissions trading scheme.
The next pact on carbon emissions is expected to be signed in Copenhagen, the capital of Denmark, in December. However, talks on the pacts that would successor to the Kyoto Protocol have been slow as rich and poor nations argue over sharing the cost of carbon-emissions cuts.
In the meantime, many governments and companies are buying fewer rights to emit greenhouse-gases on account of the global economic depression as well as the declining industrial output. This is potentially undermining a $126-billion global carbon market, according to experts.
A week ago, a committee of the United States House of Representatives voted in favour of a draft climate Bill that focuses on a “cap-and-trade” system. This Bill, if it becomes law, would pave the way for a global carbon market worth $3 trillion by 2020.