Carbon Trading and the Effect of the Copenhagen Agreement: Technical options and economic drivers to a low carbon future

The reduction of global carbon emissions is now widely regarded as paramount if the world is to avoid major negative consequences throughout the course of the next century. Current levels of c. 380 parts per million (ppm), represent both a record high and an unprecedentedly rapid rise (by 30 ppm in just 17 years). To avoid adverse consequences - and possible catastrophe - experts believe that urgent action must be taken now to limit peak CO2 to 450 ppm.
Projections, based on current and forecast future emission levels, suggest that such a target is unlikely to be achieved. The interaction between economic growth, consumer demand and new technology is complex, and prediction is uncertain. However, a strong consensus now exists that without more concerted action that target will be exceeded at some point between 2030 and 2050, with most pessimistic assumptions outlooking ranges in excess of 800ppm by the end of the century.
The potential for reducing emissions using state-of-the-art technology is immense. So, too, is the cost (some analysts put it as high as 20 years). Various political initiatives have foundered on unwillingness by nation states to be "first movers". Attempts to resolve the issue by economic means have included carbon pricing, offsetting and the creation of carbon markets.

Key features of this report

1. A review of the current threat to the environment from carbon emissions
2. An overview of the nature of that threat by primary energy source (e.g., coal, oil, gas) and by end-use sector (transport, buildings, power generation, etc.)
3. A summary and review of the main technological solutions available to reduce emissions: alternative strategies, including Carbon Capture and Sequestration and Land use, land-use change and forestry (LULUCF)
4. The theory underpinning economic initiatives to stimulate technology changes: carbon pricing and carbon markets
5. Current structures and political critique