Market Overview: Kyoto Requirements (QELRO’s)

• OECD must reduce emissions to 6-8% below 1990 levels, with some exceptions

• Economies in transition must reduce to 0-8% below 1990 levels, but most are far lower today

• Developing countries not constrained in near term, except voluntarily

  • This creates three “markets”: (1)Bilateral allowance trading (e.g., USA-Russia), (2) Joint implementation Projects between OECD countries, and (3) CDM Projects (Art. 6 in the Kyoto Protocol)

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