Since 2005 the carbon market has grown to a value of nearly $100 billion per annum, including the EU Emissions Trading Scheme and other schemes. This work covers the legal aspects of these schemes, as well as reform of the ETS, and the successor regime to the 1997 Kyoto Protocol currently being negotiated. It will be invaluable to those involved in the field.

Since 2005 the carbon market has grown to a value of nearly $100 billion per annum. This new book examines all the main legal and policy issues which are raised by emissions trading and carbon finance. It covers not only the Kyoto Flexibility Mechanisms but also the regional emission trading scheme in the EU and emerging schemes in the US, Australia, and New Zealand. The Parties to the 1992 UN Framework Convention are in the process of negotiating a successor regime to the 1997 Kyoto Protocol whose first commitment period ends in 2012. As scientists predict that the threat of dangerous climate change requires much more radical mitigation actions, the negotiations aim for a more comprehensive and wide ranging agreement which includes new players - such as the US - as well as taking account of new sources (including aircraft emissions) and new mechanisms such as the creation of incentives for reducing emissions from deforestation and forest degradation. This volume builds on the success of the editors' previous volume published by OUP in 2005: Legal Aspects of Implementing the Kyoto Protocol Mechanisms: Making Kyoto Work, which remains the standard work of reference for legal practitioners and researchers on carbon finance and trading under the Kyoto Protocol.

I. Introduction 1: David Freestone: UNFCCC/Kyoto regimes/growth of carbon trading/sequestration/Bali road map and post-Kyoto negotiation II. General Issues 2: Thiago Chagas, Charlotte Streck, Matthieu Wemaere: Legal ownership and nature of allowances and carbon rights 3: Allan Cook: Accounting for Emission Reductions: From Costless Activity to Market Operations 4: Markus Gehring, Marie-Claire Cordonnier Segger: Trade and Investment Implications of Carbon Trading for Sustainable Development 5: Maria Netto, Kai-Uwe Schmidt: Institutional requirements to implement ET: registries 6: Michael Mehling: Linking of Emissions Trading Schemes 7: Jolene Lin: Private Actors in International and Domestic Emissions Trading Schemes III. The Kyoto Protocol Mechanisms 8: Rutger de Witt Wijnen, Sander Simonetti: International Emissions Trading and Green Investment Schemes 9: Matthias Krey, Heike Santen, Daisuke Hayashi: Trying to catch up with the Executive Board - the challenge of CDM rule interpretation by project developers 10: Axel Michaelowa: Interpreting additionality of CDM projects: Changes in additionality definitions and regulatory practices over time 11: Jelmer Hoogzaad, Charlotte Streck: Joint Implementation: The mechanism of the future 12: Martijn Wilder, Louisa Fitz-Gerald: Carbon contracting 13: Anthony Hobley, Carly Roberts, Jamie Munro: The Practicalities of Contracting JI Transactions 14: Andrew Hedges: The Secondary Market for Emissions Trading: Balancing market design and market based transaction norms 15: Christina Voigt: Responsibility for the Environmental Integrity of the CDM: Judicial Review of Executive Board Decisions 16: Dane Ratliff, hester Brown, Audley Shepard: Dispute Resolution and Compliance Mechanisms IV. Carbon Trading outside Kyoto: Regional Schemes 17: Markus Pohlman: European Union Emissions Trading Scheme 18: Michael Rodi: Legal implications of the allocation mechanism (competition, state aid, accounting) 19: Navraj Ghaleigh: Litigation against EU ETS V. Carbon Trading outside Kyoto: National and Sub-National Schemes 20: K. Russell LaMotte, David M. Williamson, Lauren A. Hopkins: Carbon Trading Outside Kyoto: National and Sub-National Schemes Emissions Trading in the US: Legal Issues 21: Kyle Danish Van Ness: Off-set provisions in emerging US climate legislation 22: Martijn Wilder, Louisa Fitz-Gerald: Carbon Markets and Policy in Australia: Recent Developments 23: Gray Taylor, Michael Bennett: Canada's Experience in Emissions Trading and Related Legal Issues 24: Christopher Tung: Carbon law and practice in China VI. Voluntary Markets 25: Michelle Passero: The Voluntary Carbon Market: Its Growth and Outstanding Legal and Policy Issues VII. Post Kyoto: Moving towards Copenhagen 26: Murray Ward: Bali Road Map and Copenhagen agenda 27: Jos Cozijnsen, Michael Coren: How carbon finance can stimulate innovation 28: Christiana Figueres, Charlotte Streck: The Future of the CDM in a Post-2012 Climate Agreement 29: Bob O'Sullivan, Rick Saines: Making REDD and Rainforest Protection Work 30: Thiago Chagas, Clayfox Clarke: Aviation and Climate Change Regulation VIII. Summary and Outlook 31: David Freestone, Charlotte Streck: Summary and Outlook I. Introduction 1. UNFCCC/Kyoto regimes/growth of carbon trading/sequestration/Bali road map and post-Kyoto negotiation, David Freestone II. General Issues 2. Legal ownership and nature of allowances and carbon rights, Thiago Chagas, Charlotte Streck, Matthieu Wemaere 3. Accounting for Emission Reductions: From Costless Activity to Market Operations, Allan Cook 4. Trade and Investment Implications of Carbon Trading for Sustainable Development, Markus Gehring, Marie-Claire Cordonnier Segger 5. Institutional requirements to implement ET: registries, Maria Netto, Kai-Uwe Schmidt 6. Linking of Emissions Trading Schemes, Michael Mehling 7. Private Actors in International and Domestic Emissions Trading Schemes, Jolene Lin II. The Kyoto Protocol Mechanisms 8. International Emissions Trading and Green Investment Schemes, Rutger de Witt Wijnen, Sander Simonetti 9. Trying to catch up with the Executive Board - the challenge of CDM rule interpretation by project developers, Matthias Krey, Heike Santen, Daisuke Hayashi 10. Interpreting additionality of CDM projects: Changes in additionality definitions and regulatory practices over time, Axel Michaelowa 11. Joint Implementation: The mechanism of the future, Jelmer Hoogzaad, Charlotte Streck 12. Carbon contracting, Martijn Wilder, Louisa Fitz-Gerald 13. The Practicalities of Contracting JI Transactions, Anthony Hobley, Carly Roberts, Jamie Munro 14. The Secondary Market for Emissions Trading: Balancing market design and market based transaction norms, Andrew Hedges 15. Responsibility for the Environmental Integrity of the CDM: Judicial Review of Executive Board Decisions, Christina Voigt 16. Dispute Resolution and Compliance Mechanisms, Dane Ratliff, hester Brown, Audley Shepard IV. Carbon Trading outside Kyoto: Regional Schemes 17. European Union Emissions Trading Scheme, Markus Pohlman 18. Legal implications of the allocation mechanism (competition, state aid, accounting), Michael Rodi 19. Litigation against EU ETS, Navraj Ghaleigh V. Carbon Trading outside Kyoto: National and Sub-National Schemes 20. Carbon Trading Outside Kyoto: National and Sub-National Schemes Emissions Trading in the US: Legal Issues, K. Russell LaMotte, David M. Williamson, Lauren A. Hopkins 21. Off-set provisions in emerging US climate legislation, Kyle Danish Van Ness 22. Carbon Markets and Policy in Australia: Recent Developments, Martijn Wilder, Louisa Fitz-Gerald 23. Canada's Experience in Emissions Trading and Related Legal Issues, Gray Taylor, Michael Bennett 24. Carbon law and practice in China, Christopher Tung VI. Voluntary Markets 25. The Voluntary Carbon Market: Its Growth and Outstanding Legal and Policy Issues, Michelle Passero VII. Post Kyoto: Moving towards Copenhagen 26. Bali Road Map and Copenhagen agenda, Murray Ward 27. How carbon finance can stimulate innovation, Jos Cozijnsen, Michael Coren 28. The Future of the CDM in a Post-2012 Climate Agreement, Christiana Figueres, Charlotte Streck 29. Making REDD and Rainforest Protection Work, Bob O'Sullivan, Rick Saines 30. Aviation and Climate Change Regulation, Thiago Chagas, Clayfox Clarke VIII. Summary and Outlook 31. Summary and Outlook, David Freestone, Charlotte Streck