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The EU ETS is currently failing to promote low-carbon solutions due to a carbon price that has plunged to around 5 euros per tonne of CO2, driven by a surplus of 2.1 billion tonnes of CO2-equivalent allowances. This oversupply is attributed to weak emission targets, the inflow of international offsets, and reduced demand following the economic crisis. The document warns that this surplus allows the EU to transform current emission reductions from other policies into 'future rights to pollute', potentially reducing the domestic impact of the 2030 climate target from 40% to 34%. To fix the market, the author recommends increasing the linear reduction factor to 2.6%, permanently cancelling 1.6 billion excess allowances, enacting the Market Stability Reserve by 2017, and transitioning to full auctioning for all industrial sectors post-2020 to eliminate windfall profits and adhere to the polluter-pays principle.

Carbon Market Watch asserts that the Joint Implementation (JI) mechanism is plagued by transparency and quality problems, particularly within 'Track 1' projects. The author argues that the mechanism fails to produce genuine emission reductions and that proposed reforms are insufficient, suggesting the scheme be consigned to history after 2020.

The document analyzes a proposed update to Alberta's Specified Gas Emitters Regulation (SGER) known as the "double-double" approach, which would increase the emission intensity improvement standard to 24 per cent and the price ceiling to $30. Modelling suggests this would result in a total compliance obligation of approximately 29 million tonnes in 2020, with costs for the oil sands sector estimated at $0.13 per barrel. The author recommends indexing the price ceiling to inflation, reviewing cogeneration credits, improving intensity benchmarks, and expanding coverage to facilities emitting over 50,000 tonnes annually.

The document examines South Africa's struggle to transition from a high-carbon, coal-based energy economy to a green economy. It analyzes the role of the state-owned utility Eskom, the impact of the Renewable Energy Independent Power Producer Procurement Programme (REIPPP), and various financial and regulatory incentives designed to attract private investment in renewables. The author argues that while policy signals are positive, a lack of inter-departmental coordination and the entrenched nature of the minerals-energy complex hinder the transition.

The research evaluates four options for carbon market mechanisms to ensure they produce net emission reductions in host countries rather than merely offsetting emissions. The study identifies the application of discounts on avoided emissions and standardisation below business as usual as the most promising approaches, suggesting these be applied differentially based on project internal rates of return to balance cost-efficiency and attractiveness.

The report analyzes the implementation of the Effort Sharing Decision (ESD), which targets non-ETS sectors responsible for nearly 60% of EU emissions. While 15 Member States are projected to over-achieve their 2020 targets, others face significant gaps, particularly in road transport and buildings. The document highlights that while the overall EU 2020 target is likely to be met, several countries rely on flexibility mechanisms or planned additional measures rather than existing policies to close their emission gaps.

The document details the Effort Sharing Decision (ESD), which manages greenhouse gas reduction targets for EU Member States in sectors not covered by the EU Emissions Trading System (EU ETS). It explains how targets are set based on GDP per capita, the role of Annual Emission Allocation units (AEAus), and the specific reporting and compliance cycles managed by the European Commission. The report also outlines seven flexibility options—including banking, borrowing, and the use of Kyoto units—and discusses how the ESD interacts with other EU directives on renewable energy and energy efficiency, as well as the Kyoto Protocol.

The document provides an educational overview of REDD+ (Reducing Emissions from Deforestation and Forest Degradation), detailing its three-phase implementation process and the technical challenges of establishing reference levels for carbon emissions. It contrasts market-based financing (carbon credits) with fund-based approaches, highlighting concerns that carbon offsets may allow developed nations to avoid reducing their own emissions. The guide emphasizes significant risks to indigenous communities, including forced eviction due to land tenure insecurity and the potential for corruption in fund distribution. It evaluates the safeguards of the UN-REDD and World Bank programs, noting that while UN-REDD has stronger theoretical protections, practical implementation remains a concern, as evidenced by a case study in Vietnam where free, prior and informed consent (FPIC) was found to be deficient.

The statement argues that the CDM currently functions as a zero-sum offsetting mechanism that may increase global emissions due to non-additional credits. It recommends a shift toward achieving 'net atmospheric benefits' and proposes rigorous reforms to additionality assessments, the exclusion of high-emission technologies like coal, and the establishment of formal grievance mechanisms and enhanced civil society participation. The author also calls for greater transparency from Designated National Authorities (DNAs) and a restructured CDM Executive Board to prevent conflicts of interest.

The document outlines the financial requirements for Kenya's transition to a low-carbon economy, estimating that Ksh 1,085 billion is needed for the 2013-2017 National Climate Change Action Plan. It identifies key barriers to private investment, such as arduous project development processes, and suggests improvements including the implementation of the draft Climate Change Bill 2014. While Kenya has a strong track record in renewable energy investment and voluntary carbon markets, the briefing warns that compliance carbon markets are currently limited by oversupply and lack of access to the EU-ETS. It lists several domestic and international funding mechanisms available to Kenyan businesses for clean technology and energy efficiency.

The document proposes a carbon offset mechanism to allow South African firms to reduce their carbon tax liability by up to 10% of actual emissions. It establishes that only South African-based credits from projects outside the carbon tax net are eligible to avoid double counting. The paper identifies a potential national demand for offsets of up to 30 million tonnes of CO2e per annum, with a projected supply exceeding 50 million tonnes, largely driven by land-use, forestry, and renewable energy projects. It suggests an initial reliance on international standards (CDM, VCS, GS, CCBS) while proposing the medium-term development of a domestic standard managed by the Designated National Authority (DNA), supported by an independent expert committee, a national registry, and accredited third-party verifiers.

The 2012 Seattle Community Greenhouse Gas Emissions Inventory finds that core emissions (road transportation, building energy, and waste) declined 4% from 1990 to 2012 after accounting for offsets. While absolute core emissions remained relatively flat, per person core emissions decreased by 22% over the same period, despite a 23% increase in population and a 14% increase in jobs. Road transportation remains the largest core emission source at 64%, while building energy and waste account for 33% and 3% respectively. In an expanded view including industry and air/marine travel, total emissions were 6.0 million tons CO2e in 2012, representing a 1% reduction from 1990 levels, falling short of a 7% reduction target.

The paper identifies four types of double counting—double issuance, double claiming, double use, and double purpose—and argues that preventing these is essential for the integrity of international carbon markets. It recommends a 'net flows' accounting approach to ensure full fungibility of units and the international linking of emissions trading schemes. To prevent double issuance, the authors suggest a combination of entity attestations, host country approval, and a centralized UNFCCC information platform. The document emphasizes that globally unique serial numbers containing detailed metadata on mechanism, country, vintage, and scope are critical for effective international oversight.

The report details the 'Lake Winnipeg Bioeconomy Project', which investigates the use of cattail (Typha spp.) as a sustainable biomass feedstock. Through pilot harvests at Pelly’s Lake, Manitoba, the study demonstrates that using a rotary disc mower with conditioning rolls improves harvesting efficiency and drying times, enabling the use of large square balers. The harvested biomass was processed into solid fuel cubes and biocarbon (biochar), with the latter showing a higher heating value (31.41 MJ/kg) than wheat straw biocarbon (23.75 MJ/kg). Nutrient analysis indicates that cattail ash can serve as a potassium-rich fertilizer, though its phosphorus is largely insoluble at neutral pH. The report estimates the total cattail biomass resource in southern Manitoba between 2.7 and 5.4 megatonnes per year.

Carbon Market Watch advocates for a domestic greenhouse gas reduction target of at least 55% by 2030 for Europe. The briefing argues that international offsetting is a 'major policy failure' that undermines domestic abatement and calls for the expiration of the estimated 2 billion surplus allowances and offsets accumulated up to 2020. It further recommends increasing the 'linear reduction factor' for permits in the EU ETS and implementing strict safeguards for any future linking with external carbon markets to prevent the import of substandard credits.

Carbon Market Watch warns that a leaked draft of the 2030 Council Conclusions contains 'technical loopholes' that could reduce the effective EU greenhouse gas emission reduction target from 40% to as low as 26%. The organization specifically criticizes the potential banking of 'phantom pollution rights' (surplus allowances), the use of afforestation offsets for agriculture, the dynamic allocation of free permits to industry, and the possible inclusion of transport fuels in the EU ETS.

Friends of the Earth International (FoEI) opposes the REDD (Reducing Emissions from Deforestation and Forest Degradation) system, whether market-based or publicly funded. FoEI argues that REDD treats forests as mere carbon stocks, which ignores their social and cultural value and creates perverse incentives for deforestation. The document highlights risks such as the criminalization of traditional forest management, the displacement of communities, and the failure of carbon offsets to permanently reduce emissions. Instead of financial incentives, FoEI proposes strengthening the land rights of Indigenous Peoples and local communities, supporting collective forest management, and demanding that industrialized nations reduce fossil fuel emissions without relying on offsets.

Friends of the Earth International (FoEI) argues that REDD schemes, whether market-based or publicly funded, fail to address the root causes of climate change and risk harming the rights of Indigenous Peoples and local communities. FoEI contends that REDD commodifies forests, reduces them to 'carbon stocks', and creates perverse incentives for deforestation while enabling industrialized nations to avoid direct emission reductions through offsets. The organization advocates for the recognition of communal land rights and the empowerment of forest-dependent populations as the only effective means of forest conservation.

The report examines the role of carbon finance in scaling up improved cookstove initiatives in India and Kenya. Through a review of 75 project design documents and 49 stakeholder interviews, it finds that while carbon revenues can provide essential funding for price subsidies, R&D, and after-sales support, they also introduce significant risks. These include a potential mismatch between carbon efficiency goals and cultural user needs, uncertainties in emission reduction predictions, and volatility in carbon credit demand. The study suggests that carbon finance is most effective as a transitional tool for businesses that are already fundamentally viable, rather than as a sole funding source for NGOs or small enterprises.

The Beijing Emission Trading Scheme (ETS) reduced CO2 emissions by 4.87 MtCO2 cumulatively between 2013 and 2015, contributing to an earlier emissions peak for the city. The majority of these reductions (98% of power-related cuts) were driven by demand-end management, where companies reduced electricity consumption to meet emission caps, while reductions from power plants within Beijing were negligible. Carbon offsets had no observable impact on allowance prices in the 2014 cycle due to limited supply, particularly of Beijing-originated offsets. The study suggests that a future national ETS should consider including indirect emissions from electricity consumption and implement more stringent caps on direct electricity production to be effective.