The world’s carbon markets

A review of transactions on the so-called « carbon markets », both exchanges of project-based greenhouse gases emissions credits and emissions allowance trading, shows that the carbon markets are growing steadily and are maturing rapidly, driven by the twin entry into force of the Kyoto Protocol and of the EU Emissions Trading Scheme at the beginning of 2005. However, several challenges remain for the development of these markets in the medium - and long-run. JEL classification : Q25