Characteristics of Carbon Transactions. Joint Implementation, Clean Development Mechanisms and Emission Trading in Perspective

Throughout the past years, the first carbon credits – though not yet certified by the UNFCCC – have been traded. The technologies used, project size and regional preferences of carbon transactions via Joint Implementation and the Clean Development Mechanism approved under major programmes are reviewed in this paper. The current full JI and CDM project portfolio aims to reduce some 100 MtCO 2 -eq. This market is highly monopsonic; the buyers determine which credits are sold. The 12 JI projects are mainly implemented in Romania and Poland and constitute a diverse technology portfolio. Most of the 37 CDM projects are implemented in Latin America. Hydro and wind energy projects dominate in terms of numbers of projects. One large-scale fuel switch and one afforestation project bias the portfolio in terms of absolute CO 2 reduction. Comments are made on the baseline consistency and additionality of the currently selected projects. The assessment of emissions trading programmes is more difficult than that of separate projects, because of the characteristics of an emissions trading market. Yet, depending on the starting conditions, the ET programmes vary in their success.