The Kyoto protocol is signed in 1997 has as objective to force industrial countries to reduce their programs of six (6) Gases to Greenhouse effect (GES): CO 2 , CH 4 , N 2 O, HFC, PFC, SF6. Agreement envisages for the period 2008-2012 that greenhouse gas emissions (GES) regress of 5,2% on average in comparison with the year of 1990. The European Union (EU) and other numerous countries ratified aforementioned protocol in 2002. To come into force, this protocol must be ratified by more than 55 countries totaling more than 55% of programs GES. Further to ratification by Russia at the end of 2014, the Kyoto protocol came into force on February 16th, 2005. Several big countries did not sign PK, notably the United States of America and China. Developing countries (PED) are exempted from ciphered commitments so that their development is not called into question.
Published in Chapter:
Carbon Financial Market: The Case of the EU Trading Scheme
Adil El Amri (LERSEM, National School of Business and Management (ENCG), Chouaib Doukkali University, Morocco), Salah Oulfarsi (LERSEM, National School of Business and Management (ENCG), Chouaib Doukkali University, Morocco), Abdelhak Sahib Eddine (LERSEM, National School of Business and Management (ENCG), Chouaib Doukkali University, Morocco), Abdelbari El Khamlichi (LERSEM, National School of Business and Management (ENCG), Chouaib Doukkali University, Morocco), Yassine Hilmi (LERSEM, National School of Business and Management (ENCG), Chouaib Doukkali University, Morocco), Abdelmajid Ibenrissoul (ISO, National School of Business and Management (ENCG), Hassan II University, Morocco), Abdelouahad Alaoui Mdaghri (FSJESAC, Hassan II University, Morocco), and Rachid Boutti (LaRGe, National School of Business and Management (ENCG), Ibn Zohr University, Morocco)
Copyright: © 2022
|Pages: 22
DOI: 10.4018/978-1-7998-8210-7.ch017
Abstract
This chapter explains the drivers for carbon prices related to institutional decisions, energy prices, and weather events. The study focuses on price changes in the EU as being the most liquid carbon asset. In this regard, the daily spot price of the EU is highlighted to demonstrate the daily changes, given the high volatility in this carbon financial market. The CO2 prices depend on several determinants. This chapter constitutes an introduction to emission trading and an overview of the regulations of carbon financial markets. First, the price changes in the EU and primary energy prices are discussed. Second, the characteristics of emissions trading are introduced in terms of spatial and temporal limits, clean dark spread, and switch price. Third, a global analysis of atmospheric variables, structural variations, the subprime crisis, and the COVID-19 crisis is presented.