FACTBOX: Carbon trading schemes around the world

(Reuters) - Companies and governments are turning to emissions trading as a weapon to fight climate change, in a carbon market worth $64 billion last year.

Cap and trade schemes force participants -- often energy-intensive industries -- to buy permits to emit greenhouse gases such as carbon dioxide, which is produced from burning fossil fuels.

The European Union launched its cap and trade scheme in 2005, while New Zealand will launch a similar initiative this year. Canada and Australia propose to launch schemes in 2010. U.S. senators will debate next month details of a proposed federal U.S. climate change bill which includes cap and trade.

In another type of carbon market, countries and companies can trade carbon offsets under three, UN-led Kyoto Protocol schemes. That allows rich countries to earn emission permits by investing in cuts in greenhouse gases in other countries.

A full list of established and proposed schemes follows.

INTERNATIONAL SCHEMES

KYOTO PROTOCOL (United Nations) (1)

Launched: 2005

Mandatory for 37 rich countries

Target: 5 percent reduction in 1990 emissions by 2008-2012

Contains three sub-schemes to help signatories meet targets:

1- Clean Development Mechanism (CDM): Rich countries can

invest in clean energy projects in developing nations

2- Joint Implementation (JI): Rich countries can invest in

clean energy projects in former communist countries

3- Assigned Amount Units (AAUs): Signatories can trade