(Reuters) - Europe’s top oil and gas companies this week urged governments around the world to introduce a pricing system for carbon emissions.
While a global carbon market remains elusive a report published by the World Bank last week showed 40 nations and over 20 cities, states and regions now have a price on CO2 emissions, covering around 12 percent of annual global greenhouse gas emissions, or the equivalent of nearly 7 billion tonnes of CO2.
The value of global schemes to price carbon totaled almost $50 billion as of April 1, with the bulk of this, $34 billion from emission trading schemes,the World Bank said.
Under cap-and-trade schemes, companies or countries face a carbon limit.
If they exceed the limit they can buy allowances from others. They can also sometimes purchase carbon offsets from projects that avoid emissions outside of the scheme, often from developing countries.
California-Launched with first auctions in 2012, compliance began 2013. Covers emissions from power plants, manufacturing and, in 2015, transportation fuels linked with Quebec’s scheme, which launched in 2014. Prices $13/tonne.
China- Launched 2013/4. Pilot carbon trading schemes in seven provinces and cities - Beijing, Chongqing, Guangdong, Hunan, Shanghai, Shenzhen and Tianjin. They cover energy production and various energy-intensive industries. Officials have said a national scheme will launch in mid-2016. Prices $8-4 per tonne.
European Union - mandatory for all 28 EU members, plus Iceland, Liechtenstein and Norway - Launched 2005. Covers power plants, aviation, energy intensive industries. Prices $8 per tonne.
Kazakhstan - Launched 2014 after a pilot phase in 2013. Covers energy sector, mining and chemical industries. Prices $8 per tonne New Zealand- Launched 2008. Covers electricity generators, manufacturers and the transport sector. Some forest owners are given free permits, others can voluntarily join the scheme. Prices $5 per tonne.
Northeast U.S. states - Regional Greenhouse Gas Initiative (RGGI), nine northeast states - Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, Vermont - First auction 2008, first control period begins 2009. Covers: Power plants. Prices $6 per tonne.
Quebec - Regulation adopted 2011 compliance started in 2013. Covers electricity, energy intensive industrials. Prices $10 per tonne.
South Korea - Launched 2015. Covers around 500 of the country’s biggest emitters, collectively responsible for 60 percent of the country’s annual emissions. Prices $9 per tonne.
Switzerland - Launched 2013. Covers energy intensive industries. Prices $9 per tonne.
Sources: World Bank Group and Ecofys Carbon Pricing Watch 2015, Prices as of April 1 2015 per metric tonne, International Emissions Trading Association, Thomson Reuters data
Compiled by Susanna Twidale