University of London, Birkbeck College

Academic Research Student, School of Law

School of Birbeck

Thesis Title: Current Challenges in International Emission Trading Schemes and Carbon Finance Instruments.

About

                      FOCUS OF RESEARCH

The failure of the Copenhagen initiative and the prospective of the Cancun meetings currently held shows that  the expectations of a global agreement in the near future are still far away. Unfortunately due to diverse causes such as difference in culture, difference in stages of development, wealth, legal systems and diversity of financial system, the trend that this protocol created seems to drastically be shifting from creating a world order in to a system that is becoming more local and regionally divided. Such shift is generating a series of challenges for a market that far from reducing is growing at a fast pace.

Since these emission markets are a product of international agreements traditionally regulated by international law, there are many problems that are appearing and that is of interest to analyse.

The object of my investigation is first to study the different challenges that these International Emission Trading Schemes (ETS) and supporting Multilateral Environmental Agreements (MEAS') are facing today. More precisely, the study concentrates on the form of law and binding obligations being generated.

For a better understanding of ETS and it's current situation, as a starting point it is vital to elaborate a definition of this international system. Not only in the light of international law and the frame work done until now, but also what definitions can be found in international business, regional and internal levels.

A second aspect that the study focuses on is the ongoing development of these types instruments. On the one hand, at the normative level. This due to the fact that the last International Climate Summits are consistently failing to reach binding agreements that can generate emission rules applicable at an international level. On the other hand, the importance of emission reduction as a business practice that is self-growing.


Because of that simultaneous concern of (normative) failure and (economic) success, some of the questions that this research plans to answer are:

1. What are some of the difficulties that these ETS can encounter due to the difference in cultures and legal systems.

2. How can the international community in today's scenario effectively establish regulations and methods of holding different actors accountable of these agreements, including potential violations of them?

3. How can states incorporate the MEAS' within the different internal legislations?


4. What kind of challenges can come as a result of diverse financial systems dealing with exchange and investment instruments (Carbon Finance Instruments) that are products of these protocols? 

5. How can international accountabilities and internal responsibilities be established in the light of this system?

6. What would be the most efficient international instruments that today promotes and establishes sustainable economic development?

7. What would be the most important challenges for future initiatives of International Emission Trading Schemes, MEAS’ and the International community in general?