Not only is the EU ETS by far the biggest mandatory carbon trading scheme at this stage, it is also one of the only ones, besides the UK and NSW GGAS scheme.

However, there are efforts underway to extend mandatory cap-and-trade schemes.

California and the US

California Cap and trade scheme under governor Schwarzenegger aims to achieve heavy emissions cuts in California over the next 13 years - back to 1990 levels by 2020. To reach annual emissions levels equal to those of 1990 by the year 2020, California will have to cut greenhouse gases 25 per cent from projected levels, to around 450 million tonnes.

The Market Advisory Committee (MAC) to the agencies published a set of draft recommendations for cap-and-trade that would see the state begin with caps on sellers of electricity and expand greenhouse gas constraints to other parts of the economy.

Further US carbon schemes:

• The report recommends that regulators link the potential cap-and-trade system to other similar programmes, specifically that of the European Union, and the regional carbon trading scheme being set up on the US east coast, which is scheduled to enter into force in 2009.
• The latter scheme currently includes 10 states, but is generator-based and only caps the electricity generation sector. Analysts point out that California's tendency toward regulation of power consumption rather than generation, as well as its potential inclusion of sectors like industry and transportation, may render the two trading schemes incompatible.

Canada

A draft climate plan being assessed by Canada's Conservative government paves the way for companies to purchase carbon credits under the Kyoto Protocol's clean development mechanism (CDM).

The government plans to stabilise the country's greenhouse gas emissions by 2012 and set out spending plans for new initiatives, including C$230 million (€149.8 million) for development of clean energy technologies. New regulations and programmes introduced by the government and provinces could result in the country's emissions starting to decline by 2012, with a steady decline thereafter. However, Canada's greenhouse gas emission reduction targets under the Kyoto Protocol will be excluded from the minority Conservative government's forthcoming climate change legislation targeting big emitters.

A carbon market would still be created as businesses would be able to use Kyoto's clean development mechanism to offset pollution by way of carbon credits in order to help the country meet the reduction targets that are expected to be announced within days, said Baird, who was quoted by CanWest News Service.

CDM allows developed countries to earn carbon credits by investing in overseas carbon-reducing projects that are verified by the United Nations.

Australia and New Zealand

oves are under way to set up an accreditation program in Australia for a greenhouse gas emissions trading scheme. The Australian federal government has approved emissions trading after a task force reported in May 2007, and announced a nation-wide scheme to begin in 2012.

The release of an international standard for greenhouse gases has led the Joint Accreditation System of Australia and New Zealand (JAS-ANZ) to investigate introducing a program for emissions. It would support trading schemes in both countries when they are set up.

The release of this new standard from the International Organisation for Standardisation (ISO), the world-wide producer of industrial and commercial standards, enables JAS-ANZ to begin planning for the introduction of a program for verification and validation of greenhouse gas claims and sets the frame for a linked scheme between the two countries.

Tokyo

The Tokyo metropolitan government announced in June 2007 it was working on plans to introduce mandatory carbon dioxide emissions targets for industry, government, large and small businesses and the residential sector, and a cap and trade emissions trading scheme that would require companies unable to meet their targets to purchase certified credits.

Carbon-Minus Tokyo is to provide the blueprint for implementing new mandatory emissions reduction targets, a cap and trade emissions trading scheme and financing initiatives, as well as other policies and programs that will enable the city to make the transition to a low carbon society during the next three to four years, according to the Tokyo Environment Bureau.