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The global carbon emissions markets are still young and have roots that can be traced back to the UN Framework Convention on Climate Change which was signed in 1992.
Government protocols dictate emissions trading amongst their member states. A good example can be found in the EU-ETS which was established under the Kyoto Protocol. A further example can be found in the Regional Greenhouse Gas Initiative (“RGGI”) in the North Eastern United States which is made up of participant states that adhere to their own unique protocol guidelines within a regional standard. Although these multi-state protocols are in place, there are also smaller regions or individual states that have created their own protocols designed to address their specific climate issues.
There is certainty that there will be climate change regulation although there is uncertainty regarding its scope.