Carbon Trading

How it worksand why it fails

criticalcurrents

Dag Hammarskjöld FoundationOccasional Paper Series

no.7

November 2009

critical currents no.7November 2009

Carbon Trading

How it works and why it ails

Dag Hammarskjöld FoundationUppsala 2009Tamra Gilbertson and Oscar Reyes

Critical Currents

is anOccasional Paper Seriespublished by theDag Hammarskjöld Foundation.It is also available online atwww.dh.uu.se.This issue o Critical Currents is publishedin cooperation with Carbon Trade Watch(www.carbontradewatch.org), the Transna-tional Institute (www.tni.org) and The Cor-ner House (www.thecornerhouse.org.uk). Itis based on

Carbon Trading: a critical conversa-tion on climate change, privatization and power

,edited by Larry Lohmann and published as

Development Dialogue no. 47

in 2006.Statements o act or opinionare those o the authors anddo not imply endorsementby the Foundation.Manuscripts or reviewshould be sent tosecretariat@dh.uu.se.Series editor: Henning Melber Editor: Larry LohmannCoordination andfnal text editing: Wendy DaviesDesign & Production: Mattias LassonPrinted by X-O Gra Tryckeri ABISSN 1654-4250Copyright on the text is with theauthors and the Foundation.The Dag Hammarskjöld Foundationpays tribute to the memory o the secondSecretary General o the UN by searchingor and examining workable alternativesor a socially and economically just,ecologically sustainable, peaceul andsecure world.In the spirit o Dag Hammarskjöld’sintegrity, his readiness to challenge thedominant powers and his passionate pleaor the sovereignty o small nations andtheir right to shape their own destiny, theFoundation seeks to examine mainstreamunderstanding o development and bring tothe debate alternative perspectives o otenunheard voices.By making possible the meeting o minds,experiences and perspectives through theorganising o seminars and dialogues,the Foundation plays a catalysing rolein the identifcation o new issues andthe ormulation o new concepts, policyproposals, strategies and work plans towardssolutions. The Foundation seeks to be at thecutting edge o the debates on development,security and environment, therebycontinuously embarking on new themesin close collaboration with a wide andconstantly expanding international network.