There are strong indications that the world will see a global carbon scheme after the first Kyoto commitment period ends in 2012.

Throughout the developed world, political leaders who have been recalcitrant in their efforts to deal with global warming have signaled a thaw in their stance. President Bush said as much after meeting with German Chancellor Merkel. Canadian Prime Minister Harper shuffled his cabinet and swallowed his pride, admitting climate change was a concern for Canada and Canadians. And Great Britain further strengthened its efforts to combat the global threat. Hoping to capitalise on this warming trend, the UN is pushing for a world summit on climate change.

G8 + India, China Brazil commit to Carbon Trading

The summit at the beginning of February of the Group of Eight industrialised nations, as well as developing countries China, India, Brazil, Mexico and South Africa urged to provide post-2012 market certainty as United Nations-led talks are moving far too slowly to provide certainty to participants in the carbon market.

The forum's final statement, non-binding but ringing, stated: "Climate change is a global issue and there is an obligation on us all to take action, in line with our capabilities and historic responsibilities."

The statement said that establishing a market value for greenhouse gas emissions was "the most efficient and powerful way to stimulate investment" in new technologies.

Britain has put global warming at the top of the diplomatic agenda during its presidency of the (G8) in 2005 and Blair is pushing for a breakthrough before he leaves office this year.
Blair said that getting the United States -- which pulled out of Kyoto in 2001 -- and China and India on board was key to striking a deal.

"I think there is a real chance of getting outline agreement this year at the G8 to a proper stabilisation goal for the climate, a framework within which we set a carbon price ... and ... technology transfer," he said.

"I think there is a real change of mood in America, for reasons of energy security, as well as climate change, people know we've got to act," Blair told BBC television.

US Alliance set plan to cut GHG emissions

More than 100 corporate heads, international organisations and experts have set out a plan at the end of February in Washington to cut greenhouse gas emissions, calling on governments to act urgently against global warming.

"Failing to act now would lead to far higher economic and environmental costs and greater risk of irreversible impacts," the Global Roundtable on Climate Change warned in a statement in Washington, announcing their first major agreement since they began talks in 2004.

The group, known as the US Climate Action Partnership, is an unexpected coalition of corporate leaders and environmental groups for federal legislation to cap carbon. The group includes executives from a range of industries including air transport, energy and technology, and includes General Electric, Ford Motor Co, Toyota Motor North America, investment bank Goldman Sachs, and Wal-Mart among its major corporations.

The alliance called on governments to set targets for greenhouse gases and carbon emissions. The agreement urged governments to place a price on the carbon emissions released by power plants, factories and other sectors to discourage emissions.

"Of course, addressing climate change involves risks and costs. But much greater is the risk of failing to act," said Alain Belda, chairman and CEO of the world's top aluminum producer Alcoa, who signed the pact.

The White House has recently been on the defensive, especially since the February 2 release of a report by the Intergovernmental Panel on Climate Change.

Senators John McCainm an Arizona Republican and Joe Lieberman, a Connecticut independent, have introduced legislation that would require caps on carbon emissions. Lieberman predicted that a US measure requiring cuts in greenhouse gas emissions would be law by late 2008 or early 2009.

Their talk of mandatory US emissions limits got a warm response from participants from the G8, as well as developing countries China, India, Brazil, Mexico and South Africa.

EU commitments will ensure demand for CERs

The EU proposed to slash greenhouse gas emissions by a fifth by 2020 and pledged to raise the bar to 30% if joined by other developed nations - the level of carbon cuts needed to avert "massive and irreversible" climate-caused destruction.

Artur Runge-Metzger, head of the climate unit at the European Commission said that the EC's energy and climate plan will ensure that demand for international carbon credits will continue in the post-2012 era.