Cap-and-trade, a regulatory instrument widely used to constrain greenhouse gas and other pollution, has recently been criticized for producing only small amounts of intended emission reductions. This paper looks at the empirical record of cap-and-trade since the beginning in 1995, and shows that emission targets have almost always been easier and cheaper to reach than expected. The five main reasons are generous targets, changes in economic output, fuel price movements, innovation, and complementary emission reduction policies.

What are the main trends in the carbon market in 2010? What do market participants and observers expect this year, the next few years and up to 2020? This report presents and analyses the results of the fifth annual Carbon Market Survey, which garnered 4,767 responses in January and February 2010.