Financial support for developing countries is a core issue under the United Nations Framework Convention on Climate Change (UNFCCC). Industrialised countries strongly emphasise the potential role of carbon markets in mobilising the required finance.

This report by Wolfgang Sterk, Christof Arens, Florian Mersmann, Hanna Wang-Helmreich and Timon Wehnert analyses the international climate negotiations at the UN climate conference in Durban in December 2011.

In this paper, six developing countries with possible domestic ETS are analysed: Brazil, China, India, Kazakhstan, Mexico, and South Korea. Brazil has set up a stock exchange for voluntary carbon units which may precede a domestic trading scheme. China has made concrete steps towards the creation of regional ETS in various cities and provinces.