Climate policy raises a number of challenges for the energy sector, the most significant being the transition from a high to a low-CO2 energy path in a few decades.  Act Locally, Trade Globally seeks to provide a complete picture of the future role of emissions trading in climate policy and the energy sector.  It offers an overview of existing trading systems, their mechanisms, and looks into the future of the instrument for limiting greenhouse gas emissions.

Executive Summary1. Introduction: Emissions Trading and Climate Policy-Allocation Modes-Outline2. The Kyoto Protocol Mechanisms-Overview of the Three Mechanisms-Supply and Demand Outlook-Emissions Trading: A Market Instrument for Industrialised Countries-Project-Based Mechanisms: Raising High Expectations-Kyoto Mechanisms: An Early Focus on Projects3. Emissions Trading: Targeting Sources-The EU Emissions Trading Scheme-GHG Emissions Trading Systems beyong the EU-Linking Systems: Issues and Opportunities-Conclusion4. Beyond Industrial Activities-Extending Coverage through Upstream Allocations-Emissions Trading in Road Transport-Including International Aviation and Marine Bunker Fuels-Conclusion5. Broadening and Deepening-The Advantages of a Global Emissions Trading Regime-Barriers to a Global Regime-Dynamic Targets-Non-Binding Targets-Other Target Types-Developing Countries' Circumstances-From Countries to Sectors-Options for Industrialised Countries-Addressing Uncertainties-Conclusions6. Act Locally, Trade GloballyReferencesGlossary