Carbon Market Evolution in Brazil and India

• In Event: 382 - Section on Comparative-Historical Sociology Paper Session. Can Comparative Historical Sociology Save the World? (5) Climate Change

Abstract

In the evolution of national carbon markets, market intermediaries, whose role is to connect buyers and sellers of carbon credits, have emerged as key actors in shaping market development. We compare the carbon market intermediary communities in Brazil and India, two pioneers in establishing carbon market activity and expertise under the Clean Development Mechanism (CDM) of the Kyoto Protocol. Both Brazil and India witnessed rapid expansion of the CDM and remain global leaders in the number of projects, expected reductions, and depth of institutional capacity related to carbon trading. Despite these similarities, carbon market development varied across the two countries, reflecting the intersection of institutional structures and market agents. National differences in access to fossil fuel resources and domestic regulatory environments resulted in two distinct carbon market intermediary communities; in Brazil intermediaries were local entrepreneurs, specializing in the Brazilian carbon market, while in India carbon projects were promoted by the carbon market arms of major global consulting companies. The activities of these distinct market intermediaries then led to distinct outcomes in the timing of market development, the average size of CDM projects, and the reliance on international financing and technology transfer in CDM project implementation.

Author

• Simone Pulver, University of California-Santa Barbara