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Initiation to Carbon Trading
The Educational Game
International Institute of Industrial Environmental Economics
Environmental Management and Policy - Batch 15 LAC Project
Members: Joanna Glawdel
Mathilde Mansoz
Laura Kazlauskaite
Purpose of the Project/Game
• To promote sustainability through education;
• Educate the concept of carbon trading through
replication of real carbon trading system;
• Key audience: Junior Highschool Students
(international);
• Key concepts of the game :
 United Nations Framework Convention on Climate Change
(UNFCCC);
 Kyoto Protocol;
 Greenhouse gasses (GHGs);
 Emissions Trading.
United Nations Framework Convention
on Climate Change (UNFCCC)
• International Environmental Treaty (1992);
• Treaty sets goals and rules for tackling climate change;
• 192 countries have joined the treaty;
• Not legally binding, includes provisions for protocols such as
the future Kyoto Protocol;
• Objective of UNFCCC:
"to achieve stabilization of greenhouse gas concentrations in the atmosphere at a
low enough level to prevent dangerous anthropogenic interference with the
climate system"
Kyoto Protocol
• Protocol adopted on December 1997;
• Established legally binding commitments for countries to
reduce GHGs (1997);
• Recognizes developed countries as principally responsible
for present levels of GHGs;
• Countries are primarily to meet targets through national
measures;
• Market-based mechanisms can also be used (further details
to follow).
Greenhouse Gases (GHGs)
• Gases in the atmosphere (that occur naturally in nature)
which absorb and emit radiation from the sun;
• These gases control the earth's temperature;
• GHGs include: water vapor, carbon dioxide, methane,
nitrous oxide, ozone and chlorofluorocarbons;
• Since industrialization, there has been an increase in
greenhouse gas emissions in the atmosphere:
o It is believed that this increase has trapped more of the
suns radiation and increased the earth's overall
temperature.
Emissions Trading (1)
• Emissions Trading or "Carbon Market" is one of the market
principles of the Kyoto Protocol;
• Countries that have exceeded their emissions target can
sell their "extra" emissions on the market;
• Thus a country that has not met its carbon emissions target
can buy emissions units;
• Trading is based on the free market principle according to
which the point where supply and demand create the
perfect equilibrium price. Students will have the
opportunity to experience this mechanism.
Emissions Trading (2)
• Besides emissions trading, the other two market principles of
the Kyoto Protocol are:
o
Clean Development Mechanism (CDM): Annex I parties
can implement projects in developing countries to offset
carbon emissions. By doing so they emit Certified
Emissions Credits (CERs);
o
Joint Implementation (JI): through an emission reduction
project, Annex I Parties can earn Emissions Reductions
Units (ERUs). This process also encourages technology
transfers & Foreign investment.
Set up of the game
•Players Required: 10 - 34 people;
•Time Required to Play: 45 - 60mins;
•Division of the class;
•Set up of the classroom:
• The blackboard can be used as a score card.
• Desks serve as an office.
•What to provide each group of students at the beginning to the game:
•Scorekeeper - card template to draw on blackboard.
•Provide each Annex I country with 1000 CER notes and 1000 Euro notes
and a log book to record amount of CERs and Euros bought/sold through the
rounds.
•Provide each non-Annex I country with 1000 CER notes and a log book to
record amount of CERs and Euros.
•Traders will be given 800 Euros and no CER notes.
Goals of the game
•First Round
– Non-Annex I countries sell at least 300CER.
– Annex I countries reduce/BUY their emissions by at least 300CER.
– Brokers buy CERs.
•Second Round
– Non-Annex I countries sell at least 300CER.
– Annex I countries reduce their emissions by at least 200CER.
– Brokers are now buyers and sellers for the remaining part of the game.
•Third Round
– Non-Annex I countries sell at least 300CER.
– Annex I countries reduce their emissions by at least 100CER.
How to Play the Game
Rounds
• Determine Market Value of CER by establishing
buying/selling rates for CERs;
• Trading negotiations for 10mins;
 CERs
 Log Sheets
 Euros
• Scoring:
 Score Sheet 'A'
 Score Sheet 'B'
 Score Sheet 'C'
• Determine if Round requirements were met.
Debrief Session
• To reinforce the educational impact of the game, after the
play, teachers and students are encouraged to engage into
discussion on :
o The experience of the game, ie. did they like the group
they belonged to, and why they chose it;
o
The concept of carbon trading and the establishment of the
value of CERs;
o
The Kyoto Protocol and today's environmental issues;
o
To that purpose, a hand out with suggested questions is
made available to the class.
Feedback
• From an educational point of view:
o
Fairly advanced game;
o
Possible constraints due to busy schools schedule and
programs;
o
Conceptualisation (Michael Plesner from Energy
Crossroads Denmark);
o
Game according to friendship rules (friends trade with
friends, not fair trades);
• Lack of feedback from external sources.
Further Application and Distribution
• Plan of "testing" Initiation to Carbon Trading game in a Junior
High School class when we will be on site in Lund;
• After this conference we hope to get further feedback helping
us adjusting, promoting and distributing the game;
• Plan of creating an official website of the game and make all
the documents available for download.
Questions ?