Initiation to Carbon Trading 

The Educational Game

International Institute of Industrial Environmental EconomicsEnvironmental 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 ?