The emissions market - A regulatory trade-off

The emissions market is a commodity-type market, with the 'commodity' being regulatory risk, not greenhouse gas (GHG) emissions. Thus, far from needing a new direction, would-be emissions traders need a clearer idea of the eventual destination so that they can work out the best route for themselves. Once it is known who has authority to regulate what and what the scale of the potential gains and losses is, there is a better chance of the market makers and speculators needed to provide liquidity to any market wanting to get involved in GHG emissions trading.