The oldest emissions trading market is the United States' SO2 market that has operated since 1995. It and the more recent NOX market have been hailed as enormous successes. There are other emissions markets emerging in the United States, but the big initiatives today are the markets developing overseas in response to the Kyoto agreement. Futures are already traded on emissions. Banks see potential in these markets and are actively trading them.

Green trading is similar to emissions trading. It occurs in jurisdictions that require a certain fracton of energy to be generated from green sources, such as hydro or solar. Generators can actually generate the green energy themselves, or they can buy credits from other generators who do.

This book by James and Fusaro is the definitive guide to these emerging markets. It walks readers through the policy issues, history, function and legal frameworks of these markets. It advises on risk management for market participants and gives a reasonable assessment of where the markets are headed.