While the carbon market is presently focusing on project based transactions, ECA’s economies in transition are uniquely positioned to take advantage of the opportunity presented by International Emissions Trading to attract funding for clean energy and environment programs. This is a fledgling and largely untested area of the carbon market where the potential supply of surplus allowances for trade outstrips demand by more than three times. Demand is estimated at between 400 and 2000 million surplus allowances (termed “assigned amount units”). Prices remain untested but even a conservative price range of Euro 1 – 10 per tonne of allowances places the potential value of this market in the range Euro 400 million – Euro 20 billion.