A proposal to implement a greenhouse gas cap-and-trade system in the US will create demand for 800 million to 1 billion carbon credits, according to JP Morgan. A bill introduced by Independent Senator Joe Lieberman and Republican John Warner, which comes up for debate on the full senate floor in June 2008, aims to reduce US greenhouse gas emissions 70% below 2006 levels by mid-century by creating a capand- trade program covering over 75% of the US economy. The program would begin in 2012 if the bill is passed. JP Morgan Executive Director and Head of North American Environmental Product Markets Kedin Kilgore expects the resulting global carbon market to be worth “one-half to three-quarters of a trillion dollars per year at that point”, he said. “The US has the potential to be at least three times the size of the European markets, and to contribute to carbon trading on a large scale globally,” said Kilgore.