Downturn In Global Carbon Market Expected In 2009

Feb 25 2009 | 8:42am ET

The global carbon market will decline in value in 2009 for the first time since trading began, carbon finance consultancy Point Carbon said Tuesday.

The contraction will occur despite higher traded volumes, as the economic downturn has triggered a collapse in prices.

According Point Carbon, the global CO2 market is expected to be worth EUR 62.6 billion ($80 billion) in 2009, compared to EUR 92 billion ($118 billion) in 2008. The values are based on Point Carbon's price forecasts for European Union Allowances and secondary Certified Emissions Reduction credits.

Trade volumes, on the other hand, are expected to rise 30% this year to 5.9 billion metric tons of carbon dioxide. In 2008, trades totaling 4.9 billion metric tons were made.

The EU’s Emissions Trading Scheme (ETS) will continue to dominate the carbon market in 2009, according to Point Carbon, with trade volumes up 24% year on year to 3.8 billion metric tons. Market value, however, will fall 33% to EUR 45.2 billion ($58 billion).


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...