Global carbon market worth $60 billion in 2007: survey
Copenhagen, 12/03/2008
The global carbon market was worth over $60 billion in 2007, up by around 80 per cent on 2006, according to research by analysts at Point Carbon.
The Oslo-based information provider said that total traded volume of carbon credits reached 2.7 billion tonnes in 2007, up from 1.6 billion the year before.
"The global carbon market is heating up at a fast and furious pace, while forming at a time of ever-increasing attention to climate change," said Kjetil Roine, manager of Point Carbon's research team.
The research was compiled from a survey of 3,700 responses to a list of questions, which also included a survey of price expectation.
Respondents to the survey expect an average carbon price of $37.00 by 2010, rising to $50.00 in 2020. These figures are up $9.00 and $15.00 on what respondents thought when questioned a year earlier.
Over 70 per cent of respondents expect a new global climate agreement will be reached before 2013, with around 77 per cent expecting it to take place with or without the agreement of the US, the world's largest emitter. More than half of all respondents expected an agreement to include the US.
The company now predicts that the global carbon market will see credits worth 4.2 billion tonnes of carbon dioxide equivalent trade during the course of 2008. At current market prices, that would make the market worth $92 billion.
"We expect that the global trend of increasing traded volume will continue to expand exponentially as the global market becomes more mature and sophisticated. An increase in contract types, more players and markets and greater competition between market players together will generate momentum for higher volumes," Roine said.
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