London, 17 June 2011

Volumes in the global carbon market dipped 1.4% to US$142 billion last year as greenhouse gas emissions rose in the hottest year on record and the global economy stabilized, according to the World Bank. The stall in growth was mostly due to uncertainty about market rules after the Kyoto Protocol expires in 2012, the bank said as it released the 2011 State and Trends of the Carbon Market report – the World Bank’s annual review of the global carbon market. Lingering effects of the recession in several industrialized countries also added to lower GHG emissions, easing emissions reduction compliance obligations.

2010 was a “watershed year” said the bank as the market ended five years of robust growth with a slight decline compared to 2009. The value of carbon offsets generated under the protocol’s primary Clean Development Mechanism ( CDM) market saw the biggest slump, falling by almost half to around US$1.5 bn from US$2.7 bn the previous year – its lowest level since the pact came into force in 2005.

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