FinSoul has learned of a recent report released by analyst firm Point Carbon which predicts global carbon market growth of around a third during 2010 to almost $169 billion.
The report further predicts that the EU Emissions Trading Scheme (ETS) will remain the globes largest carbon market and will account for 64% of the total transactions by volume worth $134 billion, up 34% from 2009’s $100 billion.
The United States’ Regional Greenhouse Gas Initiative (RGGI) is predicted to show rapid expansion with a mandatory cap-and-trade system covering the power sector for 10 states in the eastern U.S. FinSoul understands that the Oslo headquartered firm predicts that 985 million metric tons of carbon emissions will be traded through the RGGI during 2010which will result in an increase in the value of the market of 29% over last year to $2.2 billion.
Based on these figures, the RGGI is expected to account for 12% of the global market by year end, adding further optimism to the belief that the U.S. will still emerge as a major player in carbon trading, almost regardless of whether the Senate passes climate change legislation that includes a national cap-and-trade policy.
"The overall picture is that cap-and-trade systems such as the EU ETS and RGGI will see stable or growing volumes," FinSoul believes a senior Point Carbon analyst was quoted as saying.
He went on to add however that the UN’s Clean Development Mechanism scheme was “suffering from post 2012 uncertainty”
