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Premier eFinance: 2010 was a positive growth year for carbon market investors.
Overall, the global carbon market experienced 5% growth on the previous year in 2010.
By: Premier eFinance
The international carbon market grew by 5% on 2009 levels, despite major stalling in the US meaning hopes of a federal cap-and-trade scheme again seem unrealistic in the foreseeable future.
This lead to the collapse of the Regional Greenhouse Gas initiative in the USA, which accounted for 9% of the market in 2009. Trade in carbon credits generated by Clean Development Mechanism projects indicated 1% growth, while the EU Emissions Trading Scheme remained the same in trading volumes.
The biggest positive change in traded volumes of carbon credits was in the voluntary carbon market, which showed 34% growth in traded volumes compared to 2009.
Over the whole market, 6.9 tons of carbon credits were traded throughout 2010, compared to 7.7 billion tons in the previous year.
The leading cause of overall market growth in 2010, despite the loss of a large chunk of the US market, was the overall rise in average prices of carbon credits, by 17%. Average prices of carbon credits climbed to $19.4 from $16.54. Adam told Premier eFinance that this ‘would have delighted stakeholders of investment in carbon credits.’
According to data released by Bloomberg New Energy Finance prices of carbon credits within the EU cap-and-trade scheme, grew by 6.6% over 2010. As the EU scheme comprises 80% of the overall global Carbon Credit market, this means that the remaining 20%, including other smaller compliance markets and the voluntary market, grew by 58.6% on average transaction values per unit.
The rise in unit prices for carbon credits compensated the fall in volume of transactions over 2010 and lead to the market increase of 5% in overall value, likely boosting investment in carbon credits over the coming year.
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