Climate Bills and a Green Economy

Global Carbon Market is Poised for a Dramatic Growth Post 2012 Under Proposed Regulations

May 4, 2010

Bradenton.com - Regulatory efforts to mitigate climate change have spawned an emerging carbon market that was valued at $10.9 billion in 2005 and grew at compound annual growth rate (CAGR) of 89% to reach $138.3 billion in 2009. The global carbon market doubled for two consecutive years form $31.2 billion in 2006 to $63 billion in 2007 and $126.3 billion in 2008 due to the expansion of allowance markets.

The European Union (EU) Emission Trading System (ETS) experienced a robust growth during this period. However, the recession in the global economy contained the impressive growth of the global carbon market. The global carbon market registered a less than 1% increase in value in 2009. The primary reason for such market behavior was the sharp decline in carbon prices, on the back of lower oil and energy prices and a deteriorating economic outlook. The demand for carbon allowances fell sharply in late 2008 and early 2009 as the recession reduced economic output, resulting in much lower emissions than had been expected.

This report predicts that the global carbon trading market will experience a dramatic growth after 2012 and reach $1.2 trillion by 2020. The EU's initiatives to build a broad, globally linked carbon market, the prospective US Federal cap-and-trade program, and the strong emergence of other regional market trading mechanisms will drive the carbon market significantly beyond 2012. Primary Project Based Market is Losing Impetus Due to Uncertainty in Carbon Mitigation Mechanisms Post-2012

The primary market for project-based emission reductions declined considerably in the year 2009 under the weight of the economic downturn. The primary CDM transactions that accounted for the largest share of activity in the primary market, at 84% of volumes and 91% of value transacted, declined in both volume and value terms.

The primary market for project-based emission reductions weakened considerably in the second half of 2008 and 2009. The buyers became more cautious due to persisting uncertainty about the role of and the demand for CDM and JI in the post-2012 climate regime, procedural delays, delivery and issuance challenges, and credit risks amid the worsening economic climate.

Research and Markets has announced the addition of the "The Global Carbon Trading Market: Concepts, Regulations and Industry Trends to 2020" report to their offering.

Key Topics Covered:

1.1 List of Tables
1.2 List of Figures
2 Introduction
3 Origins of Carbon Trading Market and Exchanges
4 Kyoto Protocol, a Precursor of Emissions Trading Systems
5 Global Carbon Trading Market: Dynamics and Statistics
6 Global Carbon Credits Market Policy Framework Facilitating Emissions Trading
7 Competitive Landscape of Emission Trading Companies
8 Corporate Sustainability in a Changing Landscape
9 Appendix

Companies Mentioned:

3 Degrees Incorporated
APX Incorporated
Baker & McKenzie
Blue Source
CantorCO2e
Climate Focus
Credit Suisse
EcoSecurities Group
Equator LLC
MGM International
Natsource
RNK Capital LLC
Sterling Planet, Incorporated
Tradition Financial Services/TFS Energy/TFS Green
TUV SUD America