The global carbon market has generated almost as much money in the first half of this year as it did throughout the whole of 2007, according to a new report.
A total of 1.8 gigatons (Gt) of carbon dioxide equivalents (CO2e) was traded globally in the first half of this year, worth some $59 billion USD, compared to $62 billion for all of 2007, according to market analysts Point Carbon.
The aggregate worth of transactions in the first half of this year is already a full 94% of the value for all transactions in 2007. This is due to several factors, notably a higher average carbon price of $32 USD (€20.61) per ton CO2e, up from $21 USD (€13.36) over the same period last year.
Of this 1.8 Gt CO2e, a massive 1.3 billion was traded within the EU’s Emissions Trading Scheme (EU ETS), representing 70% of total trade so far this year, compared to 61% over the same period last year. Trades within the EU ETS generated $47 billion USD (€30bn) over the first six months of this year, up 161% on the first half of 2007.
Although the EU ETS dominates and is set to grow further with the inclusion of emissions from aviation from 2012, carbon-trading activity has not been limited to the EU during the first six months of this year. In the Clean Development Mechanism (CDM) market, some 502 metric tons (Mt) CO2e was traded in the first half of this year, worth $12 billion USD (€7.6bn). This is up 27% and 20%, respectively, on the first half of last year.
In addition, several new markets and market segments have been introduced, including the Regional Greenhouse Gas Initiative in the US, the trading scheme in Alberta, Canada, and the upcoming Australian federal Emissions Trading Scheme.
The figures and conclusions, taken from Point Carbon’s "Carbon Market Monitor’s Mid Year Review," show that global carbon markets are growing strongly, despite a global economic downturn.
According to Endre Tvinnereim, Senior Analyst at Point Carbon and author of the Report, "for all of Kyoto’s shortcomings, the carbon market owes pretty much everything to the Kyoto Protocol. The market is no longer immature and precocious, but rather advancing on many fronts, both geographically and in terms of financial sophistication. Indeed, unlike other economic sectors hit by a global downturn this year, the global carbon market is in rude health."
Point Carbon’s Carbon Market Monitor’s Mid Year Review provides detailed comment and analysis of the CDM and JI markets, transactions and demand, the North American and Australian markets and on the likely policies of the Post-2012 period.
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