What is the Future of Carbon Markets?

Investors are losing confidence in the future of a global carbon market, according to a Reuters article.

Estimates suggest the market could be worth up to $2 trillion dollars by 2020, but that largely depends on the participation of the US. Cap-and-trade legislation that would create a mandatory US carbon market has lost political support and passage looks unlikely in the near-term.

Furthermore, the Copenhagen Climate Conference in December failed to create a treaty that would extend international carbon trading established under the Kyoto Protocol. Analysts say this has caused uncertainty and price deflation in the market.

Read coverage of the carbon conference in Amsterdam at the link below.