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CO2 Market to Grow 15% This Year, New Energy Forecasts (Update1)
2011-01-06 17:42:39.841 GMT
(Adds New Energy comment in third paragraph.)
By Catherine Airlie
Jan. 6 (Bloomberg) -- Global carbon markets will grow 15
percent in 2011, the most in three years, on higher prices and
increased demand for emission allowances from energy companies,
analysts at Bloomberg New Energy Finance said.
Emission markets worldwide will expand to 107 billion euros
($139 billion) this year from 93 billion euros last year as
European power producers buy more permits before they are forced
to pay at auctions starting in 2013, London-based analysts led
by Guy Turner said today in an e-mailed report.
"In spite of the recession and little progress at the
international climate talks, the value of the global carbon
market has continued to grow," Turner, director of carbon
market research at New Energy Finance, said in the report.
"With the advent of auctioning in the European scheme, we are
likely to see even higher traded volumes and prices in Europe in
2011, and these may increase further in future years."
The carbon market's value rose 5 percent in 2010 as global
prices increased 17 percent, New Energy Finance said. Trading
volume dropped 10 percent to 6.9 billion metric tons on the
collapse of the Regional Greenhouse Gas Initiative market, a
carbon trading program in the U.S., and "the evaporation of
prospects for a federal-level cap-and-trade scheme."
European Union carbon allowances for delivery in 2011 rose
0.9 percent of 14.66 euros today on the ICE Futures Europe
exchange in London. That's up 13 percent from a year ago. United
Nation's credits for 2011 fell 0.3 percent to 11.20 euros.
Dominated by Europe
Europe still dominates the carbon market, accounting for 81
percent of total trades in 2010, Turner said. This trend is set
to continue through 2020 given the lack of progress on carbon
legislation in the U.S., Japan and Australia, he said.
The world's carbon markets could reach up to 1.7 trillion
euros in 2020 "if these countries were to implement meaningful
cap-and-trade schemes," Turner said.
New Energy Finance said the value of carbon trading last
year was within 3 percent of its January 2010 forecast of 96
billion euros. The European Trading System, started in 2005 as
part of the EU effort to cut emissions and comply with the 1997
Kyoto Protocol, grew 80 percent in 2008, New Energy said.
For Related News and Information:
New Energy Finance Carbon Market Fundamentals: CARX <GO>
Top Environment Stories:GREEN <GO>
--Editor: Mike Anderson, Randall Hackley.
To contact the reporter on this story:
Catherine Airlie in London at +44-20-7073-3308 or
cairlie@bloomberg.net
To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or
sev@bloomberg.net
