Washington, DC (January 18, 2008)- A carbon analysis group announced that the market for trading carbon emissions credits rose 80 percent from last year. Point Carbon, an Oslo-based market-research firm, said the global market for carbon credits rose from $33 billion in 2006 to $60 billion in 2007. The credits sold on the market are permits to emit a certain amount of greenhouse gases (GHGs). Companies that lower their GHG emissions can then sell or trade their credits on the market to other businesses, with the total amount of emissions allowed kept constant.
“What we’re seeing is global movement of capital with the goal of cutting greenhouse-gas emissions,” said Kristian Tangen, director of analysis at Point Carbon. “This is what the Kyoto Protocol was created to do.“
Nearly two-thirds of the trading took place on the EU’s carbon emissions market scheme, which opened in 2005. Countries such as the United States, China, and India are not yet participating in such markets, though many regional markets are in development throughout the United States as businesses prepare for potential federal GHG regulations. “This indicates a growing confidence that GHG emission trading will soon take off in the United States, whether it is at the state or federal level,” Point Carbon said in a statement.
Wall Street Journal