Financial Soultions: Sydney looking unlikely to become Asia-Pacific carbon trading centre.

Oct. 28, 2009 - PRLog -- Financial Soultions has learned that a recent announcement by the Asian city state, Singapore that it will be ready to launch a carbon credit market before year end may spell the end for Australian hopes to become the carbon trading market  hub of the region, despite the nations plans to set up the region's first cap-and-trade market.

Sydney believes itself to be in the driving seat to become a hub, but analysts say the Australian city may just be brushed aside, as Asian cities have already positioned themselves for this title. Beijing, Hong Kong and Singapore are all aiming to become the regions chief carbon trading centre.

At present, it is Europe that holds the world's only major carbon exchange and it controls most of the $118 billion yearly trade in carbon according to Financial Soultions sources. Australia has been attempting to become the second market, but the drawn out process of getting its lawmakers to approve plans to usher in carbon-trading by mid-2011 may just be its downfall.

China looks set  to surpass Sydney as a base for trading carbon futures and other environmental products, as Beijing leads the region in greener policies, industry experts have said recently.

Singapore is also seen as a likely challenger to become an Asian hub as it close to and has ready access to the Clean Development Mechanism projects in and around China, the main source of Certified Emission Reduction certificates that can be used as carbon credits.
The city sate, Financial Soultions understands, is already a top Asian financial and oil trading hub, which offers complementary infrastructure to carbon trading.

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