Financial Soultions: Positive growth seen in carbon markets according to experts.

Oct. 28, 2009 - PRLog -- Experts are saying that with the upturn in global financial markets, the carbon trading industry too, is moving into more positive territory, Financial Soultions understands.

Over the last year, carbon projects have felt the crunch as financials tightened investment into the market due to the global credit crisis, with the result that carbon prices dropped almost 75% in the eight months going into February this year.

The main vehicle for trading carbon credits under the Kyoto Protocol is clean development mechanism (CDM) projects, aimed at global emission reduction.


The vice president of a business consulting firm Koelnmesse, Mr. Michael Dreyer recently said “The market is coming up again. ... The carbon price has been pretty low, which basically is a movement that is connected to the global financial markets. So prices are coming up again, more projects are also being put on the market... China is (still) the biggest project offerer, with about 60% of the entire CDM market is taking place in China.” Financial Soultions understands. He went on to say, "CDM is offering an alternative way and an additional way to get funding to realize projects. You can use future savings in emissions to basically pay for the investment you are going to do, and of course that is a very good mechanism which is helping to bring projects on the ground a bit faster than traditional financing methods."


For businesses coming out of the crisis, experts added that carbon trading is a great alternative source of finance for clean energy-related projects.

Expert opinion was that looking ahead, while there may be concerns over shifts in the carbon trading market after 2012 when the Koyoto Protocol ends, the present is still the perfect opportunity to garner first mover experience as carbon emissions and climate change are set to be priorities for the globe long into the future.

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