(From VectorOne) Point Carbon released a report (pdf press release) in Copenhagen, Denmark yesterday at the Carbon Market Insights Conference 2008. The report explores in-depth the following key findings (lots of numbers here):
Global carbon markets worth USD $60 billion (€40 billion) in 2007, up by 80 percent from 2006. The total traded volume increased by 64 percent from 1.6 Gt (1.6 billion tons) in 2006 to 2.7 Gt in 2007.
“Point Carbon predicts that the global carbon market will see 4.2 billion tons
carbon emissions (CO2e) transacted during 2008, up 56 percent from 2007.
At today’s prices, that would make the market worth USD $92 billion (€63 billion).”
There seems to be a generally bullish sentiment on carbon, not necessarily reflected in current market prices. Survey respondents now on average expect a carbon price of USD $37/ton (€24/ton) in 2010 and USD $ 54/ton (€35/ton) in 2020, which is USD $9 (€6) and USD $15 (€10) higher, respectively, than they expected a year ago. This demonstrates that market participants now realize that the EU ETS will face a considerable shortage and that much of this will have to be met through reductions taking place in Europe.