Carbon markets rise in 2011, despite Europe price slump

• 12 years ago (2012-01-14)
• Junior Isles

Europe 1061

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The global carbon market value rose 4 per cent in 2011, despite the largest market, Europe, experiencing a price slump, according to analysis by Thomson Reuters Point Carbon.

Oslo-based Point Carbon (PC) put the value of the compliance-based carbon markets at €96 billion ($123 billion), based on transactions of roughly 8.3 billion allowances and credits, each equivalent to one tonne of carbon dioxide, at an average price of €11.45.

Volume was up 19 per cent on the 7 billion tonnes traded in 2010, but the average price per tonne of carbon was down 12.5 per cent from €13.09.

Europe’s carbon market accounted for 72 per cent of the global market volume and 80 per cent of its value. Prices for the front-December EU allowance contract slumped from €14.43 at the start of last year to €6.60 on 3 January.

The PC analysis includes trades of allowances from the EU Emissions Trading System (ETS); certified emission reductions, emission reduction units (ERUs) and assigned amount units under the Kyoto Protocol; transactions under the Regional Greenhouse Gas Initiative (RGGI) and ETSs in New Zealand and Australia, as well as the nascent carbon market in California.

Point Carbon expects to release more detailed analysis of 2011 numbers and its forecasts for 2012 within a couple of weeks, according to senior carbon analyst Marcus Ferdinand.