The recession’s reach is far and wide and the world carbon market is even being affected. A segment that appeared on NPR’s Morning Edition last Friday discussed the issue – factories have had to cut production due to the recession and thus their greenhouse gas emissions have been reduced. As a result, these companies do not need to purchase as many carbon credits.
"If you go back 12 months," says Kenneth Ivanic of World Energy, "everyone was very bullish that carbon prices were going to keep taking off, it was just 'To the moon, Alice' type of approach. Now as the recession has hit, we've seen people become much more realistic." Source: NPR Morning Edition
Should the U.S. Congress create a carbon cap, the world carbon market could see an upswing in business. “given the United States' role as a global leader and its potentially substantial carbon market, the rest of the world will be watching what happens here very closely, experts from the carbon finance, climate policy, and clean-tech communities said.” Source: CNET.com
The carbon market was a hot news topic last week as the Carbon TradeEx America conference was held in Washington D.C. on April 7-8. For more information on the carbon market’s role in the economic recovery, watch Abyd Karmali of Merrill Lynch discuss the issue on E&E TV.