Carbon emission market leaps to $21.5 bn

BEIJING, Oct 26: The world carbon trading emissions market expanded to nearly 21.5 billion dollars in the first nine months of 2006, up from about 11 billion dollars for all of 2005, the World Bank said in a report released today.

Trade volume from January to September was 1.0 billion tonnes, up from 716.6 million tonnes in the whole of 2005, according to the ''State of the Carbon Market 2006'' -- a report co-released with the International Emissions Trading Association.

The European Union's Emissions Trading Scheme (ETS) accounted for nearly 19 billion dollars of the entire market, while the Clean Development Mechanism (CDM) project accounted for some 2.3 billion dollars over the same period, compared with BEIJING, Oct 26: The world carbon trading emissions market expanded to nearly 21.5 billion dollars in the first nine months of 2006, up from about 11 billion dollars for all of 2005, the World Bank said in a report released today.

Trade volume from January to September was 1.0 billion tonnes, up from 716.6 million tonnes in the whole of 2005, according to the ''State of the Carbon Market 2006'' -- a report co-released with the International Emissions Trading Association.

The European Union's Emissions Trading Scheme (ETS) accounted for nearly 19 billion dollars of the entire market, while the Clean Development Mechanism (CDM) project accounted for some 2.3 billion dollars over the same period, compared with $2.65 billion for all of 2005.

The ETS was supposed to help combat climate change by capping heavy industry emissions of the most common greenhouse gas, carbon dioxide (CO2), and forcing companies that exceed their caps to buy extra permits or cut emissions.

But last year's cap was about 100 million tonnes above actual CO2 emissions -- an excess that is expected to last through the market's first phase from 2005-07 and putting the scheme in limbo.

Reuters.65 billion for all of 2005.

The ETS was supposed to help combat climate change by capping heavy industry emissions of the most common greenhouse gas, carbon dioxide (CO2), and forcing companies that exceed their caps to buy extra permits or cut emissions.

But last year's cap was about 100 million tonnes above actual CO2 emissions -- an excess that is expected to last through the market's first phase from 2005-07 and putting the scheme in limbo.

Reuters