Carbon market tripled in 2006: World Bank

COLOGNE, Germany, May 2 (Reuters) The global carbon market last year tripled to billion from billion in 2005, the World Bank's carbon finance unit said on Wednesday.

The emissions trading scheme of the European Union, the world's largest carbon market, accounted for billion, up from billion, the Bank said in a report presented at a news conference during a trade fair in Cologne.

The project-based market, which funds clean energy in developing countries in exchange for carbon emissions permits, doubled to billion in 2006 and raised additional finance of billion for development of clean energy technologies, the World Bank said.

''We believe that carbon finance and the carbon market has a real development role,'' said Warren Evans, director of the World Bank's environment department.

''There's a clear role for carbon finance to support the sustainable development in those countries both in terms of finance and providing new clean technologies,'' he added.

Policymakers in both rich and poor countries are pinning much hope on carbon markets to finance the clean-up of heavy industry in developing countries, which are expected to contribute most to the increase in greenhouse gases in coming decades.

REUTERS SR DS1516