Carbon market momentum is strong

After some growing pains in its first phase, the EU ETS has created a robust structure to cost­ effectively reduce greenhouse gas emissions. Created by regulation, the carbon market's biggest risk is caused, perversely, by the absence of market continuity beyond 2012 and this can only be provided by policymakers and regulators. This will require increased efforts well beyond what is envisaged by the current policies of major world emitters.

 

Carbon Market at a Glance, Volumes & Values in 2006-07

	2006		2007
	Volume	Value	Volume	Value
	(MtCO2e)	MUS$	(MtCO2e)	MUS$
	Allowances
EUETS	1,104	24,436	2,061	50,097
New South Wales	20	225	25	224
Chicago Climate Exchange	10	38	23	72
UKETS	na	na
Sub total	1,134	24,699	2,109	50,394
	Project-based transactions
Primary CDM*	537	5,804	551	7,426
Secondary CDM	25	445	240	5,451
JIt	16	141	41	499
Other Compliance & Voluntary Transactions	33	146	42	265
Sub total	611	6,536	874	13,641
Total		31,235	2,983	64,035