Global carbon market value trebles to $30 bil in 2006: World Bank

Cologne (Platts)--2May2007

The value of the global carbon market trebled to $30 billion in 2006 from
$11 billion in 2005, according to a study released by the World Bank at the
Carbon Expo conference in Cologne Wednesday.

The sale and resale of EU emissions Allowances in the EU Emissions
Trading Scheme took the lion's share of the market with $24.4 billion, the
World Bank said.

The projects-based mechanisms of the Kyoto Protocol doubled in value to
$4.8 billion in 2006. Of this total, the Clean Development Mechanism
represented 88%, with Joint Implementation accounting for just $141 million.

The World Bank reported that China held a 61% share in the market for
Certified Emission Reductions from CDM projects in 2006, followed by India
with 12% and Brazil with 4%.

On the CER buying side, UK-based purchasers accounted for 50% of the
demand, compared to 15% in 2005. Japanese buying slumped from 45% of the
market in 2005 to just 7% in 2006.

HFC-23 destruction remained the top technology in 2006, accounting for
34% of all CER volumes, while nitrous oxide represented 13% of the total.

The study also estimated the volume of the fast-growing voluntary offset
market by 2010 at 400 million mt/year, equaling the size of the CDM.

The World Bank said Phase 2 of the EU ETS would see European
installations facing a shortfall in allowances of between 900 million-1.5
billion mt over the period 2008-2012.

According to its survey. Phase 1 is generally accepted to be long, based
on general overallocation of allowances, mild weather and energy prices.