Carbon markets up 3% to €50 billion in first half of 2011

Global carbon markets saw 3.6 billion tonnes (Gt) CO2e exchanged over the six first months of 2011, valued at some €50 billion (US$71bn), compared to €48bn in H1 2010. In terms of volume this is down 5% on the same period last year, principally due to lower EU Allowance (EUA) volumes. In terms of value, however, it represents a 3% increase compared to the same period last year, according to analysis by Thomson Reuters Point Carbon, a leading provider of market intelligence, news, analysis, forecasting and advisory services for the energy and environmental markets.

The EU’s emissions trading scheme (ETS) remained the largest segment of the global carbon market, with a total of 2.7 Gt CO2e exchanged during the first half of 2010, down 7% on the same period last year. By contrast, due to higher prices, the estimated value of the EUA transactions was €41bn in H1 2010; almost the same level as the first six months of last year.

The second-largest segment globally was the Clean Development Mechanism (CDM) market, which includes the primary and secondary market for Certified Emissions Reductions (CERs). The estimated market volume was 717 Mt CO2e, worth around €8.3bn in H1 2011. This was up 6% in volume terms and 4% in value terms compared to the first six months of 2010.

The first six months of 2011 saw an overall increase in average global carbon prices, to €14.09/t (US$20.40/t), compared to €12.97/t (US$18.78/t) in H1 2010. The weighted-average EUA price was €15.76/t, up €1.5/t from the level seen in H1 2010. Secondary CERs were seen at a weighted average of €12.09/t or 77% of the average EUA price seen on exchanges.

“Global carbon markets over the first six months of this year have been buffeted by major global events, causing considerable price volatility. Despite these events, however, the overall value of global carbon markets was up and encouraging developments in emerging environmental markets such as Australia, South Korea and California mean that we predict the size of global carbon markets will continue to grow over the next years” said Carina Heimdal of Thomson Reuters Point Carbon.

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