Global carbon trading value almost doubles in 2007

A new report released today by Point Carbon, a consulting group that focuses on the energy and environmental markets says the cash value of the global carbon trading market in 2007 was $60 billion USD, up about 80 percent from 2006’s carbon market cash value of $33 billion.

That translates to 2.7 billion tons of carbon dioxide emissions (CO₂e) traded, up from 1.6 billion CO₂e tons traded the previous year.

Compare those numbers to the global carbon trading market values in 2005, when just 799 million CO₂e tons was traded for just $14 billion.

"The 2007 numbers show that greenhouse gas emission trading has become a commodity market in its own right," said Point Carbon senior analyst Endre Tvinnereim.

Trades may keep increasing. Norway’s prime minister just announced that the country plans to be carbon neutral by 2030, 20 years ahead of its original schedule.

Though as much as 16 million tons in carbon emissions are expected to be cut over the next 12 years, Norway is also expected to offset some of its emissions by investing in other emissions-reducing projects that meet Kyoto Protocol requirements in other countries.

It follows recent moves by the UK to achieve similar goals (see the Cleantech Group's UK launches carbon capture and storage project).

The Point Carbon report also noted that recent regional agreements in the United States suggest that by 2012, half of the country’s population will be residing in a state which has agreed to reduce carbon emissions.

"While the global carbon markets have experienced significant growth the past year, we are further encouraged that the U.S. has finally joined the global community in recognizing the importance of establishing a viable market for emissions trading," said Kjell Olav Kristiansen, Point Carbon’s North American Director of Advisory Services.

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