certified emission reductions
With 2010 behind us, we take a retrospective look at how the global emissions trading market fared throughout the year – and a look forward at themes to watch for in 2011.
The pending ban of industrial gas projects is set to radically reconfigure the global market for greenhouse gas offsets. So what does this mean for compliance traders? And how is the market responding to the risk?
2011 promises another year of uncertainty on the future of international carbon markets, with developments on the Kyoto Protocol, REDD and the CDM, likely to have the biggest impact.
CERs price hits a four month low on issuance of 20 million HFC CERs. And in Cancun, Japan’s threats to abandon Kyoto and move away from the CDM hit carbon market sentiment.
Amid increasing support for the EU moving to a 30 per cent emission reductions by 2020, CERs managed to break through the €14 level briefly last week.
All eyes will be on this week's meeting of the UNFCCC Executive Board of the Clean Development Mechanism, a carbon market in danger of fracturing.
CERs continue their upward momentum, with the pending result of the HFC project reviews and regulatory risk providing strong support for the carbon price.
Certified Emission Reduction prices finished up last week, driven by HFC project supply concerns, a six-week high for a leading EU carbon indicator, and speculation around the future division of the market.
Movement in the CER price and increased market trading volume this week came on the back of the UNFCCC Executive Board's request for a review of several Chinese HFC-reduction projects.
Prices for certified emissions reductions have sunk by more than 60 per cent since January 2011 and are expected to fall further. So is there still a market for UN-backed carbon permits?