Global carbon market grows 80% in 2007

The total value of greenhouse gas emission permits traded in 2007 reached €40 billion, an 80% rise on the 2006 figure of €22bn, according to information provider Point Carbon.

A total of 2.7 billion tonnes of CO2 equivalent (CO2e) was traded over the year, up 64% on 2006.

The European Union's emissions trading scheme (ETS) generated almost two-thirds of global traded volume, with 1.6bn tonnes CO2e, worth €28bn, changing hands. Most of the growth was in forward contracts for the second phase of the scheme, which runs from 2008 to 2012.

The other major market was the UN-administered clean development mechanism (CDM), under which 947m tonnes CO2e were traded, to a value of €12bn. The secondary market in issued CDM credits grew massivley, expanding from 40mn tonnes and €571mn in 2006 to 350mn tonnes and €5.7bn in 2007.

"The remarkable growth in the secondary CDM market shows that companies are ready to invent new, creative tools for managing present and future carbon constraints," says Endre Tvinnereim, a senior analyst at Point Carbon.