Recession drives carbon trading says report

The global carbon market has grown despite the economic slowdown, a report has shown. Global carbon market volumes grew by 124% and by 22%, in terms of value, in the first half of 2009, according to a report by market analysis firm Point Carbon. Approximately 4.1 gigatonnes of carbon dioxide were traded in the first half of this year, increasing the value of the market to €46bn ($65bn).

According to Henrik Hasselknippe, global head of carbon analysis at Point Carbon trading analytics & research, the recession has encouraged companies to trade their surplus carbon allowances. "Prices are lower due to the economic slowdown, but volumes are much higher as many depressed industry sectors in Europe have decided to trade their surplus carbon allowances illustrating how the economic slowdown is, in effect, increasing market activity in the carbon sector," he says.

Volumes of trade on