Global carbon market jumped 256%

Market research firm SBI said that the global carbon market achieved a 256% compound annual growth rate (CAGR) over the past five years and recorded nearly $118 billion of global carbon emissions transactions in 2008.

The industry is expected to decrease by 29% this year as a result of the decline in the prices of carbon units traded linked to the economic downturn but SBI said continued growth in volume and the anticipated recovery of economies worldwide in years to come will project the industry to reach $669 billion in 2013.

A significant factor for its growth is the likely participation of the United States through the enactment of a federal cap and trade system by 2012.

“Transactions conducted under such a compliance-based system are expected to create the world’s second largest carbon market, valued at nearly $117 billion by 2013. Other positive factors include higher prices, greater market turnover, and the creation of new carbon markets.” - SBI

SBI expects the market to achieve less than $84 billion during the recession-riddled months of 2009.

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