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Is the global carbon market recession-proof?

The latest report from the World Bank on the global carbon market has revealed that it grew by some six per cent in 2009 to be worth $144 billion, despite enduring its most challenging year to date. This impressive performance comes against a backdrop of the global recession, in which both demand for carbon assets and supply of new projects reduced due to economic pressure and a lack of available capital.

So, if an industry can grow by six per cent when demand for its products (carbon assets) is falling as industrial output is plummeting and investment in new supply is stalling, is it a virtually recession-proof industry? Time will tell, of course, and the next report into the global carbon market will show to what extent the world markets have recovered. However, if an industry is able to grow at a time when the vast majority of the countries which are investors in it are in the deepest recession for more than 60 years, the possibilities for growth when global economies pick up is huge.

In fact, much of the current carbon market is for future needs for carbon credits. The report’s co-authors have outlined a need for clear policies and regulatory systems in the future to ensure continued growth and development of the carbon markets. Trends for future years include the development of more national mitigation efforts in order for individual countries to show their commitment to energy trading scheme, as well as developing new initiatives for climate finance solutions.

Demand for carbon credits will change again when the current Kyoto Protocol expires in 2012. The report outlines how with the weakening demand for pre-2013 offsets and the lack of traction on the post-2012 front, the residual demand for Kyoto assets could reach 230 million tons by 2012. A large share of the demand for offsets under the EU Climate and Energy Package remains to be contracted, thus theoretically sustaining future demand and prices.

With the market for carbon credits still growing even during the current economic downturn, this is the perfect time to invest in carbon. Click here for more details.

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Comments (10)

StanB on 13th September 2010

It’s remarkable, was this the only thing to have a positive turn during the recession?

David Johnson on 14th September 2010

I have followed carbon credits for 5 years now and was extremley upset I have missed out on the first opportunity with Emerald Knight. I will be keeping an eye on its progress and hopefully getting involved in the next opportunity..

N Chalmers on 16th September 2010

This looks very exciting. This is my first project with Emerald. I am really enthused by the projects you guys work with. I’ll be considering the other 4 in due course.

Deepak Sharma on 16th September 2010

Can you tell me when you will have more credits available?

Hayden Leighton on 16th September 2010

After a quick response to my inquiry i was happy to receive all the required information. I now have a full understanding what a carbon credit is and how the project works. I think this is going to be a long and fruitfull relationship. I will update this blog when i get my returns in October. regards H

Rachael Davies on 17th September 2010

I am very interested in carbon credits. Part of my university course is emissions reduction. From my reading I think everybody should do more to reduce emmisions and I commend emerald knight and its clients for assisting the protection of the Amazon rainforest.

Mr. Arthur Walker on 17th September 2010

As an existing client of Emerald Knight’s. Also being into my 74th year. I only wish I’d done more to protect the environment in my earlier years and I think it’s highly commendable that the “younger” generation is very aware of our sorroundings and the planet welfare. Very best of luck with your future endeavours.

Martin King on 20th September 2010

The first batch of returns sound like they’re on track. If they come in on time I will certainly recommend EK to fellow investors and look at reinvesting in further projects.

Keep up the good work EK!

Mostafa Al Almazam on 22nd September 2010

Dear Sir,

Can you tell me. Is this project available for Saudi people to be involved?

best regards

Al Almazam

Arif Hossain on 19th December 2011

it is awesome,