Analysts predict the value of trades in the carbon markets will rise for the first time since 2011.
The value of the global carbon market is forecasted to rise to €46bn in 2014. While a rise of 15% from last year, this is well below €98bn high it hit in 2011.
Bloomberg New Energy Finance analysts predict carbon prices will rise more than 50% to an average €7.5 per tonne from just shy of €5 now, all down to the EU’s delay of carbon allowances under the EU Emissions Trading System.
Konrad Hanschmidt, head of the carbon analysis team at BNEF said: “World carbon markets have suffered some setbacks in recent years, notably with the recession-fuelled fall in European prices and efforts by the new Australian government to abolish that country’s carbon trading scheme.
“But new carbon-trading programmes are emerging in China and South Korea and policy-makers in Europe are taking clear steps to ensure that carbon prices drive future emission reductions.”