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Global carbon market hits $64 billion in 2007

The global carbon market expanded to $64 billion in 2007, more than double the value in 2006, according to a new report.

The EU's emission trading scheme also double in terms of both value and number of allowances to $50 billion the World Bank report found.

The State and Trends of the Carbon Market Report 2008 report found the GCM doubled or tripled in value in all segments, except for projects in developing countries which saw a flattening off of market volumes under the clean development mechanisms (CDM)- from 537 million tonnes of CO2 equivalent in 2006 to 551 in 2007.

The CDM is delivering on clean energy-energy efficiency and renewable energy made up nearly two-thirds of the transacted volumes in the project-based market, the report found.

The prospects for developing countries benefiting from the carbon market are in question.

"It would be a shame far the world to lose this momentum now ", said Karan Capoor, senior World Bank carbon markets expert.

"The doubling in the size of the carbon market is significant growth, but the market is nowhere near meeting its full potential," Andrew Ertel, president and chief executive of Evolution Markets, one of the contributors to this year's report.

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