Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Standard view
Full view
of .
Look up keyword or section
Like this
P. 1
Carbon 2006 -- Towards a Truly Global Market

Carbon 2006 -- Towards a Truly Global Market

Ratings: (0)|Views: 76 |Likes:
Published by pointcarbon
This is Point Carbon's first annual survey of the world's carbon market participants. The report details the predictions of carbon market participants for 2006.

Point Carbon is a world-leading provider of market analysis for the energy and environmental markets. For more information about Point Carbon and its product offerings, please visit www.pointcarbon.com.
This is Point Carbon's first annual survey of the world's carbon market participants. The report details the predictions of carbon market participants for 2006.

Point Carbon is a world-leading provider of market analysis for the energy and environmental markets. For more information about Point Carbon and its product offerings, please visit www.pointcarbon.com.

More info:

Published by: pointcarbon on Mar 08, 2010
Copyright:Attribution Non-commercial


Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less





All rights reserved © 2006
Point Carbon
Carbon 2006
Towards a truly global market
This report was published at Point Carbons 3rd annual conference, Carbon Market Insights 2006 inCopenhagen 28 February - 2 March 2006. For more information, see www.pointcarbon.com
28 February 2006
The world’s largest ever carbon market survey
More than 800 participants in our web-survey and 67 in-depthinterviews, combined with Point Carbon’s proprietary databases and market intelligence services, makesthis the most comprehensive carbon market report to date.
Global carbon market transactions worth €9.4 billion in 2005.
The EU ETS did an estimated 362 Mt CO2, at anestimated financial value of €7.2 billion. 93% of the volumes in the project market came through CDM, at397 Mt CO2e, €1.9 billion. JI did 28 Mt, €95 million.
China is largest CDM seller.
More than 70% of CDM volumes came from a few large HFC-23 reductionprojects in China. There are also several projects in India and Brazil.
CDM buy side is dominated by private sector.
riven by high EU ETS prices together with an increasingnumber of carbon funds.
Japan enters market in earnest.
The European private sector activity will continue to dominate the market,but Japanese public and private sector will add further to demand for project credits in 2006. Canada isconspicuous by its absence from the market.
The EU ETS is a qualified success.
The weekly turnover in EU ETS has been increasing steadily. The marketis reacting to fundamentals, although policy (non-)decisions also still constitute a price driver. 45% ofsurvey respondents found the EU ETS to be a success.
CDM/JI still has some way to go.
Only 7% of survey respondents find the project market to be mature, andonly 22% find them to be a success.
The cost of carbon cannot fully explain the increase in power prices.
Increasing fuel prices, increaseddemand, as well as generators’ strategies have also contributed to power price increases. The impact ofcarbon costs on power prices, and vice versa, has created new interplays between energy commoditiesnd strengthened energy market interactions.
Market is still best option for world to make transition to low-carbon economy.
Unlike technology-basedlternatives, the carbon market places a cost on emissions and a value on reductions, and leads to largescale reductions in the near term.
All rights reserved © 2006
Point Carbonii
Carbon 2006
All rights reserved © 2006
Point Carbonii
Carbon 2006
About the report:
This report was written and edited by Henrik Hasselknippe and Kjetil Røine.For citations, please refer to: Point Carbon (2006): ”Carbon 2006.” Hasselknippe, H. and K. Røine eds.60 pages.
About Point Carbon:
Point Carbon is the leading provider of independent analysis, forecasting, market intelligence and news for the power, gas and carbon emissions markets. Point Carbon has more than14 000 subscribers in over 150 countries. Our reports are translated into Japanese, Chinese,Portuguese, German, French, Spanish and Russian. Among our clients are BP, Dupont, Norsk Hydro, RWE, Shell and Vattenfall. Point Carbon has offices in Oslo (HQ), London, Kiev, Brussels,Hamburg and Tokyo.The company has expanded rapidly in recent years and now has an international team of more than 60 employees. The competencies of our staff include international and regional climate policy; mathematical and economic modelling; forecasting methodologies; methods for expert evaluation and energy industries analysis.The in-depth knowledge of power, gas and CO2 emissions market dynamics positions Point Carbon as the number-one supplier of analysis on price-driving fundamentals for Europeanenergy and environmental markets.
All rights reserved © 2006
Point Carboniii
28 February 2006
xecutive Summary
his report has been based on a number of different sources. First, Point Carbon’s proprietary databasesgive an overview of the number of projects and their volumes. Our carbon project database contains at totalof 2,769 projects, and is to our knowledge the world’s largest. In addition, our web-based survey attracted800 respondents, and we have further conducted in-depth interviews with 67 selected key market players.oint Carbon estimates that the international carbon market in 2005 transacted a total of 799 Mt CO2-equivalents worth approximately €9,400 million. In comparison, the market in 2004 saw an estimated 94 MtCO2e, worth €377 million.he EU Emissions Trading Scheme saw the largest financial values in the previous year. In total, the brokerednd exchanged market did 262 Mt CO2, corresponding to €5.4 billion. Brokers did 79% of this volume,hereas the ECX was by far the largest exchange, with 63.4% of the exchanged volume. Point Carbonurther estimates that the direct bilateral market (company-to-company, not through brokers or exchanges)did 100 Mt, €1.8 billion in 2005. Annualised turnover increased to over 12% (OTC and exchange volumesonly).he Clean Development Mechanism (CDM) remains the largest market segment in terms of volume. PointCarbon estimates that emission reduction purchase agreements (ERPAs) corresponding to 397 Mt CO2eere entered into in 2005. Assuming payment on delivery and a 7% discount rate, this is valued at €1.9billion. The other project based mechanism, Joint Implementation (JI) did 28 Mt, €96 million. There is alsosmall market for secondary CDM trading, this is expected to increase in the future, but is currently heldback by transaction log delays.Other market remain insignificant in the larger picture, at 7.8 Mt, €52 million. The largest of these is theSW scheme in Australia, accounting for 93% of the financial value in this segment.
Table 1: Reported volumes and values 2004 and 2005
Reported and estimated volumes 2004 and 2005 , in million tonnes of carbon dioxide equivalents and €. BilateralETS for 2005 estimated as 27% of total EU ETS volume at average EUA price through the year.
20042005[Mt][million][Mt][million]U ETS total
OTC + exch.Bilateral 
CDMCDM 2ndIOther17
.7 7.3 
262 100 
5,400 1,818 

You're Reading a Free Preview

/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->