| |
| |
 |
| |
|
| |
|
| |
|
SINGAPORE: The global carbon trading market could grow to over a trillion US dollars in the next five years, from its current size of over US$100 billion.
According to experts, the industry moved at a slower pace in the last year as a result of the financial crisis. They are also expecting clearer direction to be set after the United Nations Climate Change Conference in Copenhagen, which starts next week.
One item on the agenda is expected to be an outline for the successor to the Kyoto Protocol, which expires in 2012.
The carbon trading market is currently heavily reliant on the Kyoto Protocol - which allows industrialised countries to purchase carbon credits from green business initiatives to balance out carbon emissions.
Some experts said that the carbon market is likely to see positive results, regardless of what conclusion is reached at the conference.
Jotdeep Singh, regional head, Renewable Energy & Carbon Credits, Rabobank International said: "I think in the coming weeks and months with the clarity that emerges from Copenhagen, even if there is no final legally binding mechanism that emerges, I think the momentum at the moment appears to be in the right direction.
"We think it will stay that way, we hope it will stay that way. If it stays that way, then I think investments can start picking up from next year."
Mr Singh added that many of the current clean and renewable energy projects in Asia were launched to cater to the growing carbon trading market.
Development of such industries has proven to be a substantial growth sector for many Asian economies, and experts noted that cutting emissions can have a wider positive impact.
"To go and set targets in terms of reducing carbon emissions by a specific date, perhaps suggests that they do have plans in the works of how to make this into a business, because it creates connectivities and exports as well," said Song Seng Wun, CEO & regional economist, CIMB-GK Research.
While government enforced emissions targets can help to stimulate carbon trading markets, experts said renewable energy projects continue to hold a lot of potential for the carbon market going forward.
- CNA/sc
|
