"Dramatic", "enduring", "meltdown" – the words used by leading analyst firm Thomson Reuters Point Carbon to describe the continued slump in global carbon prices could not be starker. And according to analysts the chances of prices recovering in the near future remain extremely thin.
The company today released data for 2012 showing that, while the volume of carbon traded globally rose 28 per cent to 10.7Gt, the value of the market fell 35 per cent to €62bn as the price of allowances in the EU Emissions Trading Scheme (ETS) and UN Clean Development Mechanism (CDM) collapsed.
The figures mirror similar data released last month by Bloomberg New Energy Finance, which claimed the market value contracted by more than a third to €61bn last year.
"In Europe, prices plunged as it became clear that the EU's Emissions Trading Scheme (ETS) is over-allocated all the way to 2020, mainly due to the impact of Europe's economic troubles on emissions", explained Anders Nordeng, senior carbon analyst at Thomson Reuters Point Carbon and co-editor of the report.