Saturday, July 15, 2006

Carbon hits A$29!

Carbon is back in the stratosphere as prices approach the $30 mark again after months of volatility which saw prices fall below $10. Analysts point to the fact that the market is still only a year old and prices depend on Kyoto signatories reporting their mandatory limits. Inexperience has led to several over-estimations and changes in allocations, which causes wild market swings. At present, Australian carbon contracts cannot be negotiated with companies in Kyoto countries because we are non-signatories to the agreement. American carbon contracts are also restricted.
However the next round of negotiations is starting, with Australia co-chairing the sessions. With a change of leadership expected in both countries within the time frame in the lead up to 2012, the start of the new agreement, the trade in soil carbon credits comes closer. So start sequestering (locking up) carbon now. You'll be so pleased you did.

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