Tuesday, January 03, 2012

Global voluntary offsets market up 34%

Before the Kyotocrats approve soil carbon offsets for meeting the needs of polluters with compliance liabilities, we will rely on the voluntary market. While smaller than the Compliance Market, it is growing rapidly. For five years, Forest Trends’ Ecosystem Marketplace and Bloomberg New Energy Finance have published the State of the Voluntary Carbon Markets Reports to shed light on trading volumes, credit prices, project types, locations, and the motivations of buyers in this market. |

‘In 2010, suppliers reported a total volume of 131.2 MtCO2-e transacted in the global voluntary carbon markets. Compared to the 98 MtCO2-e transacted in 2009, volumes grew by 34% to exceed historic “over-the-counter” (OTC) and overall transaction volumes. The OTC market last year transacted 127.9 MtCO2-e, or 97% of global market share. Transactions collapsed on the CCX, which, due to the US Senate’s failure to secure a climate bill, ceased trading at the end of 2010.

In 2010, almost 75% of all OTC volumes were transacted by carbon-conscious buyers who directly or through resellers offset emissions – some of them for the first time. The buyers’ market that emerged in 2009 also became business-as-usual last year, requiring suppliers to meet savvy buyers on their playing field. “Three years ago we talked to companies who said, ‘Climate change? Tell me about that,’” remarked Freddy Sharpe, CEO of Climate Friendly. “Now they come to us with a pre-measured footprint and specific requirements for this many tonnes of VERs from this project at this location and this price. Buyers are much more informed and aware than they were even a year ago.”

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