Some would agree this was not a good year for carbon markets. This year the price of emission credits continued to stall due to a lack of demand for emission credits, partly due to weak CO2 reduction targets, a large surplus of certificates and the European economic crisis. Further, a few days ago, the UN Climate Conference in Doha, Qatar came to an end. From the conference, little was delivered. The conference could barely manage to ensure the continuation of the Kyoto Protocol after 2012 however, with key players like Russia and Japan discontinuing their commitment. To make matters worse, on Wednesday December 14th, 500 police officers raided the offices of Deutsche Bank at various major German cities. The raid was lead due to an investigation of tax evasion connected with the trading of carbon permits.
Despite these troubles and disillusionment this year, carbon markets continue having a strong following across the world. The state of California will start its own carbon market in 2013 with Massachusetts soon drafting its own version. Australia will start its own carbon market in 2015, and important countries like China, India and South Korea are beginning to design one also.
Joan MacNaughton, President of the Energy Institute in the UK and senior adviser to the World Energy Council believes that carbon markets, are too valuable to let go to waste as they generate investment in emission reduction projects at the scale that is needed. According to her, “such an approach is the most efficient way to address the climate problem.”
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