Friday, September 5, 2008


Concerns over the makeup of the climate agreement to succeed the Kyoto
Protocol - and the likelihood of a worsening worldwide credit crunch -
is slowing the development of carbon funds to offset greenhouse gas

Kyoto will expire after 2012 and, without a suitable replacement,
there will be a further slowing in the number of carbon offsetting
projects submitted to the UN Climate Change Secretariat for approval
that could adversely affect the long-term supply of offset credits for
the carbon funds market.

The outcome of next year's US presidential election will determine
what direction America takes with emissions trading, which will
influence the decision-making of many non-European nations.

Both Obama and McCain advocate cap-and-trade schemes but neither
candidate has spelled out any details of how a national carbon
emissions market would function.

But despite the uncertainty the global carbon markets are poised to
double in value again to more than $100 billion in 2008, market
observers told Daily Planet Media.

Globally carbon funds have grown by 33 percent during 2008. Most
purchases have been related to offset credits issued under the Kyoto
Protocol's Clean Development Mechanism (CDM) and involve clean-energy
projects like wind farms and hydro dams in developing countries.

Funds are selling carbon credits to companies and governments so that
nations can meet designated emissions targets.

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