Namrata Singh | TNN
Mumbai: After witnessing a trough for over six months, carbon credit prices in the spot market have finally improved to about 12 per unit. Reports about European Union’s annual audits, showing a gap in demand for carbon credits, seem to have lifted the prices up. Carbon credits—which basically are offsets of international emission trading schemes implemented to mitigate global warming—had touched a peak of 20 in October last year. Thereafter, prices had started to dwindle. It first dropped to 16 at the end of October 2008, and then further declined to 13-14 in December. TOI had reported about the crash in carbon credit prices in its edition dated October 28, 2008. The crash was brought about by a contraction in demand due to lower emissions in the backdrop of a global slowdown which resulted in production cuts or closures.
When prices bottomed out at 8-9 per unit early this year, a few companies sold large chunks of their issued carbon credits, fearing a further fall in the price. According to an industry expert, the price is expected to rise further to around euro 12-15, where it is likely to stabilise for the next few months.
However, prices are unlikely to go back to the 20-levels.
“CER prices could go as high as 11.5/tonne in the short term, building on present enthusiasm prevalent in all financial markets. However, prices were unlikely to remain at these levels,’’ according to a report by Emergent Ventures.
The spurt may prompt companies to sell their issued credits to buyers in the developed nations. Considering that the price has improved after a gap of six months, there may be pent up demand."
Link
No comments:
Post a Comment