No CO2 market boom without the US
At a carbon conference in London this past Monday experts noted that without participation from the world’s largest carbon emitter, estimates that the market may grow 12 times over the next decade would not be attained.
Henry Derwent, chief executive and president of the International Emissions Trading Association fears there will be no large expansion of carbon markets to their global potential without US movement.
The $144 billion global carbon market was expected to grow to $1-2 trillion by 2020 as demand for carbon credits increases following the expiration of the UN’s Kyoto protocol in 2012.
Yet investors are not convinced due to an uncertain global climate policy and the lack of a federal emissions trading system in the US.
Currently, the EU’s emissions trading scheme caps industry emissions and requires plants to cover their output by buying carbon permits.
Last year it was the world’s largest emissions trading scheme, worth over $119 billion.
The US House of Representatives narrowly passed a federal emissions scheme last year but the bill was not approved by the Senate in 2010.
During the 18 months leading up to the Senate climate bill debate, fossil fuel companies spent $532 million on lobbying costs.
Derwent claims that “angry voters” are necessary to pressure the US government to take action