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The value of the global carbon market grew 15 per cent over 2014 to reach €45 billion as the European Union’s Emissions Trading System (ETS) began to show signs of a price recovery.
Analysts at Thomson Reuters Point Carbon said the value of the global market increased despite a traded volumes shrinking by 17 per cent due to higher prices on the EU ETS as well as in the North American markets.
The ETS bucked a four year down trend last year to post the first gains seen since 2010 following policy decision taken in Brussels to reduce supply by ‘backloading’ the entry of new allowances into the market.
By reducing the glut of supply within the market prices were able to rise, breaking through the €7.40/mt mark, but also led to a 10 per cent reduction in the amount of trade, according to a statement from Point Carbon.
The analysts predict that 2015 will see value increase by half to €69.5 billion as traded volumes rise 10 per cent to 8.5 Gt of carbon.
Senior analyst Olga Chistyakova said the forecast increase is expected to be driven by higher turnover of emissions allowances in the ETS on the secondary market and a virtual doubling of the volume of North America’s Western Climate Initiative to 610 Mt in 2015.
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