Carbon funds grow in ‘08 but slowed by uncertainty

LONDON (Reuters) – The global carbon fund market, which invests in emissions offset credits from clean energy projects in developing countries, has risen by 63 percent to nearly $13 billion so far in 2008, environmental market analysts said on Thursday.

Although strong, the carbon fund market’s growth was outpaced by the overall carbon emissions market which, according to the World Bank, more than doubled between 2006 and 2007 to $64 billion, Environmental Finance magazine said in its 2008/09 Carbon Funds Directory.

“Looming uncertainty over the shape of the global carbon markets after 2012 (and) the effects of the credit crunch … are contributing to a slowing down of new capital joining the carbon market,” Environmental Finance said in a statement.

The global carbon markets are poised to double in value again to more than $100 billion in 2008, according to market observers.

Reuters