The New Carbon Cycle

Carbon Prices May Drop Further with Predicted Long Offset Market

Having just returned from London where I spoke at the Climate Finance 2011 conference on the developments in North America, particularly the approval by the California cap and trade program, a rather glum audience listened to speakers discuss the oversupply of carbon offsets in the market going forward over the next several years. 

The long market was specifically discussed by Trevor Sikorski, Head of Environmental Market Research, Barclays Capital.  He presented a market of low prices for the present and next few years as a result of lower emissions becasue of a week economy and oversupply of allowances and offse

Point Carbon reported that UBS analysts predict carbon prices could go as low as 3 euros as the EU faces a predicted weak economy and the market remains oversupplied with permits until 2025.

As the EU considers lowering the carbon cap from 20 percent to 30 percent, it may be able to reach such a cap at low prices with offsets in such significant supply.

International Forest Carbon Association Launches Website

The International Forest Carbon Association (IFCA), a new business association devoted to private project development of projects that protect or regrow forests using private capital, has launced its website.  www.ifca.cc.

 Membership is now open and major partners will be announcd soon.

IFCA is currently developing working groups to address key issues for forest carbon and to carry out the work of the association.

More information can be found in a announcement on the IFCA website.