Carbon Trading Markets, M&A May Expand In 20008
Carbon “cap-and-trade” markets may be headed for a period of expansion as a global consensus emerges in favor of more climate regulation, according to Oxford Analytica.
With the recent round of UN climate negotiations in Bali, the international community is committed to drafting a successor to the Kyoto Protocol by 2009. However, this will prove extremely difficult, OxAn notes in PROSPECTS 2008: Climate regulation will expand.
“Next year may be pivotal for international climate policy and carbon markets — considerable political momentum has been built, and many key countries, and the wider international community, are poised to expand climate regulation.”
An area receiving less media attention, but possibly of greater immediate importance is expansion in financial sector activity around carbon markets:
While activity in the past has been confined largely to smaller, niche firms, possibilities of market expansion are attracting larger mainstream financial services companies.
Carbon financial services may enter a period of expansion in 2008, with an increase in merger and acquisition activity, OxAn concludes.
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