New Report: The Global Carbon Market 2009

LONDON, December 1 - The global carbon market has grown from $11 billion in 2005 to $126
billion in 2008 accoring to a new report on
www.companiesandmarkets.com.

The Global Carbon Market 2009: Trading Thin Air -
www.companiesandmarkets.com/r.ashx?id=5rZnm7564169138

Global climate change and reduction of greenhouse gasses (GHG) are an
important concern for many US businesses and throughout the world, and are
shaping policies and initiatives. The United States is responsible of 23% of
the world's GHG emissions but as of 2009, there are no federal restrictions
and no binding federal carbon trading system. However, many states and
corporations have committed to cutting GHG through emissions trading.

Carbon emission credits are a key component of national and international
emissions trading schemes that have been implemented to mitigate global
warming. They provide a way to reduce greenhouse emissions on a large scale
by capping total annual emissions, allowing the market to assign a monetary
value to any shortfall through trading. Credits can be exchanged between
businesses or bought and sold in international markets. Credits can also be
used to finance carbon reduction schemes between trading partners and around
the world. There are also many companies that sell carbon credits to
commercial and individual customers interested in lowering their carbon
footprint, on a voluntary basis.

For trading purposes, one allowance is equivalent to one metric ton of
CO2 emissions. There are three legally binding carbon trading arrangements
and one major voluntary market. The Kyoto Protocol is an international
agreement with two main trading devices, the Clean Development Mechanism
(CDM) and Joint Implementation (JI). The European Emission Trading Scheme (EU
ETS) is a government-backed trading program adopted by the European Council.
The United States does not participate in the Kyoto Protocol but the US
voluntary carbon markets can be divided into two main segments: the
voluntary, but legally binding, cap-and-trade system that is the Chicago
Climate Exchange (CCX) and the broader, non-binding, over the counter (OTC)
offset market.

Some of the main markets for carbon reduction projects include renewable
energy (solar, wind and hydropower), energy efficiency / demand-side
management, methane capture or waste-to-energy, reforestation, carbon capture
and storage (sequestration), power plant revamping and fuel switching. These
are all sectors in which the United States excels, providing gateways into
carbon market participation.

Emissions trading is on track to play a key role in the world's
transition to a low-carbon economy. As countries meet their commitments under
the Kyoto Protocol, the global carbon market has experienced rapid growth.
From 2005 to 2008, the market grew from $11 billion to $126 billion. This
growth and accompanying diversification has been made possible by an
increasingly elaborate set of players. In addition to the suppliers,
intermediaries and end users in the carbon market, services providers are
also needed in the areas of quality control, legal advisory services,
information and analysis and capacity building. Legal frameworks and
regulatory bodies are also present.

Although the Kyoto Protocol will expire in 2012, there is general
consensus that a cap-and-trade system will be established in the United
States and a global carbon trading system will be a fixture in the world
economy for decades. Carbon is predicted by some to become a commodity with
its emissions regulated worldwide.

The Global Carbon Market 2009: Trading Thin Air -
www.companiesandmarkets.com/r.ashx?id=5rZnm7564169138

Contact: Mike King, info@companiesandmarkets.com, +44-0203-086-8600

Contact: Mike King, info at companiesandmarkets.com, +44-0203-086-8600