World Bank warns of 'failing' international carbon market
The international market in carbon credits has suffered an almost total collapse, with only $1.5bn (£916m) of credits traded last year - the lowest since the market opened in 2005, according to a report from the World Bank.
A fledgling market in greenhouse gas emissions in the US also declined, and only the European Union's internal market in carbon remained healthy, worth $120bn. However, leaked documents seen by the Guardian appear to show that even the EU's emissions trading system is in danger.
The international market in carbon credits was brought about under the Kyoto protocol, as a way of injecting much-needed investment into low-carbon technology in the developing world. Under the system, known as the clean development mechanism, projects such as windfarms or solar panels in developing countries are awarded carbon credits for every tonne of carbon avoided. These credits are bought by rich countries to count towards their emissions reduction targets.
Read the full article here: http://www.guardian.co.uk/environment/2011/jun/01/world-bank-failing-carbon-markets
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