ENP Newswire - 15 January 2014 Release date- 13012014 - Global carbon markets will rise to reach a value of EUR 46 billion in 2014 according to forecasts by Bloomberg New Energy Finance. The increase will be a 15% rise on 2013's global carbon market value, but still below the all-time high of EUR 98 billion in 2011. BNEF analysts say the main reason for this growth is the European Union's plan to 'backload' auctions of its emissions trading scheme's carbon allowances. The EU's move, which was approved at the end of 2013, could cause European carbon prices to increase over 50% to reach an average of EUR 7.5 a ton, according to analysts. Guy Turner , chief economist and head of commodities at Bloomberg New Energy Finance, said: 'Carbon markets have been on a roller coaster over the last few years and we continue to see a stomach-churning ride ahead. The value of the market peaked at around EUR 100bn in 2011 and then plummeted to around EUR 40bn in 2013. Thanks to backloading in the EU ETS, the track should turn upwards again in 2014, potentially reaching new highs of EUR 180bn by 2016. The roller coaster could well take another dip downwards towards 2020 if the backloading rules remain in place, as they would force supply to increase again in the latter years of the decade. For compliance players, this volatility will be unwelcome. But for speculators with a sense of adventure and good timing, they could prove tempting in 2014.' Analysts estimate a yearly trading volume of 8.3 gigatons in 2014's global carbon markets. This compares with 2013's second-highest volume of 10.1 gigatons, which closely follows 2012's record 10.7 gigatons. Media Contact: Ms Ilka Neumann Tel: +32 (0)2 340 30 67 Mobile: +32 (0)486.428.322 Email: email@example.com
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