Sub-Prime Economics: UN carbon offset market seen ‘in a coma’ for years after UN climate summit – Value ‘plunged 95% in five years’
Reuters: The U.N.'s carbon offset market is likely to remain "in a coma" for years, project developers said, after countries failed to agree on measures to encourage demand at last week's climate talks in Warsaw. Investment under the U.N.'s $315 billion Clean Development Mechanism (CDM) has ground to a halt as the value of the credits they generate has plunged 95 percent in five years to around 0.30 euros, crushing profits that investors count on to set up carbon-cutting schemes in the developing world. "As a tradable commodity, it's in a coma and will be unless and until a 2015 agreement wakes it up," said Jorund Buen, co-founder and partner at consultancy and project developer Differ.
