WORLD BANK TO PROP UP EMISSIONS TRADE

World Bank Will Support Carbon, Former Official Says
Matthew Carr, January 22, 2009 (Bloomberg News)

“The World Bank and other development banks will support flagging carbon markets to prevent a slump in greenhouse-gas reduction projects and protect the climate…

“European Union carbon dioxide allowances have slumped 61 percent since a July 2 peak on concern a recession will lower production and drive emissions below a cap set by regulators in the five years through 2012. That drop in the biggest carbon market reduces the incentive to build solar parks in China and curb industrial gases in India, which get revenue from selling emission credits that can be used in Europe…”

World emissions markets, 1-28-2009 (click to enlarge)

“Development banks and governments will want to ensure that the recession does not slow a movement away from high-emitting fossil fuels to protect the climate from the greenhouse gases they generate…

“Spot EU carbon dioxide allowances…closed at a record low 11.08 euros on Jan. 20. United Nations certified emission reductions for December rose 2 cents from a record low to 10.05 euros a ton on the European Climate Exchange in London.

“UN credits can be used as a cheaper alternative in the EU program, which covers about 11,000 factories and power stations in the region.

“In July, the World Bank created two climate funds that will reach $5 billion for projects or programs in developing nations…”