With the price of carbon credits continuing to slide in the global markets and the first commitment period for the Clean Development Mechanism (CDM, under which carbon trading is permitted) coming to an end this year, companies and investors holding carbon credits are worried at the prospect for investments in this regard.
“Investors are worried. No transaction is happening in the global carbon market. The prices have come to below a dollar and no one (holding a carbon credit) is willing to exit the market. The negative sentiments can affect new green project registrations as well. When the carbon prices are too low, then companies and investors would not like to venture there,” said a partner with a leading consultancy firm.
One carbon credit point is issued against every tonne of carbon dioxide emission the project avoids. For earning the credits, companies have to register their projects with the United Nations Framework Convention on Climate Change (UNFCCC).
