Isramart : Green Technology -Carbon Emissions Trading to Reach $395 Billion in 2014: ABI Research

Isramart news:
Going green can be profitable, according to a new market study by ABI Research. Our planet is becoming warmer each passing day and this is driving companies to take measures to reduce hazardous emissions.

In the study the research firm explores the concept of carbon capture and sequestration (CCS). Heavy industries are responsible for the greatest amount of carbon emissions in our environment. CCS allows these industries to utilize new technologies to capture the CO2 they generate and store it safely for long periods.

Carbon emissions trading is a widely deployed concept. Governmental or regulatory bodies issue carbon emitters a limited number of allowances. These offsets permit the legal release of carbon dioxide into the atmosphere. But if emissions from an industry exceed an organization’s number of allowances, it must buy or trade for more.

The industries have to face stiff penalties if they fail to follow the regulations set by the government.

ABI’s new market study, “Carbon Capture, Sequestration and Emissions Trading: The Outlook for Global Carbon Markets,” examines the two market mechanisms for reducing carbon emissions. It is authored by Atakan Ozbek.

According to the report, the global carbon emissions trading market s all set to hit $395 billion in 2014. This reportedly is more than three times the $118 billion in allowances traded in 2008.

About $14.6 billion will be invested in 73 new CCS projects from 2009 through 2014. This investment will prevent 146 million tons of CO2 from entering our atmosphere.

In a release, Ozbek noted an increasing interconnection between CCS and the Carbon Emissions Trading market. Carbon credits accrued from CCS plants will be traded at carbon exchanges, and this will generate additional revenue for CCS project developers.

But this is not an easy task and Ozbek said that carbon emission credits should reach the price of at least $40 per ton of CO2-equivalent for CCS projects to attain true commercial status.

“Effective policy and regulatory developments, as well as advances in both carbon capture and storage technologies, would need to be in place for CCS projects to be considered commercially ready,” he added.