Point Carbon finds recession has reduced demand for carbon credits

The global credit crunch has significantly altered the balance between the supply and demand for carbon credits and led to a large scale-back in carbon credit project development, carbon consultancy Point Carbon has stated at its Copenhagen-based conference this week.

According to Point Carbon, the global economic slowdown has meant reduced emissions in countries whose emissions are capped in the Kyoto Protocol's Annex B, leading to a significant reduction in demand for credits.

"The global economic slowdown is making it easier for countries to reach their Kyoto targets," says Endre Tvinnereim, senior analyst at Point Carbon. "At the same time, the supply of carbon project credits is down by more than demand, mainly because we expect EU Emissions Trading