Knowledge is power

Europe's fledgling carbon market hit turbulence last month when, after its first year of trading, participating countries revealed whether they had enough carbon certificates to cover their physical emissions for the 2005 calendar year.

The surprise findings - that most countries had a surplus of certificates and did not need to come to the market to buy any more - sent the price of carbon plunging from €30 per tonne to lows of under €9 per tonne in just three weeks.

The dramatic drop in price