Carbon market buoyed by legislative outlook

In its latest quarterly analysis, New Energy Finance attributed the 21% drop in value to the recession, which has lowered demand for emission allowances and reduced carbon prices.

But, lower prices lead to more activity and, as a result, it believes 2009 volumes could post a 107% increase over 2008, with trading levels reaching 7,588 metric tons of carbon dioxide (MtCO2).

The report predicted the global carbon market would be worth $122 billion by the end of 2009, a 3% increase on market value i