Carbon market prices in Poland and Estonia emissions win

Carbon traders remain optimistic about the market's outlook despite the ruling by the European Union’s Court of First Instance to allow Poland and Estonia to increase their emissions allowances for the second phase of Europe’s emissions trading scheme from 2008-2012.

Although the court's decision is expected to weaken prices, Trevor Sikorski, a carbon analyst at Barclays Capital, does not expect to see any additional volumes coming onto the market until 2011 or 2012. "The market is going to have to price in this uncertainty," he says. "We think there will be much better price support by 2011 and 2012, when we will begin to see any extra volumes. This would take away a lot of the upside, meaning prices would be kept at more modest levels for much longer," he