Kyoto carbon credit glut is far larger than expected, warn analysts
The giant surplus of carbon credits currently swamping the global carbon market may never recede, removing any hope of reducing global emissions without a significant increase in national emission reduction targets, campaigners will warn today.
Countries signed up to legally-binding emissions targets between 2008 to 2012 as part of the Kyoto Protocol were given a set number of tradable allowances called Assigned Amount Units (AAUs) which each equate to one metric tonne of CO2 equivalent.
But analysis published today by Thomson Reuters Point Carbon finds that by the end of the period there will be an oversupply of 13 billion tonnes of CO2 (13.1Gt) - an order of magnitude higher than the estimated demand of 11.5 million tonnes (Mt).
Countries are currently working to secure an extension of the Kyoto Protocol from 2013 to 2020 at a series of meetings in the lead up to international climate talks in Doha this December.