Media: continued CC trading growth requires post 2012 agreement soon

Risk for carbon trading growth: gap between Kyoto 2012 sunset and a new emissions capping agreement.

A post Kyoto deal for beyond 2012 is expected to be reached in 2009 or 2010. This would further boost demand for renewable energy and rights to emit greenhouse gases - carbon credits.

Britain set up its own carbon trading scheme in 2002 .
Kyoto came into force on 16 Feb 2005
The European Union's Emissions Trading Scheme was launched in 2005.

Trading in carbon credits is expected to be worth 20 billion euros (US$25.62 billion) this year, double the level in 2005 when Kyoto came into force and the EU's trading scheme started.

"In 2012 the carbon market will be worth US$40 billion," said Sultan Ahmed Al Jaber, chief executive officer of Masdar, oil-rich Abu Dhabi's Future Energy Company, which established the fund with Credit Suisse and the Consensus Business Group.

One possible problem looms -- while a deal to extend Kyoto beyond 2012 is expected, investors are worried about a possible gap before the new regime starts, if talks go to the wire. "The big risk is you will not get post 2012 certainty early enough. All those big investments could shudder to a halt," Climate Change Capital's Hobley said.

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