(EnergyAsia, November 8 2011, Tuesday) — With 3.6 billion tonnes carbon dioxide equivalent (CO2e) traded, the value of the global carbon markets grew 3% to US$71 billion in the first half of 2011, said the International Emissions Trading Association (IETA).

Of this, the Clean Development Mechanism (CDM) market continues to be the second-largest segment globally, with an estimated market volume of 717 million tonnes, worth around US$114 billion. This was up 6% in volume terms and 4% in value terms compared to the same period in 2010.

Releasing these figures at last week’s Carbon Forum Asia 2011 in Singapore, IETA said there is a pre-2013 rush to register CDM projects, as some 20% more projects have been put up for validation since January 2011.

As at October 2011, Asia accounted for a total of 2,815 projects, or more than 75% of total projects registered, which has made the carbon market a viable source of funding and capital inflow for the region, said IETA. Asia is also beginning to expand into the demand side of the market.

But growing uncertainties about climate change targets and the future role of the UN in 2013 and beyond is making businesses and governments alike rethink the direction of the market.

The six edition of Carbon Forum Asia focused on Asia’s role in the challenges facing carbon pricing in the fight against climate change.

As the world prepares for the 17th Conference of Parties (COP) meeting in Durban in South Africa, next month, the event presented an opportunity for the region to position its views on the issue.

Asia exposed

As a major player in the CDM market, Asia has an economic interest in the outcome of the negotiations at international conferences on climate issues and the use of the CDM.

Its large population, rapidly industrialising economies, and vulnerability to the effects of climate change, mean that Asia will be hugely impacted both by unabated climate change and by the pattern of future international emissions abatement efforts.

Jointly organised by Koelnmesse and IETA, Carbon Forum Asia has become the leading platform for emissions trading, carbon abatement solutions and new technologies in the whole Asia Pacific region.

With nearly 120 international experts and players from across the globe, the event was officiated by Ambassador Burhan Gafoor, Chief Negotiator for Climate Change, Ministry of Foreign Affairs, Singapore.

Henry Derwent, President and CEO of IETA, said:

“Carbon Forum Asia 2011 is the place where environment experts and carbon trading professionals in the region learn, network and discuss issues around climate change, carbon and energy. The markets are changing rapidly, as nations debate the gains and pitfalls of the CDM, discuss the way forward in the absence of Kyoto targets after 2012, and strike out on their own with trading and offset schemes.

“Asia’s role is becoming important for demand as well as supply. Carbon Forum Asia is the best forum for Asian players and observers to gather and keep updated on current issues and trends, as the market gets more mature and essentially, more complex.”

IETA’s GHG Market Report

For the first time, IETA launched its annual GHG Market Report at Carbon Forum Asia.

Comprising 29 articles covering key global issues the report covers topics, such as Carbon Taxing in the Air; Australia –

Finally a Carbon Trading Scheme?; Policy and Politics of a Carbon Market in China; Primer to India’s Perform, Achieve and Trade Scheme for Enhanced Energy Efficiency.

The report is an essential update for professionals in the field, with in-depth analysis of the current state and trends in carbon trading policies and market landscape around the world.

“Asia is a primary source of offset credits for Europe and increasingly, the world is looking to Asia and how its policies will move the global emissions trading market. Across the region, governments, from Australia to India and China to Singapore, are putting in place initiatives to reduce their carbon footprint and bring about more sustainable development.

Around 1,000 participants from close to 50 countries attended this year’s forum.