The Ecosystem Marketplace and New Carbon Finance Release In-Depth Report on Voluntary Carbon Market

NEW YORK, July 17 /PRNewswire-USNewswire/ -- The Ecosystem Marketplace and New Carbon Finance today issued one of the first ever in-depth reports on the voluntary carbon market.

The 'State and Trends of the Voluntary Carbon Market' is a comprehensive quantitative assessment of the voluntary carbon market with information on prices and volumes traded, as well as an analysis of current trends and buyer motivations. The report includes data gathered from both buyers and sellers and offers a detailed summary of the nature of transactions in the voluntary carbon sector and predicted growth.

"What has emerged is the clearest picture to date of the voluntary carbon market, including supply, demand, and trends. Our figures show that the market has grown by 200% in 2006, with 2007 already proving to be the blow-out in terms of volume, market entrants, and development of transparent standards," said co-author Ricardo Bayon, director of The Ecosystem Marketplace.

"Some of the most surprising findings relate to the motivations of buyers of these voluntary credits," added co-author Guy Turner, director of New Carbon Finance. "While we were not surprised to learn that CSR initiatives were behind purchases of offsets, we had expected to find a greater number of buyers motivated by issues of pre-compliance. What this tells us is that even in the face of future legislation, the voluntary market will likely continue to thrive on its own."

"This report underscores the importance of transparent and robust standards to ensure quality and credibility within the emerging emission reductions market. For buyers worldwide, the quality of the offset is of paramount concern," said Eron Bloomgarden, EcoSecurities US Country Director. "Continued development of rigorous industry protocols will play a critical role in the continued maturation of the voluntary offset market."

"We are delighted to see the volumes continue to increase so rapidly," said Marco Monroy, President & CEO of MGM International. "The voluntary markets form a good complement to Kyoto because the growth demonstrates that these markets are incrementally beneficial to the goals of the Kyoto Protocol, especially in terms of involving those not currently subject to any regulation. We hope that next year's report will show continued exponential growth in this crucial area."

"If 2006 is the coming of age for the voluntary carbon market, we believe 2007 will be its break out year," said Andrew Ertel, President & CEO of Evolution Markets Inc. "As the report concludes, voluntary trading in carbon offsets has evolved quickly into a viable, credible market. We are seeing an increase in volume so far this year that far outstrips trading from 2006, which is a result of the grassroots green movement spreading to the mainstream and driving market demand, as well as greater accountability among sellers."

  Key findings of the report include:
  -- Approximately 23.7 MtCO2e were transacted in 2006, with a
     volume-weighted average price of US$4.1 per ton.  It is estimated that
     the total value of this market is US$ 91 million.
  -- Since 2002, the number of organizations supplying carbon credits into
     the market has grown by 200%.
  -- About 43% of tons of carbon sold in the market came from North America
     (largely the US).
  -- The market is currently dominated by three types of projects: forestry,
     renewables, and industrial gases.
  -- Private businesses were the largest buyers (by volume) and their main
     motivation was to comply with CSR.
  -- Quality of offsets is the most important issue for both buyers and
     sellers.

The Ecosystem Marketplace and New Carbon Finance worked jointly on the report, which was sponsored by EcoSecurities, Evolution Markets, and MGM International. Other collaborators include Driving Green, The Carbon Neutral Company, The Trust for Public Land, Blue Source, and the Australian government initiative 'Greenhouse Friendly'.

The report will be available from 12.30pm EST, Tuesday July 17, to download free of charge as a PDF document at http://www.ecosystemmarketplace.com/.

About Ecosystem Marketplace:

The Ecosystem Marketplace is a non-profit information service dedicated to encouraging the growth of environmental markets and various payment schemes for ecosystem services. It was launched in 2004 and is a project of Forest Trends, a DC-based environmental non-profit.

About New Carbon Finance:

New Carbon Finance, is a service of New Energy Finance, and is the leading provider of analysis on the global, European and North American carbon markets. New Carbon Finance's services include detailed fundamental forecasting of carbon prices as well as up to date analysis of opportunities and risks for investors in these markets. New Carbon Finance analysis is used by a wide range of investment banks, energy companies and fund managers.