Banks and investors are pulling out of the carbon market after the failure to make progress at Copenhagen on reaching new emissions targets after 2012.
Carbon financiers have already begun leaving banks in London because of the lack of activity and the drop-off in investment demand. The Guardian has been told that backers have this month pulled out of a large planned clean-energy project in the developing world because of the expected fall in emissions credits after 2012.
Anthony Hobley, partner and global head of climate change and carbon finance at law firm Norton Rose, said: "People will gradually start to leave carbon desks, we are beginning to see that already. We are seeing a freeze in banks' recruitment plans for the carbon market. It's not clear at what point this will turn into a cull or a rout."
Paul Kelly, chief executive of EcoSecurities, which develops clean energy projects, said that while markets had not expected a definitive post-Kyoto Protocol deal at Copenhagen, they had expected some progress.Two sources said that Australian bank Westpac had scaled back plans to increase its carbon desk in London. A bank spokeswoman denied there were plans to recruit more staff in London, adding: "We have always said that we would look to grow this business organically as carbon markets develop and that remains the case."
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I don't think this will make much difference to Rudd the Dud's ETS push. He still has his orders to follow.
Pity they didn't come from the electorate!
This will be my last post for about a week. I will be up the mid North Coast surfing, again!
If Bob Brown and the Greens have their way with a 5c increase in fuel prices and a god knows what increase in power prices, then my surfing trips may be curtailed a little.
Ah well, like Splitpin says, "The Greens - to yellow to admit they're red."