Wednesday, March 3, 2010

"Hopes for $2 trillion global carbon market fade" and "Ecosecurities to shutter US office" (JPM)

If the brand of Capitalism that you choose to play is Political Capitalism you better know the game and the rules.

It was only last September that we posted "Carbon Trading: JPMorgan to buy EcoSecurities for $204 million (JPM; ECO.L)"

Today Point Carbon reports:
Ecosecurities to shutter US office
Ecosecurities will close its US operations following a strategic review with JP Morgan....

And from Reuters:
Investors are becoming less convinced that a global carbon market, estimated to be worth about $2 trillion by the end of the decade, can be established as uncertainty over global climate policy persists.

The absence of legally binding global climate deal and a federal emissions trading scheme in the United States are standing in the way of the market in global emissions trading growing to achieve yearly turnover of $2 trillion by 2020.

"There will only be a $2 trillion market if the U.S. gets on board," Trevor Sikorski, head of carbon research at Barclays Capital, told Reuters at a carbon conference in Amsterdam.

The market for carbon credits was worth around $136 billion last year, according to analysts Point Carbon.

Highlighting these fading hopes, a Point Carbon survey on Wednesday showed 61 percent of respondents said they expected a U.S. emissions trading scheme by 2015, down from 90 percent last year. They also predict a lower global carbon price of 31 euros ($41.92) a tonne in 2020, compared to 35 euros....

...Participants at a carbon conference in Amsterdam were equally downbeat, as carbon prices in the EU ETS are weak and range-bound and expectations are low for a climate pact being agreed this year at the talks in the Mexican city of Canucun.

European Union carbon prices are roughly half what they were in mid-2008, trading around 13.45 euros ($18.35) a tonne....MORE

The first recipient (April, 2007) of the prestigious "Climateer: Our Hero" award, Sen. Simon Cameron, Republican and Democrat of Pennsylvania:

"The honest politician is one who when he is bought,
will stay bought."
Our Hero
Simon Cameron