Recent news in the carbon credit market has prompted me to do a quick blog on happenings in the carbon world. Following solar, ethanol, and wind, carbon is rapidly emerging as the leader of next expansion phase in cleantech. But so far it has been below the radar of most of the US cleantech investors, though capital has been flowing in from Europe at a torrid pace.
Keep in mind, the carbon market (which is an area my firm is actively working in, so watch this space for more details), already reached approximately $10 Billion globally in 2005. See attached file from IETA, the International Emissions Trading Association on the state of the carbon market in 2006.
Rob Day at Cleantech Investing posted today about the recent investment by First Reserve into Blue Source LLC, an aggregator of greenhouse gas emissions credits. The exciting thing about this news is that First Reserve is an old line energy private equity group, making a move into carbon and cleantech.
This follows on the recent California announcement on the new California law on carbon emissions reductions (Washington Post article here).
Also see the recent news from Australia (the US and Australia are the only two major countries who did not sign the Kyoto protocol) on the similar efforts to develop a state led cap and trade emissions trading scheme there.
At this rate, carbon credits and trading will surpass solar, the recent darling of the cleantech sector, in size in 2006, and wind shortly thereafter.