Energy Efficiency Directive to Boost the Carbon Credit Market
According to industry analysts, the Energy Efficiency Directive, which is due to be voted on in Parliament on December 20 and signed off in April 2012, will be a direct boost to the carbon credit market, reports London Carbon Credit Company (http://www.londonccc.co.uk/). The European directive looks to reduce the amount of overall emissions allowed, which will increase the need for businesses to purchase carbon credits.
The reduced cap on emissions which the Energy Efficiency Directive will bring about will reduce the supply of European Union Allowances, also known as carbon credits or carbon offsets. This reduced supply will be enough, according to experts, to boost carbon trading in the next few years. Trading carbon first came about when the European Union created the emissions trading scheme in a bid to encourage large polluting companies to reduce their carbon dioxide emissions by trading carbon credits.
The worsening economic outlook in Europe had been a concern for the carbon trading market, just as it has been for many financial markets. The worry was that EU countries with lowering gross domestic product and less industrial production would emit less carbon and therefore have less need to purchase carbon credits.
The Energy Efficiency Directive, once it is finally signed off in April of next year, will effectively tighten the original emissions trading scheme by reducing the emission allowance. This will broaden the number of companies finding themselves in need of the services of a carbon trader to help them purchase carbon credits to stay within directive guidelines. Find out more about the world of green investments at http://www.londonccc.co.uk/.
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