Carbon Credit Currency for the Future

Abstract

Carbon credits have the potential to be the next great currency. It might be almost mandatory to have carbon credits one day and there seems to be no alternative world currency that escapes local political intervention that we can all trust. Carbon credits are going to hold the same value wherever you are because CO2 has a global impact. The world carbon market grew by 37% in Q1 2009 compared to the previous quarter, reaching 1,927Mt. This was 128% higher than the first quarter in 2008. By the end of 2009, the carbon market is expected to be $121 billion. The carbon market is forecasted to touch $408 billion by 2012 and $2.1 trillion by 2020. This paper reviews the carbon market in terms of volume and value, market classification, and the future of the carbon market beyond 2012.