OECD sees carbon raising to USD 400 a tonne

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The Organization for Economic Cooperation & Development has forecasted that carbon permits will rise more than 18 fold to USD 400 a tonne by 2050 unless spending on new technologies that curb emissions is increased.

Mr Romain Duval senior economist at OECD said that carbon prices may be held to about USD 200 a tonne if there’s more spending on developing technology such as hydrogen fuel cell vehicles over the next decade. He added that “The big difference is you assume major new technologies penetrate the non electric sector.”

According to the OECD, about 190 nations are seeking an agreement in 2009 to curb greenhouse gases starting 2013 and replace the 1997 Kyoto Protocol. A focus on transport emissions will be important as nuclear power and carbon capture and storage facilities may cut electricity related emissions.

Meanwhile, Ms Dana Hanby director of international markets at First Climate Group, which manages funds invested in emission credits, is skeptical there will be enough spending to reduce costs. She said that “We already see the lower investment in renewable because of the current recession.”

(Sourced from Bloomberg.net)