Voluntary carbon market opens up – survey

9 February 2011
Winners of Environmental Finance’s annual survey of the voluntary carbon markets report growing interest in carbon offsetting as the economic outlook begins to lift, and see the development of a carbon market in California as boosting ‘pre-compliance’ trading in North America.


But the competitive landscape in the market has opened up this year, with US investment bank JP Morgan – which, with its recently-acquired subsidiaries EcoSecurities and ClimateCare dominated last year’s survey – disappearing from sight.

This year, publicity-shy energy trading house Vitol won the Best Trading Company category, followed by German asset manager First Climate.

Best Project Developer was won by South Pole Carbon Asset Management, displacing EcoSecurities, with US-based Blue Source in second place. And Best Offset Retailer, last year won by ClimateCare, went to The CarbonNeutral Company.

Elsewhere, US verification firm First Environment knocked TÜV SÜD out of the Best Verification Company slot, while ICF International replaced First Climate as Best Advisory/Consultancy.


There was more continuity in other categories, with Evolution Markets remaining Best Broker, according to survey respondents, and Baker & McKenzie holding on to the Best Law Firm title. Markit was again voted Best Registry Provider.

“Last year was a tough one in the voluntary carbon markets, in common with wider environmental trading,” said Mark Nicholls, editor of Environmental Finance. “But winners in our survey report a pick-up in interest and activity, as the economic clouds begin to lift and as North American participants ready themselves for a carbon market in California.

“And there’s all to play for: certainly, among the readers of Environmental Finance, JP Morgan’s aggressive move into the carbon markets has not, for the time being, paid off. For whatever reason, our readers are favouring smaller and perhaps more nimble developers and traders.”

Some 500 votes were received in the survey which was conducted separately from Environmental Finance and Carbon Finance’s annual market survey, which polls readers on mandatory carbon markets, renewable energy finance, weather risk management and sulphur and nitrogen oxides allowance markets. Those results were announced in December.

Environmental Finance defines ‘voluntary carbon’ as carbon credits bought or sold to help organisations or individuals offset carbon emissions where they are not required by regulation to do so. This may be to help meet self-imposed emissions goals, or to gain experience ahead of carbon regulations – an important part of the voluntary carbon market in the US.

The results are published in the February 2011 issue of Environmental Finance. Click here to read the editorial feature.