So why does this happen? The simple answer to a long winded story is ‘Forecasting.’ While it’s important to forecast, a four year forecast cannot be taken to be an accurate representation of the market condition exactly four years from now. With almost no buyers in the current situation, the market is also seeing a reduction in the number of sellers. This is, in turn causing a price hike causing a storm in the carbon market. Hopefully, this will change for the better in the coming year. All said and done, governments should rethink protocols and reconsider rates for everyone’s benefit.
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With the fall in oil prices during and after the recession to almost about 40 USD, the carbon market also closely followed tracks and has lost about 60% of its pre-recession value. This is an extremely bad state for the carbon market. While for an outsider, this may look like an impossible state this is, sadly, the current state of the European carbon market.
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Small Business faces many challenges. It does not have the strength to draw on huge amounts of finance. It is often at the mercy of suppliers, customers and franchisors who have their own vested interests. It is in this often very tricky, very volatile environment that small business leaders are called to operate.
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