A recent collapse in carbon prices has triggered CantorCO2e — a carbon broker — to scale back on new clean energy projects, reports Reuters.
The firm joins the ranks of other financial firms that have announced reductions in the sector, including Credit Suisse, Bank of America, and Tullet Prebon.
Prices for Clean Development Mechanism (CDM) offsets have so far fallen 27 percent in 2009, closing Tuesday below 10 euros per ton for the first time in their history.
Low carbon prices will reduce incentives for firms to cut industrial emissions and may hinder the emerging market for credits generated through forestry (avoided deforestation and reforestation).
