Uncertainty over Kyoto environmental legislation 'may affect carbon market'

The uncertainty over what will happen after the Kyoto Protocol environmental legislation comes to an end could have an influence on the carbon market, it has been suggested.

On Wednesday (July 14th), investors in the Kyoto Protocol spoke out about whether it is likely the pact, which obligates member states to carbon emission goals, will continue after its contract ends in 2012.

They told Reuters that this uncertainty may encourage organisations to hold off on environmental projects if they will no longer be bound to carbon goals in two years time.

Mark Yeo Wee Tiong, of United Overseas Bank, commented on whether the Singapore bank will put money in carbon reducing initiatives, saying: "We are keeping our options open. We don't need to rush in."

However, director of KPMG Singapore Rahul Kar questioned whether this was a ploy of investors to drive down prices on the carbon credit market.

He said: "The world doesn't stop at 2012."

Further discussion over the extension of the Kyoto Protocol is scheduled to take place at the Bonn Climate Change Talks conference in August.

Posted by Lauren Steadman