A global climate deal to extend the life of the Kyoto treaty and establish the parameters for negotiating a new pact by 2015 will provide a fresh stimulus to the world’s floundering carbon markets, according to bankers and analysts.
“The deal provides a significant boost for investors in low-carbon technology,” said Abyd Karmali, head of carbon markets at Bank of America Merrill Lynch, adding this was an achievement amid the woes of the eurozone crisis.
In one of the more bullish business assessments of the new pact, which also includes a separate agreement to negotiate a new process aimed at obliging all countries to commit to cut their carbon emissions, he said the deal was “like a Viagra shot for the flailing carbon markets”.