"Carbon offsets neared all-time lows Friday, confirming their status as the world's worst performing commodity, as slumping demand meets rising supply of the U.N. instrument traded under the Kyoto Protocol."
"A worsening global economic outlook has dented prices for emissions permits which depend on a robust economy belching greenhouse gases into the air, and has also impacted oil, grains, coal and natural gas.
Carbon offsets have fared uniquely badly because a U.N. climate panel continues to print new offsets, regardless of a widening glut in emissions permits in the main demand market, the European Union's carbon market.
Countries and companies in the developed world can buy offsets as a way to meet emissions caps agreed under Kyoto, paying for cuts in developing country projects instead, but the financial crisis has left a global oversupply."
Gerard Wynn and Nina Chestney report for Reuters August 8, 2011.
SEE ALSO:
"ICE To Shutter Chicago Climate Futures Exchange: Report" (Reuters)
"U.S. and Europe Battle Over Carbon Fees for Airlines" (New York Times)
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