The annual Point Carbon Market Survey from Thomson Reuters shows a greater acceptance of the cap-and-trade scheme which aims to reduce European emissions through a market-based approach rather than through subsidies or taxes.
Those surveyed who believe that the system is “ideal” reached 19 per cent in the latest survey while 66 per cent consider it “the best we can agree on”. The number of those who believe the system does more harm than good fell from 11 per cent last year to just 8 per cent in this year’s report.
“This year’s results indicate that the increased confidence of 2014 shows no signs of slowing,” said senior Point Carbon analyst Anders Nordeng.
“2013 saw an all time low for sentiment, with falling prices and doubts about political commitment. But things picked up in 2014 and this positive trend looks set to continue in 2015 too,” Nordeng added.
However whether market participants believe the scheme is the most cost-effective way to drive down carbon emissions is in doubt, with 52 per cent of respondents agreeing in 2014 and 49 per cent saying it’s the most cost-effective way to reduce emissions this year.
The survey was also split over whether the upcoming climate talks in Paris this year would yield a global climate change deal: the survey showed that 36 per cent of all respondents consider it likely that a new international climate change agreement will be delivered, whereas 38 per cent believe it unlikely.
But the French are more optimistic. A 79 per cent majority of survey participants from the host country said world leaders would agree a global deal on climate change.