The value of the global carbon market soared 84 percent in 2008 to US $118 billion and could reach US $150 billion this year, according to New Carbon Finance, a division of New Energy Finance.

Some 4 billion tonnes worth of carbon allowances were traded last year, up 42 percent over 2007. Most transactions were European Union Allowances, representing as much as 80 percent of the value.

The research firm said that a growing interest in secondary Certified Emissions Reductions (CER) for the Clean Development Mechanism (CDM) boosted market share from 8 percent in 2007 to 13 percent in 2008. The credits are eligible for compliance under the European Union Emissions Trading Scheme (EU ETS) and Kyoto Protocol, as well as potential Australian and North American trading programmes.

Most growth this year will stem from growing liquidity in the secondary CER market, New Carbon Finance said.