The global carbon fund market has risen by 63 percent to almost $13 billion so far this year. Despite growth that would be considered immense for almost any other type of asset, this growth is considered relatively slow. In comparison, the overall carbon emissions market more than doubled last year, to $64 billion. It is estimated that the market will reach well over $100 billion in 2008.

Mark Nicholls, an editor at Environmental Finance, told Reuters: "In most other asset classes, 63 percent growth in assets under management would be a pretty good story, but the 100 percent-plus growth in carbon markets between 2006 and 2007 has outpaced growth in carbon funds."

The relatively slow growth of the global carbon market is due to uncertainty over what the market will look like after 2012, as well as the widespread effects of the credit crunch. Currently there are 80 carbon funds globally, including not only private funds but buyers' pools and government-run credit purchase vehicles. For the most part, these funds buy offset credits issued under the Kyoto Protocol's Clean Development Mechanism (CDM). But the fate of the CDM is uncertain after 2012, when the Kyoto Protocol's first commitment period expires.

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