Shares digital

Carbon credit company Trading Emissions (TRE:AIM) is on target to achieve its aim of delivering 66 million tonnes of credits from 2008-2012.

In the shorter term it says some five million credits will have been issued by May 2009, and that it is also progressing well in China, where it has just entered into contracts to deliver 10.1 million tonnes by 2012.

The current Kyoto agreement runs from 2008-2012, with most countries signed up apart from the big exception of the US. Management, however, believes the country is set to play a much bigger part in carbon trading in the future and that this could open up huge market possibilities. 'Politically the world's eyes are now on North America. We feel that there is a strong likelihood of a mandatory cap and trade scheme passing through legislature during 2009,' says Chairman Neil Eckert, adding that he believes such a scheme could create demand for as much as six billion tonnes of credits if international offsets are allowed.

Shares says: The shares have plummeted over the past six months but the company is on track and they are worth holding on to.