Camco International reported on Tuesday a 2011 loss of 29.2 million euros ($37 million), compared with a profit of 10.1 million euros in 2010, as the value of the company's carbon portfolio got hit by record low carbon prices. Camco, a developer of low-carbon and clean technology projects in North America, Europe, Asia and Africa said its results were adversely affected by a sharp drop in carbon prices due to flagging demand for carbon credits and a glut of supply.
The carbon credits, called certified emission reductions, lost around two thirds of their value last year, as a record number of credits were issued in the face of an economic slump in the European Union, the biggest market for those credits. "For the short term, the price shock has put pressure on our business to adjust to a new environment," chief executive Scott McGregor said in a statement. "In the medium to long term we continue to believe that as action is taken by regulators and governments, market inefficiencies will be corrected," he said, referring to EU officials reviewing ways to tackle the oversupply of carbon units in the world's biggest carbon market.
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