The value of the world’s carbon markets declined by 21 percent over the last quarter, despite trading volumes above the historical average, according to analysis from Bloomberg New Energy Finance.

Global carbon markets fell to €14.2bn ($19.2bn) over Q1 2012, according to Bloomberg. This was 41 percent less than in the same period a year ago.

The drop is the result of a 50 percent decline in the volume-weighted average carbon price compared with Q1 2011, to €6.6/t over the last three months, Bloomberg says. Some 2.1bn metric tons of EU allowances and U.N. certificates were traded over the first three months of 2012, 17 percent more than a year ago, making this the largest first-quarter volume on record.

UBS carbon analyst Per Lekander told the Financial Times that the figures were worse than the markets expected, describing markets as “massively oversupplied.”

via Global Carbon Markets Plummet · Environmental Management & Energy News · Environmental Leader.