The introduction of carbon emission certificates last April following the Kyoto agreement has created fertile trading ground for hedge fund managers and has seen the opening of a new financial market.

Manufacturers need certificates equal to the amount of carbon dioxide they produce, and exchanges have sprung up in the 39 member countries enabling manufacturers that exceed their estimates to buy certificates from those with emissions that have fallen short. The result has been pricing anomalies and volatility as companies that need certificates look to buy their way out.