Weak global carbon prices will probably continue into next year before recovering, clean-energy investors said on Tuesday at a carbon meeting in India, adding that they remained confident about the market in the longer term.

Concerns are growing over the fate of the U.N.-backed Clean Development Mechanism, or CDM, which rewards investors by issuing internationally tradeable carbon offsets in return for developing clean-energy projects in poorer nations.

India is the world's second top source of the carbon offsets, called certified emissions reductions, or CERs, under the scheme.

The CDM is part of the Kyoto Protocol, whose 2008-12 first commitment period sets emissions targets for rich nations that drives demand for the offsets.

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"We don't see any skyrocketing prices, but expect high volatility until 2012," said Nils Medenbach, vice president, business development, First Climate Group, a Swiss-based CDM project developer, carbon asset manager and trader.

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Source: uk.reuters.com/article/idUKSGE64A00920100511