Are there really any jobs in carbon finance in Scotland?

Edinburgh University Business School launched an MSc in Carbon Finance in 2010 and this month has announced the formation of a new Association of Carbon Professionals to help fight carbon emissions and 'cater to the needs' of its graduates.

They may need a lot of catering to. Last time we looked (in December 2011), the bottom had fallen out of the market for carbon finance jobs after the price of carbon plummeted. It fell to further record lows earlier this year due to lack of demand for carbon permits in Europe as a result of the economic slowdown.

The European Union is looking at ways of improving its carbon trading scheme and may reduce the number of permits in circulation by 2013, thereby increasing the carbon price. Until then, carbon related jobs may be hard to come by. Climate Change Capital, one of the original investors in carbon offset schemes was sold to agribusiness company Bunge earlier this year after it struggled to make ends meet in the new carbon price environment. Bunge plans to reorient the business in favour of, 'impact investing.'

There are carbon-focused boutiques in Scotland. Take Carbon Financial with offices in Aberdeen, Edinburgh and Perth, or Edinburgh-based Carbon Offset Scotland. However, they are small: Carbon Financial only employs 8 people in advisory roles and Carbon Offset employs 3 directly. Angus Crabbie, head of Carbon Offset Scotland, says they would like to work with larger companies which are obliged to buy carbon credits for carbon reduction commitments. In future, he says this could be a big growth area Carbon Offset in Scotland.

"Without a doubt, we will be looking to upscale the business with this expansion in mind," he says.