"The rally to an extent can be attributed to higher crude oil prices which are trading at record high levels, but the unprecedented is somewhat beyond comprehension," Karvy Comtrade analyst Bhavana Glory told PTI. Crude oil prices have been rising in the last few weeks and it traded as high as 129.33 dollar a barrel, up by 0.23 per cent on the New York Mercantile Exchange today. The other factors that led to the bullish movement is euro which is stronger compared to the US dollar", she said. Carbon credits are traded as certified emission reduction (CER) on NCDEX. December delivery rose by 9 per cent to Rs. 1,155 per CER at 1300 hrs.

Crude oil price movement is co-related with carbon credits because of the transportation sector which is considered to be the major pollutant, market experts said. With the black gold getting dearer, movement in the carbon credit futures were phenomenal today, they said. According to Vandana Bharati, an analyst with SMC, a Delhi-based commodity brokerage firm, "CER futures in the domestic exchange turned bullish following a strong movement on London's European Climate Exchange (ECX) where prices were ruling at 15.75 pound per CER". Meanwhile, increasing participation from domestic cement and sugar companies is also driving the price, she added.