The outcome of the US presidential race is likely to play a key role in the future of carbon emissions trading in the US because a federal mandate is needed to kick start the trading of carbon credits, according to an analyst at market researcher TowerGroup.

If a president is elected who favours the Kyoto Protocol process, then a push from the federal government will hasten the acceptance of carbon trading in the US, said Stephen Bruel, who works in the securities and capital markets research service at TowerGroup.