The market for carbon emission permit brokers is facing increasing difficulties due to a dip in clients and the recession.

Reuters reports that European Union emissions trading company CantorCO2e laid off its remaining brokers in the UK this month due to falling demand.

According to the news provider, the move is the latest in a series which have seen cutbacks in a number of the major players in the carbon trading market.

The recession meant that emissions levels were cut due to falling economic activity and this meant that some firms were left with a surplus of permits.

In June the Committee on Climate change said that the 8.6 per cent drop in greenhouse gas emissions during the past 12 months was down to the recession and higher energy prices rather than actual efficiency measures.

An anonymous emissions broker told the news provider: "Brokers need to provide real colour in a market like this. It's become harder to trade, so I suspect we'll see some more casualties in the long run."

It is thought that some smaller firms may also feel confident handling the deals without the help of a broker.