CORRECTED - Broker CantorCO2e to slow CO2 project origination

(Corrects company name in last paragraph)

LONDON, Jan 20 (Reuters) - CantorCO2e will scale back origination of clean energy projects under the Kyoto Protocol as a result of falling demand for carbon offsets, a vice president at the London-based brokers said on Tuesday.

"We will certainly downsize our (Clean Development Mechanism project) origination, but that's more demand-driven," said James Emanuel, referring to the impact of the global recession and falling carbon prices.

He added the brokerage had no immediate plans to cut any of its 40 or so origination staff, but could not rule that out in the future.

Under Kyoto's Clean Development Mechanism (CDM), companies can invest in clean energy projects in developing nations, and in return receive offset credits which can be sold for profit.

CantorCO2e, a relatively small project originator in the $32 billion CDM market, has origination teams in countries including India, Brazil and Chile.

Emanuel said the brokers are working at capacity with an offset pipeline of between 120 million and 150 million expected by the end of 2012.

Prices for CDM offsets have been amongst the worst performing energy commodities for 2009 so far, dropping 27 percent since the end of December.

Benchmark offsets for 2009 delivery CEREc1 closed below 10 euros on Tuesday, a new all-time low.

Several financial institutions including Credit Suisse (CSGN.VX), Bank of America (BAC.N), and Tullett Prebon have trimmed carbon trading or project origination operations in the past year. (Reporting by Michael Szabo)