Issue XCVIII

The EUA Dec13 contract is currently at 5.36. The price is relatively flat to slightly bearish as the energy complex is bearish, despite healthy auction demand.
Weekly Recap 18/09/2013 19/09/2013 20/09/2013 23/092013 24/09/2013 Volumes lots Week % ICE EUA ICE CER ICE EUA Spot Spot Dec13 ICE CER Dec13

5.51 5.34 5.34 5.41 5.37 1,278 -2.54%

0.70 0.71 0.72 0.71 0.69 170 -1.42%

5.53 5.36 5.36 5.43 5.39 75,956 -2.53%

0.69 0.69 0.71 0.70 0.68 3,106 -1.49%

to discuss technical aspects related to the possible creation of a reserve mechanism to facilitate auction supply more flexible. A positive outcome would give the European cap and trade a life line as regulators could begin to tackle the oversupply issue.The Climate Change issue will be in the News this week as Climate experts are due to publish their much anticipated report on Climate Change. The report is published in six year cycles and their is calls this week to reduce the scope of the reports but increase frequency.

Aviation
O n M o n d a y, A i r l i n e s m e t w i t h I C A O , (International Civil Aviation Organisation) and urged officials to realise a deal in order to avoid a trade war. A spokesperson said agreement by countries on a global market-based solution, the details of which would need to be worked out, was preferable to regional measures such as the EU's controversial Emissions Trading Scheme. Pressure for a deal increased after IATA's (International Air Transport Association)members, some of whom reflect the views of their state shareholders, settled their own differences by calling for a single market-based system to offset growth in post-2020 emissions.

The EUA/CER spread narrowed this week to 4.68 at close of business last night versus the 4.95 spread we witnessed the week before and 4.62 the previous week.

Auctions
EEX held auctions last Thursday, Friday, Monday and Tuesday,auction prices were 5.40, 5.30,5.24 & 5.47 respectively. The Polish auction was held on Monday, where 3,661,000 EUAs were sold at 5.37 each. The cover ratios for the above auctions were 2.18, 2.00, 2.48, 2.47 & 3.21 respectively (Cover ratio Amount of bids/actual auction volume) In total an extra 18,065,500 EUAs were brought to the market place. Yesterday, the European Commission announced that they will host a panel of experts on October 2

US
Last Friday, the Obama Administration set limits on emissions from power plants for the first time. The rules only cover new plants, new large natural gasfired turbines would need to meet a limit of 1,000 pounds of carbon dioxide per megawatt hour.

The contents of the Newsletter is not a recommendation, either implicit or explicit, to buy or sell emission permits. Contact: David Boles, Compliance Markets -Direct: +3531 4433 584; Mob:00353 831744707 DBLM Solutions is partly funded by the Wicklow Enterprise Board.