Issue CIII

Carbon Newsletter

DBLM Solutions
16 Jan 2013
The EUA Dec13 contract is currently at 5.11. The Dec14 contract hit a high of 5.14 this morning on the back of technical buying. The UK have announced that they will distribute last years free allowances before the end of February.
Weekly Recap Nasdaq EUA Spot 4.61 4.50 4.62 4.82 4.82 4.55% Nasdaq CER Spot 0.34 0.34 036 0.35 0.35 2.94% Nasdaq EUA Dec13 4.66 4.55 4.71 4.89 4.91 5.36% Nasdaq CER Dec13 0.35 0.34 0.35 0.36 0.36 2.85%

11/12/2013 10/01/2014 13/01/2014 14/01/2014 15/01/2014 Volumes lots Week %

CO2 equivalent (CO2e) out of a total free allocation of 886.5mn t CO2e for the 28 EU member states. In addition Slovenia, which submitted its Nap for 2.8mn t CO2e on 3 December, reported changes to this plan on 27 December, to account for changes based on 2012 production data the last step for EU member states before the commission can agree to their proposed allocations.Some 10 EU member states have taken this step and are awaiting approval by the commission, a process that has taken around one month for other countries. The commission has approved free allocations for eight EU member states so far, and all of these have begun or finished distributing to operators.

South Korea
Yesterday, the Korean Exchange announced that the countrys first carbon exchange will start in 2015. Some 500 companies are expected to participate. The government will allot free permits until 2017, raising the portion of paid for permits to 3% during the 2018-2020 period and over 10% by 2025. The threshold level for a companys involvment is emissions greater than 125,000 tonnes per year and any installation that emits more than 25,000 tonnes per annum.

The EUA/CER spread widened this week to 4.47 , at close of business last night versus the 4.22 spread we witnessed last week.

Auctions
EEX held auctions last Thursday, Friday, Monday &Tuesday, auction prices were 4.56, 4.45, 4.52, & 4.73 respectively. The cover ratios for the above auctions were 3.75, 3.10, 4.64 & 4.63 respectively. In total an additional 16,655,500 EUAs were brought to market in the last week. The European Investment bank sold 16.8 million EUAs in December, raising 81.7 million. The credits originated from the NER 300 ( New Entrants Reserve). Estonia and Luxembourg have submitted their respective allocations, which total 4.5mn t of

Registry Closure
Access to the Union registry will also be suspended from Wednesday 29 January 08:00 CET to Thursday 30 January 2014 08:00 CET to deploy the functionality that will allow aircraft and stationary operators to exchange eligible international credits for allowances.

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.