Issue CVIII

Carbon Newsletter

DBLM Solutions
20 Feb 2013 The EUA Dec13 contract is currently at 6.34. The Dec 13 EUA contract rose above 7 for the first time in 14 months yesterday.Commercials seem to take notice as several seek to cover their carbon exposure for Phase 3(2012-2020). If we take a look at the 4 hour chart (see attached) for Dec 13 EUAs, we can see very steady gains since Jan 10 2014. The worry is that prolonged, gradual gains is an ominous sign that finally carbon is on the rise, after nearly 18 months of prolonged low prices. This may be reflected in Auction demand which has again stepped up this week.
Weekly Recap Nasdaq EUA Spot 6.55 6.57 6.79 6.73 6.91 5.49% Nasdaq CER Spot 0.41 0.40 0..40 0.36 0.35 -14.63% Nasdaq EUA Dec13 6.46 6.69 6.88 6.84 6.95 7.58% Nasdaq CER Dec13 0.38 0.37 0.37 0.33 0.35 -7.89%

EEX held auctions last Thursday , Friday, Monday Tuesday auction prices were 6.21, 6.31, 6.70, & 6.74 respectively. The cover ratios for the above auctions were 6.02, 4.48, 5.32, & 4.90 respectively. In total an additional 16,655,500 EUAs were brought to market by EEX in the last week.

AVIATION
At time of writing, the European Parliament has submitted an amendment to EU member states to extend thestop the clock mechanism until 2016. This meaans that international flights may not have to participate in the EUETS for flying into European airspace. Negotiations between the parliament, EU member states in the Council and the European Commission on the regulation of aviation emissions began last Tuesday, and will continue on 4 March. The worry is that this process will not be completed prior to the compliance deadline on April 30.

13/02/2014 14/02/2014 17/02/2014 18/02/2014 19/02/2014 Volumes lots Week %

IRAN
Over the weekend, the largest emitting Islamic state announced that they will introduce carbon trading to cut carbon emissions. Policy makers have drawn up plans to extend credit to commercials in order to reduce their emission output. The World banks global environment facility was approached to supply funding. Iran is the latest to introduce such maesures after China, India, Mexico and Vietnam have introduced similar measures.

The EUA/CER spread widened this week to 6.56, at close of business last night versus the 5.91 spread we witnessed last week and 5.63 the week before.

Auctions

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.