Issue CVVI

Carbon Newsletter

DBLM Solutions
13 Mar 2013 The EUA Dec13 contract is currently at 6.55. EUAs fell 4% yesterday, based on weaker European power and technical selling. In the short term, both 1 & 4 hr charts for the Dec13 EUA contract look bearish. Note that a drop in German wind has pushed up German power prices.
Weekly Recap Nasdaq EUA Spot 6.80 6.87 6.89 6.78 6.51 -4.26% Nasdaq CER Spot 0.28 0.29 0.26 0.20 0.20 -28.57% Nasdaq EUA Dec13 6.85 6.95 6.95 6.85 6.57 -4.08% Nasdaq CER Dec13 0.27 0.26 0.16 0.19 0.18 -33.33%

spread we witnessed last week and 5.79 the week before.

Auctions
EEX held auctions last Thursday , Friday, Monday Tuesday & Wednesday auction prices were 6.71, 6.72, 6.93, & 6.81 respectively. The cover ratios for the above auctions were 4.90, 5.98, 6.74, & 6.29 respectively. The European Investment Bank sold 20.3 million EU carbon permits in February, the bank said on Wednesday, raising 132.9 million euros ($184.3 million) to fund renewable energy and carbon capture and storage projects in Europe

06/03/2014 07/03/2014 10/03/2014 11/03/2014 12/03/2014 Volumes lots Week %

UN Offsets
Front year UN Offset prices hit new lows recently, reflecting the March 2015 deadline which sees credits issued before Jan 2012 becoming invalid for compliance purposes. This is also demonstrated by the agreement of Emission trading PLC. to sell off its considerable portfolio of UN offsets. There is much speculation about the future of the Clean Development Mechanism, trading in CERs slumped to a six-month low with 24 million tons of credits changing hands in February, or a quarter of the average volume for the past five years, data from ICE Futures Europe in London show. This coupled with the increase in credits offered for sale may see further decreases in prices.

On Wednesday, the European Parliament backed a law to curb the use of HFC gases. HFC gases have a global warming potential 23,000 times that of carbon dioxide. The proposal seeks to cut HFCs by 79% below 2009-2012 levels by 2030. EU member states are expected to back the law in an April14 vote, after which it will enter into force across the 28 Nation bloc from 2015. The EUA/CER spread widened this week to 6.31, at close of business last night versus the 6.56

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.