DBLM Solutions

Luciano Magliocco +353 87 9051928 (Mobile) dblmluc (SKYPE) luc@dblmsolutions.com

DBLM Solutions Carbon Update

Carbon Overview

David Boles 01 4433584 (Direct) dblmdavid (SKYPE) david@dblmsolutions.com

At time of writing the Dec '13 EUA Contract was at 4.74. Power prices(highly correlated to Carbon) were mixed in the 2 major European markets. French wholesale power prices were were down on milder weather forecasts while German power prices rose due to less input from the renewable sector. German baseload power for delivery today was up 5.50 at 61 a megawatt hour. French Baseload was down 3.25 to 62.75 after weather forecasts have returned to typical temperatures for this time of year after a very cold winter. A temperature of 15 degrees celsius is forecast for the end of the week in Paris. The energy complex seems to be exerting downward pressure on carbon with lower gas and coal prices, but Brent crude looks to be turning bullish, currently at 106.03 after recent lows of 103.41. Shanghai have announced that they will start a cap and trade program by the end of June. The second of seven industrial Chinese regions to adopt an emission trading scheme. The Shanghai ETS will cover approximately 120 to 130 million tonnes of emissions. Trading will take place on the Shanghai Environment and energy Exchange. The pilot program will cover 200 companies and 16 state controlled industries. Companies such as Basf and ThyssenKrupp AG now have carbon mandates in multiple jurisdictions.
Dec 13 EUA

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