DBLM Solutions

David Boles 01 4433584 (Direct) dblmdavid (SKYPE) david@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 4.41. It looks like the European Commission are lining the clean development mechanism up for a bailout as the market is on its Knees with the cost of UN offsets remaining near all time lows. At high level Policy dialogue, decision makers have concluded that the fexible mechanism needs a little help to the finish line. New market mechanisms may be introduced by 2015 through the global climate deal to be enforced by 2020. A 2.5 billion fund is pencilled in as the amount needed until a potential successor is ready to take the lead. Many may criticise the CDM and JI programs, in my view they are an essential laboratory in which to develop mitigation methodologies, technically and economically. There will be three potential sources of funds including a requirement for sectors' not playing a full role in mitigation efforts. For example, the aviation sector could purchase offsets for voluntary offset projects where an appetite for upsetting is identified. Over the past few days , insiders have indictated tomorrow as the day when Obama will outline the implications of his new Climate Clange policy.
Dec 13 EUA

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