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 4.60. Carbon prices have surged in the first couple of hours this morning. Analysts cite compliance buying and the situation in Syria as key market drivers. Many traders have returned from the traditional holiday season and volumes have increased accordingly. Yesterday, Europe's Climate Commissioner, Hedegaard stated that talks about backloading between member states will not start until after the German elections in September. A panel discusssion was held recently in Brussels which considered the effectiveness of the EUETS. They summarised the oversupply situation by stating that Phase 3 is short on an annual basis but when combined with the surplus from phase 2, according to their calculations a surplus of 1.4 billion allowances will exist by 2020. "We need to have the fundamental discussion about 2030 targets. From an investment point of view 2020 is very close,a greenhouse gas reduction target, but also a renewables share target and efficiency target are needed, Dutch politician Bas Eickhout declared, who sits on the EU's environmental commitee .
Dec 13 EUA

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