Issue CXXXIII

The contents of the Newsletter is not a recommendation, either implicit or explicit, to buy or sell emission permits.
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Carbon Newsletter
DBLM Solutions
25 Sep 2014


The EUA Dec14 contract is currently at 5.77.
The carbon price made positive movements
yesterday evening in an attempt to reverse the
recent bearish trend but seems to have resumed its
bearish momentum at the start of this mornings
session. European power prices have been bulish
exerting upward pressure on carbon. This allied
with an increase in auction demand has seen the
price slide temporaily halted.
Weekly
Recap
ICE
EUA
Spot
ICE CER
Spot
ICE
EUA
Dec14
ICE CER
Dec14
18/09/2014 5.96 0.13 5.98 0.13
19/09/2014 5.96 0.13 6.03 0.12
22/09/2014 6.00 0.13 6.00 0.12
23/09/2014 5.82 0.13 5.68 0.13
24/09/2014 5.80 0.12 5.82 0.12
Volumes lots 869 100 78,174 2,924
Week %

-2.68% -7.69% -2.67% -7.69%
On Tuesday, European lawmakers voted that any
EUETS reform will not be voted on until February
2015. This news, ended much speculation that
suggested reforms including the Market Stability
Reserve might be enacted in 2014. EUAs fell by
5.5% on Tuesday.
The EUA/CER spread narrowed this week to
5.68, at close of business last night versus the


5.71 spread we witnessed last week and 5.93 the
week before.
Auctions
EEX held auctions last Thursday, Friday, Monday
& Tuesday Auction prices were 5.83, 5.94,
5.98, & 5.90 respectively. The cover ratios for
the above auctions were 3.43, 2.72, 8.55 & 4.36
respectively. Yesterday ICE sold 2,710,000
EUAAs at 5.20/tonne.
Global Carbon Price
The climate change issue has received much press
this week as Climate change marches were
organised in 2000 locations across the globe. In
addition, the UNs climate summit was held in
New York this week, boasting the largest number
of National chief executives of any such meeting to
date, 125 in total.
Momentum seems to be building towards
agrrement on a global climate deal which should be
formulated by the end of 2015 and enacted by
2020. The world bank have just published a report
claiming 73 Nations want a global carbon price. It
claims the 73 nations as well as 22 states and cities
make up 54% of global greenhouse gas emissions
and 52% of GDP. Tying in with the UNs Climate
Summit in New York this week, the World Bank
announced plans to form a carbon pricing
leadership group to move carbon pricing use
forward