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 €4.30. Yesterday carbon broke it's recent support level of €4.30, hitting €4.28 and is likely to retest this level this morning. Analysts have stated that Emission Reduction Units (ERU's) which have the same weighting as CER's in the EUETS will half in value once the European Commission finalises it's review of which ERU's are eligible for compliance in the EUETS. They are currently priced at €0.40/ ERU. In the coming weeks, the EU are set to establish rules governing state aid for nuclaer power within the bloc. This decision is likely to have an effect on carbon prices in the longer term. Currently, the European executive have declared that they have an open mind on the subject. Member states sought guidance on the issue. Nations are divided on the issue. Germany and Austria have opposed any support, whilst Britain and the Czech Republic have voiced support for the technology. Opponents feel that if approved, nuclear power will be legitamised. Current nuclear power received short term emergency funding and opponents want to stay away from nuclear acceptance. The guidelines on energy and environmental aid for 2014-2020 are expected to be published around the end of September, after elections in Germany that are scheduled for September 22. "There is still a long way to go before the European Commission recognises nuclear alongside renewables as one of the essential energy solutions to climate change," a spokesman for the World Nuclear Association said. New plants in Finland and France are billions of euro over budget and years behind schedule.
Dec 13 EUA

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