Issue XCVVII

Carbon Newsletter

DBLM Solutions
13 November 2013 The EUA Dec13 contract is currently at 4.67. Over the last week, carbon seemed to couple with Brents bullish run, but now looks bullish on the back of a reviving energy complex. Yesterday, the European Commission published data on the status of free allocations of allowances under the EUETS on a national basis.
Weekly Recap ICE EUA Spot 4.77 4.79 4.47 4.59 4.64 2,116 -2.72% ICE CER Spot 0.51 0.51 0.50 0.50 0.51 17 0 ICE EUA Dec13 4.78 4.80 4.49 4.61 4.65 83,334 -2.72% ICE CER Dec13 0.51 0.51 0.50 0.49 0.50 2,119 -1.96%

Before free allowances can be handed out, each Member States must, every year, check and submit any changes to the base NAT to reflect reduced production or reduced capacity of installations in the preceding calendar year. The EUA/CER spread widened this week to 4.13 at close of business last night versus the 4.27 spread we witnessed the week before and 4.53 the previous week.

Auctions
EEX held auctions last Thursday, Friday, Monday x 2 and Tuesday,auction prices were 4.73, 4.78, 4.45, 4.47 and 4.57 respectively. The cover ratios for the above auctions were 5.45, 2.80, 4.14, 3.91 & 4.28 respectively (Cover ratio Amount of bids/actual auction volume In total an extra 18,065,500 EUAs were brought to the market place.

06/11/2013 07/11/2013 08/11/2013 11/11/2013 12/11/2013 Volumes lots Week %

UN Offsets
In October, 26 new CDM projects were submitted. 77 CDM projects got their registration action in October, bringing the total number of registered CDM project up to 7366. October had a monthly issuance of 12.4 MCERs. The total issuance is now 1400 MCERs. There are 386 PoAs in the pipelne. (PoAs are CDM projects with social impacts that are rolled out across populations and can be replicated through the issuance of CPLs, e.g cookstove projects) The Joint implementation pipeline now contains 760 projects. The total JI issuance is now 827 MERUs.

The basis for handing out free allowances in phase three is the national implementation measures (NIMs), adopted by the Commission on 5 September 2013, and the figures for the crosssectoral correction factor, which was included in that same decision. Based on the NIMs, which had to be updated with the cross-sectoral correction factor, each Member State has to prepare a base national allocation table (NAT) and submit it to the European Commission. The NAT serves as a basis for free allocation for the period 2013 to 2020.

The contents of the Newsletter is not a recommendation, either implicit or explicit, to buy or sell emission permits. Contact: David Boles, Compliance Markets -Direct: +3531 4433 584; Mob:00353 831744707 DBLM Solutions is partly funded by the Wicklow Enterprise Board.