Issue CV

Carbon Newsletter

DBLM Solutions
06 Feb 2013 The EUA Dec13 contract is currently at 6.10.
Weekly Recap Nasdaq EUA Spot 5.72 5.51 5.80 5.84 6.06 5.94% Nasdaq CER Spot 0.41 0.42 0.44 0.43 0.43 4.87% Nasdaq EUA Dec13 5.80 5.60 5.91 5.95 6.17 6.37% Nasdaq CER Dec13 0.42 0.43 0.43 0.43 0.43 2.38%

after March 2015. From April 1 2015, only CERs representing reductions made after Jan. 1 2013 will be eligible for compliance purposes in the EUETS.

Forecast
Is the expected rise of carbon prices finally happening? Ex chief of Barclays Carbon desk thinks so, predicting that carbon prices will at least double in the next 18 months. Allowances have climbed more than 24% in Jan 2014 alone. They hit their highest levels in the last year this morning at 6.22 for the Dec14 contract. Trading volume also jumped 21%, their highest level in the last seven months.

30/01/2014 31/01/2014 03/02/2014 04/02/2014 05/02/2014 Volumes lots Week %

The EUA/CER spread widened this week to 5.63 , at close of business last night versus the 5.09 spread we witnessed last week and 4.73 the week before.

UN Offsets
In January 10 new CDM projects were submitted. These projects were hosted by 9 from India and 1 from Mexico. In addition 2 projects from India and 1 from Lao PDR were resubmitted. January had a rather low monthly issuance of 8.1 MCERs. The total issuance is now 1428 MCERs. In January there was no new voluntary cancellation, so the total is still 0.551 MCERs. Three new PoAs were submitted in January:"Efficiency Improvements in Furnaces used in Steel Re-rolling industry in Bhavnagar District, Gujarat, India", "Queiroz Galvo Energias Renovveis Wind Power Programme" in Brazil, and "West African Biodigester Programme of Activities" in Burkina Faso. now have 388 PoAs in the Pipeline: 139 at validation, 6 have requested registration, and 243 are registered.

Auctions
EEX held auctions last Thursday x 2, Friday, Monday Tuesday & Wednesday, auction prices were 5.55, 5.60, 5.48, 5.93, 5.73 & 6.01 respectively. The cover ratios for the above auctions were 4.33, 3.63, 3.77, 2.40, 2.34 & 4.18 respectively. In total an additional 25,119,000 EUAs were brought to market by EEX in the last week.

UN Offsets
The supply of UN offsets may rise in the near future as CER holders look to offload credits that will no longer be valid for compliance purposes

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.