Bloomberg News

EU Carbon Stable After U.K. Sells Largest Tranche of Permits

November 21, 2012

European Union carbon permits were little changed after demand for allowances in the latest auction grew compared with the previous sale.

Permits for December erased early losses to advance as much as 2.8 percent to 6.93 euros ($8.88) a metric ton on London’s ICE Futures Europe exchange. They closed 3 cents, or 0.5 percent, higher at 6.77 euros.

The U.K. sold 6.5 million permits at 6.62 euros a ton in its first auction of allowances for 2013. Bidders sought 18.5 million permits in the auction, 2.8 times the volume for sale. Buyers yesterday bid for 2.7 times as many permits as were offered by the EU, and between 1.2 and 1.7 times as many as were offered in three sales from Nov. 13 through Nov. 16.

The EU, Greece, Germany and the U.K. are selling a total of 21 million tons of permits this week as the bloc ramps up its auctioning program before the start of the third phase of the market, which runs from 2013 through 2020.

United Nations Certified Emission Reductions for December rose as much as 13 percent to 88 cents a ton, matching the highest for more than a week. They were up 5.1 percent at 82 cents at 4:55 p.m. in London.

To contact the reporter on this story: Alessandro Vitelli in London at avitelli1@bloomberg.net

To contact the editor responsible for this story: Lars Paulsson at lpaulsson@bloomberg.net


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