European Union carbon permits climbed for a fifth week as lawmakers proposed a compromise plan to win support for a policy that would help fix oversupply in the market.
EU allowances for December rose 8.8 percent to 4.80 euros ($6.40) a metric ton today on the ICE Futures Europe exchange in London at 4:59 p.m., boosting this week’s gain to 17 percent.
The permits dropped to a record 2.46 euros on April 17 after the European Parliament failed to approve a measure that would have allowed a temporary supply cut known as backloading. The June 12 compromise would allow the EU to intervene in the market only if a study shows such a move has “no significant impact” on industries prone to relocating production to regions without emission limits, according to a document obtained by Bloomberg News.
This week’s gain stems from increased confidence European parliamentarians will support backloading, Fred Payne, a carbon trader at CF Partners U.K. LLP in London, said today by e-mail.
“EUAs remain firmly on trend,” he said. “Downside should be limited even if we see profit-taking ahead of the weekend.”
Certified Emission Reduction credits for December rose 1 cent to 47 euro cents a ton after earlier reaching 48 cents, the highest intraday price since Jan. 10. They gained 12 percent this week.
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