Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

http://www.businessweek.com/news/2012-12-04/eu-carbon-permits-for-december-fall-to-record-5-dot-75-euros-a-ton

Bloomberg News

Carbon Permits Fall to Record as EU Discusses Plan to Fix Glut

December 04, 2012

European Union carbon permits for December fell to a record on speculation that a plan to remove supply may not win support.

The benchmark futures contract dropped 3.9 percent to close at 5.72 euros ($7.49) a metric ton, the lowest since it started trading in April 2005 on London’s ICE Futures Europe exchange. Certified Emission Reduction credits for December fell as much as 11 percent to a record 57 cents in intraday trade. Emission Reduction Units for December dropped as much as 17 percent to a record 34 cents.

The EU commission has asked its 27 members to indicate Dec. 13 whether they support a plan to tackle a glut in the market. The proposed measure, known as backloading because supply would return near the end of the decade, may not win enough support from nations and Germany is wavering on the matter, Barclays Plc said yesterday in an e-mailed note.

“The carbon market is very concerned about the lack of credible signals about demand for emissions units coming out of the policy and regulatory institutions” for the period through 2020 and beyond, Daniel Rossetto, managing director of Climate Mundial Ltd., a London-based consulting company that works in carbon markets, said today in an emailed response to questions. “That’s why EU allowances are at record lows.”

To contact the reporter on this story: Mathew Carr in Doha at m.carr@bloomberg.net

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


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus