DBLM Solutions

Luciano Magliocco +353 87 9051928 (Mobile) dblmluc (SKYPE) luc@dblmsolutions.com

DBLM Solutions Carbon Update

Carbon Overview

David Boles 01 4433584 (Direct) dblmdavid (SKYPE) david@dblmsolutions.com

At time of writing the Dec '13 EUA Contract was at 4. 90. Prices started to rise last Friday lunchtime on optimism that tomorrows vote will go through to withhold 900 million EUA's from auction until the final three years of Phase 3. Analysts have predicted that carbon could fall below 1 tonne if the vote fails tomorrow. In other news , the UN has launched a commission study to establish access to sovereign wealth funds in order to try and save the ailing flexible mechanisms, ie the clean development mechanism and Joint Implementation. The carbon world is on its knees and the vote tomorrow will be decisive. We will let you know the results as soon as they become known. Results on the consultation process about carbon market reforms have been published. About 10% of the 200 responses came from utilities. These companies included CEZ, Dong energy, EON, GDF Suez, Iderbola, RWE, SSE, Statoil and Vattenfall. Nineteen out of the 23 respondents rejected the reform to ban UN offsets for compliance use. An interesting solution was proposed by EON, whereby an 'emission trading currency' would be established. This would enable offsets to be converted into EUA's and vice versa.
Dec 13 EUA

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