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

DBLM Solutions Carbon Update

Carbon Overview

David Boles +353 86 1602115 (Mobile) dblmdavid (SKYPE) david@dblmsolutions.com

At time of writing the Dec '13 EUA Contract was at 3.74. On Thursday morning, carbon was heavily bearish but regressed strongly at 11:00am on successful auction news and a change of direction in the energy complex after a sustained bearish run in Brent especially. After the brief spike , we have returned to the previous days levels, waiting for the next price movement. Yesterday's auction cleared at 3.36. This mornings auction was also successful, clearing at 3.47. German baseload powerfor delivery today was 7 euro down from the previous day ahead price, at 46.75. This can be explained away by increase weather forecasts coming into the weekend, less demand. The same was realised in France, the Frencxh eqivalent was down 6.50 to 67.50. Yesterday, the vote on energy policy reform in the European Parliament which outlines the need for new GHG emission targets of 40% by 2030 won by the narrowest of margins, only 3 votes. (754 members). The price jumped by nearly 20% on the back of this slim victory. Many analysts considered this to be a signal to the vote on April 16 concerning backloading but at this stge no one knows which way it is going to go.The vote will determine the
Dec 13 EUA

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