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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 4.26. Carbon was bullish over the last couple of days before turning at a high of 4.57 just before 3 pm yesterday afternoon. The unseasonal cold snap carries much of the responsibility of these movements. The fallaway can be explained by a power surge from renewables in Germany and France, namely the windy weather. Political soundbites have also pushed the price up recently. Ireland currently holds the EU presidency on a rolling basis and yesterday, Phil Hogan the minister for the Environment stated, Even though the environment
committee was somewhat difficult on the matter and passed responsibility for approving talks on the proposal with member states to the full assembly, there are indications that that will happen and that we will get a short-term result on the backloading, Hogan said. The vote is on the 17 April and needs 255 votes out of 345. In order for the backloading proposal to fail, the con side must have 91 votes against the proposal. A total of 43 votes have already been declared through Poland Greece and Cyprus. Gewrmany has not yet declared how they will cast their 29 votes. In addition, Portugal, Romania, Bulgaria and the Czech Republic have not declared their official stance. A final version of the proposal needs to be agreed if the vote is successful. Then, the plan will need formal approval by the Pleanary and EU ministers in yet more votes in the coming months.
Dec 13 EUA

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