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  • Carbon Update 21 May 2013 PDF

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    David Boles
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    The document discusses the carbon market and issues facing credits known as "grey CERs". It notes that grey CERs, which were banned for EU compliance, still total 696 million issued credits. With the EUA contract at €3.54 and grey CERs having dropped 98% from 2008 prices to €0.39 per tonne, the value of these credits held by power stations and factories is uncertain. The only potential markets left may be sovereign nations under the Kyoto Protocol or possibly China's regional carbon schemes, but their validity is still undefined.

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    The document discusses the carbon market and issues facing credits known as "grey CERs". It notes that grey CERs, which were banned for EU compliance, still total 696 million issued credits. With the EUA contract at €3.54 and grey CERs having dropped 98% from 2008 prices to €0.39 per tonne, the value of these credits held by power stations and factories is uncertain. The only potential markets left may be sovereign nations under the Kyoto Protocol or possibly China's regional carbon schemes, but their validity is still undefined.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    5 views1 page

    Carbon Update 21 May 2013 PDF

    Uploaded by

    David Boles
    The document discusses the carbon market and issues facing credits known as "grey CERs". It notes that grey CERs, which were banned for EU compliance, still total 696 million issued credits. With the EUA contract at €3.54 and grey CERs having dropped 98% from 2008 prices to €0.39 per tonne, the value of these credits held by power stations and factories is uncertain. The only potential markets left may be sovereign nations under the Kyoto Protocol or possibly China's regional carbon schemes, but their validity is still undefined.

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    Download as PDF, TXT or read online from Scribd
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    DBLM Solutions

    David Boles 01 4433584 (Direct) dblmdavid (SKYPE) david@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 3.54. Companies holding grey CER's look like their investments are going to be junked. Bloomberg estimate that power stations and factories still have 144 million of these credits on their books. Grey CER's as they are referred were banned for EUETS compliance use during 2012 amidst fears that refrigerant gases were being produced for the sole purpose of CER generation. Austarlia and New Zealand have also banned grey CER's over the last year. The only market left for these allowances is sovereign. Each Nation which is a signatory to the Kyoto agreement has a compliance mandate or 'true up' as it is known. This is set to take place by March 2015, according to UN rules. Another home for these credits maybe in the Chinese regional markets but their validity have not yet been defined. The Chinese have stated that they will only accept domestic credits in their burgeoning regional cap and trade schemes. As the majority of grey CER's originate in China, it is a possibility that Europeans holding swathes of grey CER's may find a market at point of origination, China. To date 696 million grey CER's are issued. If you consider that DEC 13 CER's have dropped 98% from their 2008 high to 0.39 a tonne, a lot of potential capital has been left behind.
    Dec 13 EUA

    Past performance may not be a reliable guide to future performance. Mention of specific commodities should not be taken as a recommendation to buy or sell these commodities. Commodity Trading is risky and DBLM Solutions assume no liability for the use of any information contained herein. Past financial results are not necessarily indicative of future performance. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to accuracy. Any examples given are strictly hypothetical and no representation is being made that any person will or is likely to achieve profits or losses similar to those examples. Neither this information, nor any opinion expressed, constitutes a solicitation to buy or sell futures or options or futures contracts, or OTC products. Reproduction without authorization is forbidden. All rights reserved. DBLM Solutions.

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