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. German baseload power for delivery today is down 2.85 to 41.40/ megawatt hour. The equivalent French contract is at 44.75, down 1.50. Reasons given for the decline is lower than average forecasts for this time of year, in Germany and France. It is understood that several European lawmakers sought to make amendments to the 'backloading' proposal. The deadline for amendments was at 18:00 CET yesterday. Bloomberg reported that 5 members of the Environment committee will seek a one time carbon permit supply curb to tackle the ovewrsupply issue. If adopted this will limit the previous proposal to a once off action. The change is aimed at swinging some undecided votes in the European Parliament. In total, 9 changes are sought. The commission may in exceptional circumstances adapt the auctioning timetable to ensure an orderly functioning of the market, according to their proposal. This in line with a modification that the European parliamentary president is seeking, the presidency is currently held by Ireland. The idea behind tabling the Council text is to make future negotiations between Parliament and Council easier, and to put pressure on those member states who do not have a position yet, Eickhout said(Environment Commitee member).

Dec 13 EUA

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