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 4.12. The fall in prices is attributed to traders closing out positions as we witnessed one of the most turbulent weeks on record last week. The logical expectation of a carbon price rise hasn't happened yet but probably will as the dust settles. The hype of the backloading vote has subsided to the realisation that only the first hurdle of many is negotiated at this still early stage in the process. The ' backloading' procedure is also subject to an impact assesment to ensure that the procedure doesn't result in business leaving Europe as a direct result of the temporary withdrawal of 900million EUA's from the market. The immediate need now, is to engage the European Council and have the reading passed by the relevant menber states. By all accounts, this will not happen until mid October. Carbon analysts have also reacted with forecast rises across the board. Since last Wednesday, the general consensus is the ' backloading ' measure is a good start but a lot more needs to be done. As outlined here before, EUETS structural reform is on the European Commission agenda and we should witness the onset of concrete action by the end of 2013.
Dec 13 EUA

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