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 4.29. On Friday, we witnessed the tenth consecutive day of carbon price gains as traders see thin volume propping up prices. The first hour of trading this morning has reversed this 10 day run, with the hourly chart turning bearish. This may only be temporary as Brent is trading agressively upwards in the last two hours. We are now entering a traditionally slow part of the year as a lot of Europe pack up shop for the month of August. The thin trade is due to the fact that four EU officials have stated that EUETS participants may have to wait several more months for their 2013 free allowances. In previous years they were issued at the end of Febuary. This has led to frustration amongst commercials as they are not sure of their free allowance over the next eight years and therefore are managing their carbon asset blind to a certain extent. The net result is the thinning trade volumes that we have witnessed. The cap and trade that will be introduced a year earlier than originally envisaged in Australia will have a cap 25 million tonnes less than emissions recorded for the Industrial and energy producing sectors in 2013.
Dec 13 EUA

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