Issue CXCIII

Carbon Newsletter

DBLM Solutions
16 July 2015

EUETS Reforms
The EUA Dec14 contract is currently at 7.79.
The expectation of heatwave conditions in Europe
has edged European power prices upwards as
citizens crank up the AC, lending support to the
carbon price.
Weekly
Recap

ICE
EUA
Spot

ICE CER
Spot

ICE
EUA
Dec15

ICE CER
Dec15

09/07/2015

7.47

0.46

7.47

0.45

10/07/2015

7.51

0.45

7.63

0.44

13/07/2015

7.74

0.45

7.80

0.45

14/07/2015

7.73

0.45

7.75

0.44

15/07/2015

7.78

0.45

7.77

0.44

Volumes lots

2,342

50

53,30

133

Week %

4.14%

-2.17%

4.01%

-2.22%

The EUA/CER spread widened this week to 7.33,

at close of business last night versus the 6.99
spread we witnessed last week and 7.04 the week
before.

Auctions
EEX held auctions last Thursday, Friday, Monday
& Tuesday. Auction prices were 7.42, 7.42,
7.33 & 7.35 respectively. The cover ratios for the
above auctions were 2.07, 2.08, 2.42, & 2.72
respectively. (Cover ratio = no. of bids divided by
auctioned allowances.

Yesterday, the EU commission proposed legislative

reform to revise the EUETS post 2020. This is the
first legislative step to take on the 2030 target of
reducing GHGs by 40% compared to 1990 levels.
To achieve the 40% EU target, the sectors covered
by the EU ETS will be reducing their greenhouse
gas emissions by 43% compared to 2005. The
commission has proposed the following:
Increase the rate of emission cuts post 2020.
More targeted carbon leakage rules to
safeguard the international competitiveness
of the sectors most at risk of relocating their
production outside the EU. This will see the
sectors compensated drop from roughly 180
to 50.
Several support mechanisms to help
industry and power sectors meet the
innovation and investment challenges of the
low-carbon transition.
This is the centre piece of Europes
contribution towards a Global Climate deal
which is scheduled to be adopted in Paris this
December.
A total of 6.3 billion free credits will be awarded to
companies from 2021-2030, with the Commission
indicating it expects average carbon prices of 25
euros a tonne during the period.
Sit up and take notice.

The contents of the Newsletter is not a recommendation, either implicit or explicit, to buy or sell emission permits.
Contact: David Boles, Compliance Markets -Direct: +3531 4433 584; Mob: +353 831747707
DBLM Solutions is partly funded by the Wicklow Enterprise Board.