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 4.19. Carbon holds its gains after 4 weeks of bullish movement. This mornings auction at EEX cleared at 4.14. The global audit on Green House Gas Emissions was released today by the International Energy Agency. In 2012, World CO2 emissions rose by 1.4% to 31.6 billion tonnes. China led the emissions list, compensating for a reduction in emissions by Europe and the United States. The US shale gas revolution helped reduce their overall tally by 200 million tonnes. In Europe the economic slowdown aided their reduction of GHG emissions (to the tune of 50 million tonnes) even though an increase in the use of cheap coal was observed. Japan's emissions raised by 70 million tonnes but can be attributed to the Fukishima disaster as they steer away from nuclear. The analysis carried out by the IEA suggests that the world is on a path to an average temperature rise of between 3.6 and 5.3 degrees Celsius. If we were to achieve the goal set out in the Copenhagen accord, of an acceptable 2 oC temperature rise, emissions need to remain at 44 billion tonnes of CO 2/year through to 2020. IEA forecast emissions to stand at 48 billion tonnes by 2020. The IEA urged Governments to adopt four measures that would allow climate goals be reached without harming economic growth. The measures are, improving energy efficiency in buildings industry and transport, limiting the construction and use of inefficient power plants. The reduction of methane emissions by half and the phasing out of fossil fuel subsidies. If these actions are undertaken, global energy-related emissions could be reducedby 8 percent or 3.1 billion tonnes of CO2 equivalent in 2020.
Dec 13 EUA

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