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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 3.64. There is a bank holiday in mainland Europe today. As a result spot power prices are down slightly for Tuesday delivery. German Tuesday power stands at 35.45 per megawatt hour, compared to 35 witnessed last Friday. Over the same period French power dropped 8 to 32. The Pentecost holidays should result in downside pressure for the rest of the week. Weather forecasts look to support carbon prices. German weather is hitting average temperatures and French forecasts see lower than average temperatures over the coming week. It may be prudent to look elsewhere for carbon price direction. A recent report has again outlined the unusable fossil fuels that corporates have invested heavily in but cannot be burned if we are to stay within the acceptable 2 oC rise that was agreed at the 2010 global Climate Conference. I have attached the report. Nicholas Stern explains in a forward to the "Unburnable carbon 2013" report: "If we burn all current reserves of fossil fuels, we will emit enough CO2 to create a prehistoric climate, with Earth's temperature elevated to levels not experienced for millions of years. "Smart investors can already see that most fossil fuel reserves are essentially unburnable ... They can see that investing in companies solely or heavily relying on constantly replenishing reserves of fossil fuels is becoming a very risky decision," Stern claims. However, it appears that politicians, corporations and individuals are paying little attention to the warning signs from the Scientific community. If the relevant parties were really committed to the task nearly two thirds of fossil fuel reserves would need to be left in the ground.
Dec 13 EUA

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