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. Carbon has hit a seven day low and analysts have blamed poor auction results as the culprit. EON published data on Tuesday and as one of the larger utilities they have a large influence over carbon use in the EU bloc. Year on year, EON produced 2.5% less power in the first 6 months of 2013. Also, EON's emissions were down nearly 9% over the same period. European power producers are responsible for 40% of the EUETS and EON alone have verified emissions of 90 million tonnes of CO2 for 2012. The 3 largest utilities RWE, EON, and Vatenfall accounted for 319 million emissions in 2012, so any fluctuation in their carbon requirement is paramount to an overall sense of demand. It also transpired that Tata steel have not participated in the carbon market from April to June. This is not surprising, as they had a 19 million surplus in 2012 and low prices have repelled them from cashing in on their windfall. The EU Commission has published two lists. A positive lists that contains project ID's of Joint Implementation and Clean Development projets that are eligible for use in the European Union emission trading Scheme. In addition to Project ID,'s, the list contains the start and end of individual serial numbers , for projects which are not in general valid for the use in the EU ETS, but restricted to specific serial numbers.
Dec 13 EUA

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