Issue XCVVIII

Auctions
The EUA Dec13 contract is currently at !4.46. The expectation is that carbon will be bullish on the back of news that European diplomats have rubber stamped the backloading process. This will allow for the temporary removal of 900 million EUAs from the European Emission Trading Scheme. In other news it has emerged that Poland may miss the April 2014 deadline to issue this years free allowances. This means that utilities and manufacturers may have to go to market to acquire 64.43 million allowances before the submission deadline on April 30 2014. A source with the EU Commission has stated that the commission will propose a law in January that will allow structural reforms to the EUETS in order to get the carbon price to a point that will promote investment in the renewable sector.
Weekly Recap 13/11/2013 14/11/2013 15/11/2013 18/11/2013 19/11/2013 Volumes lots Week % ICE EUA ICE CER ICE EUA Spot Spot Dec13 ICE CER Dec13

EEX held auctions last Thursday, Friday, Monday and Tuesday, auction prices were !4.63, !4.46, !4.38, !4.33& !4.44 respectively. The cover ratios for the above auctions were 4.26, 3.91, 3.41, 2.32 & 5.19 respectively (Cover ratio Amount of bids/actual auction volume). The ICE exchange auctioned 4,134,000 EUAs this morning at !4.40 each. In total an extra 22,199,500 EUAs were brought to the market place. During the week ICE and EEX published their calendars for EUA auctions in 2014. In total, they will auction 926,218,500 million EUAs.

Climate Conference
Environmental ministers arrived in Warsaw yesterday amid a new report that anthropogenic emissions will reach a record level of 36 billion tonnes this year. This estimate for 2013 is 2 per cent higher than last year. The first point that will be tackled by the respective ministers will be climate finance. The Green Climate fund remains empty 3 years after its initiation at the Cancun Climate summit. This is causing much anger as poorer Nations are seeking recompense for the growing number of extreme weather events. In Doha last year, the parties agreed to come up with a mechanism to deal with loss and damage due to climate change. However, the developed world are not willing to be held accountable and will likely delay the mechanism and offer larger pledges to the Green Climate fund. e.g It is estimated that Africa will face costs of between $7 - $15 billion a year by 2020 as a result of adaptions needed because of climate change.

4.64 4.57 4.48 4.34 4.41 2,037 -4.95%

0.52 0.49 0.42 0.32 0.32 0 -38.46%

4.65 4.59 4.50 4.35 4.42 62,189 -4.94%

0.51 0.48 0.42 0.32 0.35 8,036 -31.37%

The EUA/CER spread narrowed this week to !4.09 at close of business last night versus the !4.13 spread we witnessed the week before and !4.27 the previous week.

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:00353 831744707 DBLM Solutions is partly funded by the Wicklow Enterprise Board.