Issue CXX

The contents of the Newsletter is not a recommendation, either implicit or explicit, to buy or sell emission permits.
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Carbon Newsletter
DBLM Solutions
26 June 2014


The EUA Dec13 contract is currently at 5.79.
The carbon price has now had steady gains since
the 20 of May 2014. The price hit a 3 month high
last Tuesday of 5.93 on the back of strong
auction demand. Currently, the 4 hour chart is
bullish with first resistance at 5.91. This
mornings auction demand is very healthy with
8.21 times the amount of bids versus available
volume. During the week, Germany stated that
they are looking to push forward with carbon
market reforms which will allow the control of
carbon supply into the market. If the reforms
are published in the near future it will be
roughly 2017 before the reforms are passe into
law.
Weekly
Recap
ICE
EUA
Spot
ICE CER
Spot
ICE
EUA
Dec13
ICE CER
Dec13
19/06/2014 5.53 0.14 5.60 0.14
20/06/2014 5.65 0.15 5.71 0.15
23/06/2014 5.79 0.14 5.85 0.14
24/06/2014 5.76 0.14 5.79 0.14
25/06/2014 5.71 0.15 5.75 0.14
Volumes lots 3,839 550 59,672 1,778
Week %

3.25% 7.14% 2.67% -

The EUA/CER narrowed this week to 5.56, at
close of business last night versus the 5.61


spread we witnessed last week and 5.29 the
week before.
Auctions
EEX held auctions last Thursday, Friday,
Monday & Tuesday Auction prices were 5.60,
5.56, 5.64 & 5.84 respectively. The cover
ratios for the above auctions were 4.00, 5.06,
7.37 & 8.21 respectively.
China
Last Thursday, China launched their seventh
and final regional emission trading scheme in
the southwest region, Chongqing. A total of 254
companies with carbon dioxide emissions
exceeding 20,000 tonnes each year were
selected for the trading market. The government
will impose emission quotas for them annually.
Emission trading schemes now exist in Beijing,
Tianjin, Shanghai, Chongqing, Shenzhen,
Guangdong and Hubei.
Construction of a nationwide trading network
for carbon emission rights is expected to be
completed in three years, said Sun Cuihua, vice
director of the climate change department of the
National Development and Reform Commission
(NDRC). Carbon dioxide emissions per unit of
GDP had accumulatively dropped 28.56 percent
by 2013 from the levels of 2005, or a reduction
of 2.5 billion tonnes of carbon dioxide emission,
according to the NDRC.