{CARX <GO>} for subscribers...Bloomberg New Energy Finance Carbon Model Page...launched today
+------------------------------------------------------------------------------+
EU Carbon Drops to 3-Month Low as Global Economy Seen Slowing
2010-07-26 17:23:33.761 GMT
By Mathew Carr
July 26 (Bloomberg) -- Carbon allowances in the European
Union emissions-trading system fell to their lowest price in
almost two weeks as global growth may drop compared with the
period before the recession.
Economic growth may average 3.25 percent to 3.5 percent in
the next three to five years, well below the 4.7 percent pace of
the five years leading to the 2008 slump, Stephen Roach, non-
executive chairman of Morgan Stanley Asia, estimated last week.
EU permits for December 2010 fell 50 cents, or 3.6 percent,
to 13.51 euros ($17.55) a metric ton on London's European
Climate Exchange as of 5:36 p.m. It was earlier today as low as
13.48 euros a ton, the lowest intra-day price since April 9.
The EU program is the world's biggest greenhouse gas
trading market. The system may have an oversupply of 1.3 billion
tons of allowances and credits in the five years through 2012,
its second phase, according to research by Bloomberg New Energy
Finance in London. That amounts to 12 percent of a cap of 10.7
billion tons.
UN Certified Emission Reduction credits for December fell
3.3 percent to 11.55 euros a ton, which would be the lowest
close since April 5 if prices settle at that level.
U.K. natural gas for the six months through September 2011,
the summer contract, fell 4.2 percent on ICE Futures Europe.
Lower gas prices may prompt some power utilities to burn less
coal, which requires about twice as many carbon permits to use.
For Related News and Information:
Emission market news NI ENVMARKET <GO>
Today's top energy stories ETOP <GO>
European power-markets home page EPWR <GO>
--Editors: Stephen Voss, Mike Anderson
To contact the reporter on this story:
Mathew Carr in London at +44-20-7073-3531 or
m.carr@bloomberg.net
To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net
