---
Sent From Bloomberg Mobile MSG
+------------------------------------------------------------------------------+
EU Carbon Rises on German Power; UN Considers HFC Offset Supply
2010-07-30 16:35:52.272 GMT
By Mathew Carr
July 30 (Bloomberg) -- European Union carbon-dioxide
allowances, used in the world's biggest emissions market, rose
to the highest level in eight days as German power gained.
United Nations-overseen regulators meeting in Bonn,
Germany, called for more investigation into the supply of
offsets from plants that destroy HFC-23 emissions. Those
facilities are the most productive projects in the second-
biggest carbon market, the Clean Development Mechanism.
EU permits for December increased 13 cents, or 0.9 percent,
to 14.15 euros ($18.49) a metric ton on London's European
Climate Exchange as of 5:12 p.m., which would be the highest
close since July 22. They have risen 13 percent this year. UN
Certified Emission Reduction credits for December gained 1.1
percent to 11.95 euros a ton.
German baseload power for next year, a European benchmark,
gained 20 cents, or 0.4 percent, to 50.70 euros a megawatt-hour,
according to broker prices on Bloomberg. The contract jumped 2
percent yesterday. Higher power prices can boost the incentive
to sell forward, increasing demand for emission permits.
The CDM executive board, which oversees the UN market, is
deciding how to regulate projects that destroy
hydrofluorocarbon-23, a potent greenhouse gas that's a byproduct
of chemical-refrigerant making. Greenhouse-gas credits from HFC-
23 projects make up about half the supply of offsets in the UN
program. UN CERs can be used for compliance in the EU market.
"We can't conclude on this now," Lex de Jonge, chairman
of the UN panel that approves methodologies to cut greenhouse
gases, told the board yesterday. "We need some more work to be
done."
CDM Watch
CDM Watch, the environmental lobby group based in Bonn,
criticized the board for continuing to issue emission credits to
projects that curb HFC-23 gases.
Board members from Japan, China and India insisted the
methodology for credit creation under the Clean Development
Mechanism be allowed, the group said today in an e-mailed
statement.
"We should consider suspending the methodology while we
sort this out," Martin Hession, a board member from the U.K.,
said yesterday at the meeting. The regulators, gathering this
week until today, usually publish a report at the end of each
meeting.
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: Rob Verdonck, Raj Rajendran
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
